We thank our friends at the National Association of Legal Fee Analysis (NALFA) for the following August 5 and 8, 2013 posts on its Attorney Fees Blog website.
List of Largest U.S. Securities Class Action Settlement.
In an August 5, 2013 post, NALFA lists these as the biggest pre-2013 class action fee settlements reached in U.S. securities cases, with explanatory footnotes and caveats:
1. In Re Enron Corp. Sec., Deriv. & ERISA
$7.227B — settlement amount
$688.23M — fee award
9.52 — fee award as percentage of settlement
5.22 — multiplier on lodestar
2. In Re WorldCom, Inc. Sec. Litig.
$6.156B — settlement amount
$336.10M — fee award
5.46 — percentage of settlement
2.50 — multiplier
3. In Re Tyco Int’l Ltd. MDL
$3.200B — settlement amount
$464.00M — fee award
14.50 — percentage of settlement
2.70 — multiplier
4. In Re Cendant Corp. Sec. Litig.
$3.186B — settlement amount
$262.46M — fee award
8.24 — percentage of settlement
32.81 — multiplier
5. In Re AOL Time Warner Inc. Sec Litig.
$2.500B — settlement amount
$147.50M — fee award
5.90 — percentage of settlement
3.15 — multiplier
6. In Re Nortel Networks Corp. Sec. (Nortel I)
$1.142B — settlement amount
$13.16M — fee award
3.00 — percentage of settlement
2.06 — multiplier
7. In Re Royal Ahold N.V. Sec. & ERISA
$1.100B — settlement amount
$130.64M — fee award
11.88 — percentage of settlement
2.57 — multiplier
8. In Re Nortel Networks Corp. Sec.(Nortel II)
$1.074B — settlement amount
$29.61M — fee award
8.00– percentage of settlement
4.77 — multiplier
9. In Re McKesson HBOC Inc. Sec. Litig.
$960.00M — settlement amount
$74.78M — fee award
7.79 — percentage of settlement
2.04 — multiplier
10. In Re UnitedHealth Group Inc. PSLRA Litig.
$925.50M — settlement amount
$64.78M — fee award
7.00 — percentage of settlement
3.59 — multiplier
11. In Re American Int’l Group Inc. Sec. Litig.
$822.50M — settlement amount
$101.91M — fee award
12.39 — percentage of settlement
0.95 — multiplier
12. In Re HealthSouth Corp. Sec. Litig.
$804.50M — settlement amount
$138.19M — fee award
17.18 — percentage of settlement
1.20 — multiplier
13. Carlson v. Xerox Corp.
$750.00M — settlement amount
$120.00M — fee award
16.00 — percentage of settlement
1.25 — multiplier
14. In Re Wachovia Preferred Sec. and Bonds
$627.70M — settlement amount
$75.24M — fee award
12.00 — percentage of settlement
2.30 — multiplier
15. In Re Lucent Techs. Inc. Sec. Litig,
$608.35M — settlement amount
$102.47M — fee award
16.85 — percentage of settlement
2.14 — multiplier
16. In Re Countrywide Fin. Corp. Sec. Litig.
$601.50M — settlement amount
$46.47M — fee award
7.73 — percentage of settlement
0.67 — multiplier
17. In Re Cardinal Health Inc. Sec. Litig.
$600.00M — settlement amount
$107.58M — fee award
17.93 — percentage of settlement
5.85 — multiplier
18. In Re Initial Public Offering Sec. Litig.
$586.00M — settlement amount
$170.08M — fee award
29.02 — percentage of settlement
0.45 — multiplier
19. In Re Lehman Bros. Sec. and ERISA
$516.21M — settlement amount
$56.72M — fee award
10.99 — percentage of settlement
1.50 — multiplier
20. In Re BankAmerica Corp. Sec. Litig.
$490.00M — settlement amount
$86.41M — fee award
17.64 — percentage of settlement
3.00 — multiplier
21. In Re Merrill Lynch Sec. Diriv. & ERISA
$475.00M — settlement amount
$37.12M — fee award
7.82 — percentage of settlement
2.26 — multiplier
22. In Re Dynegy Inc. Sec. Litig.
$474.05M — settlement
$35.15M — fee award
8.73 — percentage of settlement
4.04 — multiplier
23. In Re Raytheon Co. Sec. Litig.
$460.00M — settlement
$41.40M — fee award
9.00 — percentage of settlement
3.15 — multiplier
24. In Re Waste Mgm’t Inc. Sec. Litig.
$457.00M — settlement
$36.22M — fee award
7.93 — percentage of settlement
5.29 — multiplier
25. In Re Adelphia Commc’ns Corp. Sec. Deriv
$455.00M — settlement
$97.37M — fee award
21.40 — percentage of settlement
2.89 — multiplier
26. In Re Global Crossing Ltd. Sec. & ERISA
$447.80M — settlement
$72.72M — fee award
16.24 — percentage of settlement
2.57 — multiplier
27. In Re Qwest Commc’ns Int’l Sec. Litig.
$445.00M — settlement
$66.75M — fee award
15.00 — percentage of settlement
3.24 — multiplier
28. Ohio Pub. Emp. Ret. Sys. v. Freddie Mac
$410.00M — settlement
$82.00M — fee award
20.00 — percentage of settlement
2.32 — multiplier
29. In Re Marsh & McLennan Co. Inc. Sec. Litig.
$400.00M — settlement
$52.91M — fee award
13.23 — percentage of settlement
0.44 — multiplier
Pampers Settlement/Fee Award Nixed.
Folding diapers (above). c1937. Library of Congress.
In an August 8, 2013 post, NALFA reports that the Sixth Circuit Court of Appeals rejected a $2.73 million fees award to plaintiff class action attorneys in a proposed settlement where class members would receive $1,000 each in the Pamper Dry Max Diapers class action settlement. In a 2-1 opinion, the majority found the settlement unfair and fee award unjustified where not one single deposition or any discovery had been taken. The dissenting judge thought the settlement was fair; even though the claims had little merit, class members would have received nothing if the suit was litigated to conclusion versus getting something out of the settlement.