Posted on 08/08/2010 8:09:29 AM PDT by AtlasStalled
A shareholder has sued the lawyers who negotiated a $3.2 billion settlement of the Tyco International securities litigation in 2007, saying they reaped hundreds of millions of dollars in excess fees by hiding a pre-existing agreement with the lead plaintiff in the case.
The lawsuit in U.S. District Court in Delaware accuses Wilmington law firm Grant & Eisenhofer of failing to disclose a 2004 agreement with the Teachers Retirement System of Louisiana, the plaintiff that took the leading role in the class action, that capped fees at about 7.8% of a multibillion-dollar settlement. Instead, the lawsuit says, Grant & Eisenhofer partner Jay Eisenhofer submitted an affidavit to the court suggesting a 17.5% fee was justified but that lawyers had unilaterally reduced that to 14%, or about $464 million, plus $30 million in expenses.
(Excerpt) Read more at forbes.com ...
Lawyers screwing clients - who’d a thunk it?
The skunk has skid marks in front of it.
Don’t worry a new set of lawyers will sue the lawyers and then a new set of lawyers will sue the lawyers that sued the lawyers...
Even 7.8% sounds totally outrageous, given the multi-billions at stake. But perhaps that’s just me. How much per hour of actual work does that translate to?
Crooked lawyers, who would have thought it.
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