November 21, 2008

Litigation On $300 A Night

The Coca-Cola securities class action continues to make news. After the "sale of stolen company documents" controversy, the case was settled earlier this year for $137.5 million.

The Fulton County Daily Report has an article on the court's decision to reduce the fee award from 26% to 21% of the common fund - about a $7 million difference - and reject $4 million in claimed expenses. Among other things, the court complained about the percentage of work done by high-billing attorneys, declined to reimburse on-line research costs, and criticized the per-day travel costs.

Quote of note (decision): "This Court is not troubled by the apparent fact that [the plaintiffs'] attorneys seek high comfort on their journeys, but neither should the class finance such a lifestyle. This Court finds that a client could reasonably expect to pay $300 per night for his attorney's food and lodging on domestic trips, and that is the level at which this Court will reimburse [the firm] for its travel."

Posted by Lyle Roberts at November 21, 2008 10:07 PM | TrackBack
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