September 18, 2009

You'll Get Nothing And Like It

When it comes to sharp talk from the bench, Judge James Rosenbaum and the UnitedHealth securities class action is the gift that keeps on giving. The court's latest decision - In re UnitedHealth Group Inc. PSLRA Litig., 2009 WL 2868399 (D. Minn. Sept. 4, 2009) - addresses whether counsel for the attorneys' fees objectors should be paid for their efforts. The court, as part of approving the settlement of the case, reduced the requested attorneys' fees from $110 million to $65 million. However, Judge Rosenbaum was upset (to say the least) at the idea that the objectors should receive the credit.

The court noted that the objectors' filing was late, short, and "presented no facts, offered no law, and raised no argument upon which the Court relied in its deliberation or ruling." The court therefore held that the objectors' counsel, which it described as "remoras" (i.e., suckerfish), were "entitled to an award equal to their contribution . . . nothing."

Holding: Motion for award of fees denied.

Quote of note: "If the Court may be permitted an egregious paraphrase of Winston S. Churchill: Seldom in the field of securities litigation was so little owed by so many to so few."

Posted by Lyle Roberts at September 18, 2009 8:14 PM | TrackBack
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