We would like to thank NALFA for providing posts on the following topics of interest, which we summarize.
Governor Jerry Brown Signs SB 462 Into Law--Employers’ “Bad Faith” Burden.
On August 26, 2013, California Governor Jerry Brown signed SB 462 into law. This amended Labor Code section 218.5 provides that persons other than employees (mainly, employers) have to prove “bad faith” in order to obtain attorney’s fees and costs under section 218.5 for certain wage/hour claims. The employee, however, needs only to prevail and does not have to prove “bad faith” against the other side in order to garner a fee/costs recovery. However, the amendment does not apply to claims by which fees are recoverable under section 1194.
Six Largest U.S. Bank Expenditures Since 2008 Financial Crisis.
Since the financial crisis, the six biggest U.S. banks, led by JP Morgan Chase & Co. and Bank of America Corp., have piled up $103 billion in legal costs, inclusive of attorney’s fees, litigation expenses, and shoddy mortgage/foreclosure settlements, since the “great recession” crisis began in 2008. This is more than all dividends paid to shareholders in the last five years. Since the start of 2008, Chase led the way, devoting $21.3 billion to legal fees and litigation outlays--more than any other lender.
Fannie Mae Class Action Fee Request.
Plaintiffs’ class action attorneys have requested over $44 million in fees, broken down as $29.1 million in fees and $15.2 in costs, for their work in settling the Fannie Mae securities class action. That action was settled for $153 million, with the fee request being 22% of the fund. Requesting attorneys claim to have spent 300,000 hours on the case, with lodestar fees coming to $94 million.
Facebook Sponsored Stories Class Action Attorneys Garner Fees of $4.7 Million, A Cut From the $7.5 Million Fee Request.
U.S. District Judge Richard Seeborg (N.D. Cal.) has been presiding over Fraley v. Facebook, a class action brought by social network users claiming their names and likenesses were used without permission to promote products/services on Facebook’s “sponsored stories” advertising feature. A user holding a valid claim will get $15 in settlement, while the rest will be disbursed to 14 cy pres organizations. However, District Judge Seeborg cut plaintiffs’ attorneys’ $7.5 million fee request (37.5% of the fund) down to 25% of the fund amount after deducing administrative expenses, incentive awards, and costs. The actual fee award is projected to be around $4.7 million.
Citigroup Bondholder Securities Litigation Fee Request.
U.S. District Judge Sidney Stein (S.D.N.Y.) has approved a $730 million settlement in the Citigroup bondholder class action. Plaintiffs’ lead counsel, on behalf of three primary firms, has requested a fee/costs award of $146 million. The request is still pending before the district judge.
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