“New York’s Bernstein Litowitz Berger & Grossman and Boston’s Berman DeValerio Pease Tabacco Burt & Pucillo had asked for 7.5 percent of the settlement amount, or around $22 million, for serving as co-lead plaintiffs’ counsel in a suit against pharmaceutical giant Bristol-Myers over its $2 billion investment in biotechnology company ImClone” and over a 2002 earnings restatement (see “Won Its Case, Still Paid $300M To Settle”, Aug. 2). But federal judge Loretta Preska of the Southern District of New York cut the allowed fee to $12 million, observing that the case piggybacked on an SEC enforcement action and on statements already in the public record: “Among securities class actions, this case as a whole was neither unique nor complex.” Moreover, it “is not thirty times more difficult to settle a thirty million dollar case as it is to settle a one million dollar case.” And in a footnote, Judge Preska wrote that the 7.5 percent fee negotiated between the lawyers and their clients should not be accorded a presumption of fairness because the lead plaintiffs — which included the Teachers’ Retirement System of Louisiana, the Louisiana State Employees’ Retirement System, the General Retirement System of the City of Detroit and the Fresno County Employees’ Retirement Association — had acted as “mere figureheads” for fee-seeking lawyers. Bernstein Litowitz partner Erik Sandstedt said the intimation that the pension funds served as mere figureheads “is completely untrue”. (Anthony Lin, “Judge Halves Fees Sought in Bristol-Myers Securities Class Action”, New York Law Journal, Feb. 28).

Filed under: class actions, Detroit, Louisiana