Reuters reports that the Association of Corporate Counsel sent a ‘friend-of-the-court’ letter last week to the Manhattan federal judge who will make the decision to approve the fee.
Lawyer rates
In the letter, the ACC highlights an argument by class action reform activist Ted Frank who claimed that the fee request is based on excessive contract lawyer rates.
Amar Sarwal, chief legal strategist at ACC, wrote that hardly any law firms would charge such a large amount for contract lawyers.
The issue marks the first time the ACC has disputed fees in a class action. Mr Sarwal added that the objection demonstrates the increasingly hands-on approach of the ACC in response to the economic downturn and need for value-based fee arrangements.
Juicy target
‘We've been looking for an opportunity in courts to weigh in, so this was a pretty juicy target,’ he said.
The lawsuit – which was filed in 2007 – claimed that the bank hid millions of dollars in ‘toxic’ mortgage assets. Citigroup agreed to settle last year, and Kirby McInerney, the lead plaintiffs' counsel, subsequently applied for almost $100 million in fees.
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