Major Class Action Settlement Hung Up Over Legal Fees
Headline Legal News
Congressional approval of one of the largest class action settlements in U.S. history is getting hung up on the issue of legal fees for plaintiffs lawyers.
The $3.4 billion Indian trusts settlement agreed to in December could be scuttled if Congress doesn't approve the terms of the agreement by May 28, according to The Associated Press.
The tentative settlement would close the books on a class action filed in 1996 on behalf of 300,000 American Indians. The plaintiffs in the suit claimed that as trustee for 145 million acres of land under the Dawes Act of 1887, the U.S. Department of the Interior mismanaged trust accounts and allowed the federal government to give the best land to white settlers. The settlement calls for plaintiffs to be paid $1.4 billion -- about $1,500 per class member- -- and for a $2 billion fund to be set up to buy American Indian land.
The potential snag now, as reported by sibling publication The Blog of Legal Times, is a move by Sen. John Barrasso of Wyoming to cap attorney fees in the case at $50 million. That has one of the plaintiffs lawyers who spent years litigating the matter crying foul.
Dennis Gingold -- a solo practitioner in Washington, D.C., who serves as lead counsel to the plaintiffs -- told the AP that he will terminate the settlement and resume litigation unless Congress approves the agreement without altering any of its terms. Gingold told The BLT that Barrasso's sentiments fly in the face of a previous fee cap of $100 million agreed to in December, which would give Gingold and his co-counsel at Kilpatrick Stockton fees totaling between $50 million and $100 million.
Were Gingold and Kilpatrick Stockton to split $100 million, they would be taking a total cut of roughly 7 percent of the $1.4 billion settlement figure; the lawyers' share shrinks to about 3 percent if the $2 billion trust called for under the proposed settlement is figured in. Either way, the fees would be well below what has been paid out to plaintiffs lawyers in other major class actions such as the one against Enron, as noted by lead plaintiff Elouise Cobell, a former treasurer of Montana's Blackfeet Nation, in a story by Legal Newsline.
Related listings
-
US court tosses protester's arrest at Liberty Bell
Headline Legal News 06/21/2010An anti-abortion protester arrested in 2007 had a First Amendment right to demonstrate on a sidewalk near the entrance the building that houses the Liberty Bell, a federal appeals court ruled Wednesday.The decision overturns lower-court rulings that ...
-
Calif. high court to hear church's property appeal
Headline Legal News 06/14/2010The California Supreme Court has decided to hear an Orange County church's appeal to keep its beachfront church property, despite breaking away from the main Episcopal Church. St. James Anglican Church, a theologically conservative breakaway church, ...
-
Ex-lawyer faces sentencing for Ponzi scheme
Headline Legal News 06/09/2010The sentence was more than the 40 years federal prosecutors had recommended for Rothstein, a disbarred lawyer who pleaded guilty to racketeering and fraud conspiracy charges in January.He had faced up to 100 years in prison but his lawyer had asked U...
Victorville CA DUI Lawyers - Drunk Driving Defense Attorney
The outcome of a Victorville CA DUI defense will have a long-term effect on anyone’s life, making the decision to receive legal representation an easy one. The fact is, most people accused of a DUI are first offenders with no criminal background. Whether this is your first run in with the law or you have had previous convictions, you are in need of a DUI defense attorney.
If you fail a sobriety test or have a blood alcohol level above 0.8%, you are considered to be driving under the influence in which you will be arrested. During this time you will be read your Miranda rights and it is crucial to exercise your right to remain silent. As they say, “anything you say can and will be held against you in court.” The courtroom takes no mercy on drunk drivers and any statement you make during your arrest will only damage your case.