Slashed Fees Still Add Up to $1,825 an Hour
A federal judge in Detroit reduced legal fees this week in a $303 million settlement between General Motors Corp. and investors.
U.S. District Judge Gerald Rosen said the 19 percent requested by lawyers was too much and wouldn’t sit well with the middle class, according to an Associated Press report. Instead of the $60 million sought, lawyers who represented people who invested in GM stock over a six-year period, will divvy up 15 percent or $45 million.
“We provide a very useful societal function…at our own expense,” Jonathan Plasse said referring to challenges to corporate executives.
Rosen reportedly agreed that lawyers who take on companies ought to be paid, but he wondered what the reaction would be if autoworkers and small investors were in the courtroom.
“They’d say it’s exorbitant,” the judge is quoted saying. “Nineteen seems like a relatively low percentage until you look at the size of the beast.”
