A recent Law 360 story by Kevin Stawicki, “Attys in $11.9M Thoratec Heart Device Deal Seek $2.9M in Fees,” reports that Pomerantz LLP has asked a California federal judge to approve over $2.9 million in attorney fees for leading Thoratec Corp. shareholders to an $11.9 million deal with the medical equipment company to resolve class action claims it hid risks related to its implantable heart devices.  One-third of the settlement fund is an appropriate award for litigating claims that Thoratec misled investors regarding the rates of fatal pump thrombosis in patients using its HeartMate II Left Ventricular Assist Device, attorneys for lead plaintiff Todd Labak said in a filing accompanying a motion for final approval of the settlement.

The award compensates attorneys for 3,765 hours and $392,445 in expenses to prepare for and litigate the case that ran into numerous hurdles along its five-year journey.  The parties asked a federal judge for initial approval of the deal in February following extensive mediation efforts after the class won class certification in 2018.  "By any measure, the settlement is a good result for the class, avoiding the considerable risks of summary judgment, trial, and appeal," the attorneys said.  "Without any assurance of success, the class representative and class counsel pursued their claims for over five years to an exceptional conclusion."

Had the case gone to trial, a jury could have poked holes in the class' claims that Thoratec committed fraud or intentionally misled investors, and just as easily could have sided with Thoratec's damages calculation over the class' determination, the attorneys said.  A federal judge certified the investors as a class in 2018 when it determined the company made material misrepresentations that could have reasonably misled investors, backing shareholders Todd Labak and Bradley Cooper's contention that the company misled them into believing HeartMate II was maintaining the status quo, when it was instead struggling.