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Issues Arise in Fee Proposal in Price Fixing Class Action

August 6, 2020 | Posted in : Fee Allocation / Fee Apportionment, Fee Proposal / Bid, Practice Area: Class Action / Mass Tort / MDL

A recent Law 360 story by Nadia Dreid, “Too Many Cooks in Kitchen, Telescope Co. Says in Price-Fix Row,” reports that telescope maker Celestron has urged a California federal judge to reject a plan to appoint different firms as co-lead counsel in a proposed class action that accuses the company of working with rivals to hike the price of the stargazing devices.  While the California-based company said that has no quarrel with any of the firms vying to share the interim lead counsel spot, it slammed their proposal that all three share the position, calling it "nothing more than a transparent attempt to give each firm the opportunity to generate more fees."

"The moving firms have proffered absolutely no reason, need, or justification for all three separate law firms to serve as interim lead counsel," the telescope maker said.  "Nor can they."  As it was put before the court, the proposal would appoint a dozen attorneys from three firms — Cotchett Pitre & McCarthy LLP, Susman Godfrey LLP and Lieff Cabraser Heimann & Bernstein LLP — as interim lead counsel.  The request also calls for a fourth firm, The Zwerling Firm, appointed "to assist in representation of plaintiffs and the proposed class."

Celestron complained that their move to share the class counsel spotlight comes with no explanation of how they would divide duties or any assurances about how they will avoid racking up excessive attorney fees.  "The history leading up to the filing of this amended motion suggests that the moving firms seek not what is in the class's best interest, but rather, what is in their best interest," the company said.

Celestron pointed toward Cotchett Pitre's original request to be named lead counsel on its own, in which it maintained that it could sufficiently represent all the plaintiffs.  The firm later made an about-face and agreed to share the lead counsel appointment, but gave no reason for the "shifting sands," the telescope maker said.

Five proposed class actions await consolidation before U.S. District Judge Edward J. Davila, all of which accuse Celestron and other telescope makers of teaming up to illegally raise prices in a scheme that ultimately cost consumers hundreds of millions of dollars.