A recent Law 360 story by Katryna Perera, “Class Attys in Wells Fargo Loan Suit Get $23M Fee Award,” reports that attorneys for Wells Fargo customers who sued over certain auto loan fees will receive an award of $23.1 million for their role in securing a nearly $500 million class settlement after a California federal judge gave his final stamp of approval.  According to the order from U.S. District Judge James V. Selna, the plaintiffs' counsel will receive approximately $261,000 for cost reimbursement in addition to the fee award, and $46,375 will be split among the lead plaintiffs based on their level of participation in the lawsuit as a service payment.

Judge Selna rejected the plaintiffs' initial request that all 15 named plaintiffs be paid $7,500 as an incentive fee for sticking through a case that has lasted three years.  In a previously filed motion in September, the lead plaintiffs argued in support of the incentive fees, saying the case garnered media and congressional attention and that the lead plaintiffs are not receiving any personal benefit that is not being provided to other class members.

The judge said he found the requested amount to be "excessive in light of the amount of work they each performed on behalf of the settlement class."  Judge Selna said he believed it would provide the named plaintiffs with excessive compensation since most of them only spent between 12 hours and 41 hours participating in the litigation.  There was only one plaintiff, James Atkins, who spent close to 100 hours in connection with the case, Judge Selna said.

If each named plaintiff were to receive a $7,500 award, it would "constitute an hourly rate of compensation between $182 and $625," the order states, which is "unreasonably large."  Judge Selna decided to reduce the service payments so that each plaintiff's "hourly rate" would be $125.  While Atkins will receive the full $7,500, the remaining 14 plaintiffs will receive awards ranging from $1,500 to $5,125.

Judge Selna also certified the settlement class, finding that it meets all the requirements of numerosity, typicality and commonality and that the class representatives and class counsel adequately represented the class members.  "Over the three years since the complaint was initially filed, class counsel analyzed more than a million pages of documents produced by Wells Fargo; subpoenaed and reviewed thousands of pages of documents from third-party dealers, GAP Administrators, and Wells Fargo's government submissions; took eight depositions ... responded and served hundreds of interrogatories and requests for admission; and engaged in extensive motions practice," the order states.