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$8.1M Fee Request in Wells Fargo Foreclosure Settlement

January 4, 2022 | Posted in : Expenses / Costs, Fee Request, Practice Area: Class Action / Mass Tort / MDL, Settlement Data / Terms

A recent Law 360 story by Hannah Albarazi, “Attys Seek $8.1M in Fees in Wells Fargo Foreclosure Deal,” reports that class counsel in a foreclosure action claiming Wells Fargo Bank wrongly denied loan modifications to homeowners who then lost their homes is seeking $8.1 million in attorney fees from the $40.3 million settlement deal, according to a proposed order filed in California federal court. 

While U.S. District Judge William H. Alsup granted final approval in 2020 to an $18.5 million settlement concerning the bank's erroneous denial of trial loan modifications where borrowers later lost their home to foreclosure, class counsel is now seeking the judge's final approval of a nearly $21.8 million supplemental settlement for hundreds of additional class members.

The proposed supplemental class settlement covers 741 new class members who fell within the class definition for the original class settlement but who were not part of an initial list of 505 borrowers provided by Wells Fargo. 

In the initial settlement, the court awarded class counsel over $4.5 million in attorney fees and $335,000 in expenses.  Plaintiffs seek an award of $3.6 million in attorney fees for the supplemental class settlement.  If approved, class counsel's total fee across the two settlements would be $8.1 million.