A settlement of $3.4 billion was announced this week in one of the largest class actions ever filed against the U.S. government.  The case, Cobell v. Salazar, involves a 14-year claim against the federal government over the mismanagement of Indian trust funds.  The lead plaintiffs’ attorneys, Dennis Gingold and Keith Harper seek attorney fees between $50 million and $99.9 million.  After Senator John Barrasso (R-WY) suggested there should be a $50 million cap on attorney fees and costs, Gingold said if Congress tries to reduce attorney fees, the case would revert back to litigation.

Elouise Cobell, a former treasurer of the Blackfeet Tribe of Montana defended her attorneys’ $99.9 million attorney fees, saying that would be less 3 percent of the total settlement.  She said 3 percent is a “very low percentage for attorney fees in class action lawsuits.”  “Consider that attorneys representing tribes under Indian Claims Commission Act generally received 10 percent as mandated by statute and attorneys involved in suits related to Enron received 9.5 percent,” or almost $700 million in attorney fees.