A recent Law 360 story by Katryna Perera, “Attorneys in Groupon Settlement Secure $4.5M in Fees” reports that lawyers representing a class of Groupon investors will receive $4.5 million in attorney fees from a $13.5 million settlement resolving allegations that Groupon misled investors about its financial health before ending its sale of physical goods and announcing the departure of two top executives.  U.S. District Judge Matthew F. Kennelly issued an order approving class counsel's fee requests along with $250,000 in litigation costs and a $5,000 service award to lead plaintiff Fadi Rahal.  The Illinois federal judge also granted final approval to the deal.

Judge Kennelly said class counsel from Glancy Prongay & Murray LLP and Kirby McInerney LLP devoted more than 4,000 hours to the case with a lodestar value of approximately $2.9 million.  Additionally, the judge said there were significant risks with continued litigation, and that the requested fee award is consistent with similar, complex class actions.

"The stakes in the action were extremely high given, among other things, the amount of money at issue, and the large size of the settlement class," the order states.   Plaintiff's counsel conducted the litigation and achieved the settlement with skill, perseverance and diligent advocacy, and they are highly experienced in the field of securities class action litigation."  Groupon and the investor class told the court in June they had reached the deal, which represents a recovery of 9.6% of the total maximum damages potentially available to shareholders. A best-case scenario would have resulted in a $140 million recovery, Rahal said at the time.