A recent Law 360 story by Bonnie Eslinger, “Juniper Workers’ Atty Fee Bid ‘Way Too High,’” Says, reports that a California federal judge said he'll give final approval to Juniper Networks employees' $3 million deal over claims the marketing software company mismanaged their 401(k) plan, but called their attorneys' bid for $900,000 in fees "just way too high." U.S. District Judge James Donato rejected the attorney fee ask during a hearing in San Francisco on the workers' motion for final approval on the $3 million deal, which the judge granted.
Based on the total fees racked up to date — $142,232 — the $900,000 request means the court is being asked to multiply the lodestar amount by 6.33, nothing he has ever awarded, the judge said. Even in an "exemplary" $650 million settlement in his court, resolving a "groundbreaking class action" alleging Facebook's facial recognition technology violated users' biometric privacy rights, the attorney fees "didn't get anything close to a 6.33 multiplier," Judge Donato said. The Juniper Networks Inc. case, by comparison, was small and fairly straightforward, he added.
A lawyer for the workers, Paul Secunda of Walcheske & Luzi LLC, told the court that there are cases where the fee award was up to five times higher than the lodestar. Further, the 30% fee award is in line with others approved in complex Employee Retirement Income Security Act class actions, he said.
In addition, the $3 million settlement represents about 44% of the total estimated losses that the class members could have recovered if the case had been successfully litigated through trial on all counts, Secunda told the court.
Judge Donato said the litigation wasn't complicated. "Occasionally, we'll get what I call sweat equity [when] plaintiffs worked relentlessly," the judge said. "That didn't happen." Judge Donato said he might consider doubling the total projected amount that plaintiffs say they'll spend in fees, including $187,000. But the $900,000 request is "just way too high," he added.
The judge also asked Secunda to file an additional written brief to the court explaining why the plaintiffs were also seeking $36,000 in expenses, on top of nearly $40,000 in settlement administration expenses and $15,000 for independent fiduciary fees.
Secunda said the $36,000 in expenses was used to pay outside consultants due to the complexity of the case, which required significant research and pouring over complex finance and employee benefit documents. "You've got to tell me who they are and why they deserve it and why it was in the best interest of the class," the judge said, adding that he wasn't ready to approve that amount.
Judge Donato also called proposed awards of $5,000 each to the two named plaintiffs in the case out of line. "They're not going to get five grand each, particularly as the average recovery is approximately $100, that's completely disproportionate," the judge said.