This week a WSJ article, “Should Lawyers Get Paid for a Win Without a Fight?” by Peg Brickley takes issue with large fee awards earned in securities class actions.  The answer to Peg’s question is…YES!

In her article, Peg takes issue with a handful of shareholder suits filed in Delaware’s Court of Chancery.  She asks weather plaintiffs’ lawyers representing shareholders deserve “hefty fees” for filing suits that resulted in quick changes to company bylaws.

“Attorney fee awards are determined, in part, by the results they achieve.  Is it any surprise that winning big settlements (and/or verdicts) earn big attorney fees?  Of course not, it's simple economics.  Because a settlement was achieved quickly only adds to the value of the case,” said Terry Jesse, Executive Director of NALFA.   “The efficient work of the plaintiffs’ lawyers resulted in benefits to shareholders; that should earn them significant compensation," Jesse concluded.