2nd Circuit Turns Down Milberg’s Request for a Fee Boost to $101M

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2nd Circuit Turns Down Milberg’s Request for a Fee Boost to $101M

Posted Aug 20, 2008, 10:19 am CST
By Debra Cassens Weiss

A federal appeals court has turned down a request by securities class action firm Milberg to reap $101 million in fees in a settlement against Nortel Networks Corp.

Milberg had sought 8.5 percent of the settlement, which amounted to about $101 million, the New York Law Journal reports. A federal judge had rejected the request and awarded the firm 3 percent in attorney fees, amounting to $38 million.

On appeal, the New York City-based 2nd U.S. Circuit Court of Appeals approved the lower amount even though the lead plaintiff had consented to the higher award, the story says. Milberg argued the consent made the fee presumptively reasonable under federal law, but the 2nd Circuit said Milberg had waived the argument by failing to raise it in the district court.

Milberg’s previous lawyer on the case was David Bershad, who pleaded guilty to paying kickbacks to lead plaintiffs.

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