CIGNA Judge: High Fees Justified
Posted Jul 18, 2007 8:17 AM CST
By Debra Cassens Weiss
A federal judge has approved $21.3 million in fees for plaintiffs' attorneys who obtained a $93 million settlement in a suit against CIGNA Corp. for securities fraud.
U.S. District Judge Michael Baylson of Philadelphia said the attorneys were entitled to high fees because "the amount of the settlement in this case is significant and represents one of the largest securities settlements in this district," the Legal Intelligencer reports.
The suit had contended the health insurer concealed problems with a computer system overhaul. Once the problems were known, stock prices dropped 45 percent.
Lead plaintiffs’ attorney was Sherrie Savett of Berger & Montague. She said at the time of the initial settlement that a trial of the matter would have involved a battle of experts arguing over how much of the stock price drop was due to the technology problems.