Insurer to Pay More, Lawyers to Take Less in New Ground Zero Settlement
Less than three months after a federal judge rejected a proposed settlement for ground zero workers, a new deal has been reached that will put more money in plaintiffs’ pockets.
The insurer for New York City will now contribute $712.5 million, an increase from a prior deal to pay up to $657.5 million, an increase of at least $55 million, the New York Times reports. At the same time, plaintiffs’ lawyers will earn no more than 25 percent of the settlement, down from contracted contingency fees of one-third. That will give plaintiffs an extra $50 million, the Times says.
The money is for rescue and cleanup workers working at the World Trade Center after the Sept. 11 attacks. News of lower attorney fees first surfaced last week.
U.S. District Judge Alvin Hellerstein rejected the original settlement in a March hearing, saying it was “not enough” and he was taking “judicial control.”
