After a judge approved a $586 million settlement that would give the lawyers $170.1 million, one of them seemed a little on the defensive.
“We’d all like to do much better, but it’s a little unfair to suggest that it’s a defeat,” an attorney for some of the plaintiffs said.
Let’s be serious: It’s a huge defeat.
The lawsuit was filed more than eight years ago against a dozen Wall Street banks, including Goldman Sachs, Credit Suisse, Bank of America, J.P. Morgan Chase, Morgan Stanley and Citigroup over claims the banks wrongly inflated prices for more than 300 stocks during the 1990’s Internet boom, The Wall Street Journal reports. The stocks included VA Linux Systems and what became World Wrestling Entertainment.
The result is, to steal a word from the presiding district judge, Shira Scheindlin, “underwhelming,” because investors are recovering less than 2% of their losses and because the parties appeared to agree on a $1 billion floor for recovery in 2003 before the 2nd Circuit threw out the class certification.
But, hey, at least the lawyers get to split $170 million in fees.
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