Auctioning Off Lead Counsel May Lead To Lower Fees
By Marius Meland
Law360, New York (February 23, 2006, 12:00 AM EST) -- Astronomical fees collected by plaintiffs attorneys in class actions have prompted calls for sweeping reforms of securities litigation. But one tantalizingly simple solution—the auctioning off of lead counsel status by judges—has been all but abandoned, despite statistics that show it drastically reduces lead counsel fees.
Attorney compensation in class action cases has been debated for decades. Although all fees are supposed to be approved by the judge in the case, a concrete way to determine the market value of attorney services has never been established, essentially...