Percent Approach Outstrips Lodestar In Class Actions

Law360, New York (October 6, 2010, 7:08 PM EDT) -- Judges have started to use a percentage-of-settlement approach more frequently than the lodestar approach when calculating attorneys' fees in class actions, but despite fears that plaintiffs' lawyers would reap unjustified golden harvests, the amount of fees being awarded has remained relatively constant, experts say.

The less time-consuming percentage-of-settlement approach — which is based on the size of the settlement rather than the hours worked — is nothing new, but statistics show it has been gathering steam of late.

For example, from 1993 to 2002, 13.6 percent...
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