In an unpublished decision, the Third Circuit held that the District Court erred in cutting the fees requested by plaintiffs' lawyers from $1 million to $550,000 in a shareholder derivative lawsuit. The District Judge failed to explain why class counsel should not be credited for starting the litigation, developing the theory of the case, and negotiating a settlement. The judge also did not sufficiently rely on evidence in the record when concluding that the defendant company's excessive stock option grant was a one-time incident of corporate carelessness.
Third Circuit's Opinion here: http://www2.ca3.uscourts.gov/opinarch/152831np.pdf
Plaintiffs' lawyers' Brief here: http://blogs.reuters.com/alison-frankel/files/2016/07/moorevcollis-appellatebrief.pdf
Alison Frankel's coverage here: http://blogs.reuters.com/alison-frankel/2016/07/08/3rd-circuit-dings-trial-judge-for-unjustified-cut-of-class-counsel-fees/