District Court erred in cutting fees in shareholder derivative lawsuit

In an unpublished decision, the Third Circuit held that the District Court erred in cutting the fees requested by plaintiffs' lawyers from  $1 million to $550,000 in a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/