Major Class Action Settlement Hung Up Over Legal Fees

Headline Legal News

Congressional approval of one of the largest class action settlements in U.S. history is getting hung up on the issue of legal fees for plaintiffs lawyers.

The $3.4 billion Indian trusts settlement agreed to in December could be scuttled if Congress doesn't approve the terms of the agreement by May 28, according to The Associated Press.

The tentative settlement would close the books on a class action filed in 1996 on behalf of 300,000 American Indians. The plaintiffs in the suit claimed that as trustee for 145 million acres of land under the Dawes Act of 1887, the U.S. Department of the Interior mismanaged trust accounts and allowed the federal government to give the best land to white settlers. The settlement calls for plaintiffs to be paid $1.4 billion -- about $1,500 per class member- -- and for a $2 billion fund to be set up to buy American Indian land.

The potential snag now, as reported by sibling publication The Blog of Legal Times, is a move by Sen. John Barrasso of Wyoming to cap attorney fees in the case at $50 million. That has one of the plaintiffs lawyers who spent years litigating the matter crying foul.

Dennis Gingold -- a solo practitioner in Washington, D.C., who serves as lead counsel to the plaintiffs -- told the AP that he will terminate the settlement and resume litigation unless Congress approves the agreement without altering any of its terms. Gingold told The BLT that Barrasso's sentiments fly in the face of a previous fee cap of $100 million agreed to in December, which would give Gingold and his co-counsel at Kilpatrick Stockton fees totaling between $50 million and $100 million.

Were Gingold and Kilpatrick Stockton to split $100 million, they would be taking a total cut of roughly 7 percent of the $1.4 billion settlement figure; the lawyers' share shrinks to about 3 percent if the $2 billion trust called for under the proposed settlement is figured in. Either way, the fees would be well below what has been paid out to plaintiffs lawyers in other major class actions such as the one against Enron, as noted by lead plaintiff Elouise Cobell, a former treasurer of Montana's Blackfeet Nation, in a story by Legal Newsline.

Related listings

  • US court tosses protester's arrest at Liberty Bell

    US court tosses protester's arrest at Liberty Bell

    Headline Legal News 06/21/2010

    An anti-abortion protester arrested in 2007 had a First Amendment right to demonstrate on a sidewalk near the entrance the building that houses the Liberty Bell, a federal appeals court ruled Wednesday.The decision overturns lower-court rulings that ...

  • Calif. high court to hear church's property appeal

    Calif. high court to hear church's property appeal

    Headline Legal News 06/14/2010

    The California Supreme Court has decided to hear an Orange County church's appeal to keep its beachfront church property, despite breaking away from the main Episcopal Church. St. James Anglican Church, a theologically conservative breakaway church, ...

  • Ex-lawyer faces sentencing for Ponzi scheme

    Ex-lawyer faces sentencing for Ponzi scheme

    Headline Legal News 06/09/2010

    The sentence was more than the 40 years federal prosecutors had recommended for Rothstein, a disbarred lawyer who pleaded guilty to racketeering and fraud conspiracy charges in January.He had faced up to 100 years in prison but his lawyer had asked U...

Illinois Work Injury Lawyers – Krol, Bongiorno & Given, LTD.

Accidents in the workplace are often caused by unsafe work conditions arising from ignoring safety rules, overlooking maintenance or other negligence of those in management. While we are one of the largest firms in Illinois dedicated solely to the representation of injured workers, we pride ourselves on the personal, one-on-one approach we deliver to each client.

Work accidents can cause serious injuries and sometimes permanent damage. Some extremely serious work injuries can permanently hinder a person’s ability to get around and continue their daily duties. Factors that affect one’s quality of life such as place of work, relationships with friends and family, and social standing can all be taken away quickly by a work injury. Although, you may not be able to recover all of your losses, you may be entitled to compensation as a result of your work injury. Krol, Bongiorno & Given, LTD. provides informed advocacy in all kinds of workers’ compensation claims, including:

• Injuries to the back and neck, including severe spinal cord injuries
• Serious head injuries
• Heart problems resulting from workplace activities
• Injuries to the knees, elbows, shoulders and other joints
• Injuries caused by repetitive movements

For Illinois Workers’ Compensation claims, you will ALWAYS cheat yourself if you do not hire an experienced attorney. When you hire Krol, Bongiorno & Given, Ltd, you will have someone to guide you through the process, and when it is time to settle, we will add value to your case IN EXCESS of our fee. In the last few years, employers and insurance carriers have sought to advance the argument that when you settle a case without an attorney, your already low settlement should be further reduced by 20% so that you do not get a “windfall.” Representing yourself in Illinois is a lose-lose proposition.

Business News

Indianapolis Personal Injury Law Firm Williams & Piatt are devoted to fighting for the injured. We represent people who have been injured
Criminal Defense Lawyers in Surry County. If you are charged with a criminal offense, please consult with an attorney. >> read