Firms representing plaintiffs in a $7.25 billion antitrust class action settlement against Visa Inc. and MasterCard Inc. have asked for $720 million in legal fees. The firmsRobins Kaplan Miller & Ciresi; Berger & Montague; and Robbins Geller Rudman & Dowdsubmitted the fee request to Eastern District Judge John Gleeson (See Profile) on April 12. If granted, the fee award would be one of the largest in history.
The settlement itself is still awaiting final approval, and is facing objections from large retailers and trade groups. Many of those objectors are represented by Constantine Cannon, the same law firm that secured a $3 billion debit card settlement from Visa and MasterCard in 2003. Even if Gleeson approves the settlement, he may be reluctant to award plaintiffs counsel 4.5 times their normal hourly rates. "In general, multipliers greater than 2.5 are becoming rare, unless there was exceptional risk," said John Coffee Jr., a Columbia Law School professor. Gleeson awarded Constantine Cannon only $220 million of the $609 million the firm originally sought for the 2003 debit card settlement.
