ABA Journal discusses Ted Frank's objections to the plaintiffs' lawyers' large request for legal fees for work that may have been done by contract attorneys.
Citigroup Inc. agreed last year to pay $590 million to settle a lawsuit brought by plaintiffs firm Kirby McInerney over the financial institution’s claimed papering-over of risks concerning toxic subprime mortgage debt. However, the law firm’s subsequent request for $100 million in legal fees brought objections from Citigroup shareholder Ted Frank, who contended that law firms typically pay contract attorneys around $50 an hour for the kind of work done in this case, Reuters reports.
“I think the court, and Mr. Frank, are entitled to specifics,” said U.S. District Judge Sidney Stein at a Thursday hearing, also agreeing to allow discovery concerning the contract attorneys’ qualifications.
Frank said in an email to Reuters that contract attorneys did about half of the work in the Citigroup case.
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