Judge slashes lawyers' cut in GM stock settlement

[Benzgirl]

http://blog.cleveland.com/business/2..._cut_in_g.html


"A judge slashed legal fees Monday in a $303 million settlement between General Motors Corp. and investors, saying a 19 percent share sought by attorneys was excessive and wouldn't sit well with the middle class.

Lawyers will get 15 percent of the pool of money, or $45 million. That adds up to a rate of $1,825 per hour, U.S. District Judge Gerald Rosen said."

[deepimpact2]

Absurd

[Kevin]

Why absurd?

If GM hadn't misled investors by posting phony information in their annual reports, they wouldn't be getting hit with this. The fact is that if we don't create some huge incentive for big law firms to take on these cases (because these sorts of cases most often lose money and cost a bundle to prosecute), then no one will do it.

[deepimpact2]

Originally Posted by Kevin

Why absurd?

If GM hadn't misled investors by posting phony information in their annual reports, they wouldn't be getting hit with this. The fact is that if we don't create some huge incentive for big law firms to take on these cases (because these sorts of cases most often lose money and cost a bundle to prosecute), then no one will do it.

[KSigkid]

Originally Posted by deepimpact2

Absurd

What's absurd? The fact that the lawyers' cut was reduced? Or the fact that the lawyers are making that amount in fees?

[Kevin]

Originally Posted by deepimpact2

What is confusing?

This is pretty basic public policy stuff.

[deepimpact2]

Originally Posted by Kevin

What is confusing?

This is pretty basic public policy stuff.

Your reponse to what I said is confusing.