In Re Deutsche Bank AG Securities Litigation

Background

The court considered Lead Counsel’s motion for attorneys’ fees and expenses in the securities class action. The order stated that the settlement had created an $18,500,000 cash fund and that class members who submitted valid claim and release forms would benefit. The court had previously entered a judgment concerning the settlement, and this order addressed the fee motion and payments to two class plaintiffs.

Notice and objections

The court found that notice of the fee motion was provided to class members who could be located with reasonable effort. It determined that the notice complied with Rule 23 of the Federal Rules of Civil Procedure, the Securities Act of 1933, the Private Securities Litigation Reform Act, due process, and other applicable law. More than 112,300 notices were distributed. The notice stated that Lead Counsel would seek fees of no more than one-third of the settlement amount and expenses of no more than $1,300,000. No class members objected to the requested fees or expenses.

Fee and expense award

The court awarded Lead Counsel attorneys’ fees equal to one-third of the settlement amount, plus expenses of $1,203,502.39. Both amounts were to include interest earned at the same rate and for the same period as interest earned on the settlement fund until payment. The court used the percentage-of-recovery method, under which a fee is calculated as a percentage of the money obtained for the class, and found the award fair, reasonable, and appropriate.

In evaluating the award, the court considered Lead Counsel’s work, the complexity and uncertainty of the litigation, the contingent nature of the representation, the risk that the class might have recovered less or nothing without the settlement, and the more than 26,000 hours devoted to the case. The order stated that the lodestar value of that work was $16,069,646.00. The court also considered that the fee and expense awards were consistent with awards in similar cases within the Second Circuit.

Class-plaintiff awards and effect of the order

Under 15 U.S.C. § 77z-1(a)(4), the court awarded a total of $20,000 to class plaintiffs Norbert G. Kaess and Maria Farruggio for time spent directly related to representing the class. The order stated that any appeal or challenge to the fee ruling would not affect the finality of the judgment concerning the settlement. It also stated that the order would become void to the extent provided in the settlement agreement if the settlement were terminated, failed to become final, or failed to reach its effective date.

Ruling

Judge Gregory H. Woods granted the requested attorneys’ fee and expense award as specified in the order and awarded the two class plaintiffs $20,000 total. The opinion does not use a separate motion-disposition phrase such as “granted in part” or “denied in part.”