Treehouse Foods, Inc. v. Green Mountain Coffee Roasters, Inc.

Background

The order concerns the indirect purchaser actions in the multidistrict litigation titled “In re: Keurig Green Mountain Single-Serve Coffee Antitrust Litigation.” The Indirect Purchaser Plaintiffs asked the court to approve attorneys’ fees, litigation costs, settlement-notice and administration costs, and incentive awards for class representatives. The court considered the motion, supporting materials, arguments of counsel, and the settlement agreement at a June 4, 2021 hearing.

Notice and Attorneys’ Fees

The court found that notice of the fee and expense request was provided reasonably and complied with Federal Rule of Civil Procedure 23(h)(1) and due-process requirements. Potential class members were told that settlement counsel could seek fees of up to one-third of the settlement fund and were directed to a website containing the full fee motion. Class members had an opportunity to object, and the court stated that no objections were made to the fee provisions or the fee application.

The court awarded $10,333,333.33 in attorneys’ fees to indirect purchaser counsel, representing 33 1/3 percent of the $31 million settlement fund. The court stated that counsel’s lodestar—the total based on counsel’s recorded hours multiplied by current hourly rates—was $21,148,380.85, making the award a negative multiplier of 0.49. Applying the factors identified in Goldberger v. Integrated Resources, Inc. and other applicable law, the court found the requested fees fair, reasonable, and appropriate.

Litigation and Administration Costs

The court found that the settlement created a $31,000,000 cash fund for the settlement class. It stated that indirect purchaser counsel had incurred litigation costs described in the order as “$2,298,015.93 million.” The court found those costs reasonably incurred and necessary, and ruled that counsel was entitled to reimbursement. Settlement counsel was directed to allocate the awarded fees and expenses among indirect purchaser counsel based on their judgments about each firm’s contributions to prosecuting and settling the action.

The court also approved payment of $451,286.43, plus additional amounts actually incurred up to a combined total of $911,286.43, for settlement notice and administration costs payable to JND Legal Administration. If those costs exceeded $911,286.43, the indirect purchaser plaintiffs were required to seek further court authorization and approval.

Service Awards and Disposition

The court approved incentive awards totaling $63,000 for the 31 class representative plaintiffs: $3,000 for each of the 11 representatives whose depositions were taken and $1,500 for each of the remaining 20 representatives. The court identified the risks of bringing the lawsuit, the time and effort spent, and the benefits obtained for class members as reasons supporting the awards.

The court ordered that the attorneys’ fees, costs, and incentive awards be paid and distributed under the settlement agreement. Judge Vernon S. Broderick therefore granted the Indirect Purchaser Plaintiffs’ motion for attorneys’ fees, litigation costs, and service awards.