In re Evoqua Water Technologies Corp. Securities Litigation

Background

The court considered Lead Counsel’s motion for attorneys’ fees and litigation expenses at a settlement hearing held on November 1, 2021. The order states that notice of the motion was mailed to more than 24,000 potential settlement-class members and nominees, published in Investor’s Business Daily, and released through PR Newswire. No objections to the requested fees and expenses were received.

The settlement created a common fund of $16,650,000 in cash. The court found that valid and timely claims by settlement-class members could result in payments from that fund. Lead Counsel reported spending more than 13,000 hours on the litigation, with a lodestar value exceeding $6,883,000, while requesting a fee equal to 25% of the fund, or $4,162,500, plus interest. Counsel had litigated on a fully contingent basis and would receive no other compensation for the work described in the motion.

Rulings

The court awarded Lead Counsel attorneys’ fees equal to 25% of the settlement fund, including 25% of the interest earned by the fund, and $193,942.83 in litigation expenses. The order directs that these amounts be paid from the settlement fund under the settlement agreement. Lead Counsel must allocate the awarded attorneys’ fees among plaintiffs’ counsel based on their good-faith assessment of each counsel’s contributions to the case.

The court also awarded costs and expenses under 15 U.S.C. § 78u-4(a)(4) to three plaintiffs: $1,500 to Louisiana Sheriffs’ Pension & Relief Fund, $15,900 to City of Omaha Police & Fire Retirement System, and $1,250 to City of Hallandale Beach Police Officers’ & Firefighters’ Personnel Retirement Trust. The order describes these awards as covering reasonable costs and expenses, including lost wages, directly related to representing the settlement class.

Court’s reasoning and additional terms

The court found the fee award fair and reasonable after considering the record and relevant factors. It relied on the size of the settlement fund, the work and risks involved, Lead Counsel’s skill and diligence, the complexity of the issues, the contingent nature of the representation, the comparison to awards in similar federal securities class actions, and the institutional plaintiffs’ approval of the requested fee. It separately found the litigation-expense reimbursement reasonable in amount and type.

The order states that any appeal or challenge concerning the fee and expense order would not affect the finality of the judgment. The court retained exclusive jurisdiction over matters relating to the action, including administration, interpretation, implementation, or enforcement of the settlement and the order. Judge John P. Cronan directed immediate entry of the order. The signature date in the reproduced text is garbled, but the hearing date and supplied case date are November 1, 2021.