Catalano v. Lyons Magnus, LLC

Background

The plaintiffs filed a motion for attorneys’ fees, litigation costs, and service awards on March 11, 2024. The court considered the settlement agreement, the motion, supporting declarations and exhibits, the lack of opposition or objections, arguments presented at a hearing, and the other papers in the case. The court stated that it had subject-matter jurisdiction under 28 U.S.C. §§ 1332 and 1367 and personal jurisdiction over the parties.

The court also found that notice of the fee request was provided to potential class members in a reasonable manner and complied with Federal Rule of Civil Procedure 23(h) and due-process requirements. The notice explained that class counsel could seek fees and costs of up to one-third of the settlement fund and gave class members an opportunity to object. No objections were made.

Awards

The court awarded class counsel $1,166,666 in attorneys’ fees. It stated that, as of March 2024, class counsel had devoted approximately 1,329.6 hours to the litigation and had a lodestar—the attorneys’ time multiplied by applicable hourly rates—of $1,092,966.7. Applying the factors identified in Goldberger v. Integrated Resources, Inc. and other applicable law, the court found the requested fee fair, reasonable, and appropriate.

The court found that class counsel had incurred $43,745.13 in litigation costs. It determined that the costs were reasonably incurred and necessary given the case’s complexity and scope, and ordered reimbursement.

The court also approved a $500 incentive award for each settlement-class representative. It found the awards justified by the risks the representatives faced, the time and effort they spent, and the benefits they helped obtain for settlement-class members.

Reasons and Disposition

The court noted that the settlement created a $3.5 million cash fund for the settlement class. It found that timely and valid claimants benefited from the settlement, that class counsel prosecuted the case with skill and diligence, that the litigation involved complex factual and legal issues, and that the settlement avoided a significant risk that plaintiffs and class members would recover substantially less or nothing. The court also found that public-policy considerations supported the fee award.

Judge Kenneth M. Karas granted the plaintiffs’ motion for attorneys’ fees, litigation costs, and service awards. The order directed that the fees, costs, and service awards be paid and distributed according to the settlement agreement, and allowed class counsel to allocate the fees and expenses among counsel based on their contributions to the litigation and settlement.