In that eight-year Coca-Cola securities-fraud litigation, federal judge Willis B. Hunt found in favor of the plaintiff. But at the same time he cut the plaintiffs's lawyers request for their legal fees and expenses from $43 million to about $31.5 million. That will be deducted from the $137.5 million he awarded plaintiffs. The complaint contended that Coca-Cola artificially inflated revenues to increase the price of the stock.
As R. Robin McDonald reports in FULTON COUNTY DAILY REPORT, Judge Hunt of U.S. District Court explained his actions in two ways. One, he said, "class counsel were clearly not motivated entirely by notions of charity and a pursuit of justice for it own sake." The lead firm was Coughlin Stoia Geller Rudman & Robbins. It was there that imprisoned former plaintiff attorney William Lerach was a partner. At one time Lerach so intimidated corporations with threats of securities suits that they referred to his dealings with them as "being lerached."
The second reason was the numbers associated with the itemized travel expenses. The Judge found them, at an estimated $1,365.95 per person per night, excessive. McDonald quotes Judge Hunt as saying, "This Court is not troubled by the apparent fact that Coughlin attorneys seek high comfort on their journey but neither should the class finance such a lifestyle. This Court finds that a client could reasonably expect to pay $300 per night for his attorney's food and lodging on domestic trips, and that is the level at which this Court will reimburse Coughlin for its travel."
This is a time, says Lisa Rickard, President of the U.S. Chamber of Commerce's Institute for Legal Reform, when "plaintiffs' lawyers are gearing up to lobby the next Congress for even more ways to sue." Perhaps Judges like Hunt can make the process and reward for them less sweet.
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