“A shareholder lawyer told a Delaware judge at a midsummer court hearing two years ago that his team deserved $700,000 for work on a lawsuit in which his clients received nothing”.
This is not a one-time event.
“Of 57 such investor class actions settled or otherwise concluded there in 2010 and 2011, 40 — or 70 percent — made money for plaintiffs’ lawyers but not clients, according to data compiled by Bloomberg News…None of the 10 cases that New York-based Faruqi & Faruqi helped to settle during the two years produced cash for clients, according to court records. Legal fees in those 10 cases totaled $6 million, split among plaintiffs’ firms.
Overall, lawyers won $32.4 million for themselves in the 40 cases that generated no money for clients”.
Many of the plaintiffs’ firms in these cases are New York based and clearly well versed in how to manipulate the system in their favor. This practice was seen last August in the unfortunate story of the cancer-stricken Ground Zero worker who received a check for zero dollars from his $10,000 settlement after various lawyer fees were subtracted. There was even a recent case in which a New York malpractice attorney was arrested for literally stealing his clients $70,000 settlement.
We are fighting to stop these unfair and deceptive practices in New York, find out how you can join the fight!