McGee v. China Electric Motor, Inc.
After the parties reached a settlement in a securities class action, the district court approved the settlement and awarded attorneys' fees. Class counsel appealed, contending that the fee award was arbitrary. The court concluded that the district court's choice to apply the lodestar method, rather than the percentage-of-fund method, was well within the district court’s discretion. However, the court vacated and remanded for recalculation of the fee, concluding that the district court's near total failure to explain the basis of its award was an abuse of discretion. View "McGee v. China Electric Motor, Inc." on Justia Law