Lawyers for T-Mobile customers agree to a lower fee of $46 million so you can have your 25 bucks ASAP
T-Mobile decided to pay $350 million to settle a lawsuit brought by victims of the data leak that affected approximately 76.6 million T-Mobile customers. In addition to covering claims from class members, the settlement fund also included payment for legal fees and administrative costs.
Ultimately it was decided that class members would get $25 or $100, depending on where they were from. Those who incurred out-of-pocket losses were entitled to a payment of $25,000.
Lawyers representing the victims requested $78.5 million in legal fees and this was challenged in a district court. The case later went to the 8th U.S. Circuit Court of Appeals.
In late July, the appeals court said it was going to reverse the decision after reaching the conclusion that the payment the lawyers were demanding was not reflective of their efforts.
While the lawyers were praised for bringing extraordinary relief to their clients, it was noted that the case was settled swiftly, freeing up hours that’d have otherwise been spent on it.
The lawyers have now asked a US judge for a fee of $46 million and and they believe that the amount is justified. They said that not objecting to a reduced fees would prevent any further delays and ensure the class members get the compensation they were promised.
It was previously proposed that the lawyers should get around $39 million, which would have worked out to an hourly rate of $3,500 to $4,750.
The $46 million award that the class lawyers have requested is 13.08 percent of the $350 million cash fund, which they say is “reasonable by any metric,” and lower than the fees awarded in other high-profile cases such as Equifax, Yahoo, and Anthem.
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