The Seventh Circuit drastically cut the award to six law firms that worked on a class action against Sears and Whirlpool over malfunctioning washing machines, according to Law360. The judge said the fees needed to be closer to the amount awarded to the class.
The firms asked for $5 million in fees. The class will receive an estimated $900,000.
“They failed to prove that a reasonable fee would exceed $2.7 million — the pre-multiplier figure sought by class counsel and already thrice the damages awarded the class,” Judge Richard Posner said.
The companies said they hope courts will “continue their efforts to rein in abusive attorneys’ fees in class actions.”