Antitrust Law Daily Wrap Up, ANTITRUST—E.D. Tenn.: Attorney fees of $24M awarded in Skelaxin reverse payment suit, (Jul 1, 2014)
Law Firms Mentioned:Kaye Scholer LLP | Munger, Tolles & Olson LLP
Organizations Mentioned:Kaye Scholer, LLP | King Pharmaceuticals, Inc. | Munger, Tolles & Olson, LLP | Mutual Pharmaceutical Company, Inc.
By Linda O’Brien, J.D., LL.M.
In a class action by direct purchasers of muscle relaxant Skelaxin against manufacturer King Pharmaceuticals for conspiring to delay and obstruct generic competition, the federal district court in Chattanooga, Tennessee awarded $24.3 million in fees to class counsel (In re Skelaxin (Metaxalone) Antitrust Litigation, June 30, 2014, Collier, C.).
The court granted class certification and preliminary approval to a proposed settlement of $73 million on April 30. The court found that the requested fee of $24.3 million was fair, reasonable, and fully justified. The settlement conferred a substantial benefit on the class and the class counsel effectively pursued the class claims. The requested fee was one-third of the settlement of $73 million, and the percentage-of-the-fund was a proper method to compensate the class counsel.
Additionally, the court considered the following in determining the reasonableness of the percentage: (1) the value of the benefit to the class; (2) the value of the services on an hourly basis; (3) the complexity of the litigation; and (4) the professional skill of the counsel involved. A one-third fee in the case would equate to a lodestar multiplier that was reasonable in complex matters as in this case.
Class counsel bore significant risks in pursuing the litigation, was well qualified, and negotiated a favorable settlement in the face of formidable legal opposition. The results achieved in the case fully supported the requested fee. Finally, the class representatives diligently fulfilled their obligations to the class and pursued the class’ interests in filing the suit. Thus, an award of $50,000 was granted to the class representatives for their efforts in discovery and role in bringing the recovery on behalf of the class, the court concluded.
The case is No. 1:12-md-02343.
Attorneys: Thomas M. Sobol and Lauren G. Barnes for the plaintiffs. Saul P. Morgenstern (Kaye Scholer LLP) for King Pharmaceuticals, Inc. Jeffrey Weinberger (Munger, Tolles & Olson LLP) for Mutual Pharmaceutical Company, Inc.
Companies: King Pharmaceuticals, Inc.; Mutual Pharmaceutical Company, Inc.
Cases: Antitrust TennesseeNews