In a case that reads like a courtroom chess match over both numbers and negligence, a Connecticut federal judge has granted $600,000 in legal fees to three law firms that secured a $2.3 million settlement with DialAmerica Marketing Inc. after a massive data breach.
U.S. District Judge Omar A. Williams signed off Monday on the award — benefiting Markovits Stock & Demarco LLC, Milberg Coleman Bryson Phillips Grossman PLLC, and Federman & Sherwood — while candidly noting “shortcomings and overstatements” in the attorneys’ billing. Despite reservations, the judge dismissed the case from the District of Connecticut, effectively closing the chapter on the class action.
Lodestar Dispute and Fee Multipliers
The decision follows U.S. Magistrate Judge Thomas O. Farrish’s July 22 recommendation, which endorsed the $600,000 award along with $24,000 in expenses and $2,000 service payments for each of the three class representatives. Farrish, however, was far from uncritical.
The attorneys claimed a lodestar of $330,440, inflated by a multiplier of 1.69. Farrish’s review pegged the true lodestar closer to $157,000 — meaning the real multiplier was nearly 4. While skeptical of the high hourly rates — as steep as $1,545 for partners — he acknowledged that Second Circuit courts have allowed multipliers up to 6 and tend to avoid dismantling negotiated fee agreements that don’t shrink payouts for the class.
