FOLLOW US

A Massachusetts federal judge has significantly reduced the attorney fees requested by Scott + Scott Attorneys at Law LLP and Peiffer Wolf Carr Kane Conway & Wise LLP, slashing more than $400,000 from their bid for compensation in a $4.3 million settlement with State Street Corp. The case, which involved allegations that State Street mismanaged its employees' 401(k) plans, concluded with U.S. District Judge Mark L. Wolf approving the settlement but trimming the attorneys' fee request from 33% to 21%.

Scott Attorneys $400K Slashed : Judge Wolf’s Scrutiny of Attorney Fees

Judge Wolf issued a six-page order late Monday approving the $4.3 million settlement but denied the firms' request for $1.43 million in fees, instead awarding them $903,000. The judge also authorized $100,000 in expenses, reaffirming an order made during a hearing the previous week.

This decision follows Judge Wolf's pattern of carefully scrutinizing and often reducing attorney fees in class action settlements. He previously ordered the firms to justify their proposed fee, referencing two prior cases where he had significantly reduced attorney compensation.

In one such case, Scott + Scott was part of a legal team representing investors in a lawsuit against Insulet Corp., where the fee request was trimmed by $260,000. Judge Wolf also cited a previous case involving State Street, where he cut $15 million from a $75 million fee award, emphasizing that "not all lawyers can be trusted."

Justification for the Fee Request

In an attempt to secure the full $1.43 million fee, the firms referenced a $13.5 million fee awarded in a separate case where Peiffer Wolf and other firms obtained a $24 million settlement for a class alleging violations of the Americans with Disabilities Act at the San Francisco 49ers' stadium. Additionally, Peiffer Wolf argued that partner Adam Wolf has historically billed hourly rates at around $1,000, despite not billing hourly since the State Street case began in 2021.

However, Judge Wolf remained unconvinced, ultimately deciding that the requested 33% fee was excessive given the circumstances of the case.

Scott Attorneys $400K Slashed : Background of the Lawsuit

The underlying lawsuit against State Street Corp. alleged that the company failed to use an impartial or prudent process when selecting investment funds for its employees' 401(k) plan. Instead, State Street purportedly chose investment options that financially benefited the company at the expense of plan participants.