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America June 3, 2024 3 mins read

Judge Grants $10M in Fees to Attorneys in Family Dollar Rodent Infestation Case

America ı By Rochdi Rais

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Judge Grants $10M in Fees to Attorneys in Family Dollar Rodent Infestation Case

A Tennessee federal judge has granted $10 million in fees to attorneys representing consumers following a settlement to resolve multidistrict litigation stemming from a rodent infestation at a Family Dollar Stores Inc. warehouse, finding the fees reasonable for the work done on the case.

In an order filed Friday, U.S. District Judge Sheryl Lipman granted the unopposed motion for fees, finding that the plaintiffs had remedied the deficiencies in their prior bid for fees by including affidavits required under local court rules.

The settlement, which will give $25 gift cards to class members, was approved in May, but at the time Judge Lipman denied the bid for $10 million in attorney fees, saying the class attorneys hadn't complied with local rules requiring that they submit an affidavit or declaration detailing the number of hours spent on each aspect of the case, as well as an affidavit or declaration from another attorney in the community who is not otherwise involved in the case to establish prevailing rates.

According to Friday's order, the plaintiffs included with their amended motion a declaration from interim co-lead counsel J. Gerard Stranch IV of Stranch Jennings & Garvey PLLC to establish the hours and applicable lodestar for class counsel; a declaration of Brian T. Fitzpatrick, a professor at Vanderbilt University; and a declaration of Frank L. Watson of Watson Burns LLC, who is not part of this case, to establish local fee rates.

Based on those affidavits, Judge Lipman found the proposed fee rates — between $325 and $1,430 based on seniority and experience of the attorneys — and the amount of hours — approximately 6,100 hours on the case as of October — to be reasonable, resulting in a base lodestar of $4.9 million.

The judge further found that it was reasonable to award a multiplier to bring that total to $10 million as requested, given the uncertainty of prosecuting the case, the value the settlement gives to class members and the risks associated with the counsel undertaking the case on a contingency basis, as well as rewarding their work on and expertise in the complex litigation.

The deal resolves a number of suits consolidated in 2022 by the U.S. Judicial Panel on Multidistrict Litigation that accused Family Dollar of selling products stored in an Arkansas warehouse that was raided because of a rodent infestation.

According to court documents, Arkansas state authorities in 2021 noticed "significant rodent activity" in areas where human and pet food products were stored at Family Dollar's West Memphis warehouse. The U.S. Food and Drug Administration eventually got involved, inspecting the warehouse and releasing a detailed report.

Family Dollar temporarily closed more than 400 stores and issued a voluntary recall of the products that had been sold in the warehouse and were FDA-regulated, according to court records. The state had also lodged its own complaint against Family Dollar.

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Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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