Wednesday, October 25, 2006

Objectors Rebuffed

So after "four years of vigorous litigation and two weeks of jury trial, the parties in" the AT&T securities class action settled the case for $ 100 million." Sounds pretty darn good, right? Not to certain objectors. But it looks like they pushed Judge Garrett E. Brown, Jr. (D. N.J.) to the end of his rope, as he found that "Objectors' Counsel fail to show that they improved the Class's recovery in any way," and that "the objections and the subsequent appeal were without merit and failed to improve the Class's recovery in any manner."

In fact, he said that "the Objectors' actions appear to have impeded the Class's recovery -- their objections and subsequent appeal resulted in wasteful litigation and delayed the distribution of funds to the Class. To date, those funds have not yet been distributed.

Looks like that's that. Finally.

You can read In re AT&T, issued September 25, 2006, at 2006 U.S. Dist. LEXIS 69086.

Nugget: "
As a preliminary matter, the Court notes that Defendants suggest, in their opposition brief, that Objectors' Counsel should be made to pay expenses and attorneys' fees pursuant to 28 U.S.C. § 1927. (Defs.' Br. at 12-14.) Defendants have not, however, filed a motion seeking such relief, and the Court will therefore consider only the application for fees filed by counsel for Objectors' Counsel."

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