Tuesday, September 9, 2008
Judge Cap's Vioxx Fee's for Lawyers involved:
For those of you who have not yet heard, Judge Fallon capped ALL attorneys’ fees, including common benefit fees, at 32% of the net recovery. The interim awards are to be distributed to claimants and counsel with all of common benefit fees to be taken out of the remainder. Fallon discusses at great length the “economies of scale” noted by Judge Frank and the “simple” claims process which results in substantial awards, thereby justifying a reduction in fees. Attached is a copy of the Order.
It is horrible: Judge Fallon waited until after everything was done and the unilaterally cut all private fee contracts down to 32%. He did this with no motion, no notice and no hearings on the matter. As there is an additional 8% which will be deducted from Attorneys fees for Common Benefit work done by the PSC, the final fee will be only 25% a reduction of 45% off all prior 40% contracts.
Many are saying that they simply cannot continue taking on the big pharmaceutical companies, with the attendant risk and expense, for that kind of return.
.
It is horrible: Judge Fallon waited until after everything was done and the unilaterally cut all private fee contracts down to 32%. He did this with no motion, no notice and no hearings on the matter. As there is an additional 8% which will be deducted from Attorneys fees for Common Benefit work done by the PSC, the final fee will be only 25% a reduction of 45% off all prior 40% contracts.
Many are saying that they simply cannot continue taking on the big pharmaceutical companies, with the attendant risk and expense, for that kind of return.
.
posted by
Harlan Schillinger
at
9:36 AM
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