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WHAT WE'RE WATCHING

COLLECT 'EM ALL - Despite the hazards of suing a past client for unpaid legal fees, these lawsuits are on the rise as firms are increasingly unwilling to let crucial six-figure payments slide, according to several attorneys who regularly advise other lawyers. Realization rates in the legal industry trended upward in 2021, an indication to malpractice attorneys that law firms and their clients are finding new ways to ensure proper compensation for legal services. However, as Law.com's Justin Henry reports, litigation by law firms to recoup allegedly unpaid legal fees has increased in recent years, and the amount of money at stake is growing too, as law firms pay closer attention to their margins. "The days of being able to say goodbye to $300,000 or more without blinking an eye are gone," said Abraham Reich, the chair emeritus at Philadelphia-based Fox Rothschild who advises law firms in malpractice suits. He stated that he was speaking generally about the topic of legal fee disputes rather than any firm in particular, although his firm has sued several clients in New York courts in recent months.

FOR THE RECORD - What better case to feature unexpectedly high fees than one involving a cellphone service provider? Plaintiff lawyers behind a $350 million settlement with T-Mobile plan to ask for as much as $105 million in attorney fees, which, if approved, would be the largest compensation request so far in a data-breach class action, Law.com's Amanda Bronstad reports. The settlement, reached Friday, provides a $350 million settlement fund for class members impacted by the breach, announced on Aug. 16, 2021. T-Mobile also would spend an additional $150 million in data security improvements in 2022 and 2023. Co-lead class counsel—Norman Siegel of Stueve Siegel Hanson; Cari Laufenberg of Keller Rohrback; and James Pizzirusso of Hausfeld in Washington D.C.—haven't yet asked for attorney fees. But in a motion for preliminary approval of the settlement, they said 30% of the settlement fund, which would be $105 million, wasn't unreasonable. "Although class counsel have yet to move for fees in this case, an award of one-third of the settlement fund is characteristic of other awards in class action suits in this Circuit and surrounding district courts," they wrote.

ON THE RADAR - Peloton Interactive, the at-home fitness equipment and interactive media brand, was slapped with a copyright infringement lawsuit Monday in California Central District Court. The lawsuit was brought by CSReeder P.C. on behalf of music producer Muggerud's publishing company Soul Assassins, which accuses Peloton of using its musical compositions to accompany workout programs without permission. Counsel have not yet appeared for the defendant. The case is 2:22-cv-05134, Soul Assassins Inc v. Peloton Interactive Inc. Stay up on the latest deals and litigation with the new Law.com Radar. 

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