Labaton Sucharow has agreed to return more than $4.8 million in attorney fees as part of an agreement with a special master who raised public corruption concerns in a $300 million securities class action settlement against financial services provider State Street Corp.
According to court documents that the special master filed on Wednesday, Labaton acknowledged it should have disclosed a $4.1 million payment to Texas attorney Damon Chargois, who had ties to the lead plaintiff, Arkansas Teacher Retirement System (ATRS). The New York-based firm also agreed to make several internal changes, including switching its general counsel and bringing in a former federal judge to review its fee arrangements.
