Justice Pam Jackman Brown
Class suitinvolving 43,000 membersarising from actions charging Pall Corp. and certain of its officers and directors with false statements in SEC filings and press releases, involved a tax fraud scheme predicated on international intercompany transfers. Following settlement for $22.5 million, class action counsel sought $6.2 million in fees, which was later reduced to $5 million plus $152,855 in costs. Notwithstanding objections by an attorney representing two class members having relatively small stock holdings, the courtcross-checking the percentage method of attorney fee calculation with the lodestar methoddeemed class action counsel’s proposed $5 million fee application reasonable given the magnitude of settlement, the length and complexity of litigation, and the hours expended by class counsel. In recommending the fee application’s approval following in camera review of class counsel’s submissions, the court observed that by agreeing to reduce the amount of fees sought by 19 percent to $5 million, class counsel ensured the reasonableness of the fee sought, reduced the matters to be litigated, increased the recovery by class members and helped speed their receipt of those funds.