Ted Frank Challenges Bernstein Litowitz's $15 Million Mylan Fee Bid Over $60 Million Settlement
Updated
Updated · Reuters · Jun 11
Ted Frank Challenges Bernstein Litowitz's $15 Million Mylan Fee Bid Over $60 Million Settlement
1 articles · Updated · Reuters · Jun 11
Summary
$14.9 million in requested legal fees for a $60 million Mylan securities settlement drew a new objection from class-action critic Ted Frank, who says Bernstein Litowitz is overreaching and raises pay-to-play concerns tied to Mississippi officials.
Frank argues a 2020 retainer agreement with lead plaintiff MissPERS should cap fees at about $6.5 million, while class counsel says the contract applies only to the pension fund's share and still permits fees up to 25%.
Bernstein and co-counsel Kessler Topaz called the allegations baseless, denied any side agreements or politically connected payments, and said the settlement represents a strong result after a judge dismissed large parts of the case in 2023.
Frank is revisiting a fight he partly won in Stericycle litigation, where an appeals court vacated an $11.2 million fee award and the lawyers later cut it to just under $8 million.
The dispute highlights a long-running criticism of securities class actions: public pension funds often lead cases, and academics have argued campaign donations can create incentives for higher fee awards that reduce investor recoveries.