Earlier this year, Fannie Mae and its former auditor, KPMG LLP, reached a $153 million settlement in a securities fraud class action. As the agreement moves towards final court approval, lawyers for the class members are seeking more than $44 million in fees and expenses.
The plaintiffs’ lawyers are seeking 22 percent of the settlement fund—about $29.1 million, after certain expenses and costs are subtracted, the maximum the lawyers said they'd request in the settlement notice sent to class members. According to a motion for fees filed August 16 in U.S. District Court for the District of Columbia, the plaintiffs' lawyers are also seeking about $15.2 million for expenses.
The quest for attorney fees has been smooth so far. No class members have filed an objection to the settlement, which included notice that their lawyers would be seeking a maximum of 22 percent of the settlement in fees and up to $17 million in expenses. Class members have until September 30 to file objections. As part of the agreement, the defendants said they wouldn't take a position on fees.