Two of the four law firms representing the plaintiffs in Arkansas Teacher Retirement System v. Insulet Corp. have had their share of a $19.5 million securities class settlement trimmed after a federal judge in Boston found that they had made “false and misleading” statements in support of their requests for attorneys’ fees.
Pierce Atwood class action litigation partner Donald R. Frederico said that the lawyers at the two firms “made a simple mistake that appears to have resulted in plucking language used and approved in other settlements with the assumption that it would be approved by the court in Insulet.”
Don added, “But they were in front of a judge who had rejected similar language in a prior case and who was being appropriately careful to make sure there was nothing in the filings that was inappropriate.”
And while Don noted that he doesn’t read the judge’s decision as finding that the law firms intended to mislead the court, “Rather, the judge is trying to remind these lawyers and other lawyers in class action settlements of their duty of candor and to incentivize them to make sure that what they file in their fee applications is completely accurate.”
Excerpted from Pat Murphy’s article in Massachusetts Lawyers Weekly dated July 9, 2021.