Shortly after WFC picked up the ball Citi dropped and scooped up Wachovia, shareholder Irving Ehrenhaus sued both banks on the grounds Wells didn’t offer a fair price for the quickly collapsing bank. Other Wachovia shareholders undoubtedly thought they would have a shot at a better deal through the suit. Based on the amount of time and effort spent in this battle, you’d think news of a settlement would be good news for Team WB. But shareholders are now up in arms again after learning the terms of settlement would award Ehrenhaus’ lawyers with about $2 million while they would be treated to a slightly lesser amount.
In that proposal, which Judge Diaz will consider Aug. 20, shareholders of the former Wachovia would not receive any monetary compensation. But Wells Fargo would pay $1.975 million to Ehrenhaus’ lawyers, led by a New York firm called Wolf Popper, “for their efforts in achieving the benefits of the settlement.” …The proposed settlement also says that other former Wachovia shareholders would be barred from filing any future lawsuits related to the deal
Lady Justice isn’t blind. She’s just doubled over in laughter at this one.
Ouch. Cruel.
DB has been El Stinko lately. Get your shit together, or else I’ve got to get serious about finishing that ship in a bottle.
They should be happy. It’s much worse to win a settlement, and then spend 10 years in appeals, arguing over attorney fees.
perhaps the lawyers fees should be submitted to Feinberg. He did administer the SEC v AIG $800m settlment – he should be impartial right?
“Shortly after WFC picked up the ball Citi dropped and scooped up Wachovia” – revise (awk)
this belongs over at ATL
shareholders that were not part of the class action (i dont know if that means people who actively opted out or people who opted in) are not part of the settlement and it cant affect them legally. its like you and me agreeing that some other guy doesn’t owe you money. its a due process violation
the settlement means that parties to the suit wont be able to sue again. that’s standard-b/c whats the point of settling if the guy can sue you again for the same thing.
–obvious