Pharma Co.’s $4.8M Investor Deal OK’d, But Fees Undecided – Law360

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Law360 (April 23, 2021, 6:57 PM EDT) — A California federal judge on Thursday preliminarily granted a $4.8 million proposed settlement to resolve allegations that Orexigen Therapeutics had a duty to warn investors after learning a drug wasn’t as beneficial as earlier data indicated, but questioned class counsel’s requested amount in attorney fees.

In a 26-page order preliminarily green-lighting the deal, U.S. District Judge Janis L. Sammartino noted that past precedent suggests that 25% is the benchmark that district courts should allocate for attorney fee awards when using the “percentage-of-the-fund method.”

But since class counsel is requesting the court to approve the fees that are not to exceed 33%…

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