Can a class action attorney fees be paid out of a qualified settlement fund?
The answer is most definitely Yes. See In re Electrical Carbon Products, 447 F. Supp. 2d 389 (D.N.J. 2006).
In this case a QSF was established in connection with the settlement of the case (MDL No. 1514). The case was an anti-trust matter dealing with the sale of electrical carbon products.
The settlement fund consisted of $21.9 million reduced by attorneys’ fees of approximately $5.7 million plus expenses of almost $500,000. The Court approved the payment of the attorney fees out of the Fund.
Practice Pointer:
Attorneys wishing to defer attorney fee income using the innovative options available through Brook Hollow Financial, including the Equity Deferral and the Equity Loan Deferral, can do so out of these types of cases. We need to be involved as early as possible to evaluate what documentation and procedures need to be in place to facilitate those options for you.
Brian Michaels, Esq. General Counsel, Brook-Hollow Financial