Another week, another headline from the ERISA litigation circus \u2014 this time it\u2019s Jerry Schlichter asking for a $17.5 million payday in the Pentegra case. That\u2019s right, after landing what\u2019s being called the largest jury verdict ever in an ERISA class action ($38 million) and then settling for $48.5 million, Schlichter\u2019s firm now wants a third of the pot.<\/p>\n
Don\u2019t get me wrong \u2014 they did the work. Five years, 16,000 hours, over a million dollars advanced in expenses. But when the attorneys\u2019 fee motion is as big as the recordkeeper\u2019s alleged overcharges, it makes you wonder who really benefits from \u201cfiduciary duty.\u201d<\/p>\n
If the court grants it, this could set a new benchmark \u2014 not for prudence, but for profit. Plan sponsors should take note: these lawsuits aren\u2019t just about plan fees anymore; they\u2019re about who gets the biggest slice of the settlement pie. The plaintiffs\u2019 bar calls it justice. I call it a business model.<\/p>\n
As Lucille Bluth would say, \u201cGood for her.\u201d<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" Another week, another headline from the ERISA litigation circus \u2014 this time it\u2019s Jerry Schlichter asking for a $17.5 million payday in the Pentegra case. That\u2019s right, after landing what\u2019s being called the largest jury verdict ever in an ERISA … Continue reading