A U.S. District Judge in Illinois said he will “exercise its inherent powers to police potential abuse of the judicial process” in questioning why the plaintiffs’ attorneys in a securities class action should be awarded $300,000 in fees, the Cook County Record reports.
The fee request comes in a securities class action case against a generic drug manufacturer that was withdrawn. Judge Thomas M. Durkin said the court will “require plaintiffs’ counsel to demonstrate that the disclosures for which they claim credit meet” a standard from a Seventh Circuit decision, In re Walgreen Co. Stockholder Litigation. In that case, the judge said attorneys’ fee requests in disclosure lawsuits are “no better than a racket” and “should be dismissed out of hand” unless the disclosures achieved are “plainly material."
Judge Durkin ordered the attorneys to file a brief on the issue by November 1.