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Legal Fee Tracker: JetBlue, Spirit say lawyers don't deserve credit for scrapped merger
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Legal Fee Tracker: JetBlue, Spirit say lawyers don't deserve credit for scrapped merger
Aug 8, 2024 10:39 AM

Aug 8 (Reuters) - JetBlue Airways ( JBLU ) and Spirit

Airlines ( SAVE ) are pressing a judge not to reward a group of

law firms that sued to block the airlines' proposed $3.8 billion

merger, arguing that the lawyers "piggy-backed" on the U.S.

Justice Department's separate lawsuit challenging the deal.

The airlines abandoned their merger in March, after a judge

sided with the Justice Department in a January ruling that said

the combination would harm consumers.

But that doesn't mean private antitrust plaintiffs shouldn't

get credit, according to the law firms' bid for fees, especially

since they sued before the government brought its case.

Joseph Alioto of the Alioto Law Firm in San Francisco, who

has also filed lawsuits opposing other airline mergers, asked

U.S. District Judge William Young in Boston last month to award

up to $34.1 million to the plaintiffs' team, which includes

lawyers from eight other law firms.

The request works out to between $3,000 and $5,000 an hour

for the lawyers' work on the case, which the judge dismissed in

June.

"Plaintiffs' case was dismissed as moot," the airlines said

in a Friday filing in Boston federal court. "They did not try

this case. They did not win at summary judgment."

The airlines, represented by attorneys from Cooley and Paul,

Weiss, Rifkind, Wharton & Garrison, argued that Alioto's case

was failing even before it was put on hold last year amid the

government's challenge. Of the 25 original plaintiffs, 22 were

dismissed for lack of standing and another died, they said.

Even if the plaintiffs could claim any credit for the

government's success, the award they are seeking for 6,776 hours

of legal work on the case is unreasonable, the airlines said.

"That is an excessive number of hours for a case that never

went to trial and in which Plaintiffs largely piggy-backed off

the DOJ matter," the airlines argued.

Alioto's view is unsurprisingly different. The airlines

initially appealed the Justice Department's court victory, he

said in an interview, and the threat of his case waiting in the

wings is what persuaded Spirit and JetBlue ( JBLU ) to walk away.

"If we didn't exist, they would have continued the appeal,"

Alioto said.

Spokespersons for the airlines did not immediately respond

to a request for comment. The Justice Department has not weighed

in on the plaintiffs' fee request, and a DOJ spokesperson

declined to comment.

The private plaintiffs first sued in November 2022, four

months before the Justice Department. The government had either

not sued or been unsuccessful in past airline merger cases, the

plaintiffs said in their fee request, so there was no indication

that antitrust enforcers would target the JetBlue-Spirit deal.

Alioto said Congress included a fee award provision in the

Clayton Act to encourage antitrust litigation from private

plaintiffs. He accused the airlines of trying to eliminate

private enforcement of the antitrust statute by opposing their

fee request.

"They're trying to destroy the purpose of the statute and

efficacy of the statute," Alioto said.

- In other legal fee news, three U.S. firms - Boies Schiller,

Morgan & Morgan and Susman Godfrey - on Wednesday defended their

bid for $217 million in fees for a settlement they inked with

Google resolving claims that the tech giant deceptively

collected data from users despite their use of private-browsing

in Chrome's "Incognito" mode.

Google, which has denied wrongdoing, is fighting the amount,

which it called excessive. The case settled without a common

fund for consumers, and a Quinn Emanuel Urquhart & Sullivan

lawyer for Google said the resolution was far from historic.

David Boies argued at Wednesday's hearing that the

plaintiffs "really had to fight it out." U.S. District Judge

Yvonne Gonzalez Rogers seemed inclined to reduce the requested

amount, but she did not say by how much.

- Top partners at Davis, Polk & Wardwell are charging $2,375 an

hour as they advise Purdue Pharma in its bankruptcy proceedings,

the U.S. law firm said in court papers filed Tuesday.

Marshall Huebner, who co-leads the firm's restructuring

practice, billed the most hours out of the seven partners who

worked on the bankruptcy case in June, according to the filing.

The company's bankruptcy plan was upended in June by the

U.S. Supreme Court, which ruled that the company's bankruptcy

settlement cannot shield its owners, members of the wealthy

Sackler family, over their alleged role in spurring an opioid

addiction crisis in the United States.

(Legal Fee Tracker is a weekly feature exploring attorney

compensation awards and disputes in class actions, bankruptcies

and other matters. Please send tips or suggestions to

[email protected].)

(Additional reporting by Mike Scarcella)

Read More:

Legal Fee Tracker: Texas contracts show law firms' stake in

$1.4 bln Meta settlement

Legal Fee Tracker: Quinn Emanuel fights to keep $185 million

award in Obamacare case

Legal Fee Tracker: Lawyers want $122.5 million in Apple

securities case

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