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
(Additional reporting by Mike Scarcella)
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