Good research!
Had to do a lot of reading to get to the notice that contained that 33% limitation.
The papers note that the lawyers worked on a contingency basis, meaning their entire fee as contingent on a successful result.
Generally, contingency fees are lower in the earlier stages of litigation, and higher when the case reaches the trial or even appeals stage.
But the law also says the fees are to reimburse the fees and expenses of the lawyers.
And the final number, or percentage is up to the judge.
Personally, I think 100 million is high, simply because it is such a large real number.
It's not at all unusual for lawyers in contingency-type cases to get 33% of a settlement or judgment, but it is very unusual for the recovery amount to be $300 million.
Judge Borrock has been a pretty down-to-earth judge in this case. His rulings have been reasonable and straightforward, and common sense.
When you look at the 2 plus years of work the lawyers did, that's a lot of hours, and a lot of work. But $100 million is a HUGE amount of money for a firm to recover, and my sense is that Judge Borrock will reduce that amount to a certain extent.
Frankly, I think the current price is too low.
It looks like the MINIMUM payout per share would be $25.00, and then you still have the existing company, which may not be worth a lot, but is certainly worth at least $1-2 a share.
Plus, you have the potential that the judge awards less than 33%, which you will know once the judge rules, which will be just before the record date.
So I can see why the market is acting the way it is, but the price could go higher.
