U.S. District Judge Gerald Rosen (E.D. Mich.) today approved a 15% legal fee ($45 million) in the $303 million settlement in the securities class action against General Motors Corp, the AP reported. Attorneys for the class had initially requested 19%, but that request was met with an objection from the Pennsylvania State Employees’ Retirement System earlier this month, which argued that 19% worked out to the equivalent of $2,310 an hour.
Judge Rosen stated that “nineteen seeks like a relatively low percentage until you look at the size of the beast,” he said, referring to the $303 million deal. GM will pay $277 million toward the settlement and its auditor, Deloitte & Touche LLP, will pay $26 million. The lower legal fees will mean an additional $12 million for investors in the case.