In re Silvergate Capital Corporation Securities Litigation

Summary

The United States District Court for the Southern District of California awarded attorneys’ fees and litigation expenses in the Silvergate Capital securities class action. The court approved attorneys’ fees of $6,375,000, litigation expenses of $991,648.74, and specified service awards to the lead plaintiffs, payable from the $37.5 million settlement fund.

Holdings

1. The requested attorneys’ fees of 17% of the $37.5 million Settlement Fund, or $6,375,000 plus interest, and litigation expenses of $991,648.74 were fair and reasonable and were awarded from the Settlement Fund.
2. Notice of Lead Counsel’s fee and expense application satisfied Rule 23, the Private Securities Litigation Reform Act, due process, and other applicable law and constituted the best notice practicable under the circumstances.
3. The court awarded specified amounts from the Settlement Fund to the lead plaintiffs for reasonable costs and expenses directly related to their representation of the settlement class.

Questions Presented

1. Whether the requested attorneys’ fees and litigation expenses were fair and reasonable under the percentage-of-the-fund method.
2. Whether the notice provided to settlement class members regarding the fee and expense application satisfied Rule 23, the Private Securities Litigation Reform Act, due process, and applicable law.
3. Whether the lead plaintiffs should receive reimbursement for reasonable costs and expenses incurred in representing the settlement class.

Disposition

other