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On August 26, 1992, the District Court approved the terms of
the comprehensive settlement.
Under terms of the settlement, the parties agreed and
stipulated that (based on the total settlement amount of $35
million to be awarded to the class plaintiffs) the amount of
attorney's fees owed to Winthrop and Weinstine was $11,166,666
(one-third of the total settlement amount after deduction of out-
of-pocket expenses).
The calculation under the settlement agreement of attorney's
fees in the amount of $11,166,666 used the same formula for the
calculation of attorney's fees that was specified in the
contingency fee agreements that the class plaintiffs had entered
into with Winthrop and Weinstine (namely one-third of the total
settlement amount after deduction of out-of-pocket expenses).
Pursuant to the settlement, out-of-pocket expenses in the
total amount of $1.5 million were first deducted from the total
award of $35 million. One-third of the $33.5 million balance of
the $35 million award was then allocated to lost wages of the
class plaintiffs; one-third of the $33.5 million balance was
allocated to tort claims of the class plaintiffs; and one-third
of the $33.5 million balance was allocated to attorney's fees.
With respect to the portion of the settlement award
allocated to lost wages of the class plaintiffs, IDS issued
separate checks directly to the individual class plaintiffs from
which Federal and State income taxes were withheld.
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