Lieff Cabraser Stuck With Formal Sanction Over Class Action Fees

Lieff Cabraser Heimann & Bernstein LLP failed on Wednesday to convince the First Circuit to reverse a formal sanction it received for misrepresenting typical fees to justify $60 million in attorneys’ fees in a class action challenging charges on foreign exchange products.

Lieff Cabraser and others represented a class of investors who successfully challenged the charges imposed by State Street Bank and Trust Co. The class and its lawyers from Lieff Cabraser and other firms got a combined $300 million.

The district court awarded class counsel $75 million, but later adjusted that amount to $60 million and sanctioned Lieff Cabraser, ...