Attorneys in NCAA antitrust case to share $475M in fees, with potential to reach $725M

The attorneys who shepherded the blockbuster antitrust lawsuit to fruition for hundreds of thousands of college athletes will share in just over $475 million in fees, and the figure could rise to more than $725 million over the next 10 years.

The request for plaintiff legal fees in the House vs. NCAA case, outlined in a December court filing and approved Friday night, struck experts in class-action litigation as reasonable.

Co-lead counsels Steve Berman and Jeffrey Kessler asked for $475.2 million, or 18.3% of the cash common funds of $2.596 billion.

They also asked for an additional $250 million, for a total of $725.2 million, based on a widely accepted estimate of an additional $20 billion in direct benefits to athletes over the 10-year settlement term. That would be 3.2% of what would then be a $22.596 billion settlement.

“Class Counsel have represented classes of student-athletes in multiple litigations challenging NCAA restraints on student-athlete compensation, and they have achieved extraordinary results. Class Counsel’s representation of the settlement class members here is no exception,” U.S. District Judge Claudia Wilken wrote.

University of Buffalo law professor Christine Bartholomew, who researched about 1,300 antitrust class-action settlements from 2005-22 for a book she authored, told The Associated Press the request for attorneys’ fees could have been considered a bit low given the difficulty of the case, which dates back five years.

She said it is not uncommon for plaintiffs’ attorneys to be granted as much as 30% of the common funds.

Attorneys’ fees generally are calculated by multiplying an hourly rate by the number of hours spent working on a case. In class-action lawsuits, though, plaintiffs’ attorneys work on a contingency basis, meaning they get paid at the end of the case only if the class wins a financial settlement.

“Initially, you look at it and think this is a big number,” Bartholomew said. “When you look at how contingency litigation works generally, and then you think about how this fits into the class-action landscape, this is not a particularly unusual request.”

The original lawsuit was filed in June 2020 and it took until November 2023 for Wilken to grant class certification, meaning she thought the case had enough merit to proceed. Elon University law professor Catherine Dunham said gaining class certification is challenging in any case, but especially a complicated one like this.

“If a law firm takes on a case like this where you have thousands of plaintiffs and how many depositions and documents, what that means is the law firm can’t do other work while they’re working on the case and they are taking on the risk they won’t get paid,” Dunham said. “If the case doesn’t certify as a class, they won’t get paid.”

In the request for fees, the firm of Hagens Berman said it had dedicated 33,952 staff hours to the case through mid-December 2024. Berman, whose rate is $1,350 per hour, tallied 1,116.5 hours. Kessler, of Winston & Strawn, said he worked 1,624 hours on the case at a rate of $1,980 per hour.

The case was exhaustive. Hundreds of thousands of documents totaling millions of pages were produced by the defendants — the NCAA, ACC, Big Ten, Big 12, Pac-12 and SEC — as part of the discovery process.

Berman and Kessler wrote the “plaintiffs had to litigate against six well-resourced defendants and their high-powered law firms who fought every battle tooth and nail. To fend off these efforts, counsel conducted extensive written discovery and depositions, and submitted voluminous expert submissions and lengthy briefing. In addition, class counsel also had to bear the risk of perpetual legislative efforts to kill these cases.”

Antitrust class-action cases are handled by the federal court system and have been harder to win since 2005, when the U.S. Class Action Fairness Act was passed, according to Bartholomew.

“Defendants bring motion after motion and there’s more of a pro-defendant viewpoint in federal court than there had been in state court,” she said. “As a result, you would not be surprised that courts, when cases do get through to fruition, are pretty supportive of applications for attorneys’ fees because there’s great risk that comes from bringing these cases fiscally for the firms who, if the case gets tossed early, never gets compensated for the work they’ve done.”

___

AP college sports: https://apnews.com/hub/college-sports