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Tyco settlement lawyers say $464 million fee was out of their control

Lawsuit claims a contract dictates firm should have received $187 million less

Lawyers at the Delaware firm Grant & Eisenhofer (G&E) are learning the true meaning of the phrase “mo’ money, mo’ problems.”

In 2007, G&E negotiated a $3.2 billion settlement on behalf of a group of shareholders against the global manufacturing company Tyco International Ltd. The shareholders, the Teachers Retirement System of Louisiana (TRSL), had signed a contract with the firm in 2004 that would cap fees at 8.7 percent of the total recovery. But when both sides reached a settlement three years later, the court awarded G&E and other law firms involved in the case 14.5 percent, or $464 million. A Tyco shareholder and former G&E lawyer, John Gielata, is now suing G&E, claiming the firm never disclosed the agreement to the court.

Ashley Post

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