How is compensation divided up in class action lawsuits?
<p>How is the money divided in a class action lawsuit?</p>

<p>Do the plaintiffs get a fixed percentage, or is there some kind of "cost" basis. For example, if the attorneys can "deduct costs" then it is obvious they can suck away all the money by just inflating their billable hours as they please. Is there any mechanism to prevent this from happening?</p>

<p>Any certified class action settlement has to be approved by a court.  In principle, the primary objective of the court is to see that members of the injured class receive "appropriate" compensation.  <a href="https://law.stackexchange.com/a/4243/10">Fees awarded to the Lead Plaintiff and Counsel</a> are (at least in principle) a separate question.</p>

<p>Under both <a href="https://law.stackexchange.com/a/12017/10">American</a> and <a href="https://en.wikipedia.org/wiki/Costs_in_English_law" rel="nofollow noreferrer">English Rule</a>, a court must review and approve any <a href="/questions/tagged/legal-fees" class="post-tag" title="show questions tagged &#39;legal-fees&#39;" rel="tag">legal-fees</a> awarded pursuant to a judgment.  It is not uncommon for a court to adjust them.  And submitting "inflated" hours to the court would be an act of <a href="/questions/tagged/perjury" class="post-tag" title="show questions tagged &#39;perjury&#39;" rel="tag">perjury</a>.</p>

<p>Methods and customs by which "reasonable" attorney fees are determined are the subject of <a href="https://www.google.com/search?q=adjustments+to+legal+fee+awards" rel="nofollow noreferrer">innumerable papers and studies</a>.  Class action lawsuits are a particularly <a href="https://law.stackexchange.com/a/4764/10">tricky</a> case of the question, <a href="https://www.google.com/search?q=class+action+contingency+fee" rel="nofollow noreferrer">with their own customs and standards for fee awards</a>.</p>

united-states fees class-action