Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_03-cv-03709/USCOURTS-cand-3_03-cv-03709-30/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:78m(a) Securities Exchange Act

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United States District Court

For the Northern District of California

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1

 All of the capitalized terms in this order shall have the same meanings as set forth in the

Stipulation of Settlement dated October 16, 2006 (the “Stipulation”).

2

 The Court notes that plaintiffs’ documentation of expenses was somewhat general and often

did not provide details such as the purpose for the expense. 

United States District Court

For the Northern District of California

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

In re CV THERAPEUTICS, INC., SECURITIES

LITIGATION,

 /

No. C 03-3709 SI

ORDER GRANTING IN PART MOTION

FOR AWARD OF FEES AND EXPENSES

On March 9, 2007, plaintiffs’ motion for an award of attorneys’ fees and expenses came on for

hearing. (Docket No. 440). The Court has carefully reviewed plaintiffs’ fee submission and supporting

documentation, and makes the following findings. The Court finds that the amount of fees awarded is

fair and reasonable under the “percentage-of-recovery” method and further finds that a fee award of 30%

of the Settlement Fund1

 is consistent with awards made in similar cases. See, e.g., In re Mego Fin. Corp.

Sec. Litig., 213 F.3d 454, 463 (9th Cir. 2000); Taubenfeld v. Aon Corp., 415 F.3d 597, 600 (7th Cir.

2005); Willging, et al., Empirical Study of Class Actions in Four Federal District Courts: Final Report

to the Advisory Committee on Civil Rules, at 69 (Fed. Judicial Center 1996) (Bull Decl. Ex. 3). The

Court hereby awards Lead Counsel attorneys’ fees of 30% of the Settlement Fund.

In addition, the Court awards a total of $380,738.38 in expenses, which reflects a deduction of

$9,677.95 from the total meal and transportation expenses sought, as well as a deduction of $42,980.51

in costs associated with in-house consultants/investigators.2

 With respect to the meal and transportation

Case 3:03-cv-03709-SI Document 455 Filed 04/04/07 Page 1 of 3
United States District Court

For the Northern District of California

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deduction, the Court notes that plaintiffs’ original fee motion requested a total of $39,613.69 for meal

and transportation expenses, and the Declaration of Joy Ann Bull listed nine out-of-town trips associated

with these costs. See Bull Declaration at 5-6. At the March 9, 2007 hearing, the Court requested further

documentation regarding these expenses. Plaintiffs then submitted the Supplemental Declaration of Joy

Ann Bull, which for the first time stated that a portion of the travel expenses included in-town

transportation and meal charges in the amount of $14,274.44, as well as $10,992.75 in staff overtime

meal expenses. Plaintiffs have not explained why the original fee application did not contain this

information, nor have plaintiffs explained why the original application misleadingly suggested that the

total $39,613.69 was incurred solely on out-of-town meals and transportation.

The Supplemental Bull declaration stated that plaintiffs’ counsel decided to deduct the

$10,992.75 in overtime meal expenses from the application, but that counsel still sought recovery for

the in-town transportation and meal expenses. Accordingly, the Court has deducted the amount sought

for staff overtime meals. 

Because the Supplemental Bull declaration did not contain sufficient detail to enable the Court

to engage in a meaningful review of the in-town transportation and meal expenses, the Court directed

plaintiffs to file further documentation if they wished to recover these expenses. Plaintiffs then filed

a Further Supplemental Declaration of Joy Ann Bull, which provided some additional information

regarding some of the in-town transportation and meal costs, such as dates, reason for travel, and

amounts spent on transportation, hotel and meals. However, for expenses totaling $2,675.20 there are

no “reasons for travel” listed; the Court has deducted this amount because the Court is still unable to

meaningfully review those costs. 

The Court also deducts $42,980.51 in costs associated with in-house consultants/investigators.

See Bull Decl. ¶¶ 5-6. Plaintiffs have described these costs as the amounts paid to “economic analysts,”

“investigators,” and “information technology.” The Court finds that these costs should be considered

part of the firm’s overhead expenses because these consultants and investigators are employees of the

firm. As such, the Court finds it is not reasonable to reimburse counsel for these costs.

In sum, the Court awards Lead Counsel attorneys’ fees of 30% of the Settlement Fund, and

$380,738.38 in expenses, together with the interest earned thereon for the same time period and at the

Case 3:03-cv-03709-SI Document 455 Filed 04/04/07 Page 2 of 3
United States District Court

For the Northern District of California

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same rate as that earned on the Settlement Fund until paid. The awarded attorneys’ fees and expenses,

and interest earned thereon, shall be paid to Lead Counsel from the Settlement Fund immediately after

the date this Order is executed subject to the terms, conditions and obligations of the Stipulation and in

particular ¶ 6.2 thereof, which terms, conditions, and obligations are incorporated herein.

Finally, pursuant to 15 U.S.C. § 78u-4(a)(4), the Court awards lead plaintiff David Crossen the

amount of $26,000.00 for reimbursement of time and expenses incurred in representing the class.

IT IS SO ORDERED.

Dated: April 4, 2007 

SUSAN ILLSTON

United States District Judge

Case 3:03-cv-03709-SI Document 455 Filed 04/04/07 Page 3 of 3