McGlothin v. CTI BioPharma Corp et al

Filing 118

ORDER AWARDING ATTORNEYS' FEES AND REIMBURSEMENT OF LITIGATION EXPENSES re Lead Plaintiff's 109 MOTION for Final Approval of the Proposed Settlement, the Plan of Allocation, and Lead Counsel's Request for Attorneys' Fees and Expenses. Signed by Judge Robert S. Lasnik. (see order for details) (PM)

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The Honorable Robert S. Lasnik 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT SEATTLE 9 10 IN RE CTI BIOPHARMA CORP. SECURITIES LITIGATION Case No. 2:16-cv-00216-RSL 11 CLASS ACTION 12 13 14 15 16 ORDER AWARDING ATTORNEYS’ FEES AND REIMBURSEMENT OF LITIGATION EXPENSES 17 This matter came on for hearing on February 1, 2018 (the “Settlement Hearing”) on Lead 18 Counsel’s application for an award of attorneys’ fees and reimbursement of Litigation Expenses. 19 The Court having considered all matters submitted to it at the Settlement Hearing and otherwise; 20 and it appearing that notice of the Settlement Hearing substantially in the form approved by the 21 Court was mailed to all Settlement Class Members who or which could be identified with 22 reasonable effort, and that a summary notice of the hearing substantially in the form approved by 23 the Court was published in Investor’s Business Daily and was transmitted over the PR Newswire 24 pursuant to the specifications of the Court; and the Court having considered and determined the 25 fairness and reasonableness of the award of attorneys’ fees and Litigation Expenses requested, 26 ORDER AWARDING ATTORNEYS’ FEES AND REIMBURSEMENT OF LITIGATION EXPENSES (Case No. 2:16-cv-00216-RSL) 1 NOW, THEREFORE, IT IS HEREBY ORDERED THAT: 2 1. This Order incorporates by reference the definitions in the Stipulation and 3 Agreement of Settlement dated September 15, 2017 (ECF No. 106-2) (the “Stipulation”) and all 4 capitalized terms not otherwise defined herein shall have the same meanings as set forth in the 5 Stipulation. 6 7 8 2. The Court has jurisdiction to enter this Order and over the subject matter of the Action and all parties to the Action, including all Settlement Class Members. 3. Notice of Lead Counsel’s request for an award of attorneys’ fees and 9 reimbursement of Litigation Expenses was given to all Settlement Class Members who could be 10 identified with reasonable effort. The form and method of notifying the Settlement Class of the 11 motion for an award of attorneys’ fees and expenses satisfied the requirements of Rule 23 of the 12 Federal Rules of Civil Procedure, the Private Securities Litigation Reform Act of 1995 (15 13 U.S.C. § 78u-4(a)(7)), due process, and all other applicable law and rules, constituted the best 14 notice practicable under the circumstances, and constituted due and sufficient notice to all 15 persons and entities entitled thereto. 16 4. Plaintiffs’ Counsel are hereby awarded attorneys’ fees in the amount of 20% of 17 the Settlement Fund (including interest accrued on the Settlement Amount), and $123,211.61 in 18 reimbursement of Plaintiffs’ Counsel’s litigation expenses (which fees and expenses shall be 19 paid from the Settlement Fund), which sums the Court finds to be fair and reasonable. Lead 20 Counsel shall allocate the attorneys’ fees awarded amongst Plaintiffs’ Counsel in a manner 21 which it, in good faith, believes reflects the contributions of such counsel to the institution, 22 prosecution and settlement of the Action. 23 24 5. In making this award of attorneys’ fees and reimbursement of expenses to be paid from the Settlement Fund, the Court has considered and found that: 25 26 ORDER AWARDING ATTORNEYS’ FEES AND REIMBURSEMENT OF LITIGATION EXPENSES (Case No. 2:16-cv-00216-RSL) -2- 1 (a) The Settlement has created a fund of $20,000,000 in cash that has been 2 funded into escrow pursuant to the terms of the Stipulation, and that numerous Settlement 3 Class Members who submit acceptable Claim Forms will benefit from the Settlement that 4 occurred because of the efforts of Plaintiffs’ Counsel; 5 (b) The fee sought is based on a retainer agreement entered into between Lead 6 Plaintiff, a sophisticated institutional investor that actively supervised the Action, and 7 Lead Counsel at the outset of the Action; and the requested fee has been reviewed and 8 approved as reasonable by Lead Plaintiff; 9 (c) Copies of the Notice were mailed to over 21,000 potential Settlement 10 Class Members and nominees stating that Lead Counsel would apply for attorneys’ fees 11 in an amount not exceed 20% of the Settlement Fund and reimbursement of Litigation 12 Expenses in an amount not to exceed $200,000, and no objections to the requested 13 attorneys’ fees and expenses were received; (d) 14 15 Lead Counsel conducted the litigation and achieved the Settlement with skill, perseverance and diligent advocacy; 16 (e) The Action raised a number of complex issues; 17 (f) Had Lead Counsel not achieved the Settlement there would remain a 18 significant risk that Lead Plaintiff and the other members of the Settlement Class may 19 have recovered less or nothing from Defendants; 20 21 (g) Plaintiffs’ Counsel devoted over 2,900 hours, with a lodestar value of approximately $1,661,000, to achieve the Settlement; and 22 (h) The amounts of attorneys’ fees awarded and expenses to be reimbursed 23 from the Settlement Fund are fair and reasonable and consistent with awards in similar 24 cases. 25 26 ORDER AWARDING ATTORNEYS’ FEES AND REIMBURSEMENT OF LITIGATION EXPENSES (Case No. 2:16-cv-00216-RSL) -3- 1 6. Lead Plaintiff DAFNA is hereby awarded $18,362.50 from the Settlement Fund 2 as reimbursement for its reasonable costs and expenses directly related to its representation of the 3 Settlement Class. 4 7. Any appeal or any challenge affecting this Court’s approval regarding any 5 attorneys’ fees and expense application shall in no way disturb or affect the finality of the 6 Judgment. 7 8. Exclusive jurisdiction is hereby retained over the parties and the Settlement Class 8 Members for all matters relating to this Action, including the administration, interpretation, 9 effectuation or enforcement of the Stipulation and this Order. 10 9. In the event that the Settlement is terminated or the Effective Date of the 11 Settlement otherwise fails to occur, this Order shall be rendered null and void to the extent 12 provided by the Stipulation. 13 14 10. There is no just reason for delay in the entry of this Order, and immediate entry by the Clerk of the Court is expressly directed. 15 16 Dated this 1st day of February, 2018. 17 18 A Robert S. Lasnik 19 United States District Judge 20 21 22 23 24 25 26 ORDER AWARDING ATTORNEYS’ FEES AND REIMBURSEMENT OF LITIGATION EXPENSES (Case No. 2:16-cv-00216-RSL) -4-

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