The Second Circuit and Ninth Circuit recently issued opinions
vacating class action settlements, with both courts taking issue
with the attorneys' fees awarded to class counsel. These
decisions — Lowery v. Rhapsody Int'l, Inc., 75
F.4th 985 (9th Cir. 2023) and Moses v. New York Times,
Co., 79 F.4th 235 (2d Cir. 2023) — teach an important
lesson about courts' willingness to scrutinize attorneys'
fees awards in class settlements, particularly where they appear
disproportionate to the relief obtained by class members.
In Lowery, a putative class of individuals holding
copyrights for musical compositions brought suit alleging that the
music streaming service provider, Rhapsody International, had
infringed their copyrights by reproducing and distributing their
musical compositions without a license to do so. 75 F.4th 985, 989.
Roughly three years after the suit was filed, the parties reached a
settlement by which Rhapsody would pay around $50,000.00 to satisfy
class
