Playing Long Game In Class Action Lawsuit
The law firms involved in the $2.7 billion NCAA settlement include Hagens Berman Sobol Shapiro and Winston & Strawn are seek to reap major fees from the $2.7 billion NCAA settlement, along with Wilkinson Stekloff, led by Rakesh Kilaru, played a significant role in negotiating the ground-breaking settlement
The billion settlement involving the NCAA marks a major move in the ongoing debate over student-athlete compensation, stemming from a class-action lawsuit that accused the NCAA of violating antitrust laws by capping the compensation available to student-athletes
But it also provides big pay days for the firms involved, who stand to gain more than $500 million in legal fees. Specifically, they can request up to $495 million from the damages part of the settlement, which is to be paid out over a period of ten years, according to a Reuters report on the settlement.
The settlement resolves three lawsuits claiming that the NCAA’s rules prohibited payments to athletes in a way that violated U.S. antitrust law.
The cases involved commercial use of athlete names and images, another about athletic service and a third related to academic activity.
The settlement provides monetary damages — some players could get more than $1 million — and separately will allow schools to directly pay their athletes for the first time. The plaintiffs’ lawyers have estimated the value of those new payments and benefits at $20 billion over the ten-year settlement span.
The Big Hourly Rate
The NCAA called the settlement a “step in the ongoing effort to provide increased benefits to student-athletes while creating a stable and sustainable model for the future of college sports.”
The three law firms involved in the litigation said in court papers that they dedicated about 67,635 hours to the case so far, corresponding to about $47 million based on billing rates.
Hagens Berman has been a successful litigation and class action specialist with nine offices across the country, which has successfully pursued complex claims for 30 years. The lead lawyer in the NCAA case also saw the firm achieve a ‘concussion protocol’ for the NCAA and saw firm principal Steve Bereman (pictured above) work with Jeffrey Kessler a sports lawyer and litigator at Winston & Strawn leading the litigation.
The case has gained wide attention, not only for its implications on college sports but also for the financial dynamics at play with the major fee payouts to the lawyers.
For student-athletes, the settlement represents a victory in their quest for fair compensation, but the issue at large now is how the settlement funds will be distributed.
Beyond the immediate financial implications, this case sets a precedent for future litigation concerning student-athlete compensation and could influence how similar cases are approached and resolved in the future.
As the NCAA navigates the aftermath of this settlement, the broader implications for student-athletes and the organization itself will continue to unfold.
As the dust settles, the impact of this case will likely reverberate across the NCAA and beyond, influencing future legal and policy decisions in the realm of college athletics.
And it will also to serve notice on the long game played by successful class action law firms.
