SAMPLE OF MATTER TYPES: Fraud/Securities Litigation
LENGTH OF TIME IN PROGRAM: 2 ½ years to date
NATURE OF ASSIGNMENT: Analyzed emerging legal invoices (fee and expense entries) to determine if they were billed in accordance with accepted industry practices or benchmarks; were being performed at the appropriate staff level; and were reasonable in relation to the type of work being performed. In addition, LCC attorneys determined, analyzed and reported any anomalies, irregularities, and other observations as appropriate. LCC prepared and submitted Invoice Reports in support of its findings and recommendations, and participated in discussions with the client regarding those findings and recommendations. As a result, the law firms agreed to substantial reductions from its billings.
OUTCOMES: 2.8% reductions since program inception. Total Legal and Professional Fees = $383 Million
CHALLENGES: These litigations arose directly from the banking failures that led to the U.S. subprime mortgage and financial crisis of 2007–08. These very high profile matters were/are under intense scrutiny by various stakeholders, including the press and government regulators. In addition, multiple clients were included under the umbrella litigation. As our clients were plaintiffs, they were/are more concerned with due diligence and justifiable process, and less concerned with stringent enforcement of guidelines. These clients were not necessarily interested in reducing legal fees but instead were more interested in a process that would pass U.S. Congressional and Federal Court scrutiny. As LCC’s business model approach is to customize our peer review, process and systems to client’s needs, LCC successfully accomplished accommodation regarding guideline enforcement.
As mentioned above, multiple clients were sheltered under one client umbrella. Each client had different financial responsibilities under the client structure. As a result, each emerging invoice needed to be custom directed through multiple approval processes, and, each invoice had to be allocated depending on multiple factors depending on work type and jurisdictions. LCC successfully custom designed a work flow and financial allocation process.