Another week, another headline from the ERISA litigation circus — this time it’s Jerry Schlichter asking for a $17.5 million payday in the Pentegra case. That’s right, after landing what’s being called the largest jury verdict ever in an ERISA class action ($38 million) and then settling for $48.5 million, Schlichter’s firm now wants a third of the pot.
Don’t get me wrong — they did the work. Five years, 16,000 hours, over a million dollars advanced in expenses. But when the attorneys’ fee motion is as big as the recordkeeper’s alleged overcharges, it makes you wonder who really benefits from “fiduciary duty.”
If the court grants it, this could set a new benchmark — not for prudence, but for profit. Plan sponsors should take note: these lawsuits aren’t just about plan fees anymore; they’re about who gets the biggest slice of the settlement pie. The plaintiffs’ bar calls it justice. I call it a business model.
As Lucille Bluth would say, “Good for her.”
