BLS Blog

In a Nexium class action against AstraZeneca Pharmaceuticals, Justice Sanders awarded $6 million in attorneys’ fees—30% of the $20 million common fund agreed to in a settlement achieved shortly before trial. Justice Sanders acknowledged that this was an “unprecedented” award for state court, but believed it was warranted by the facts of this case.

Judge Sanders denied a summary judgment motion that involved questions of fact—such as a defendant’s knowledge and reasonable reliance—that almost always require determination by the finder of fact. The case involved claims of violation of the Massachusetts Securities Act, fraud, and negligent misrepresentation (among others) arising out of defendants’ sale of common stock of a closely held corporation to plaintiffs. Judge Sanders denied the defendants’ motion for summary judgment, noting in particular the high burdens placed on defendants under the Securities Act and issues of fact involved in the fraud and negligent misrepresentation claims.