Morganstein

MEMORANDUM ORDER RE ATTORNEYS’ FEES AND COSTS

This is a certified class action alleging securities fraud with respect to the common stock of Ashton-Tate Corporation. The court has approved a class settlement of $10.8 million, together with interest thereon accrued since February 19, 1991. Counsel for the class now seek attorneys’ fees and costs.

In Paul, Johnson, Alston & Hunt v. Graulty, 886 F.2d 268, 272 (9th Cir.1989), this Circuit adopted a percentage fee award as an alternative to the lodestar method of calculating an award of attorneys’ fees in class actions where the award is made from a common fund. Paul, Johnson further established 25 percent as the “benchmark” for such awards. Id. Here class counsel ask for an award of 25 percent of the gross settlement amount, or $2.7 million, plus costs of $616,576.42, for a total of $3,316,576.42. No objection has been made to the request for fees and costs. The court will largely grant the request. However, as explained below, some limitations will be placed thereon.

First, all firms have submitted as “costs” certain items which the court believes should be absorbed as normal overhead in a percentage fee case, whatever the…