In a high-stakes legal tango, two private law firms have emerged as the big winners in Texas’ $1.4 billion biometric privacy settlement with Meta Platforms, the parent company of Facebook. Contracts reveal that these firms could rake in over $300 million in combined fees for their roles in securing the settlement.
The Texas attorney general’s office enlisted Chicago-founded Keller Postman and Dallas-founded McKool Smith to lead the charge against Meta. The payment options laid out in the contracts include an 11% cut of the recovery, amounting to about $154 million each, or hourly rates that can skyrocket to $945, multiplied by four. However, the firms will be capped at the 11% contingency fee, ensuring they won’t exceed this amount. The exact hours worked remain undisclosed, with the contracts obtained via a records request stipulating a detailed fee statement within 60 days post-settlement.
Keller Postman partner Zina Bash, who spearheaded the case, highlighted the formidable challenge posed by Meta, describing the defendant as aggressive and resource-abundant. McKool Smith echoed pride in their efforts to secure what they termed a historic result.
This lawsuit, filed in 2022, accused Facebook of collecting biometric data from user-uploaded photos and videos through its now-defunct “Tag Suggestions” feature. Texas’s biometric privacy law, enacted in 2009, allows for damages up to $25,000 per violation. Despite denying any wrongdoing, Meta expressed satisfaction with the settlement and hinted at future business expansions in Texas.
Meanwhile, Texas has another ongoing biometric privacy lawsuit against Google, represented by Norton Rose Fulbright, with Google denying any violations.
Hiring private law firms for complex cases, especially in privacy and cybersecurity, is a growing trend among state attorneys general. Ashley Taylor of Troutman Pepper noted this trend has been consistent over the past two decades.
In other legal fee news, the 8th U.S. Circuit Court of Appeals recently overturned a $78 million fee award in a T-Mobile class action settlement, deeming it an unreasonable “windfall.” Additionally, U.S. firms Hagens Berman Sobol Shapiro and Winston & Strawn could earn over $515 million in a $2.7 billion NCAA settlement concerning athlete compensation, with potential for further fees based on future payments to athletes.
