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I'm only partly ok with this analogy. It's true that the lawyers do a lot of work, and only might be paid, but there are some key differences here too. Many v
by geebee 11y ago
I'm only partly ok with this analogy. It's true that the lawyers do a lot of work, and only might be paid, but there are some key differences here too.
Many viewed this as a slam-dunk victory, the only question was how much. At 25%, the lawyers were in a situation where by settling, they were virtually guaranteed a huge payday. As a result, many people feel that they didn't pursue this case rigorously enough, because they were extremely risk averse. This happens when the numbers get so big that you're comparing a guaranteed huge payout with the risk of losing a larger huge payout, but when both numbers are so high that the decision maker is far more concerned about a small possibility of losing the payout than the difference between the two numbers. Ie, y > x, but when x and y both cross a certain threshold, they may start to lose meaning when such a large chunk goes to the people in a position to settle. As I recall, the lawyers for the plaintiffs were actually scolded by the judge, who rejected the first settlement and told them to go back and fight harder for their clients, which is unusual.
Many people see this case as a slam dunk for an easy payoff. A better analogy might be that I convinced you to let me sell your house, and then sold it in five minutes for a huge commission, preferring a quick and guaranteed return for myself. I'd harm my reputation in the future, but if the payoff is big enough that I'm one and done, what does it matter to me?