Daniel Fisher has put some shoe-leather into the case of the trial lawyers claiming that their contract attorneys doing low-level document review have lodestar rates of $350 to $550/hour (and thus should be billed to the class at $1000/hour for their "success" in negotiating a nuisance settlement with Citigroup): January 2 and January 4, resulting in piggyback coverage from the ABA Journal (and see their comments) and Bloomberg.
As a JD Underground thread points out, I was insufficiently cynical in claiming these attorneys were being paid $40-45/hour; Fisher's research suggests they were being paid $32/hour.
I should note that this is not a question of whether class counsel can ever ask for a 30x markup. I am not asking for any change in the law here: the law of lodestar is that the lodestar rate corresponds to the market rate paid by paying clients for an attorney doing the level of work being done. It's just that paying clients in this decade don't ever actually pay $350-$550/hour for first-tier document review.
The parties backed down on the question of whether notice was adequate and agreed to re-notice the class, with a March 8 deadline for objections and April 8 for the fairness hearing.