A. KATHLEEN TOMLINSON, Magistrate Judge.
This Court previously granted Plaintiffs' unopposed motion for preliminary approval of the Class Action Settlement in this case. See DE 101. At that time, for settlement purposes, the Court appointed Virginia & Ambinder, LLP and Leeds Brown Law, P.C. (collectively, "Class Counsel") as class counsel, pursuant to Fed. R. Civ. P. 23(g). The Fairness Hearing was held on February 13, 2018. No written objections to the settlement had been received by that date and no objectors appeared at the hearing.
Class Counsel have moved for approval of their application for attorneys' fees and costs and for approval of service awards in conjunction with the Plaintiffs' unopposed motion for final approval of the proposed settlement. See DE 106. Specifically, Class Counsel seeks $980,633.19 in attorneys' fees and $19,336.01 in costs from the Qualified Settlement Fund. See Memorandum of Law in Support of Plaintiffs' Motion for Approval of Attorneys' Fees and Costs and for Approval of Service Awards ("Pls.' Mem.") [DE 108-5] at 1; see generally Declaration of Lloyd R. Ambinder in Support of Plaintiffs' Motion for Approval of Attorneys' Fees and Costs and for Approval of Service Awards ("Ambinder Decl. II") [DE 108-4]. Plaintiffs also seek approval of service awards in the amount of $10,000 each for named Plaintiffs John Michael Cohan and Wackson Barthelemy. Pls.' Mem. at 1.
The Settlement Agreement which was preliminarily approved by this Court provided that Class Counsel may apply for no more than $1,000,000 from the Qualified Settlement Fund for professional fees, costs and expenses. See Declaration of Lloyd R. Ambinder in Support of Plaintiffs' Motion for Preliminary Approval of the Proposed Settlement, Certification of the Settlement Class, Appointment of Plaintiffs' Counsel as Class Counsel and Approval of Plaintiffs' Notice of Proposed Settlement of Class Action and Claim Form and Release ("Ambinder Decl. I") [DE 99-2], Ex. A ("Settlement Agreement and Release") ¶ 3.3(A). Plaintiffs request 30% of the $3,250,000 Qualified Settlement Fund, plus expenses, which Class Counsel maintains is "reasonable and within the typical range approved by courts in similar cases." Pls.' Mem. at 2
"`[W]here an attorney succeeds in creating a common fund from which members of a class are compensated for a common injury inflicted on the class,' the attorneys whose considerable effort created the fund are entitled to a reasonable fee set by the Court." Steinberg v. Nationwide Mut. Ins. Co., 612 F.Supp.2d 219, 222 (E.D.N.Y. 2009) (quoting Goldberger v. Integrated Resources, Inc., 209 F.3d 43, 47 (2d Cir. 2000)). "In a certified class action, the court may award reasonable attorney's fees and nontaxable costs that are authorized by law or by the parties' agreement." FED. R. CIV. P. 23(h). Notwithstanding the lack of opposition to the fee application here, the Court must nonetheless assess the reasonableness of the award when considering whether the settlement is fair. See Ersler v. Toshiba Am., Inc., No. CV-07-2304, 2009 WL 454354, at *7 (E.D.N.Y. Feb. 24, 2009); Dupler v. Costco Wholesale Corp., 705 F.Supp.2d 231, 244 (E.D.N.Y. 2010). In class actions when determining appropriate counsel fees, courts have used either the lodestar method or awarded fees based on a percentage of the settlement fund. Goldberger, 209 F.3d at 47. The lodestar method multiplies the hours reasonably expended on the case by a reasonable hourly rate. By comparison, the common fund method calculates the amount as a percentage of the award to the class. See McDaniel v. County of Schenectady, 595 F.3d 411, 417-422 (2d Cir. 2010).
"The trend in this Circuit is toward the percentage method, which directly aligns the interests of the class and its counsel and provides a powerful incentive for the efficient prosecution and early resolution of litigation." Wal-Mart Stores, Inc. v. Visa U.S.A., Inc., 396 F.3d 96, 121 (2d Cir. 2005) (internal quotation omitted). By contrast, the lodestar method as characterized by the Second Circuit "creates an unanticipated disincentive to early settlements, tempts lawyers to run up their hours, and compels district courts to engage in a gimlet-eyed review of line item fee audits." Id. (internal quotation and brackets omitted). In the instant matter, the Court finds that the requested attorneys' fees are reasonable under both the percentage method and the lodestar method.
In common fund cases, the Second Circuit favors awarding fees according to the "percentage of the fund" method. Plaintiffs point out that viewing the fees here as a percentage of the Settlement demonstrates that the requested fee award falls well within the range of reasonable fees approved by the courts in this Circuit. See, e.g., Kochilas v. Nat'l Merchant Servs., Inc., No. 1:14-cv-00311, 2015 WL 5821631, at *8 (E.D.N.Y. Oct. 2, 2015) (finding class counsel's request in FLSA/NYLL case for one-third of the Settlement Fund to be reasonable and consistent with class litigation in the Second Circuit) (collecting cases); Massiah v. Metroplus Health Care Plan Inc., No. 11-cv-05669, 2012 WL 5874655, at *6 (E.D.N.Y. Nov. 20, 2012) (awarding class counsel in FLSA and NYLL case 30% of the $4,040,000 Settlement Fund); Willix v. Healthfirst, Inc., No. 07 Civ. 1143, 2011 WL 754862, at *6 (E.D.N.Y. Feb. 18, 2011) (awarding class counsel 33 1/3 % of the $7,675,000 Settlement Fund as fair and reasonable); Odom v. Hazen Transport, Inc., No. 10-CV-6304T, 275 F.R.D. 400, 412 (W.D.N.Y. 2011) (attorneys' fees representing 32.6% of the total settlement fund held to be reasonable); Stefaniak v. HSBC Bank, USA, NA, No. 1-05-CV-7205, 2008 WL 7630102, at *3 (W.D.N.Y. June 28, 2008) (finding fee awards of 33% of the settlement fund typical of class action settlements in the Second Circuit) (collecting cases); Maley v. Del Global Technologies Corp., 186 F.Supp.2d 358, 369 (S.D.N.Y. 2002) (awarding attorneys' fee to class counsel of 33% of $11.5 million Settlement Fund found to be fair and reasonable).
In the instant action, the requested fee award of $980,663.99 represents approximately 30% of the $3,250,000 settlement obtained for the Class Members. Class Counsel undertook this case on a contingency fee basis, committed substantial resources to its prosecution, and risked time and effort with no ultimate guarantee that they would be compensated for those efforts. This Court, given its substantial knowledge of this case, places this litigation right in the middle of the continuum between low/medium risk and high risk. The fact that the fees requested here are comparable to fees that courts have found reasonable even when taken out of a common fund weighs in favor of the reasonableness of the fees. See Dupler, 705 F. Supp. 2d at 244.
Regardless of whether the percentage of the fund or the lodestar method is used, to determine the reasonableness of the Plaintiffs' fee request, the Court looks to the six factors articulated by the Second Circuit in Goldberger v. Integrated Res. Inc., 209 F.3d 43, 50 (2d Cir. 2000). These factors include: (1) the time and labor expended by counsel; (2) the magnitude and complexities of the litigation; (3) the risk of the litigation; (4) the quality of representation; (5) the requested fee in relation to the settlement; and (6) public policy considerations. Goldberger, 209 F.3d at 50. District courts continue to be guided by the Goldberger factors. See, e.g., Paredes v. J & B Cleaners, Inc., 18-CV-1638 2018 WL 2461274, at *1 (S.D.N.Y. June 1, 2018); Baffa v. Donaldson Lufkin & Jenrette Sec. Corp., No. 96 CIV 0583, 2002 WL 1315603, at *1 (S.D.N.Y. June 17, 2002).
Johnson, 2011 WL 4357376, at *19; Khait v. Whirlpool Corp., No. 06-6381, 2010 WL 2025106, at *8 (E.D.N.Y. Jan. 20, 2010). Public policy weighs in favor of approving this fee award, as is reflected in the prevailing trend for percentage-of-fund fee awards. This process aligns the interest of the class with its counsel, "providing a powerful incentive for the efficient prosecution and early resolution of litigation." Wal-Mart Stores, 396 F.3d at 122.
All of the factors set forth in Goldberger v. Integrated Res. Inc., 209 F.3d at 51, therefore, weigh in favor of this reasonable fee award of 30% of the Qualified Settlement Fund.
The Court also finds that the fees requested are reasonable under the lodestar method. Courts have referred to the lodestar comparison as a "cross-check" on the issue of reasonableness. See Velez v. Novartis Pharmaceuticals Corp., No. 04 Civ. 09194, 2010 WL 4877852, at *22 (S.D.N.Y. Nov. 30, 2010); Ersler, 2009 WL 454354, at *7. In particular, the Second Circuit "encourages the practice of requiring documentation of hours as a `cross check' on the reasonableness of the requested percentage." Goldberger, 209 F. 3d at 47. "As part of the cross check, the lodestar is determined by multiplying the hours reasonably expended on the case by a reasonable hourly rate." Johnson, 2011 WL 4357376, at *20 (citing Hicks v. Morgan Stanley, No. 01 Civ. 10071, 2005 WL 2757792, at *8 (S.D.N.Y. Oct. 24, 2005) (internal quotation marks omitted)). The Court must then consider whether a multiplier is warranted based on certain factors, such as: "(1) the contingent nature of the expected compensation for services rendered; (2) the consequent risk of non-payment viewed as of the time of filing the suit; (3) the quality of representation; and (4) the results achieved." In re Boesky Sec. Litig., 888 F.Supp. 551, 562 (S.D.N.Y. 1995); see Goldberger, 209 F.3d at 47. The Court has already discussed at length factors 1, 3 and 4 in the context of a percentage-of-the-fund analysis and will not repeat that reasoning here. In light of the business of the Defendant in this action, the Court finds that factor 2 plays no role here.
Class Counsels' fee request here is for 30% of the Qualified Settlement Fund — $980,663.99. This figure represents a lodestar multiplier of 2.3. "Courts regularly award lodestar multipliers from two to six times lodestar." Johnson, 2011 WL 4357376, at *20 (citing In re Lloyd's Am. Trust Fund Litig., 2002 WL 31663577, at *27 (stating that a "multiplier of 2.09 is at the lower end of the range of multipliers awarded by courts within the Second Circuit"); Maley v. Del Global Techs. Corp., 186 F.Supp.2d 358, 371 (S.D.N.Y.2002) (explaining that the "modest multiplier of 4.65 is fair and reasonable"); In re NASDAQ Market-Makers Antitrust Litig., 187 F.R.D. 465, 489 (S.D.N.Y.1998) (awarding multiplier of 3.97 times lodestar)); Pls.' Mem. at 17. In assessing the lodestar for cross-check purposes, the "hours documented by counsel need not be exhaustively scrutinized by the district court." Goldberger, 209 F.3d at 50. Instead, "the reasonableness of the claimed lodestar can be tested by the court's familiarity with the case." Id.
According to the undisputed billing records, the Virginia & Ambinder firm expended approximately 1040.35 hours of attorney, paralegal and staff member time and Leeds Brown Law firm expended approximately 389.92 hours of attorney, paralegal and staff member time over the course of six years. See Ambinder Decl. II, ¶ 8. The time spent by Class Counsel is described in the February 22, 2018 Declaration of Lloyd Ambinder and Class Counsels' contemporaneous billing records for both firms are attached as Exhibits A and B to that Declaration and at DE 106-3 and 106-4. Ambinder Decl. II, Exs. A and B. Based on its knowledge of this case, the Court finds the 2.3 multiplier to be well within the range awarded by courts in the Second Circuit. Consequently, for the foregoing reasons, the Court finds that the attorneys' fee request of $980,663.99 is reasonable and warranted by the circumstances of this case and the fee award is therefore GRANTED.
Class Counsel also seek to recover $19,336.01 for out-of-pocket expenses to be paid from the Qualified Settlement Fund. See Ambinder Decl. II, ¶ 17; DE 106-3, DE 106-4; Pls.' Mem. at 18. These costs include Plaintiffs' court and process server fees, postage and courier fees, costs to the claims administrator for sending notice and processing consent to join forms from the FLSA collective, photocopies, travel expenses, discovery costs and legal research. "Attorneys may be compensated for reasonable out-of-pocket expenses incurred and customarily charged to their clients, as long as they were `incidental and necessary to the representation' of those clients." In re Indep. Energy Holdings PLC Sec. Litig., 302 F.Supp.2d 180, 183 n.3 (S.D.N.Y. 2003) (internal quotation marks omitted); see Trustees of the Bldg. Trades Educ. Benefit Fund v. Preferred Electric II, Inc., 16 CV 3294, 2018 WL 700116, at *2 (E.D.N.Y. Jan. 3, 2018); Hall, 2016 WL 1555128, at *17; Johnson, 2011 WL 4357376, at *21. Class Counsel have provided the underlying documentation supporting these claimed expenses. See Ambinder Decl. II, Exs. A and B. The Court finds that these costs are reasonable and were incidental and necessary to the litigation. Plaintiffs' request for $19,336.01 in costs is therefore GRANTED.
The Settlement Agreement provides that "[i]n return for services rendered to Class Members . . . at the Fairness Hearing, Named Plaintiffs may apply to the Court to receive Service Awards of no more than a cumulative total of up to Twenty Thousand Dollars ($20,000.00) from the QSF." Settlement Agreement, Section 3.4(A). At the Fairness Hearing, Class Counsel requested that named Plaintiffs John Michael Cohan and Wackson Barthelamy be given Service Awards of $10,000 each, which amounts to "approximately 0.31% of the total recovery." Pls.' Mem. at 21.
Service awards are common in class action cases. They are "important to compensate plaintiffs for the time and effort expended in assisting the prosecution of the litigation, the risks incurred by becoming and continuing as a litigant, and any other burdens sustained by plaintiff." Khait, 2010 WL 2025106, at *9 (awarding $15,000 service awards each to five named plaintiffs and $10,000 service awards each to ten other named plaintiffs); Dupler, 705 F. Supp. 2d at 245-46 (finding enhancement awards of $25,000 to one plaintiff and $5,000 to a second plaintiff reasonably based on the participation of the two individuals in the action to date); Willix, 2011 WL 754862, at *7 (finding service awards of $30,000, $15,000 and $7,500 to various plaintiffs to be reasonable). Class Counsel point out that these Plaintiffs contributed significantly to the case by "providing Class Counsel with detailed factual information regarding their job duties, Defendant's policies, and other information relevant to their claims, providing information responsive to Defendant's interrogatories and document demands, attending several lengthy mediation sessions, and regularly making themselves available to communicate with Class Counsel when necessary, including throughout the settlement process." Pls.' Mem. at 21. The Court finds that the Service Awards here "when compared to incentive awards given generally to named plaintiffs across a variety of class actions . . . fall solidly in the middle of the range." McBean v. City of New York, 233 F.R.D. 377, 391-92 (S.D.N.Y. 2006) (citing Fears v. Wilhelmina Model Agency, Inc., No. 02 Civ. 4911, 2005 WL 1041134, at *3 (S.D.N.Y. May 5, 2005 (collecting cases illustrating a range of incentive awards and approving an awards of $25,000)). These amounts shall be paid from the Settlement Fund. Given the reasonable amount of the proposed awards, Plaintiffs' motion is GRANTED and named Plaintiffs John Michael Cohan and Wackson Barthelamy shall receive Service Awards of $10,000 each drawn from the Qualified Settlement Fund.
For all of the foregoing reasons, Plaintiffs' Motion for Approval of Attorneys' Fees and Costs and for Approval of Service Awards is GRANTED, to the extent set forth in this Decision and Order.