Full opinion text
OPINION & ORDER KATHLEEN McDONALD O’MALLEY, District Judge. After nearly five years of remarkably contentious litigation, in September 2009 the parties reached a Settlement Agreement resolving all of the claims in this class action lawsuit. Now ripe and pending before the Court are two motions occasioned by this settlement: (1) Plaintiffs’ Motion for Final Approval of Class Action Settlement and Incentive Award to Class Representatives (“Motion for Final Approval”) (Doc. 175); and (2) Motion for Order Granting Settlement Class Counsel’s Petition for Award of Attorney Fees and Expenses (“Fee Petition”) (Doc. 176). For the reasons articulated below, both of these motions are GRANTED. Accordingly, the Court APPROVES the Settlement Agreement (Docs. 168, 190) and enters final judgment DISMISSING the case. Further, the Court AWARDS Class Counsel’s fees and expenses in the amount requested, as calculated herein. Finally, the Court DENIES Mr. Greenberg’s request for leave to file a petition for attorneys’ fees (Doc. 191). I. BACKGROUND This is a case about homeowners insurance premiums. The Plaintiffs allege that the Defendant insurance companies sold consumers one homeowners insurance policy while unlawfully concealing the availability of a lower-priced policy that provided identical coverage and service. The Defendants admit that they sold identical policies at different prices, but have consistently denied, and continue to deny, that their conduct was unlawful in any way. The parties’ Settlement Agreement fully resolves the case, so long as the Court deems it fair, reasonable, and adequate pursuant to Rule 23 of the Federal Rules of Civil Procedure. Consequently, the threshold issue now before the Court is whether the Settlement Agreement satisfies Rule 23. On November 18, 2009, the Court issued an order certifying the Settlement Class pursuant Rule 23(b)(3) of the Federal Rules of Civil Procedure, preliminarily approving the Settlement Agreement, and approving procedures and forms relating to notice to class members, objections to the Settlement Agreement, and final approval. (Doc. 170.) As a result, the Court set the stage for the final act in this longstanding litigation — i.e., the Motion for Final Approval and consideration of Class Counsel’s Fee Petition. The Plaintiffs provide a detailed and accurate history of the case leading up to this final act in their memorandum in support of .final approval (Doc. 175 at 1-11). The Court’s summary of the case history below is based primarily on the Plaintiffs’ detailed description in their briefs; the Court expressly incorporates that description into this Opinion & Order. Because, however, the Court’s ruling with respect to the Motion for Final Approval and the Fee Petition is largely fact-specific, especially with respect to Class Counsel’s conduct in pursuing their case, it is necessary to include some of the important details in the history of the case set forth below. A. THE PLAYERS For the sake of clarity, the following is a brief introduction to the key players in this litigation and the parties to the Settlement Agreement. 1. The Named Plaintiffs/Class Representatives The named plaintiffs serve as class representatives for the class defined by the Settlement Agreement. As stated in the Court’s November 18, 2009 Opinion & Order, “Paul Lonardo, Dante Frezza, and Joe Feldman are hereby appointed as the Settlement Class Representatives.” (Doc. 170 at 4.) The Court will refer to Lonardo, Frezza, and Feldman as “the Settlement Class Representatives” throughout this Opinion & Order. The Court will refer to the named plaintiffs and class representatives and the class they represented in the pre-settlement lawsuit as “the Plaintiffs.” 2. The Defendants The named defendants in this case are: The Travelers Property Casualty Insurance Company, The Standard Fire Insurance Company, and The Travelers Indemnity Company. In addition, the following entities are not themselves named defendants, but are affiliated with the named defendants and signed-on to the Settlement Agreement: The Automobile Insurance Company of Hartford, CT, Travelers Property Casualty Insurance Company, Travelers Property Casualty Company of Illinois, The Phoenix Insurance Company, The Travelers Indemnity Company of Connecticut, and The Travelers Companies, Inc. For the sake of simplicity, all of these affiliated entities will be referred to throughout this Opinion & Order as “Travelers” or the “Settling Defendants,” or, where appropriate, the “Named Defendants.” 3. The Settlement Class The definition of the class, as initially certified, is set forth in the Court’s January 26, 2009 Opinion & Order, 259 F.R.D. 294, 300 (N.D.Ohio 2009). For settlement purposes, however, the parties agreed to the following definition of the “Settlement Class:” “Class” or “Settlement Class” means, for settlement purposes only and for no other purpose: All persons in the United States who made an initial purchase of a homeowners insurance Class Policy (as that term is defined elsewhere) from a Settling Defendant for a property located in the states of Alabama, Arkansas, Colorado, Illinois, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Ohio, South Carolina, and Tennessee, who are eligible to purchase Travelers homeowners insurance offering identical coverage and service, at a lower price, during the relevant “Class Period” for each respective state as set forth below. The precise “Class Policies” include only the policies described for the relevant time periods listed for each state in Exhibit B.... Excluded from the Class is any Class member who timely elects to be excluded from the Settlement Class, and all present and former agents of Defendants during the Class Period; all present and former employees of Defendants during the Class Period; and all members of the judiciary of the Court, and all members of their immediate families. (Doc. 168 at 2-3 (omitting footnote).) The Court certified the Settlement Class for settlement purposes in its November 18, 2009 Opinion & Order. (Doc. 170.) 4. Class Counsel The Court appointed counsel for the Settlement Class in the November 18, 2009 Opinion & Order. (Doc. 170 at 4.) The Court appointed: Don Barrett, Barrett Law Office, P.A.; Charles F. Barrett, Barrett & Associates, P.A.; Dewitt M. Lovelace, Lovelace Law Firm; R. Eric Kennedy and Daniel P. Goetz, Weisman, Kennedy & Berris Co., L.P.A.; Elizabeth J. Cabraser and Jahan C. Sagafi, Lieff, Cabraser, Heimann & Bernstein, LLP; John R. Patchett, Patchett Law Office; Thomas Thrash, Thrash Law Firm, and Pierce Gore, Gore Law Firm. (Doc. 168 at 3.) Each of these attorneys and/or their law firms have submitted an affidavit in support of their Fee Petition. (Doc. 176, Exs. A-G.) 5. The Objectors Nine objections were asserted in response to the notice of the Settlement Agreement. Class member Daniel Green-berg’s objection (Doc. 173) encompasses the substantive and colorable arguments asserted in all of the other objections. Mr. Greenberg is represented by attorney Theodore H. Frank of the non-profit law firm The Center for Class Action Fairness. Mr. Frank filed a brief on behalf of Mr. Greenberg articulating his objections to the Settlement Agreement. (Id.) He also appeared at the Final Fairness Hearing and presented oral argument in support of Mr. Greenberg’s objections. (Tr. of Final Fairness Hrg., Doc. 188 at 37-57.) B. THE UNDERLYING LITIGATION While the claims at the heart of this litigation are rather nuanced, the Plaintiffs essentially allege that Travelers sells identical homeowners insurance policies at multiple prices, concealing the availability of lower-priced policies that offer identical coverage and service to identically qualified customers. The Plaintiffs allege that Travelers’ practice of charging multiple prices for identical coverage of the exact same risk constituted, among other things, fraudulent concealment and unjust enriehment. The Plaintiffs’ ease evolved in three progressive stages, each of which is identifiable by the named plaintiff. 1. The Zangara Case The first case in the trilogy was Vincent Zangara, et al. v. Travelers Indemnity Company of America, Case No. 1:05cv731 (N.D.Ohio) (O’Malley, J.), which Class Counsel filed on March 14, 2005. The Zangara complaint alleged that a Travelers affiliate sold the plaintiffs a “homeowners insurance policy without disclosing to them the availability of a less expensive Travelers homeowners policy offering identical coverage and policyholder service.” Zangara, Case No. 1:05cv731, Doc. 2, ¶ 12. A year later, after substantial discovery and briefing regarding a motion to dismiss filed by Travelers and regarding class certification, Class Counsel filed a motion to amend the complaint indicating that the named plaintiff likely had purchased the lower-priced policy. Id. at Docs. 56, 56-1, 72. Although on March 16, 2006, the Court denied Travelers’ initial motion to dismiss, on March 30, 2006, the Court granted Travelers’ second motion to dismiss, this time for lack of subject matter jurisdiction. In the same order, the Court granted Travelers’ motion to vacate all prior orders. Id. at Docs. 58, 60-62. 2. The Stanich Complaint Less than a month after the Court dismissed Zangara, the next iteration of the case was filed on April 19, 2006, under the current case number, as Neil Stanich et al. v. Travelers Property Casualty Insurance Company et al., Case No. 06cv962 (N.D.Ohio) (O’Malley, J.). The Stanich complaint was similar to the Zangara complaint, but with new class representatives, and a new legal theory regarding Travelers’ alleged duty to disclose the existence of lower-priced policies. (See 249 F.R.D. at 514.) Contentious and extensive discovery ensued, and the Court asked Magistrate Judge Patricia Hemann to assist in the supervision of discovery. On April 20, 2007, the Plaintiffs filed their motion for class certification. (Doc. 107.) After the parties fully briefed the motion for class certification, the Court held a two-day hearing which included testimony by eight live witnesses. (Docs. 124-25.) Subsequently, the parties filed supplemental briefs. (Docs. 122,126.) On March 28, 2008, the Court issued a lengthy opinion and order regarding class certification. 249 F.R.D. 506 (N.D.Ohio 2008). In the March 28, 2008 Opinion & Order, the Court held that the class was certifiable, but deferred its final ruling because the named plaintiffs designated to serve as representatives for the Agent Subclass, Neil and Bobby Jean Stanich, failed to meet the adequacy and typicality requirements of Rules 23(a)(3) and (a)(4) of the Federal Rules of Civil Procedure. (249 F.R.D. at 530.) The Court gave the Plaintiffs time to conduct discovery and then move to substitute a new Agent SubClass representative. (Id.) 3. The Lonardo Complaint The third stage of the case began on July 24, 2008, when the Plaintiffs filed their motion to amend the complaint to substitute Paul Lonardo as Agent SubClass representative. (Doc. 132.) Once again, the parties briefed this motion and related motions extensively. On January 26, 2009 the Court issued another lengthy opinion and order granting the motion to amend the complaint to substitute Lonardo, appointing class counsel, and certifying the class. (259 F.R.D. 294.) Travelers appealed the January 26, 2009 Opinion & Order to the United States Court of Appeals for the Sixth Circuit. After further briefing, the Sixth Circuit affirmed the January 26, 2009 Opinion & Order on April 24, 2009. (See Doc. 175 at 6.) The Court then held a pre-trial conference to establish a new case schedule regarding discovery and notice procedures and forms. On April 9, 2009, the Court inquired as to whether the parties wished to mediate. Throughout the Spring and Summer of 2009, the Court conducted several status hearings and conferences to address issues relating to discovery, notice, and the exact parameters of the class certified. In the course of working through issues during that time, the parties began to discuss settlement. C. THE SETTLEMENT AGREEMENT 1. Settlement Negotiations Class Counsel described the settlement process as follows: “Settlement negotiations were protracted, difficult, and certainly at arm’s length.” (Doc. 175 at 7.) At the hearing, Travelers’ counsel concurred in this description of the parties’ interaction. (Tr. Fairness Hrg., Doc. 188.) The parties initially participated in telephone conferences, and then met in person several times in the Summer of 2009, all the while exchanging information. The parties finally reached a settlement on September 17,2009. (Id.) 2. Terms of the Settlement The terms of the settlement are set forth in the Settlement Agreement. (Docs. 168, 190.) In addition to the definitions of the Settlement Class, Class Counsel, and the Settlement Class Representatives provided above, there are several other key provisions of the Settlement Agreement. a. Cash Payment and Recovery Calculations The Settlement Agreement provides that each class member who timely submits a properly completed claim form is entitled to $8.69 for each 12-month Class Policy Period. (Doc. 168 at 15, ¶ II.E.l.) This figure is based on the following undisputed calculations: • Travelers identified 2,064,866.88 Class Policy Periods at issue, and the Claims Administrator identified 487,277 potential Settlement Class Members. (Oseas Decl., Doc. 174-1 at 1.) • Settlement Class Members paid a total of $89,273,821 in additional commission charges due to the price difference between the identical policies at issue. (Tr. Fairness Hrg., Doc. 188 at 10; Decl. of Leonard R. Freifelder, Ph.D. (“Freifelder Decl.”), Doc. 176 Ex. Y at 3.) • Because there are 2,064,866.88 Class Policy Periods and 487,277 potential Settlement Class Members, the average overpayment per Class Policy Period was $43.235. (Id.) Thus, the $8.69 cash payment per class period represents a 20 percent recovery. (Tr. Fairness Hrg., Doc. 188 at 10.) • The average Settlement Class member will be compensated for approximately 4.24 Class Policy Periods, and, in total, will receive approximately $36.82 from the cash payment aspect of the Settlement Agreement. (Freifelder Decl., Doc. 176 Ex. Y at 3; Tr. Fairness Hrg., Doc. 188 at 10-11.) In addition, each Settlement Class Member who submits a timely and valid claim form is entitled to a pro rata share of the $2 million Reversion from the attorneys’ fee provisions of the Settlement Agreement, as discussed below in the section regarding the Available Benefit. (See Doc. 190-1 at 1.) b. Notice and Claims Administration Costs The Settlement Agreement provides that Travelers will pay for all costs associated with providing and administering the notice and claims procedures. (Doc. 168 at 16-17, ¶ II.F.2.) The Claims Administrator estimates that, as of January 23, 2010, these costs totaled $420,306. (Oseas Decl., Doc. 174-1 at 1.) c. Attorneys Fees The original Settlement Agreement permitted Class Counsel to apply for attorneys’ fees in an amount not to exceed $6.6 million. (Doc. 168 at 16, ¶ II.F.2.) Paragraph II.F.2 provides: Class Counsel shall apply to the Court for an award of attorneys’ fees and reimbursement of expenses, which award shall be contingent on approval of the Settlement by the Court. Application by Class Counsel for an award of attorneys’ fees and expenses shall not be in excess of $6,600,000.00. Defendants will not oppose the motion for approval of attorneys’ fees provided it is made in conformity with this paragraph. The attorneys’ fees and reimbursement of expenses, as awarded by the Court, shall be paid by the Defendants, without depleting the settlement payments to be made to the Settlement Class members. Defendants shall pay Class Counsel the amount of attorneys’ fees and expenses, not exceeding $6,600,000.00, that are ultimately approved by the Court within 14 days after the Effective Date of this Settlement Agreement. (Id.) The First Amendment to the Settlement Agreement changed this provision (¶ II.F.2) by reducing the maximum amount of attorneys’ fees from $6.6 million to $4.6 million and awarding the $2 million difference to the Settlement Class, to be distributed on a pro rata basis. (Doc. 190-1 at 1.) The parties and Mr. Frank refer to this $2 million payment to the Settlement Class as the “Reversion;” the Court will use the same moniker. The First Amendment replaces all instances of $6.6 million with $4.6 million and adds the following paragraph to the end of the original paragraph II.F.2: The Settling Defendants will pay to the Settlement Class an additional $2,000,000.00 (the “Reversion”), and in exchange Class Counsel has agreed to seek only up to $4.6 million ($4,600,-000.00) in attorneys’ fees and costs. Nothing in this Agreement obligates the Settling Defendants to pay more than $4,600,000.00 in attorneys’ fees and costs. This Reversion to the Settlement Class shall be distributed, pro-rata per class policy period, among Class members who submit a timely and valid Claim Form postmarked on or before February 17, 2010. To the extent the Court requires any additional notice to the Class, the cost of such notice will be borne by Class Counsel. (Doc. 190-1 at 1.) d. Injunctive Relief Travelers also agreed not to engage in the practice at issue, as defined in the Settlement Agreement, for a period of three years. (Doc. 168 at 17, ¶ II.G.) 3. Preliminary Approval & Notice On November 18, 2009, the Court issued an order preliminarily approving the Settlement Agreement and approving procedures and forms relating to notice to class members, objections to the Settlement Agreement and final approval. (“Preliminary Approval Order,” Doc. 170.) The Preliminary Approval Order established deadlines and procedures for notice to the Settlement Class, claims, and objections. (Id.) The Court scheduled the Final Fairness Hearing for January 27, 2010. (Id. at 3.) Notice proceeded in the manner described in the Settlement Agreement and Preliminary Approval Order. (See Doc. 175.) The Claims Administrator, Epiq Systems, Inc., received from Travelers contact information for 487,277 potential class members. The Claims Administrator processed these names and addresses to identify any changes-of-address and then implemented a direct mail notice program. In addition, the Claims Administrator issued a public notice, established an informational website (http://www.lonardo settlement.com), and established a toll-free telephone number for the litigation. At the Final Fairness Hearing on January 27, 2010, the parties agreed to the Court’s proposal to allow further briefing after the close of the claims period — February 17, 2010 — regarding the fairness of the Settlement Agreement (and attorneys’ fees). (Docs. 187, 188.) The Court established a schedule for such briefing, and ordered Travelers to post information regarding the number of timely and valid claims filed with the Claims Administrator on the website on or before March 1, 2010. (Doc. 187.) 4. Claims Submitted and Actual Payment to the Settlement Class The deadline for submitting claims was February 17, 2010. (Doc. 170 at 3.) As of February 25, 2010, the Claims Administrator had received 53,782 timely, valid claims. (See http://www.lonardo settlement.com, last visited March 26, 2010.) Pursuant to the Court’s order at the close of the Final Fairness Hearing on January 27, 2010, Travelers disclosed on February 27, 2010, that the total amount of these claims was $2,812,962. (Doc. 191.) In other words, $2,812,962 is the total cash payment the Settlement Class will receive on a per Class Policy Period basis as the product of $8.69 and the number of Class Policy Periods encompassed within the timely and valid claims submitted. In addition to this amount, the Settlement Class will actually receive a cash payment of $2 million dollars as a result of the Reversion. This Reversion will increase the actual cash payment by approximately $6.18 per Class Policy Period, based on the number of timely and valid claim forms submitted. The Court will refer to this amount— $2,812,962 plus the $2 million Reversion— as the “Actual Payment” throughout this Opinion and Order. 5. The Available Benefit Travelers and the Plaintiffs agree that, notwithstanding the amount of the Actual Payment, the amount available to the Settlement Class equals the product of potential Settlement Class Members’ Class Policy Periods (2,064, 866.88) and the agreed cash payment per Class Policy Period ($8.69). This amounts to $17,943,693.18. (See Freifelder Decl., Doc. 176 Ex. Y at 4; Tr. Fairness Hrg., Doc. 188 at 10.) In other words, if every potential Settlement Class Member identified by Travelers had submitted a timely, valid claim form, the Actual Payment to the Settlement Class would have been $17,943,693.18. The Court will refer to this amount — $17,943,-693.18 — as the “Available Benefit.” In order to fully understand the Available Benefit in context, at the Final Fairness Hearing the Court asked the parties to clarify the relationship between the Available Benefit they negotiated as part of the Settlement Agreement (i.e., the $8.69 payment per Class Policy Period) and Settlement Class Members’ actual loss as a result of paying the higher premium. (Tr. Fairness Hrg., Doc. 188 at 10-11.) Referring to the Freifelder Declaration, the parties indicated that the Settlement Class Members’ actual loss is approximately $89 million. This estimate is based on Dr. Freifelder’s calculation: 2,064,866.88 Class Policy Periods multiplied by an average overcharge per Class Policy Period of $43,235 equals $89,273,821. (Freifelder Deck, Doc. 176 Ex. Y at 3.) Therefore, as noted by the Court at the Final Fairness Hearing, the Available Benefit negotiated by the parties as set forth in the Settlement Agreement represents a 20 percent recovery of the Settlement Class’ Total Actual Loss. (Tr. Fairness Hrg., Doc. 188 at 10.) II. CLASS ACTION SETTLEMENT APPROVAL ANALYSIS Having described the background of this litigation and summarized the key aspects of the Settlement Agreement, the Court now turns to the approval analysis. A. APPLICABLE STANDARD FOR APPROVAL OF CLASS ACTION SETTLEMENT It is well-established that the law generally favors settlement. See, e.g., Enter. Energy Corp. v. Columbia Gas Transmission Corp., 137 F.R.D. 240, 246 (S.D.Ohio 1991) (“The law generally favors and encourages the settlement of a class action.”). “The Court evaluates the proposed settlement in light of the general federal policy favoring settlement of class actions.” UAW v. General Motors Corp., Case No. 05cv73991-DT, 2006 WL 891151, at *12 (E.D.Mich. Mar. 31, 2006). Rule 23, moreover, requires that a class action settlement be “fair, reasonable, and adequate.” Fed.R.Civ.P. 23(e)(2); see also United States v. Jones & Laughlin Steel Corp., 804 F.2d 348, 351 (6th Cir.1986). Whether a class action settlement satisfies Rule 23(e) is committed to the sound discretion of the district court. See Bailey v. Great Lakes Canning, Inc., 908 F.2d 38, 42 (6th Cir.1990). Although Rule 23 does not prescribe a procedure for determining whether a proposed class action settlement is fair, reasonable, and adequate, it does require the Court to provide class members who would be bound by the proposed settlement with reasonable notice and an opportunity to object. Fed.R.Civ.P. 23(e). The Court must also hold a hearing regarding the fairness, reasonableness, and adequacy of the proposed settlement. Id.; see also Tenn. Ass’n of Health Maint. Orgs., Inc. v. Grier, 262 F.3d 559, 567 (6th Cir.2001) (quoting United States v. Oregon, 913 F.2d 576, 582 (9th Cir.1990) noting that the district court may conduct the fairness hearing in the manner appropriate “to aid it in reaching an informed just and reasoned decision”). The Court has satisfied these preliminary requirements: in the Preliminary Approval Order (Doc. 170), the Court provided for notice and an opportunity to object to the Settlement Agreement, and the Court allowed Settlement Class Members to present objections at the Final Fairness Hearing on January 27, 2010 (Doc. 188). Therefore, the question now before the Court is simply whether the Settlement Agreement is fair, reasonable, and adequate. Courts within the Sixth Circuit refer to a list of relevant factors to evaluate the fairness, reasonableness, and adequacy of a class action settlement. See, e.g., Gordon v. Dadante, 336 Fed.Appx. 540, 549 (6th Cir.2009) (unpublished) (citing Intl’ Union, United Auto., Aerospace, & Agric. Implement Workers v. Gen. Motors Corp., 497 F.3d 615, 631-32 (6th Cir.2007) (listing seven factors for evaluating a class action settlement)). In UAW v. GM, 2006 WL 891151, at *14, the Eastern District of Michigan listed the following relevant factors: (1) the likelihood of success on the merits weighed against the amount and form of the relief offered in the settlement; (2) the risks, expense, and delay of further litigation; (3) the judgment of experienced counsel who have competently evaluated the strength of their proofs; (4) the amount of discovery completed and the character of the evidence uncovered; (5) whether the settlement is fair to the unnamed Class members; (6) objections raised by Class members; (7) whether the settlement is the product of arm’s length negotiations as opposed to collusive bargaining; and (8) whether the settlement is consistent with the public interest. While Sixth Circuit courts do not always articulate these factors using this language, see, e.g., Intl’ Union, United Auto., Aerospace, & Agric. Implement Workers, 497 F.3d at 631-32 (listing seven factors instead of eight), the above list includes the factors commonly recognized as relevant. The Court, moreover, “may choose to consider only those factors that are relevant to the settlement and may weigh particular factors according to the demands of the case.” IUE-CWA v. General Motors Corp., 238 F.R.D. 583, 594-95 (E.D.Mich.2006); see also Granada Investments, Inc. v. DWG Corp., 962 F.2d 1203, 1205-1206 (6th Cir.1992). Accordingly, the Court will evaluate the Settlement Agreement by addressing each of the relevant factors in turn, while recognizing that it need not give equal weight to each of those factors. B. APPROVAL ANALYSIS 1. Whether the Settlement Agreement Is Fair, Reasonable, & Adequate a. Likelihood of Success on the Merits The first factor is the likelihood of success on the merits weighed against the amount and form of relief offered in the Settlement Agreement. A class action settlement may be particularly beneficial to the class if the risk of losing the case on the merits is high. As the Sixth Circuit has stated: The fairness of each settlement turns in large part on the bona fides of the parties’ legal dispute. Although this inquiry understandably does not require us to “decide the merits of the case or resolve unsettled legal questions,” we cannot “judge the fairness of a proposed compromise” without “weighing the plaintiffs likelihood of success on the merits against the amount and form of the relief offered in the settlement.” Intl’ Union, United Auto., Aerospace, & Agric. Implement Workers, 497 F.3d at 631 (quoting Carson v. Am. Brands, Inc., 450 U.S. 79, 88 n. 14, 101 S.Ct. 993, 67 L.Ed.2d 59 (1981)). The Plaintiffs’ legal position in this case has always been tenuous. The Court recognized in its initial class certification order that the Plaintiffs’ theory with respect to Travelers’ duty might make their claims vulnerable to dismissal at the summary judgment stage or to a finding in favor of Travelers at trial. (249 F.R.D. at 514; Tr. Fairness Hrg., Doc. 188 at 8.) Based on its own significant analysis of the legal questions central to this case, the Court also knows that the Plaintiffs’ legal theory is, as Class Counsel put it, “imaginative” and “unique.” (Tr. Fairness Hrg., Doc. 188 at 8.) Consequently, regardless of the outcome of summary judgement or trial, the Plaintiffs faced a very meaningful risk of losing on appeal to the Sixth Circuit. Travelers’ experienced counsel clearly understood the weaknesses in the Plaintiffs’ case, and consistently expressed their intention to exploit those weakness at each stage of the litigation. At the Final Fairness Hearing, the Court questioned Travelers’ counsel directly regarding her perspective on the Plaintiffs’ case. (Tr. Fairness Hrg., Doc. 188 at 35-36.) She confirmed that Travelers believed it had a substantial likelihood of prevailing on the merits: Well, I mean, from my perspective, the legal theories ... of their case were not strong. I think ... the shifting of the theory from the fiduciary duty later to the reliance theory and so forth, they were revealing themselves some, recognition of the weakness of their legal theories in some respects.... If we ended up litigating, I felt that I had a strong case. (Id.) Accordingly, the Plaintiffs’ likelihood of success on the merits was decidedly speculative. On the other side of the equation is the amount and form of the relief provided in the Settlement Agreement. With respect to the form of relief, the Settlement Agreement provides for a cash payment in the amount of $8.69 per Class Policy Period, a pro rata share of the $2 million Reversion, and an injunction prohibiting Travelers from engaging in the practice at issue, as defined in the Settlement Agreement, for a period of three years. As described above, the average Settlement Class Member overpaid by approximately $43 dollars per Class Policy Period, and the Settlement Agreement provides for a recovery of $8.69 per Class Policy Period. In terms of the amount, therefore, the parties negotiated a potential recovery equal to 20 percent of each Settlement Class Member’s Actual Loss. In addition, however, each Settlement Class Member will receive a pro rata share of the Reversion, thus increasing their recovery above 20 percent of their Actual Loss. The injunctive relief is also significant given that the practice has a potential discriminatory effect. (See Declaration of Wilbur C. Leatherberry (“Leatherberry Deck”), Doc. 176 Ex. H (explaining how the practice could have a discriminatory effect).) After balancing likelihood of success on the merits with the amount and form of the relief, the Court finds that this factor tips the scales heavily in favor of approval of the Settlement Agreement. The Settlement Agreement provides the Settlement Class Members with something, under circumstances in which there was a substantial likelihood that, but for the settlement, they would have received nothing. That “something,” moreover, is not just a nominal sum — it is a cash payment of, on average, in excess of $36. That amount far exceeds the value of the stamp and the effort required to return the claim form. Indeed, the cash component of the Settlement Agreement represents a meaningful recovery of almost one quarter of the Actual Loss, and does not include the value of enjoining a potentially discriminatory practice for at least three years. b. Risks, Expense & Delay of Further Litigation The second factor assesses the risks, expenses, and delay associated with further litigation. See In re Telectronics Pacing Sys., 137 F.Supp.2d 985, 1013 (S.D.Ohio 2001). As discussed above, this was a hard-fought legal battle from the filing of the complaint in Zangara to the final settlement conference. As Class Counsel explained at the Final Fairness Hearing: This litigation has gone on for nearly five years. Counsel for Plaintiffs have expended 7,000 hours, hundreds of interrogatories, hundreds of document requests, thousands of pages of documents have been produced, nineteen depositions, seven experts, two class certification proceedings, a trip to the Sixth Circuit on a 23(f), and probably a dozen or more formal or informal discovery hearings. (Tr. Fairness Hrg., Doc. 188 at 6.) Based on the Court’s intimate knowledge of these proceedings, there is no reason to believe that either party would litigate the remainder of the case less vigorously. And, the remainder of the case would almost certainly include potentially meritorious summary judgment motions (and all of the associated briefing), as well as discovery in advance of summary judgment motions regarding the scope of the class, damages, and experts. Furthermore, appeal of any judgment would be a virtual certainty, adding years and costs to an already aged and expensive case. In light of these considerations, the second factor also strongly favors approval, c. Well-Informed Class Counsel Endorse the Settlement Agreement The next factor favors approval if well-informed and knowledgeable counsel endorse the settlement. See UAW v. GM, 2006 WL 891151 at *18 (stating that experienced counsel’s endorsement “is entitled to significant weight, and supports the fairness of the class settlement”); Smith v. Ajax Magnethermic Corp., 2007 WL 3355080, at *5 (N.D.Ohio Nov. 7, 2007) (“The Sixth Circuit has held that, in the context of approving class action settlements, the Court ‘should defer to the judgment of experienced counsel who has competently evaluated the strength of his proofs.’ ”). In this case, Class Counsel enthusiastically endorse the Settlement Agreement. (Tr. Fairness Hrg., Doc. 188 at 7 (“The fact that we are sitting here today and I am standing before you today with a settlement in place, frankly, is extraordinary.”).) Class Counsel are experienced and capable attorneys whose work in complex class actions and multi-district litigation matters is well-known to the Court. See, e.g., In re Sulzer Hip Prosthesis and Knee Prosthesis Liab. Litig., 268 F.Supp.2d 907 (N.D.Ohio 2003); see also Kennedy Aff., Doc. 175 Ex. E. In addition, the Court has already noted in the January 26, 2009 Opinion & Order that Class Counsel have devoted their time, resources, and expertise diligently to the task of prosecuting this action on behalf of the Plaintiffs and the Settlement Class. (259 F.R.D. at 319-20.) For all of these reasons, the Court finds that the Settlement Agreement is endorsed by experienced, professional, and highly-skilled counsel who thoroughly evaluated the relative merits of the case and the Settlement Agreement. d. Amount of Discovery Completed & the Character of the Evidence In order to realistically and accurately assess the strength of their case and the propriety of settlement, experienced attorneys need sufficient information. In re Telectronics, 137 F.Supp.2d at 1014. With this in mind, another factor the Court considers in evaluating the Settlement Agreement is the amount and character of the evidence assembled to date. Id. Here, as described above, the parties have engaged in substantial discovery. (Tr. Fairness Hrg., Doc. 188 at 6.) First, the parties conducted significant discovery in preparation for the motion for class certification, and the Court heard live testimony from eight witnesses at the class certification hearing. (See Transcript of Class Certification Hearing (“Tr. Class Cert. Hrg.”), Docs. 124, 125.) Although the class certification process is not designed to test the merits of the plaintiffs’ claims, the Court noted in its class certification orders that, in this case, there was significant overlap between certain merit-based issues and certification, especially the basis for the Plaintiffs’ fraud allegations. (249 F.R.D. at 511, 514-21.) Consequently, the nature of this case afforded counsel for both parties with an opportunity for early discovery regarding the merits. Second, the parties conducted more discovery in the context of identifying substitute class representative Lonardo. (259 F.R.D. 294.) Third, after the Court issued the January 26, 2009 Opinion & Order regarding class certification, the parties conducted further discovery, including, among other things, discovery regarding the size and scope of the class certified. (See Doc. 175 at 6-7.) Ultimately, Class Counsel devoted more than 7,700 hours to this litigation and, as a result, have no doubt developed a sense of the relationship between the facts revealed in discovery and the legal issues. Accordingly, the Court finds that this factor also strongly favors approval of the Settlement Agreement. e. The Public Interest Whether the Settlement Agreement serves the public interest is another relevant factor. Class actions are meant to serve the public interest by providing an incentive for lawyers and class representatives to litigate on behalf of a group of people whose injury is legitimate and meaningful, but whose individual damages are not substantial enough to make litigation on an individual basis worthwhile. Similarly, the law favors settlement of class actions for policy reasons. This case is consistent with the goals and policies underlying class actions. Class counsel took on a difficult case that an individual class member would almost certainly never file on their own. The Settlement Class, moreover, obtained recovery on a class-wide basis for an alleged injury that, but for this litigation, would almost certainly have gone uncompensated. In addition, the Settlement Agreement contains injunctive relief that, for at least three years, will prevent the potential discrimination Professor Leatherberry identified, a benefit to the public as well as Settlement Class Members. Accordingly, this Settlement Agreement is consistent with the public interest. f. Objections from Class Members The remaining factors — whether the Settlement Agreement is the product of arms-length negotiations as opposed to collusive bargaining and whether the Settlement Agreement is fair to the unnamed class members — are encompassed within the Court’s analysis of the factors regarding objections from Settlement Class Members and will be addressed as such. i. The Number of Objections First, “[i]f only a small number of objections are received, that fact can be viewed as indicative of the adequacy of the settlement.” Wal-Mart Stores, Inc. v. Visa U.S.A., Inc., 396 F.3d 96, 118 (2d Cir.2005). The small number of objections is at least some indication that the settlement is fair to the unnamed class members. Here, the Claims Administrator sent the notice and claims forms to 487,277 potential Settlement Class Members and only ninety opted-out of the Settlement Agreement and nine submitted objections. Of those objections, one was untimely and was withdrawn because the objector was not a member of the class, one was submitted improperly, and several did not address issues within the scope of the Settlement Agreement. While the Court acknowledged that it may be possible to argue, and Mr. Greenberg did argue, that the paucity of objections is at least partially due to the procedures for submitting a claim and asserting an objection, see Tr. Fairness Hrg., Doc. 188 at 54-55, nine objections is truly a small number relative to the number of potential Settlement Class Members. See Hainey v. Parrott, 617 F.Supp.2d 668, 675 (S.D.Ohio 2007) (stating that “a small number of objections, particularly in a class of this size, indicates that the settlement is fair, reasonable, and adequate”). ii. The Substance of the Objections Turning to the substance of the objections, the Court finds that Class Counsel has addressed each persuasively. Before addressing the objections, however, it is important to note that, in his Supplemental Brief in Support of Objection of Daniel Greenberg (Doc. 191), Mr. Greenberg concedes that the Court could find that this Settlement Agreement is fair, reasonable, and adequate based on applicable Sixth Circuit authority: Greenberg acknowledges that the Sixth Circuit grants discretion to a district court’s decision whether to approve a settlement as fair, reasonable, and adequate under Fed.R.Civ.P. 23(e), and further concedes that this court could arguably approve the settlement and fee proposal without committing an abuse of discretion under current case law — • though he certainly reserves his right to ask the Sixth Circuit to change that case law. (Id. at 1 (citing Bailey, 908 F.2d at 42; In re Sulzer Orthopedics, Inc., 398 F.3d 778 (6th Cir.2005)).) In other words, while his objections seek to improve the Settlement Agreement, they do not assert that it is unfair, inadequate, or unreasonable under applicable law. Since that is the standard the Court must apply in order to approve the Settlement Agreement, the Court could conceivably grant the Motion for Final Approval (in the interest of judicial efficiency) without addressing Greenberg’s objections. The Court will not, however, take that approach, preferring instead to address all substantive objections presented to it in class action matters. Insufficient Notice In his objection and at the Final Fairness Hearing, Greenberg argued that the Settlement Agreement did not provide Settlement Class Members with sufficient notice regarding the total Available Benefit to the Settlement Class and the basis of Class Counsel’s request for $6.6 million in attorneys’ fees. (Doc. 173.) In response, Class Counsel directed the Court to the aspects of the Settlement Agreement estimating the number of Class Policy Periods at issue, describing the $8.69 cash payment per Class Policy Period, and explaining the parties’ agreement with respect to Class Counsel’s request for attorneys’ fees. (Tr. Fairness Hrg., Doc. 188 at 22-25.) Class Counsel argues that notice was sufficient because the Settlement Agreement was posted on the ease website and available on the Court’s docket. Class Counsel also cited several cases in which the notice regarding the total settlement fund and attorneys’ fees was less specific than the notice provided here. (See Tr. Fairness Hrg., Doc. 188 at 23-25 (citing, e.g., Bobbitt v. Academy of Court Reporting, Inc., 2009 WL 3336085 (E.D.Mich. Oct. 15, 2009)).) Under the circumstances, and based on all of the facts described above, the Court finds that notice regarding the total Available Benefit and the basis of Class Counsel’s request for attorneys’ fees was sufficient to satisfy due process. Greenberg also argues that notice was insufficient because Class Counsel filed the Fee Petition after the period to object to the Settlement Agreement had expired. While this is factually correct, the Court resolved this objection at the Final Fairness Hearing by expressly permitting supplemental briefing regarding approval and attorneys’ fees after the claims period ended on February 17, 2010. (Doc. 187.) At the Final Fairness Hearing, Mr. Frank acknowledged that this objection was “cured by the opportunity for further briefing.” (Tr. Fairness Hrg., Doc. 188 at 54.) Artificial Barriers to Recovery Mr. Greenberg objects to the Settlement Agreement on the grounds that the procedure for submitting claims erects artificial barriers to recovery by reducing the likelihood that Settlement Class Members will submit a timely, valid claim form. First, he objects to the existence of a claim form — i.e., the fact that Settlement Class Members have to opt-in by signing and returning a form. He argues that the form is unnecessary because it does not provide Travelers with any information they do not already have. Instead, he proposes, Travelers simply should have written each Settlement Class Member it identified a check in the appropriate amount, or, alternatively, allowed Settlement Class Members to submit their claims online. In response, Class Counsel argued that the claim form and opt-in procedure are negotiated components of the settlement that Travelers insisted upon in order to force Settlement Class Members to affirm that they would have purchased a lower-priced policy had it been offered to them. As stated in the memo in support of final approval: “this Court certified the Ohio fraud class based upon the presumption of reliance. The claim form allows the Defendants the opportunity, on an individual basis, to attempt to rebut this presumption.” (Doc. 175 at 19.) While Mr. Greenberg contends in his supplemental brief that the Defendants are estopped from rebutting this presumption because of the uniform pattern of conduct underpinning the class certification order, the uniform conduct at issue was the form application, policy, and marketing documents. Given that fact, rebutting the presumption of reliance on an individual basis is not inconsistent with class certification. See Baughman v. State Farm Mut. Auto. Ins. Co., 88 Ohio St.3d 480, 727 N.E.2d 1265, 1275 (2000) (holding that the defendants may rebut the presumption of reliance on an individual class member basis). Furthermore, although it might have been better to allow Settlement Class Members the option to submit claims online, it was not unreasonable for defendants to insist on a uniform class procedure. Clearly, a mandate that claims be only submitted online would be subject to objection from those not sufficiently computer savvy to participate easily in the process. Choosing one claims processing mechanism that involves simple use of the mails is not unreasonable. The settlement must be reasonable and adequate, not perfect. Attorneys’ Fees Mr. Greenberg’s next objection asserts that the Court should reject the Settlement Agreement because the attorneys’ fees provisions were negotiated separately and are not included in the settlement amount available for the class. He argues that the Court should create “a bright-line rule forbidding attorneys from negotiating separate fee awards that do not benefit the class.” (Doc. 191 at 1-2.) In other words, the Court should refuse to approve any class action settlement in which attorneys’ fees are paid independently of the value of benefits bestowed upon the class. Mr. Greenberg argues that such an arrangement reduces the amount the class recovers because it divorces or “decouples” Class Counsel’s interests from the interests of the class and provides attorneys an incentive to reserve for themselves a larger percentage of the total funds the defendant is willing to pay. Mr. Greenberg goes so far as to argue that by setting up two separate funds — one for class payments and one for a potential fee award— Class Counsel “have breached their fiduciary duty to the class” and have not “fairly and adequately” represented the interests of the Settlement Class. (Doc. 173 at 8.) Finally, Mr. Greenberg asserts that use of this two part structure “reduces the court’s incentive to carefully scrutinize the fee for unreasonableness, since any reduction only benefits the defendant.” (Doc. 191 at 3.) Class Counsel correctly point out that Mr. Greenberg’s brief is “long on ideology and short on law[,]” and that “[h]e readily admits that this Settlement could be approved under current Sixth Circuit law.” (Doc. 193 at 1.) More specifically, Class Counsel note, with substantial citation to case law, that the structure proposed in this case is common in class action litigation, that Mr. Greenberg has failed to cite a single case (and the Court has found none) where a class action settlement has been rejected on these grounds, and that the Sixth Circuit case law authorizes use of such a structure. Class Counsel argues, moreover, that there will always be some conflict between the interests of the class and those of class counsel, which is why the Court is charged with reviewing the settlement to ensure that it is fair and that Class Counsel did not sacrifice the well-being of the Settlement Class for their own benefit. Class Counsel explains that any competent class action lawyer in 2010 understands that there is a split of authority and that a court might choose to award fees strictly as a percentage of the actual recovery to the class — i.e., the Actual Payment — giving counsel every incentive to maximize that Actual Payment. Class Counsel also notes that the history of this case clearly indicates that the parties negotiated at arm’s length and there is no evidence of collusion. While policy concerns often prompt commentators to rethink how class action settlements operate, Class Counsel’ arguments on this issue are both legally and factually more sound than those of Mr. Greenberg. There is no legal authority supporting the bright line rule Mr. Green-berg asks the Court to draw and there is substantial case law indicating that it is neither necessary nor appropriate. There is also no reason to believe that Mr. Greenberg’s lack of faith in judicial officers who oversee class action settlements is justified. The notion that courts would be less vigilant regarding the propriety of an attorney fee award simply because of the structure it takes is confounding. Courts are charged with carefully assessing the scope and size of any fee award, which this Court intends to do. Finally, on the facts of this case, there is nothing to indicate that collusion occurred between the parties on this issue; indeed, all evidence supports the opposite conclusion. For these reasons, the Court rejects this final objection to the Settlement Agreement as well. g. Conclusion: The Factors Favor Approval For all of the reasons discussed above, the Court finds that the relevant factors favor approval of the Settlement Agreement. Accordingly, the Court GRANTS Plaintiffs’ Motion for Final Approval of Class Action Settlement and Incentive Award to Class Representatives (Doc. 175), APPROVES the Settlement Agreement as fair, reasonable, and adequate, and ORDERS Travelers to implement the “Equitable Relief’ provisions of the Settlement Agreement, and to fulfill all other obligations under the Settlement Agreement. 2. Incentive Awards to Class Action Representatives The Sixth Circuit has held that incentive awards to class representatives may be appropriate in some cases, but has not defined the circumstances justifying incentive awards. See Hadix v. Johnson, 322 F.3d 895, 898 (6th Cir.2003). Courts within the Sixth Circuit, however, recognize that, in common fund cases and where the settlement agreement provides for incentive awards, class representatives who have had extensive involvement in a class action litigation deserve compensation above and beyond amounts to which they are entitled to by virtue of class membership alone. Id. (“Incentive awards are typically awards to class representatives for their often extensive involvement with a lawsuit. Numerous courts have authorized incentive awards.”); Liberte Capital Group v. Capwill, 2007 WL 2492461, *1-2 (N.D.Ohio Aug. 29, 2007). The Settlement Agreement in this case expressly provides that Class Counsel will ask the Court to approve an incentive payment of $5,000 to each of the three Class Representatives — Lonardo, Frezza, and Feldman — “in recognition of [their] efforts on behalf of the Settlement Class.” (Doc. 168 at 17.) There are no objections to this provision of the Settlement Agreement, or to an incentive award in this case. The Class Representatives have actively participated in the case and assisted in its prosecution. Each submitted an affidavit describing his significant involvement in the case (Doc. 175 Exs. A, B, C), and the Court is well-aware of Lonardo and Frezza’s substantial contributions having observed Frezza testify at the class certification hearing (Doc. 124), and granted the Plaintiffs’ motion to substitute Lonardo as Class Representative (259 F.R.D. 294). Accordingly, the Court GRANTS the request for an incentive award of $5,000 to each of the Class Representatives. III. FEE PETITION ANALYSIS A. INTRODUCTION: CLASS COUNSELS’ PETITION FOR FEES On January 25, 2010, Class Counsel filed their Fee Petition requesting an award of attorneys’ fees in the amount of $4.6 million. (Doc. 176.) Class Counsel suggested that this Court should evaluate the reasonableness of this request by employing the “lodestar” method and using the “percentage of the fund” method as a cross-check. (Id. at 1.) In addition, in light of acknowledged unsettled law in the area, Class Counsel proposed an innovative approach to determining the value of the “the fund” for purposes of the percentage of the fund analysis. (Id. at 23-29.) Several Settlement Class Members, led by Mr. Greenberg, objected to the provision of the original settlement agreement (Doc. 168 at 16, ¶ II.F.2) in which the Defendants agreed not to oppose Class Counsel’s .request for attorneys’ fees, so long as they did not request more than $6.6 million. In their Fee Petition, which was filed after Mr. Greenberg filed his objection (Doc. 173), Class Counsel requested only $4.6 million in fees, and promised to amend the Settlement Agreement to reflect the $2 million reduction. (Doc. 176 at 16.) Mr. Greenberg then appeared at the Final Fairness Hearing through his attorney, Mr. Frank of The Center for Class Action Fairness, and presented his objections to Class Counsel’s request for attorneys’ fees. The time period for potential Settlement Class Members to submit claims had not expired at the time of the Final Fairness Hearing, so the Court permitted post-hearing briefing regarding approval of the Motion for Final Approval and the Fee Petition (see Doc. 187). On March 9, 2010 Mr. Frank filed a supplemental brief in which he conceded that the Court could grant Class Counsel’s Fee Petition under applicable Sixth Circuit authority, but nonetheless continued to press Mr. Greenberg’s objections in an effort to persuade the Court to adopt his own proposals with respect to the proper analysis of fee petitions in class action cases. (Doc. 191 at 1.) The debate between Mr. Frank (on behalf of Mr. Greenberg) and Class Counsel raises interesting questions of largely unsettled law. Both sides agree that (1) an inevitable conflict of interest exists between class counsel and the class in every class action settlement against which courts must guard; and (2) the Settlement Agreement in this case is not actually tainted by collusion between Class Counsel and Travelers or self-dealing by Class Counsel. Their disagreement concerns whether the Court should ever award attorneys’ fees in excess of a reasonable percentage of the Total Actual Payment to the class. The Court will address the issues that arise out of this disagreement in its analysis of the Fee Petition below. B. APPLICABLE LAW: THE DETERMINATION OF ATTORNEYS’ FEE AWARDS IN CLASS ACTION CASES Rule 23(e) requires the Court to evaluate all class action settlements. Fed. R.Civ.P. 23(e). One aspect of this responsibility is to protect absent class members’ interests; another is to ensure “that counsel is fairly compensated for the amount of work done as well as for results achieved.” Rawlings v. Prudential-Bache Props., Inc., 9 F.3d 513, 516 (6th Cir.1993). The unique characteristics of class actions, both generally and on a case-by-case basis, give district courts broad discretion in their determination of an attorneys’ fee award. See Bowling v. Pfizer, Inc., 102 F.3d 777, 779 (6th Cir.1996); Rawlings, 9 F.3d at 516; In re Cardinal Health Inc. Sec. Litigs., 528 F.Supp.2d 752, 757 (S.D.Ohio 2007) (citing In re Sulzer Orthopedics Inc., 398 F.3d 778, 780 (6th Cir.2005) for the proposition that “[i]t is within the Court’s discretion to set the amount of attorneys’ fees so that they are reasonable, and the Sixth Circuit reviews such an award only for an abuse of discretion.”). Courts usually employ one of two methods in analyzing a request for attorneys’ fees — the “lodestar” analysis or “percentage of the fund” analysis. See, Sulzer, 268 F.Supp.2d at 922 (citing Rawlings, 9 F.3d at 515-16); see also In re Cardinal Health, 528 F.Supp.2d at 757 (“First, the Court must select a method by which to calculate the attorneys’ fees-either the percentage approach or the lodestar approach.”). To determine the “lodestar” figure, the Court multiplies the proven number of hours reasonably expended on the litigation by a reasonable hourly rate. Reed v. Rhodes, 179 F.3d 453, 471 (6th Cir.1999); see also Isabel v. City of Memphis, 404 F.3d 404, 415 (6th Cir.2005); Sulzer, 268 F.Supp.2d at 922 (citing Penn. v. Delaware Valley Citizens’ Council for Clean Air, 478 U.S. 546, 565, 106 S.Ct. 3088, 92 L.Ed.2d 439 (1986)). The Court may then adjust the lodestar figure up or down based on a number of factors designed to account for case-specific circumstances. Id. “In contrast, ‘[ujnder the percentage of the fund method, the court simply determines a percentage of the settlement to award the class counsel.’ ” Sulzer, 268 F.Supp.2d at 922 (quoting In re Telectronics Pacing Sys., 137 F.Supp.2d 1029, 1041 (S.D.Ohio 2001) (citing Rawlings, 9 F.3d at 516)). In the Sixth Circuit, it is within the discretion of the district court to decide which method to use in a given case. See id. (quoting Bowling, 102 F.3d at 779 (quoting Rawlings, 9 F.3d at 516)). In Rawlings, the Sixth Circuit stated: The lodestar method better accounts for the amount of work done, while the percentage of the fund method more accurately reflects the results achieved. For these reasons, it is necessary that district courts be permitted to select the more appropriate method for calculating attorney’s fees in light of the unique characteristics of class actions in general, and of the unique circumstances of the actual cases before them. Rawlings, 9 F.3d at 516. In general, however, percentage of the fund has been the preferred method for common fund cases, where there is a single pool of money and each class member is entitled to a share (i.e., a “common fund”). Id. This is not a common fund case, however. The Settlement Agreement provides for attorneys’ fees independent of what the Available Benefit or the Actual Payment to the Settlement Class turns out to be. Class Counsel submits that the lodestar has been favored in statutory fee-shifting cases and in cases, like this one, in which the settlement agreement provides for attorneys’ fees to be paid independently (as opposed to from the common fund). (Doc. 176 at 13-14.) Class Counsel cites a number of cases in support of this proposition, although none are within the Sixth Circuit. See Wing v. Asarco, Inc., 114 F.3d 986 (9th Cir.1997); Deloach v. Philip Morris Companies, 2003 WL 23094907 (M.D.N.C.2003); Johnston v. Comerica Mortgage Corp., 83 F.3d 241, 245-46 (8th Cir.1996); Weinberger v. Great Northern Nekoosa Corp., 925 F.2d 518, 524-27 (1st Cir.1991); Lobatz v. W. Cellular of Cal., Inc., 222 F.3d 1142 (9th Cir.2000). For his part, Mr. Frank argues that there is no such thing as an attorneys’ fee that is independent of the common fund. Quoting In re General Motors Corp. Pick-Up Truck Fuel Tank Prod. Liab. Litig., 55 F.3d 768, 820-21 (3d Cir.1995) he contends that “although the parties claim that the fee and settlement are independent, they actually come from the same source[;] ... private agreements to structure artificially separate fee and settlement arrangements cannot transform what is in economic reality a common fund situation into a statutory fee shifting case.” (Doc. 173 at 9.) What independent fee arrangements do, either purposely or “subliminally,” he argues, is eliminate a potential source of funds for the class. (Doc. 191 at 3.) Mr. Frank explains that “[a]ny fee that a defendant agrees to pay directly to class counsel is an amount that it would have been willing to include as part of the payment to the class[,]” but, because it was negotiated independently it will revert back to the defendant, not the class, if the Court’s fee award is less than the amount requested or available strictly for fees. (Doc. 191 at 3-4.) With this “economic reality” in mind, Mr. Frank argues that the percentage of the fund methodology should be used in all cases. At the Final Fairness Hearing, he stated: I certainly recognize that the Sixth Circuit currently leaves the question of the lodestar [versus] common fund percentage up to the Judge, but I would like to argue as a public policy matter that we should take a firm stand on the com