By Mike Scarcella

WASHINGTON, Nov 24 (Reuters) - A federal judge in Texas on Monday granted final approval to a settlement resolving claims that Charles Schwab's SCHW.N merger with TD Ameritrade violated antitrust law and awarded the plaintiffs’ lawyers $8.25 million in fees, overruling complaints that the deal provided no direct payout to class members.

U.S. District Judge Amos Mazzant in his ruling said the settlement, which provides non-monetary benefits for nearly 25 million Schwab customers, is fair and reasonable.

Mazzant rejected several objections to the deal, including claims that the settlement or at least the plaintiffs' fee request should be denied because Schwab had agreed only to implement an antitrust compliance program and not to pay into a settlement fund.

The lawsuit, filed in 2022, alleged Schwab's merger substantially lessened competition in the retail order flow market, harming customers through reduced price improvement on trades. Schwab had denied any wrongdoing in agreeing to settle.

Schwab and lead attorneys for the plaintiffs did not immediately respond to requests for comment.

According to the plaintiffs, the compliance program Schwab agreed to adopt could yield price improvements on trades worth $10.7 million to $14.5 million in monthly savings for retail customers.

The state of Iowa in an objection to the settlement said the plaintiffs’ lawyers should not receive an “outsized reward” in fees for a class action that did not lead to a large recovery.

Schwab supported the settlement and did not oppose the fee award. Mazzant found the attorneys' hours and rates reasonable given the complexity of the case.

The judge said injunction-only settlements are allowed and that the compliance program offers meaningful benefits. The settlement does not bar individuals from suing for damages.

The case is Corrente et al v. The Charles Schwab Corporation, U.S. District Court, Eastern District of Texas, No. 4:22-cv-00470-ALM.

For plaintiffs: Yavar Bathaee and Brian Dunne of Bathaee Dunne; Christopher Burke of Burke LLP; Chad Bell of Korein Tillery; and Elizabeth DeRieux of Capshaw DeRieux

For Schwab: Jason Mendro and Cynthia Richman of Gibson, Dunn & Crutcher; Veronica Moyé of King & Spalding; and Melissa Smith of Gillam & Smith

Read more:

Wealth management firms to pay $25.5 million to settle employees’ class action

Lawyers face objections to multimillion-dollar fees after no-cash settlement with Schwab

(Reporting by Mike Scarcella)

((Email: mike.scarcella@thomsonreuters.com; Phone: 202-985-8228.))