This story starts off with a pretty simple premise. Stockholders sued Caremark Rx, claiming that its managers had backdated stock options. It turned into a class action suit, and was eventually settled out of court. Then last week a judge said that the attorneys who successfully sued Caremark were entitled to be paid $7.5 million in legal fees for their work.
In Judge Hamilton Gayden’s decision to have the lawyers paid, he had one simple caveat: $500,000 of the purse must be donated to charity. Here’s where it gets stupefying.
Gayden ordered lawyers to pay $400,000 to the Nashville Chamber of Commerce Public Benefit Foundation to distribute free tickets to hockey games (Emphasis Added).That’s right, of the $500,000 given to charity, 80% of it will be used to give the needs free hockey tickets? This amounts to sending 20,000 needs people to a Nashville Predators game. But is this really the right choice? Is it even really charity? While it might amount to a fun night for the recipients, there has got to be a better way for this money to be spent. You can’t convince me otherwise.
For example, the Judge Gayden also ordered $100,000 to be donated to the Legal Aid Society of Middle Tennessee, which provides lawyers for people who can’t afford them. Now that is a worthy cause, and that’s a good way to give back. The hockey idea? it is just insanity.