Lodestar
The lodestar is a way to set lawyers' fees by multiplying the hours they reasonably spent by a reasonable hourly rate, sometimes adjusted by a multiplier.
Also called: lodestar method, lodestar cross-check, lodestar multiplier
The lodestar is a way to set lawyers' fees by multiplying the hours they reasonably spent by a reasonable hourly rate, sometimes adjusted by a multiplier.
What it means
The lodestar is a method courts use to decide a reasonable attorneys' fee. The judge takes the number of hours the lawyers reasonably spent on the case and multiplies it by a reasonable hourly rate. The result is the lodestar. In a leading civil rights fee case, the U.S. Supreme Court called this calculation the most useful starting point for a reasonable fee.
A judge can then adjust the figure up or down, for example based on the results the lawyers achieved. In class actions, the comparison is often described as a multiplier. If a fee is twice the lodestar, the multiplier is 2. Courts look at multipliers in similar cases to judge whether a fee is reasonable.
When a class action has a settlement fund, the lodestar is often a cross-check. The court may set the fee as a percentage of the fund, then compare it to the lodestar to see whether the percentage works out to an unreasonable hourly rate. When the value of the settlement is hard to measure, a court may use the lodestar to set the fee itself.
What it means for you
You will see "lodestar" in a fee motion or in the long-form notice, often next to the word "multiplier." It tells you how the lawyers' fee compares with the time they say they spent. A large multiplier is not automatically wrong, but it is a reason for the judge to ask why.
Class counsel is expected to give the court its time records and hourly rates, and you can often read them on the settlement website or the court docket. If you plan to object to the fee, the lodestar figures give you something concrete to point to.
Example
Say class lawyers log 4,000 hours at an average reasonable rate of $500, a lodestar of $2 million. They win a $10 million fund and ask for 25 percent, which is $2.5 million. The judge compares the two numbers. The fee is 1.25 times the lodestar, a modest multiplier, so the percentage looks reasonable. Had the lawyers asked for $8 million, the multiplier would be 4, and the judge would want a much stronger explanation.
FAQ
It compares the fee the lawyers want with their lodestar, which is hours times rates. A fee equal to twice the lodestar has a multiplier of 2. Courts use it to judge whether a percentage-based fee is reasonable.
No. A percentage fee is a share of the settlement fund, while the lodestar is based on time and rates. Many judges use the percentage to set the fee and the lodestar to double-check it.
Related terms
- Hensley v. Eckerhart, 461 U.S. 424 (1983) (Cornell LII)
- Manual for Complex Litigation, Fourth, sections 14.122, 14.223 and 21.71 (Federal Judicial Center)
- Managing Class Action Litigation: A Pocket Guide for Judges, 3d ed. (Federal Judicial Center, 2010)
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.