Common Benefit Order Establishes Fee Protocols and Litigation Fund for School District Direct Actions in PowerSchool MDL

The Southern District of California entered a Common Benefit Order governing fee and cost protocols for the School District Direct Action Track in the PowerSchool data breach MDL.

The order, filed April 23, 2026, establishes guidelines for the Plaintiff Steering Committee and Participating Counsel to manage case-staffing, timekeeping, cost reimbursement, and other common benefit issues.

The Court created the distinct School District Direct Action Track to address claims brought individually by school districts affected by the PowerSchool data breach. Separate leadership structures for the Class Track and Direct Action Track were previously established in Case Management Order No. 2 (Doc. No. 134) and Case Management Order No. 3 (Doc. No. 156).

The Court granted the motion for entry of a Common Benefit Order filed by the Track Two School District Direct Actions Plaintiffs. Defendants took no position on the motion, and School District Class Plaintiffs filed a notice taking no position.

The order defines compensable activities. "Common Benefit Work" includes all work done and expenses incurred at the direction of the PSC that inure to the common benefit of the Plaintiffs in the School District Direct Action Track of this MDL. Compensable work includes consolidated pleadings, factual and legal research, motion practice, discovery, court appearances, expert identification, trial preparation, and appellate work.

The Court adopted specific travel limitations for common benefit activities. For domestic flights, only the price of a refundable and convenient coach fare seat or its equivalent will be reimbursed. For transcontinental flights with a total duration exceeding four hours, business class, or if business class is not available, first class, may be reimbursed at the PSC’s discretion.

Hotel room charges for the average available room rate of a reasonable business hotel will be reimbursed. Miscellaneous cash expenses for which receipts generally are not available (e.g., tips, luggage handling) will be reimbursed up to $50.00 per trip if the expenses are properly itemized.

Mileage claims must be documented by stating origination point, destination, and total actual miles for each trip. The rate will be the maximum rate allowed by the Internal Revenue Service.

The order prohibits block billing and requires contemporaneous timekeeping in tenth-of-an-hour increments with specific descriptions of activities. The following activities will not be compensated or included in any fee petition: work not performed at the request or under the direction of the PSC; time expended in preparing time and expense reports; "read and review" time unrelated to preparation for or performance of work specifically assigned by PSC; unnecessary intra-firm attorney conferences; time associated with work relating to any client or potential client that did not retain your firm for this case, unless the work was authorized by the PSC; and routine clerical tasks (such as "file maintenance" by a paralegal or clerical staff) unrelated to preparation for and performance of work specifically assigned by the PSC.

Co-Lead Counsel for the School District Direct Action Track must establish and maintain an insured, interest-bearing escrow account, referred to as the Litigation Fund. Shared costs will be paid out of this fund upon PSC approval, with assessments due within 14 days. Failure to pay assessments is grounds for removal from appointments.

The order notes that it is without prejudice to Defendants’ right to object to proposed fees, costs, or other provisions later in the proceeding. It is also without prejudice to review by a court with jurisdiction regarding the reasonableness of any fee request.