The Virtumundo/Jim Gordon Affair

Internet email and security guru John Levine sums it up a lot better than I ever could, so I'll simply point you in his general direction.

Update: John Levine pulled his post down, replacing it with this text: "This post has been withdrawn due to objections from Virtumundo's lawyers."

He links to a copy of the judge's order, which can be found here.

Also, has more information on the topic, which can be found here. In addition to commentary, SpamSuite highlights the following excerpts from the order:
"the Court begins by expressing serious doubts about the accuracy with which Defendants’ attorneys recorded and billed both costs and fees in this litigation."
"Furthermore, the prospect that ... well over 1,000 hours—was spent on the Linke Log is absurd."
"Having seen the results of this project, the Court finds that spending the equivalent of over thirteen 40-hour weeks on this process is far more than was reasonable."
"Moreover, the inaccurate documentation presented with the instant motion reinforces the Court’s separate conclusion that the hours requested exceed the reasonable time spent on this case. Given that in making the instant motion Defendants have inexplicably inflated the total hours for which they request compensation by almost 27% beyond what was even recorded in their own billing records, the Court finds it entirely appropriate to cut their requested senior attorney hours by at least that much to account for other inflation that likely occurred in daily billing and overcharges to their clients, which may or may not have been partially balanced out by bill cuts and discounts."
"it appears to the Court that Defendants have deliberately doubled the requested compensation"
"It is unclear how Defendants arrived at the total of $26,338.01 requested in their motion. Moreover, as discussed, the individual expense requests that total $28,839.36 here also are inexplicably inflated when compared with the actual billing records submitted to the Court."