The lead plaintiff in the suit, Eddie Wise, received a payment of $100,000 in 2006 after a judge ruled that New York cannot make arrests for peaceful panhandling. Judge Shira Scheindlin ruled last year that panhandlers across the state should receive damages, a finding that is being appealed in federal court.
The arrests were made under a law found to be unconstitutional in 1992.
The legal fees will be split between McGregory Smyth, a lawyer with a non-profit group, the Bronx Defenders, and two civil rights lawyers, Matthew Brinckerhoff and Katherine Rosenfeld, the New York Daily News reported. They represented Wise and another panhandler, Michael Brown.
A city lawyer said New York will not appeal the fees because the judge reduced them from the amount sought by the plaintiffs.