Judge: Elaine Lu, Case: 22STCV12522, Date: 2025-01-02 Tentative Ruling

Case Number: 22STCV12522    Hearing Date: January 2, 2025    Dept: 9

Preliminary Approval of Class Action Settlement

Department SSC-9

Hon. Elaine Lu

Huong Bui v. Spectrum LifeSciences, LLC et al.

Case No.: 22STCV12522

Hearing: January 2, 2025 (continued from November 12, 2024)

TENTATIVE RULING

The Court remains concerned about the risk of a potential conflict of interest between the named Plaintiff and the class. On November 12, 2024, the Court continued preliminary approval and requested a copy of Plaintiff’s individual settlement of alleged sexual harassment, racial harassment, and gender discrimination, which Counsel declared was “negotiated and settled independently of the class settlement.” (See Ardestani Decl. ISO Prelim, ¶49.) Despite such declaration, the following clauses explicitly make the individual settlement conditioned on approval of the class settlement:

Plaintiff shall work with Defendants and the Court to secure preliminary and final approval of the Class Action and PAGA Settlement Agreement to resolve the pending class and representative consolidated wage and hour lawsuits.  Plaintiff expressly understands and acknowledges that the validity and enforceability of this Agreement is expressly contingent upon the Court’s final approval of the Class and PAGA Settlement and/or modification of those terms.  The contingent payment provided for under this Agreement shall only become due and owing after confirmation of both (i) the Court’s final approval of the Class Action and PAGA Settlement; (ii) Plaintiff has filed a dismissal with prejudice of the Action as to her individual claims as to all parties and all allegations, claims, charges, actions, causes of action, complaints, lawsuits, appeals, and proceedings that Plaintiff has instituted against the Defendants.

(Pl’s Individual Settlement, ¶2.)

It is understood and agreed that this payment shall be tendered within (15) days of all of the following having occurred: (i) court’s final approval of the class and representative settlement in the Action […] Plaintiff shall file a dismissal with prejudice of the Action as to her individual claims within five business days of Defendants having funded the Class and PAGA Settlement.

(Pl’s Individual Settlement, ¶4.)

Accordingly, before the Court will grant preliminary approval of the class action settlement, Counsel must:

·         Submit further briefing regarding Plaintiff’s adequacy as a class representative and why a conflict of interest does not exist between Plaintiff and the class.

·         Revise Plaintiff’s individual settlement agreement at Paragraphs 2 and 4 to explicitly state that the individual agreement is not contingent on the final resolution of the class action and PAGA matters.

·         Revise the Class Notice to disclose to class members the named plaintiff’s entry into a separate individual settlement agreement with the Defendant.

No later than February 20, 2025, the parties must submit supplemental briefing and evidence that adequately addresses the remaining concerns above.

The Parties’ Motion for Preliminary Approval of Class Action Settlement is CONTINUED to March 13, 2025 at 10 am.