Judge: Elaine Lu, Case: 24STCV02956, Date: 2025-02-20 Tentative Ruling
Case Number: 24STCV02956 Hearing Date: February 20, 2025 Dept: 9
Preliminary Approval of Class Action
Settlement
Department SSC-9
Hon. Elaine Lu
Yolanda Soto v. MD Hydration Inc. et al.
Case No.: 24STCV02956
Hearing: February 20, 2025 c/f February
13, 2025
TENTATIVE RULING
The Parties’ Motion for Preliminary
Approval of Class Action Settlement is GRANTED as the settlement is fair,
adequate, and reasonable.
The essential terms of the
Settlement Agreement are:
A. The Gross Settlement Amount (“GSA”) is $1,830,000, non-reversionary.
(¶3.1)
B. The Net Settlement Amount is the GSA minus the following:
o Up to $610,000 (33
1/3%) for attorney fees (¶3.2.2);
o Up to $18,000 for litigation costs (Ibid.);
o Up to $10,000 for a Service Payment to the
Named Plaintiff (¶3.2.1);
o Up to $10,995 for settlement administration
costs (¶3.2.3); and
o Payment of $137,250 (75% of $183,000 PAGA
penalty) to the LWDA. (¶3.2.5)
C. Employer’s share of the payroll taxes on the taxable portion
of the settlement payments shall be paid separately from the GSA by Defendant. (¶3.1)
D. Plaintiffs shall release Defendants from claims described
herein.
The Parties’ Motion for
Final Approval of Class Action Settlement must be filed by August 16, 2025
and shall be heard on August 19, 2025 at 10 am.
The Parties’ Motion for
Final Approval of Class Action Settlement must include a concurrently lodged
single document that constitutes a [Proposed] Order and Judgment containing
among other things, the class definition, full release language, and names of
the any class members who opted out.
Non-Appearance Case Review
is set for August 23, 2025, 8:30
a.m., Department 9.
BACKGROUND
This is a wage and
hour class action. On February 2, 2024, Plaintiff YOLANDA SOTO (“Plaintiff”)
filed a Class Action Complaint against Defendants MD HYDRATION INC. and BRETT
FLORIE (“Defendants”) in the Superior Court for the State of California, in Los
Angeles, Case Number 24STCV02956. On February 9, 2024, Plaintiff filed a First
Amended Complaint (the “Operative Complaint”), alleging: (1) Failure to Compensate
All Hours Worked; (2) Failure to Provide Proper Wage Statements; (3) Failure to
Pay Minimum Wages; (4) Failure to Pay Overtime; (5) Missed Rest Breaks; (6)
Failure to Reimburse Business Expenses; (7) Unfair Business Practices; and (8)
Labor Code Private Attorneys General Act of 2004 (“PAGA”) Remedies for IWC Wage
Order and Labor Code Violations.
On September 3,
2024, the parties attended a full day of mediation with the Honorable Carl
West, where they reached a settlement. A fully executed copy of the Settlement
Agreement was filed with the Court on December 5, 2024 attached to the
Declaration Of Young W. Ryu (“Ryu Decl.”), as Exhibit A.
On February 13, 2025
the Court continued Preliminary Approval for Counsel to address deficiencies
with the settlement. On February 14, 2025, Counsel filed a fully executed
amended Settlement Agreement attached as Exhibit 1 to the Supplemental
Declaration of Young W. Ryu. (“Ryu Supp. Decl.”).
Now before the Court is Plaintiff’s Motion for
Preliminary Approval of the Settlement Agreement.
SETTLEMENT CLASS DEFINITION
·
“Class Member(s)” or "Settlement Class."
All current and former non-exempt employees of Defendant who worked in the
State of California at any time during the Class Period. This includes either a
Participating Class Member or Non-Participating Class Member. (¶1.8)
o “Class Period” means the period beginning February 2,
2020, through January 27, 2025. (¶1.11)
·
Aggrieved
Employee." All current and former non -exempt employees of Defendant
employed in California at any time during the PAGA Period. (¶1.2)
o “PAGA Period” The period from December 1, 2022,
through the date of judgment on a date fixed by the Court. (¶1.29)
·
The parties stipulate
to class certification for settlement purposes only. (¶13.1.)
TERMS OF SETTLEMENT AGREEMENT
The
essential terms are as follows:
·
The
Gross Settlement Amount (“GSA”) is $1,830,000,
non-reversionary. (¶3.1)
o Escalator Clause. Defendant estimates the number of
work weeks during the Class Period to be 22,209. If the actual number of
Workweeks encompassed within the Class Period exceeds 22,209 by more than 10%,
i.e. 24,430 or more, then, Defendant at its exclusive discretion may either (a)
increase the Gross Settlement Amount by a pro rata dollar value for those
workweeks in excess of the escalation margin; or (b) end the Class Period on
the date on which the number of workweeks is no more than 10% higher than
22,209. Under the latter option, which is hereby exercised, no additional
payment is necessary. (¶4.1)
·
The
Net Settlement Amount (“Net”) ($1,043,755.00) is the GSA minus the
following:
o Up to $610,000 (33
1/3%) for attorney fees (¶3.2.2);
o Up to $18,000 for litigation costs (Ibid.);
o Up to $10,000 for a Service Payment to the
Named Plaintiff (¶3.2.1);
o Up to $10,995 for settlement administration
costs (¶3.2.3); and
o Payment of $137,250 (75% of $183,000 PAGA
penalty) to the LWDA. (¶3.2.5)
·
Defendants
will pay their share of taxes separate from the GSA. (¶3.1)
·
Funding
of Settlement: Defendant shall fully fund the Gross Settlement Amount,
and also fund the amounts necessary to fully pay Defendant’s share of payroll
taxes by transmitting the funds to the Claims Administrator no later than
fourteen (14) calendar days following the Effective Date. (¶4.3)
·
There
is no claim form requirement. (¶3.1)
·
Individual Settlement Payment Calculation: An Individual Class Payment calculated by (a)
dividing the Net Settlement Amount by the total number of Workweeks worked by
all Participating Class Members during the Class Period and (b) multiplying the
result by each Participating Class Member's Workweeks. (¶3.2.4)
o Tax Allocation: 1/3 as wages and 2/3 as interest and penalties.
(¶3.2.4.1)
·
PAGA
Payments: The Claims Administrator will calculate each Individual PAGA Payment by (a) dividing the
amount of the Aggrieved Employees' 25% share of PAGA Penalties $45,750.00 by
the total number of PAGA Period Pay Periods worked by all Aggrieved Employees
during the PAGA Period and (b) multiplying the result by each Aggrieved Employee's PAGA Period Pay
Periods. Aggrieved Employees assume full responsibility and liability for any
taxes owed on their Individual PAGA Payment. (¶3.2.5.1)
o Tax Allocation: IRS 1099 forms. (¶3.2.5.2)
·
"Response Deadline" means Forty Five (45)
calendar days after the Claims Administrator mails Notice to Class Members and
Aggrieved Employees, and shall be the last date on which Class Members may: (a)
mail Requests for Exclusion from the Settlement, or (b) mail his or her
Objection to the Settlement. Class Members to whom Notice Packets are resent
after having been returned undeliverable to the Claims Administrator shall have
an additional fifteen (15) calendar days beyond the Response Deadline has
expired. (¶1.40) The same deadline applies to challenges to workweek
calculations. (¶8.6)
o If the number of valid
Requests for Exclusion identified in the Exclusion List exceeds 10% (ten
percent) of the total of all Class
Members, Defendant may, but is not obligated, elect to withdraw from the
Settlement. (¶9)
·
Uncashed Settlement Checks: Any checks issued by the Claims
Administrator to Class Members will be negotiable for one-hundred eighty (180)
calendar days. After one-hundred eighty (180) calendar days from the date of
mailing, the checks shall become null and void. Funds associated with cancelled
checks will be transmitted to the California Controller's Unclaimed Property
Fund in the name of the Class Member thereby leaving no “unpaid residue”
subject to the requirements of the California Code of Civil Procedure Section
384, subd. (b). (¶4.4.3)
·
The
settlement administrator will be Phoenix Class Action Administration Solutions. (¶1.2)
ANALYSIS
OF SETTLEMENT AGREEMENT
A. Does a presumption of fairness exist?
1. Was the settlement reached through arm’s-length bargaining? Yes. On September 3, 2024,
the parties attended a full day of mediation with the Honorable Carl West,
where they reached a settlement. (Ryu Decl., ¶9.)
2. Were investigation and discovery sufficient to allow counsel and the
court to act intelligently? Yes. Counsel represents that prior to mediation,
Plaintiff obtained certain information and documents related to MD HYDRATION’s
handbook, policies, practices and procedures, including those relating to
Defendants’ compensation policies and procedures, employee handbooks, and other
corporate policies and procedures relevant to the issues, along with other
non-confidential information regarding MD HYDRATION’s employees. Plaintiff also
obtained additional documents and information, including sample class
member/allegedly aggrieved employees time and payroll records, class
statistics, and other class data. The Parties conducted their own evaluation of
potential risks and recoveries based on the claims alleged in the Action and
from the exchange of information, with Plaintiff engaging an expert to conduct
a damage analysis. Counsel further represents that the class data covers
approximately a 40% sampling of the class members—a considerable and
statistically significant portion. (Id.
at ¶9.)
3. Is
counsel experienced in similar litigation?
Yes. Class Counsel represents
that they are experienced in class action litigation,
including wage and hour class actions. (Id. at ¶¶3-7.)
4. What
percentage of the class has objected?
This cannot be determined until the fairness
hearing. (See Weil & Brown, Cal.
Practice Guide: Civil Procedure Before Trial (The Rutter Group 2014) ¶
14:139.18, [“Should the court receive objections to the proposed settlement, it
will consider and either sustain or overrule them at the fairness hearing.”].)
CONCLUSION: The settlement is entitled to a presumption
of fairness.
B.
Is the
settlement fair, adequate, and reasonable?
1. Strength
of Plaintiff’s case.
“The most important factor is the strength of the case for plaintiffs on the merits, balanced against the amount offered in
settlement.” (Kullar v. Foot Locker Retail, Inc. (2008) 168 Cal.App.4th
116, 130.) Here, Class Counsel has
provided detailed analysis, summarized below, of the estimated values of the
claims asserted:
|
Violation |
Maximum Exposure |
|
Unpaid Wages |
$620,530.30 |
|
Meal Break Violations |
$127,062.68 |
|
Rest Break Violations |
$2,707,567.92 |
|
Business Expense
Reimbursement |
$127,062.68 |
|
Wage Statement Violations |
$577,650.00 |
|
Waiting Time Penalties |
$3,793,996.80 |
|
PAGA |
$5,386,750.00 |
|
TOTAL |
$13,340,620.38 |
(Young Decl. ¶¶20-41.)
2. Risk, expense, complexity and likely
duration of further litigation.
Given the nature of the class claims, the case is likely to be expensive
and lengthy to try. Procedural hurdles
(e.g., motion practice and appeals) are also likely to prolong the litigation
as well as any recovery by the class members.
3. Risk of maintaining class action status
through trial. Even if a class is
certified, there is always a risk of decertification. (See Weinstat v. Dentsply
Intern., Inc. (2010) 180 Cal.App.4th
1213, 1226 [“Our Supreme Court has recognized that trial courts
should retain some flexibility in conducting class
actions, which means, under suitable circumstances,
entertaining successive motions on certification if the court subsequently
discovers that the propriety of a class action is not appropriate.”].)
4. Amount offered in settlement. Plaintiff’s counsel obtained a $1,830,000 non-reversionary
settlement. The $1,830,000 settlement amount constitutes approximately 13.72% of Defendant’s maximum
exposure. Given the uncertain outcomes, the settlement
appears to be within the “ballpark of reasonableness.”
The $1,830,000 settlement
amount, if reduced by the requested deductions, will leave $1,043,755.00 to be divided among approximately 501 class
members. The resulting payments will average $2,083.34 per class member. [$1,043,755
/ 501 = $2,083.34].
5. Extent of discovery completed and stage of the proceedings. As indicated above, at the time of the
settlement, Class Counsel had conducted sufficient discovery.
6. Experience and views of counsel. The settlement was negotiated and endorsed by
Class Counsel who, as indicated above, is experienced in class action
litigation, including wage and hour class actions.
7. Presence of a governmental participant. This factor is not applicable here.
8. Reaction of the class members to the proposed settlement.
The class members’ reactions will not be known until they receive notice and
are afforded an opportunity to object, opt-out and/or submit claim forms. This factor becomes relevant during the final
fairness hearing.
CONCLUSION: The settlement can be preliminarily deemed
“fair, adequate, and reasonable.”
C.
Scope of the release
Effective
on the date when Defendant fully funds the entire Gross Settlement Amount,
Plaintiff, Class Members, and Class Counsel will release claims against all
Released Parties, as follows: (¶5)
·
Released PAGA Claims. Upon the Effective Date and upon Defendants
fully funding the Gross Settlement Amount, the State of California and all
Aggrieved Employees, including those who timely and effectively exclude
themselves from the Settlement, shall nevertheless be bound by the Released
PAGA Claims and shall receive a pro rata portion of 25% of the PAGA Settlement
Amount. Aggrieved Employees shall fully and finally release Released Parties of
the Released PAGA Claims only for the PAGA Period. The Released PAGA Claims
include any and all claims for penalties asserted in Plaintiff’s PAGA Notice, or
that reasonably could have been alleged based on the facts and claims actually
alleged in Plaintiff s PAGA Notice, including, without limitation, Labor Code
sections 201-203, 226, 226.7, 500, 510, 512, 516, 558, 1174, 1194, 1194.2,
1197, 1198, 2699, et seq., 2699.3, and the applicable Industrial Welfare
Commission Wage Order(s). The Released
PAGA Claims will not include any of the underlying wage and hours claims on
which the PAGA penalties are premised. (¶5.1.2)
·
Released Class Claims. Upon the Effective Date and upon
Defendant’s fully funding the Gross Settlement Amount, all Class Members (which
specifically includes Plaintiff) shall fully and finally release Released
Parties of the Released Class Claims. The Released Class Claims include any and
all claims, wage and hour claims, rights, demands, liabilities and causes of
action of any nature or description alleged/asserted in the Action or reasonably
arising from the facts and claims alleged/asserted in the Action. The Released
Class Claims include all claims for missed meal and rest breaks in violation of
Cal. Labor Code sections 200, 226.7, 512, and 12 California Code of Regulations
section 11050; failure to pay overtime compensation in violation of California
Labor Code section 1194, et seq.; failure to provide proper wage statement in
violation of California Labor Code section 226; failure to timely pay unpaid
wages due at time of separation of employment in violation of California Labor
Code sections 201-203; violation of California Business & Professions Code
sections 17200, et seq.; and failure to permit inspection of personnel and
payroll records in violations of California Labor Code section 1198.5, as well
as claims for unpaid wages, including, but not limited to, failure to pay
minimum wages, straight time compensation, overtime compensation, double-time
compensation, and interest; failure to properly calculate the regular rate of
pay and associated claims; wages related to alleged illegal time rounding;
failure to pay wages at least twice each calendar month; failure to timely pay
wages; failure to timely pay final wages; missed/short/late/interrupted meal
period, rest period, and/or recovery period wages/premiums; failure to provide
meal periods; failure to authorize and permit rest periods and/or recovery
periods; the calculation of meal period, rest period, and/or recovery period
premiums; payment for all hours worked, including off-the-clock work; failure
to provide accurate itemized wage statements; deductions; failure to keep
accurate records; unlawful deductions and/or withholdings from wages; unfair
business practices; penalties, including, but not limited to, recordkeeping
penalties, wage statement and payroll reporting penalties, minimum-wage
penalties, and waiting-time penalties; and attorneys’ fees and costs related to
the Released Class Claims. The Released Class Claims also include but are not
limited to all such claims arising under: California Labor Code sections 200,
201, 201-203, 201.3, 202, 204, 204b, 204.1 204.2, 205, 205.5, 210, 221, 223,
224, 225.5, 226, 226.3, 226.7, 227.3, 248.5, 432, 500, 510, 512, 515, 516, 558,
1171, 1173, 1173.1, 1174, 1194, et seq., 1194.2, 1197, 1197.1, et seq., 1197.5,
1198, 1198.5, and the applicable Industrial Welfare Commission Wage Order(s);
12 California Code of Regulations section 11050; all claims relating to the
Released Class Claims under the California Business and Professions Code
section 17200, et seq.; the Release
shall also include all claims relating to the Released Claims under the applicable
Wage Orders of the California Industrial Welfare Commission (including, but not
limited to, IWC Wage Order Nos. 4-2001, 5-2001, 10-2001 and 8 CCR § 11100) for
failure to provide accurate itemized wage statements, failure to provide right
to inspect or copy personnel files, failure to keep accurate records, for civil
and statutory penalties, including wage statement penalties, record keeping
penalties, reporting time pay, and penalties for personnel file violation. This
release excludes the release of claims not permitted by law, including but not
limited to claims brought for workers’ compensation benefits. (¶5.2)
·
Released Parties: "Released Parties" means Defendants MD
Hydration Inc. and Brett Florie, all parents, subsidiaries, affiliates and
management companies, each of their former and present directors, officers,
shareholders, owners, managing agent, attorneys, insurers, predecessors, successors,
and assigns. (¶1.38)
·
Named Plaintiff will also provide a general
release and CC § 1542 waiver. (¶5.1)
D.
May conditional
class certification be granted?
1. Standards
A detailed analysis of the
elements required for class certification is not required, but it is advisable
to review each element when a class is being conditionally certified (Amchem Products, Inc. v. Winsor (1997)
521 U.S. 620, 622-627.) The trial court
can appropriately utilize a different standard to determine the propriety of a
settlement class as opposed to a litigation class certification. Specifically, a lesser standard of scrutiny
is used for settlement cases. (Dunk v.
Ford Motor Co. (1996) 48 Cal.App.4th 1794, 1807 fn. 19.) Finally, the Court
is under no “ironclad requirement” to conduct an evidentiary hearing to
consider whether the prerequisites for class certification have been satisfied.
(Wershba v. Apple Computer, Inc.
(2001) 91 Cal.App.4th 224, 240.)
2.
Analysis
a. Numerosity. There are approximately 501 class members. (Young
Decl. ¶51.a.) This element is met.
b. Ascertainability. A
class is ascertainable, as would support certification under statute
governing class actions generally, when it is defined in terms of
objective characteristics and common transactional facts that make the ultimate
identification of class members possible when that identification
becomes necessary.” (Noel v. Thrifty
Payless, Inc. (2019) 7 Cal.5th 955, 961.) The proposed class is defined above. The class members are ascertainable from Defendant’s employment
records. (Young Decl. ¶51.a.)
c. Community
of interest. “The community of
interest requirement involves three factors: ‘(1) predominant common questions
of law or fact; (2) class representatives with claims or defenses typical of
the class; and (3) class representatives who can adequately represent the
class.’” (Linder v. Thrifty Oil Co. (2000) 23 Cal.4th 429, 435.)
Here, regarding commonality, Plaintiff contends that common
questions of law and fact predominate because this action involves, inter
alia, a determination about Defendants’ alleged failure to pay all wages
owed, failure to provide meal/rest breaks or provide premium pay in lieu
thereof, failure to provide accurate wage statements, failure to pay final
wages when due, and related claims for violations of California’s Business
& Professions Code, and penalties pursuant to Labor Code section 2699, et
seq. Plaintiff contends these practices
affected class members in the same way. (Ryu Decl., ¶51.d.)
As to typicality, Plaintiff contends that Plaintiff’s claims are
typical of Class Members’ claims because they arose from the same factual basis
and are based on the same legal theories. Plaintiff was employed by Defendants
during the Class Period and subjected to the allegedly unlawful break policies
and pay practices at issue in this litigation. (Id. at ¶51.b.)
As to adequacy, Plaintiff represents that she was informed of the
risks of serving as class representative, participated in the litigation, and
does not have conflicts of interest with the class. (Id. at ¶51.c; Declaration
of Plaintiff Soto, passim.)
d. Adequacy
of class counsel. As indicated above,
Class Counsel has shown experience in class action litigation, including wage
and hour class actions.
e. Superiority. Given the relatively small size of the
individual claims, a class action appears to be superior to separate actions by
the class members.
CONCLUSION: The class may be conditionally
certified since the prerequisites of class certification have been satisfied.
E.
Is the notice proper?
a. Content of class notice. The proposed notice is attached to the Settlement
Agreement. Its content appears to be acceptable. It includes information such as: a summary of the litigation; the nature of
the settlement; the terms of the settlement agreement; attorney fees and costs;
enhancement awards; the procedures and deadlines for participating in, opting
out of, or objecting to, the settlement; the consequences of participating in,
opting out of, or objecting to, the settlement; and the date, time, and place
of the final approval hearing.
b. Method of class notice. Notice will be given in English and Spanish. (¶1.10) Not later
than twenty (20) business days after the Court grants after the Court grants
Preliminary Approval of the Settlement, Defendants will deliver the Class Data
to the Administrator, in the form of a Microsoft Excel spreadsheet. (¶4.2) Using best efforts to perform as soon as
possible, and in no event later than fourteen (14) calendar days after
receiving the Class Data, the Claims Administrator will send to all Class
Members identified in the Class Data, via first-class United States Postal
Using best efforts to perform as soon as possible, and in no event later than
fourteen (14) calendar days after receiving the Class Data, the Claims
Administrator will send to all Class Members identified in the Class Data, via
first-class United States Postal substantially in the form attached to this
Agreement as Exhibit A. The first page of the Class Notice shall prominently
estimate the dollar amounts of any Individual Class Payment and/or Individual
PAGA Payment payable to the Class Member, and the number of Workweeks and PAGA
Pay Periods (if applicable) used to calculate these amounts. Before mailing
Class Notices, the Claims Administrator shall update Class Member addresses
using the National Change of Address database. (¶8.4.2) Not later than three
(3) business days after the Claims Administrator receipt of any Class Notice
returned by the USPS as undelivered, the Claims Administrator shall re-mail the
Class Notice using any forwarding address provided by the USPS. If the USPS
does not provide a forwarding address, the Claims Administrator shall conduct a
Class Member Address Search, and re-mail the Class Notice to the most current
address obtained. The Claims Administrator has no obligation to make further attempts
to locate or send Class Notice to Class Members whose Class Notice is returned
by the USPS a second time. (¶8.4.3)
c. Cost of class notice. As indicated above, settlement administration
costs are estimated to be $10,995. Prior to the time of the final fairness hearing, the claims
administrator must submit a declaration attesting to the total costs incurred
and anticipated to be incurred to finalize the settlement for approval by the
Court.
F. Attorney fees and costs
California Rule of
Court,
rule 3.769(b) states: “Any agreement, express or implied, that has been entered
into with respect to the payment of attorney fees or the submission of an
application for the approval of attorney fees must be set forth in full in any
application for approval of the dismissal or settlement of an action that has
been certified as a class action.”
Ultimately,
the award of attorney fees is made by the court at the fairness hearing, using
the lodestar method with a multiplier, if appropriate. (PLCM
Group, Inc. v. Drexler (2000) 22 Cal.4th 1084, 1095-1096; Ramos v. Countrywide Home Loans, Inc.
(2000) 82 Cal.App.4th 615, 625-626; Ketchum III v. Moses (2000) 24 Cal.4th 1122,
1132-1136.) Despite any agreement by the
parties to the contrary, “the court ha[s] an independent right and
responsibility to review the attorney fee provision of the settlement agreement
and award only so much as it determined reasonable.” (Garabedian v. Los Angeles Cellular Telephone Company (2004) 118
Cal.App.4th 123, 128.)
The question of whether Class Counsel is entitled to $610,000 (33
1/3%) in attorney fees and up to $18,000 in costs will be addressed at the final fairness hearing
when class counsel brings a noticed motion for attorney fees. Class counsel must provide the court with
billing information so that it can properly apply the lodestar method, and must
indicate what multiplier (if applicable) is being sought as to each
counsel.
Class
Counsel should also be prepared to justify the costs sought by detailing how
they were incurred.
G.
Incentive
Award to Class Representative
The named Plaintiff will
request a service award of $10,000. (¶3.2.1) In connection with the
final fairness hearing, the named Plaintiff must submit a declaration attesting
to why he should be entitled to an enhancement award in the proposed
amount. The named Plaintiff must explain
why he “should be compensated for the expense or risk she has incurred in
conferring a benefit on other members of the class.” (Clark v. American Residential Services
LLC (2009) 175 Cal.App.4th 785, 806.)
Trial courts should not sanction enhancement awards of thousands of
dollars with “nothing more than pro forma claims as to ‘countless’ hours
expended, ‘potential stigma’ and ‘potential risk.’ Significantly more
specificity, in the form of quantification of time and effort expended on the
litigation, and in the form of reasoned explanation of financial or other risks
incurred by the named plaintiffs, is required in order for the trial court to
conclude that an enhancement was ‘necessary to induce [the named plaintiff] to
participate in the suit . . . .’” (Id.
at 806-807, italics and ellipsis in original.)
The Court will decide the issue of the
enhancement award at the time of final approval.
CONCLUSION AND ORDER
The Parties’ Motion for
Preliminary Approval of Class Action Settlement is GRANTED as the settlement is
fair, adequate, and reasonable.
The essential terms of the
Settlement Agreement are:
A. The Gross Settlement Amount (“GSA”) is $1,830,000, non-reversionary.
(¶3.1)
B. The Net Settlement Amount is the GSA minus the following:
o Up to $610,000 (33
1/3%) for attorney fees (¶3.2.2);
o Up to $18,000 for litigation costs (Ibid.);
o Up to $10,000 for a Service Payment to the
Named Plaintiff (¶3.2.1);
o Up to $10,995 for settlement administration
costs (¶3.2.3); and
o Payment of $137,250 (75% of $183,000 PAGA
penalty) to the LWDA. (¶3.2.5)
C. Employer’s share of the payroll taxes on the taxable portion
of the settlement payments shall be paid separately from the GSA by Defendant. (¶3.1)
D. Plaintiffs shall release Defendants from claims described
herein.
The Parties’ Motion for
Final Approval of Class Action Settlement must be filed by August 16, 2025
and shall be heard on August 19, 2025 at 10 am.
The Parties’ Motion for
Final Approval of Class Action Settlement must include a concurrently lodged
single document that constitutes a [Proposed] Order and Judgment containing
among other things, the class definition, full release language, and names of
the any class members who opted out.
Non-Appearance Case Review
is set for August 23, 2025, 8:30
a.m., Department 9.
The Judicial Assistant is to give notice to Counsel for
Plaintiff who is ordered to give further and formal notice to all parties and
file proof of service of such within 10 days.
IT IS SO ORDERED.
DATED: February 20, 2025 ___________________________
Elaine
Lu
Judge
of the Superior Court