Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_11-cv-03539/USCOURTS-cand-5_11-cv-03539-27/pdf.json

Nature of Suit Code: 410
Nature of Suit: Antitrust
Cause of Action: 28:1441 Petition for Removal

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Case No. 11-CV-02509-LHK

ORDER GRANTING PLAINTIFFS’ MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT 

WITH DEFENDANTS ADOBE SYSTEMS INCORPORATED, APPLE INC., GOOGLE INC., AND INTEL 

CORPORATION

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United States District Court

Northern District of California

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

IN RE: HIGH-TECH EMPLOYEE 

ANTITRUST LITIGATION

THIS DOCUMENT RELATES TO:

ALL ACTIONS

Case No. 11-CV-02509-LHK

ORDER GRANTING PLAINTIFFS’ 

MOTION FOR FINAL APPROVAL OF 

CLASS ACTION SETTLEMENT WITH 

DEFENDANTS ADOBE SYSTEMS 

INCORPORATED, APPLE INC., 

GOOGLE INC., AND INTEL 

CORPORATION

This matter is before the Court on Plaintiffs’ motion for final approval of the proposed 

class action settlement (“Settlement”) between individual and representative Plaintiffs Michael 

Devine, Mark Fichtner, Siddharth Hariharan, and Daniel Stover, and the Class they represent

(collectively, “Plaintiffs”), and Adobe Systems, Incorporated, Apple Inc., Google Inc., and Intel 

Corporation (collectively, “Defendants”).1 Having considered the Motion, the Settling Parties’ 

Settlement Agreement, the pleadings, and other papers filed in this Action, the statements of 

 

1 Representative Plaintiff Brandon Marshall died on December 10, 2013. Mr. Marshall’s

estate shall receive the settlement share to which Mr. Marshall is entitled pursuant to the terms of

the Settlement.

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Case No. 11-CV-02509-LHK

ORDER GRANTING PLAINTIFFS’ MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT 

WITH DEFENDANTS ADOBE SYSTEMS INCORPORATED, APPLE INC., GOOGLE INC., AND INTEL 

CORPORATION

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counsel and the parties, and all of the arguments and evidence presented at the Final Approval 

Hearing held on July 9, 2015, and for good cause shown, IT IS HEREBY ORDERED as follows:

Unless otherwise defined herein, all terms that are capitalized herein shall have the 

meanings ascribed to those terms in the Settlement Agreement.

The Court has jurisdiction over the subject matter of the Settlement Agreement with 

respect to and over all parties to the Settlement Agreement, including all Class Members and 

Defendants.

I. The Settlement Is Fair, Adequate, and Reasonable

In evaluating a proposed class action settlement under Federal Rule of Civil Procedure 

23(e), the standard is whether the settlement “is fundamentally fair, adequate, and reasonable.” 

Officers for Justice v. Civil Serv. Comm’n, 688 F.2d 615, 625 (9th Cir. 1982); accord Torrisi v. 

Tucson Elec. Power Co., 8 F.3d 1370, 1375 (9th Cir. 1993). A district court may consider some or 

all of the following factors when making this determination: “the strength of plaintiffs’ case; the 

risk, expense, complexity, and likely duration of further litigation; the risk of maintaining class 

action status throughout the trial; the amount offered in settlement; the extent of discovery 

completed and the stage of the proceedings; the experience and views of counsel; the presence of a 

governmental participant; and the reaction of the class members to the proposed settlement.” 

Officers for Justice, 688 F.2d at 625. The Court finds that the Settlement is fair, adequate, and 

reasonable in light of these factors.

First, the Settlement reflects the strength of Plaintiffs’ case as well as the Defendants’ 

position. This Court has been “exposed to the litigants and their strategies, positions and proof,” 

Hanlon v. Chrysler Corp., 150 F.3d 1011, 1026 (9th Cir. 1988) (quoting Officers for Justice, 688 

F.2d at 626), and finds that the judicial policy favoring the compromise and settlement of class 

action suits is applicable here. See Class Plaintiffs v. City of Seattle, 955 F.2d 1268, 1276 (9th 

Cir. 1992). The Court is also satisfied that the Settlement was reached after arm’s length 

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Case No. 11-CV-02509-LHK

ORDER GRANTING PLAINTIFFS’ MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT 

WITH DEFENDANTS ADOBE SYSTEMS INCORPORATED, APPLE INC., GOOGLE INC., AND INTEL 

CORPORATION

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negotiations by capable counsel, and was not a product of fraud, overreaching, or collusion among 

the parties. Id. at 1290-91.

Second, the risks, expense, complexity, and likely duration of further litigation also 

support the Court’s final approval of the Settlement. Following the Court’s August 8, 2014 denial 

of preliminary approval of an earlier attempt to settle this case, ECF No. 974,

2

the parties resumed 

litigation of pretrial matters. Plaintiffs filed a reply in support of their motion for application of 

the per se standard, ECF No. 988, and Defendants requested leave to file a supplemental

opposition, ECF Nos. 990, 990-1, which Plaintiffs opposed, ECF No. 992. Plaintiffs also filed a 

motion to unseal all papers associated with their motion to compel, ECF No. 991, which 

Defendants opposed, ECF No. 994; see also ECF No. 1029.

Meanwhile, on September 4, 2014, Defendants filed a Petition for a Writ of Mandamus 

with the United States Court of Appeals for the Ninth Circuit, seeking an order vacating the 

Court’s denial of preliminary approval and directing the Court to preliminarily approve the 

$324,500,000 settlement. 9th Cir. Case No. 14-72745, Dkt. (“9th Cir. Dkt.”) 1. On September 22, 

2014, the Ninth Circuit issued an order stating that Defendants’ “petition for a writ of mandamus 

raises issues that warrant a response,” ordered Plaintiffs to file a response, set a date for 

Defendants’ reply, and ordered that upon completion of briefing the matter be placed on the next 

available merits panel calendar for oral argument. 9th Cir. Dkt. 2; ECF No. 993. Plaintiffs (and 

Michael Devine separately) opposed Defendants’ petition, 9th Cir. Dkts. 4, 6, and Defendants 

filed a reply, 9th Cir. Dkt. 10. Putative amici curiae Chamber of Commerce of the United States 

of America, California Chamber of Commerce, and economic scholars filed motions for leave to 

file amici curiae briefs in support of the petition, 9th Cir. Dkts. 8, 9, which the Ninth Circuit 

referred to the panel to be assigned to hear the merits of the petition, 9th Cir. Dkt. 15. Plaintiffs 

 

2 All “ECF” references are to the docket of Case No. 11-CV-02509-LHK in the Northern 

District of California.

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Case No. 11-CV-02509-LHK

ORDER GRANTING PLAINTIFFS’ MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT 

WITH DEFENDANTS ADOBE SYSTEMS INCORPORATED, APPLE INC., GOOGLE INC., AND INTEL 

CORPORATION

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(and Michael Devine separately) opposed the motions for leave to file amici curiae briefs. 9th Cir. 

Dkts. 13, 16. The Ninth Circuit scheduled oral argument on the petition for March 13, 2015. 9th 

Cir. Dkt. 19. In light of the Settlement with Plaintiffs, Defendants filed an unopposed motion to

dismiss the mandamus petition on January 30, 2015. 9th Cir. Dkt. 23. The Ninth Circuit granted 

the motion to dismiss on February 2, 2015. 9th Cir. Dkt. 24.

At the time of the current Settlement, the following motions remained pending: 

Defendants’ motion to exclude Dr. Matthew Marx’s testimony; Plaintiffs’ motion to exclude 

Defendants’ experts’ testimony; Plaintiffs’ motion for application of the per se standard; and 

Defendants’ motions in limine. In addition, Plaintiffs and Defendants continued to engage in the 

exchange of pretrial disclosures and conferences regarding trial exhibits, witnesses, the joint 

pretrial statement, the authentication of business records and potential depositions related thereto, 

and many other issues. ECF No. 1033, Declaration of Kelly M. Dermody in Support of 

Preliminary Approval (“Dermody Decl.”) ¶¶ 12, 14. The outcome at trial was uncertain, 

providing additional risks to both sides. In addition, any trial outcome would be subject to 

potential appeals, which would have (at best) substantially delayed any potential recovery 

achieved for the Class at trial.

Third, the extent of discovery completed and the stage of proceedings support approval. 

The factual investigation and legal analysis in the four years of this litigation were substantial. 

During the discovery process, Class Counsel reviewed over 3.2 million pages of documents, and 

took or defended nearly 100 depositions, including deposing Defendant fact witnesses, taking or 

defending numerous expert depositions, and defending the five Class Representative depositions. 

Dermody Decl. ¶ 4. Defendants also propounded document requests, for which Plaintiffs 

produced over 31,000 pages. Id. With expert assistance, Class Counsel analyzed over 15 

gigabytes of employment-related compensation and recruiting data, and studied all Defendants’ 

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Case No. 11-CV-02509-LHK

ORDER GRANTING PLAINTIFFS’ MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT 

WITH DEFENDANTS ADOBE SYSTEMS INCORPORATED, APPLE INC., GOOGLE INC., AND INTEL 

CORPORATION

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compensation systems. Id. ¶ 5. The discovery process, which is now complete, has been 

thorough.

Fourth, the Settlement provides for substantial consideration—a total of $415 million (in 

addition to the $20 million secured earlier through settlements with Intuit, Inc., Lucasfilm Ltd., 

and Pixar).

Fifth, the views of Plaintiffs’ counsel, who are experienced in litigating and settling 

antitrust and employment class actions, weigh in favor of final approval. See Linney v. Cellular 

Alaska P’Ship, No. 96-3008-DJL, 1997 WL 450064, at *5 (N.D. Cal. July 18, 1997), aff’d 151 

F.3d 1234 (9th Cir. 1998). Plaintiffs’ counsel endorse the Settlement as fair, adequate, and 

reasonable.

Finally, the reaction of the Class Members supports the Court’s final approval of the 

Settlement. Out of 64,466 Class Members, only 11 submitted objections (about .017 percent of 

the Class, or about one in every 5,860 Class Members). ECF No. 1089, Supplemental Declaration

of Kenneth Jue (“Jue Supp. Decl.”) ¶ 3. In addition, only 56 Class Members have opted out of the 

Settlement (less than .09 percent of the Class). Id. ¶ 2. This number of opt-outs is only about onethird the number of Class Members who opted-out of the prior approved settlements with Intuit, 

Lucasfilm, and Pixar. See ECF No. 915-1. This number of opt-outs is also substantially below the 

2,579 opt-outs (a rate of 4%) that was required to provide Defendants with a pro rata reduction in 

the Settlement amount. Thus, Defendants will pay the full $415 million. Such low rates of 

objections and opt-outs are “indicia of the approval of the class.” Hughes v. Microsoft Corp., No. 

C93-0178C, 2001 WL 34089697, at *8 (W.D. Wash. Mar. 26, 2001) (finding indicia of approval 

when nine class members out of 37,155, or just over .02%, who received notice submitted 

objections, and “less than 1%” opted out); see Sugarman v. Ducati N. Am., Inc., No. 5:10-CV05246-JF, 2012 WL 113361, at *3 (N.D. Cal. Jan. 12, 2012) (objections from 42 of 38,774 class 

members—more than 0.1 percent, or more than five times the rate of objection as here—is a 

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Case No. 11-CV-02509-LHK

ORDER GRANTING PLAINTIFFS’ MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT 

WITH DEFENDANTS ADOBE SYSTEMS INCORPORATED, APPLE INC., GOOGLE INC., AND INTEL 

CORPORATION

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“positive response”); see also Churchill Vill., LLC v. Gen. Elec., 361 F.3d 566, 577 (9th Cir. 2004) 

(affirming district court’s approval of settlement where forty-five of 90,000 class members 

objected to the settlement (.05 percent), and 500 class members opted out (about .56 percent)). 

None of the objections here warranted rejection of the Settlement. See Browne v. Am. 

Honda Motor Co., No. CV 09-06750 MMM DTBX, 2010 WL 9499072, at *15 (C.D. Cal. July 29, 

2010) (“The fact that there is opposition does not necessitate disapproval of the settlement. 

Instead, the court must independently evaluate whether the objections being raised suggest serious 

reasons why the proposal might be unfair.” (brackets and internal quotation marks omitted)). 

Overall, the positive response from the Class favors Settlement approval.3

Six Class Members out of 64,466 object on the basis (in whole or in part) that the 

Settlement should be rejected because it should be larger: Shash Basavaraju (aka Shash Schaekar), 

David Hsu, Loren Kohnfelder, Dimitrios Loulourgas, Devesh Parekh, and Delia Terra. Jue Supp. 

Decl., Exs. C, D, F, G, H, I, K.

 Mr. Basavaraju contends that he was underpaid at Intel beginning in 2004. Jue 

Supp. Decl., Ex. I. He then says he discussed job opportunities with recruiters from 

Apple and Google in 2007, and applied to other companies that are not alleged to 

be part of the misconduct at issue (AMD, IBM, and Honeywell). Id. Mr. 

Basavaraju asserts that, in the last 9 years, he has lost approximately $400,000 in 

compensation, and lost other personal opportunities. Id.

 Dr. Hsu believes his pay was suppressed by “at least $10,000 per year” due to 

Defendants’ actions. Jue Supp. Decl., Ex. C. In support of his claim, Dr. Hsu 

notes that the U.S. Department of Energy offered him a salary that was only $2,000 

less than his ending salary at Intel. Id. Dr. Hsu objects to any settlement that 

would pay him less than the full amount of his own estimate of his damages: 

$40,000. Id.

 

3 Class Members Dr. Hsu, Dr. Veach, and Mr. Zavislak also objected to the request for 

attorney’s fees or the request for Class Representative service awards, which will be addressed 

separately in the Court’s order granting in part and denying in part Class Counsel’s requests for 

fees, costs, and service awards. 

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Case No. 11-CV-02509-LHK

ORDER GRANTING PLAINTIFFS’ MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT 

WITH DEFENDANTS ADOBE SYSTEMS INCORPORATED, APPLE INC., GOOGLE INC., AND INTEL 

CORPORATION

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 Mr. Kohnfelder asserts that the Court should reject the Settlement “as far too low” 

because it will not discourage similar misconduct in the future. Jue Supp. Decl.,

Ex. D. He also believes that each Class Member should be notified by letter of 

“their approximate compensation” before they have to decide whether to object. Id.

“The lump sum,” says Mr. Kohnfelder, “is not so useful.” Id.

 Mr. Loulourgas objects to the Settlement because it is too low to compensate for 

his estimate of his damages, should reflect the potential for “punitive damages,” 

and should take into account the “miniscule” probability of a loss at trial. Jue 

Supp. Decl., Ex. F.

 Mr. Parekh objects because damages to the Class are likely larger than what the

Class will receive from the Settlement, and he prefers a trial to a settlement. Jue 

Supp. Decl., Ex. G. Mr. Parekh also objects to the formula for allocating the 

Settlement, which he says does not adequately redress Google employees whose 

compensation structure consisted of a relatively low base salary plus a relatively 

high target bonus. Id., Ex. H. 

 Ms. Terra objects to the Settlement because it is too low to compensate for her 

estimate of his damages, should reflect the potential for “punitive damages,” and 

should take into account the “small” probability of a loss at trial. Jue Supp. Decl.,

Ex. K.

In objecting to the size of the Settlement, none of these Class Members adequately take 

into account the risks and delays involved in proceeding to trial. They ignore that the Settlement 

provides the Class with a timely, certain, and meaningful cash recovery, while a trial—and any 

subsequent appeal—is uncertain, would entail significant additional costs, and in any event would 

substantially delay any recovery achieved. “‘[T]he very essence of a settlement is compromise, a 

yielding of absolutes and an abandoning of highest hopes.’” Linney v. Cellular Alaska P’ship, 151 

F.3d 1234, 1242 (9th Cir. 1998) (quoting Officers for Justice, 688 F.2d at 624) (affirming 

settlement approval). “Estimates of what constitutes a fair settlement figure are tempered by 

factors such as the risk of losing at trial, the expense of litigating the case, and the expected delay 

in recovery (often measured in years).” Browne, 2010 WL 9499072, at *12. Thus, “[t]he fact that 

a proposed settlement may only amount to a fraction of the potential recovery does not, in and of 

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ORDER GRANTING PLAINTIFFS’ MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT 

WITH DEFENDANTS ADOBE SYSTEMS INCORPORATED, APPLE INC., GOOGLE INC., AND INTEL 

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itself, mean that the proposed settlement is grossly inadequate and should be disapproved.” 

Linney, 151 F.3d at 1242 (internal quotation marks omitted).

The reasonableness of the Settlement is also confirmed by comparing it to Plaintiffs’ 

damages estimate. The total settlements achieved in this action exceed 14 percent of Plaintiffs’ 

proposed single damages estimate,4a damages estimate Defendants were prepared to vigorously 

contest. District courts in the Ninth Circuit routinely approve settlements with much larger 

differences between the settlement amount and estimated damages.5 The risks Plaintiffs faced in 

proceeding to trial are discussed in Plaintiffs’ prior reply memorandum in support of preliminary 

approval. See ECF No. 938 at 10-14; see also ECF No. 1032 at 18-20.

That certain Class Members evaluate the risks differently, or would prefer to go to trial 

despite those risks, does not prevent the Court from granting final approval to the Settlement. See 

Browne, 2010 WL 9499072, at *15 (“The fact that there is opposition does not necessitate 

disapproval of the settlement. Instead, the court must independently evaluate whether the 

objections being raised suggest serious reasons why the proposal might be unfair.” (brackets and 

internal quotation marks omitted)).

Class Members Dr. Hsu, Mr. Kohnfelder, Mr. Loulourgas, Mr. Mills, and Ms. Terra offer 

details of their individual employment histories to suggest that the amounts they will receive under 

the Settlement are insufficient to compensate them in full for the amount of wage suppression they 

 

4

$435,000,000 ÷ $3,065,184,307 (ECF No. 856-8, at 21) = ~14.2 percent.

5

See, e.g., In re Toys R Us-Del., Inc.–Fair & Accurate Credit Transactions Act (FACTA) 

Litig., 295 F.R.D. 438, 453-54 (C.D. Cal. 2014) (granting final approval of a settlement providing 

for consideration reflecting 3% of possible recovery ($391.5 million value on exposure up to 

$13.05 billion)); Reed v. 1-800 Contacts, Inc., No. 12-CV-02359 JM BGS, 2014 WL 29011, at *6 

(S.D. Cal. Jan. 2, 2014) (granting final approval where settlement represented 1.7% of possible 

recovery (net settlement fund of $8,288,719.16, resolving claims worth potentially 

$499,420,000)); In re LDK Solar Sec. Litig., No. C 07-5182 WHA, 2010 WL 3001384, at *2 

(N.D. Cal. July 29, 2010) (granting final approval where settlement was 5% of estimated 

damages); In re Linerboard Antitrust Litig., 296 F. Supp. 2d 568, 581 & n.5 (E.D. Pa. 2003) 

(gathering cases where courts approved settlements achieving single-digit percentages of potential 

recoveries).

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Case No. 11-CV-02509-LHK

ORDER GRANTING PLAINTIFFS’ MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT 

WITH DEFENDANTS ADOBE SYSTEMS INCORPORATED, APPLE INC., GOOGLE INC., AND INTEL 

CORPORATION

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would attribute to the alleged conspiracy. Even if individual employees were able to calculate 

with precision what their individual salaries would have been absent the alleged collusion, such 

assessments do not take into account the risk, delay, and further costs associated with trial and 

subsequent appeals.

Lastly, Class Members Mr. Parekh, Mr. Basavaraju, Mr. Smith, and Ms. Terra state that 

the Settlement is not enough to punish the Defendants for their wrongdoing. These objections fail 

to account for the gravity of the $415 million settlement, which should send a strong message to 

Defendants. ECF No. 1073-1, Declaration of Prof. William B. Rubenstein ¶ 41. A settlement 

does not need to provide for all possible recoverable damages to deter wrongdoing. See, e.g.,

United States v. New Jersey, No. CIV. 87-2331 (HAA), 1995 WL 1943013, at *14 (D.N.J. Mar. 

14, 1995) (“The $7.125 million settlement amount satisfies the United States’ desire to provide a 

reasonable amount of compensation to identifiable victims of alleged discrimination and sends a 

strong message to deter discrimination by other employers.”).

6

Class Member Kenneth Caviasca objects on the basis that “the case makes no sense,” 

specifically that “[c]ross hiring among companies that pay at a similar pay range would have no 

significant impact on the company expenses or have even have [sic] a long term benefit for the 

moving employees.” Jue Supp. Decl., Ex. B. This objection does not comment on any aspect of 

the Settlement, but rather opposes Plaintiffs’ alleged claims as being entirely baseless. See id. 

(urging “all benefactors to donate 100% of proceeds to non-profit charity cause”). Because this 

objection supports no recovery for the Class, it appears Mr. Caviasca’s interests are adverse to the 

 

6 An additional Class Member submitted an anonymous comment, stating that the 

“settlement is too low.” Jue Supp. Decl., Ex. O. This anonymous comment fails to comply with 

the requirements for objecting to the Settlement. See ECF No. 1086-1 (“Notice”) at 10. In 

addition, Nelson Minar submitted a comment with his opt-out request, stating: “I do not feel that 

the settlement is sufficient.” Jue Supp. Decl., Ex. P. The Court concludes that these comments 

lack merit for the same reasons explained above regarding Class Members who objected on the 

basis that the Settlement should be larger.

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ORDER GRANTING PLAINTIFFS’ MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT 

WITH DEFENDANTS ADOBE SYSTEMS INCORPORATED, APPLE INC., GOOGLE INC., AND INTEL 

CORPORATION

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Class, and the objection should therefore be overruled. See Wren v. RGIS Inventory Specialists, 

No. C-06-05778 JCS, 2011 WL 1230826, at *13 (N.D. Cal. Apr. 1, 2011) (overruling objections 

submitted that “do not go to the fairness of the settlement”).

Class Member Albert Smith objects because he prefers to have the case proceed to trial, 

regardless of any settlement amount or potential recovery at trial. “If the jury finds that these 

corporations did nothing, the defendants deserve to be completely exonerated in public. If the jury 

finds that they violated the law, I do not care what the jury decides to award the class; I care only 

that the companies are found guilty.” Jue Supp. Decl., Ex. J. Mr. Smith’s desire for a trial, 

regardless of the probability of success or amount of recovery for the Class, is arguably adverse to 

the interests of the Class, and inconsistent with the well-established principle that “voluntary 

conciliation and settlement are the preferred means of dispute resolution.” Officers for Justice, 

688 F.2d at 625.

Class Member Prabhakar Kotla objects because he incorrectly estimates that each Class

Member will receive an average of only “1%” of what each Class Member received from the 

earlier settlements with Intuit, Lucasfilm, and Pixar. Jue Supp. Decl., Ex. E. Mr. Kotla 

erroneously believed that Class Members in the earlier settlements received $140,000 per person. 

Id. In fact, the average Class Member will receive roughly thirty-three times more from this 

Settlement than what the average Class Member received from the earlier settlements with Intuit, 

Lucasfilm, and Pixar: approximately $5,770 here compared to approximately $173.73 there.

Class Member Davesh Parekh objects to the formula for allocating the Settlement, which 

he says does not adequately redress Google employees whose compensation structure consisted of 

a relatively low base salary plus a relatively high target bonus. Jue Supp. Decl., Ex. H. The plan 

of allocation is based upon each Class Member’s relative share of base salary paid on the basis of 

their employment during the Class period. Settlement Agreement, Ex. B. While each Defendant 

used a different balance of base salary, bonuses, and equity compensation, all Defendants used 

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ORDER GRANTING PLAINTIFFS’ MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT 

WITH DEFENDANTS ADOBE SYSTEMS INCORPORATED, APPLE INC., GOOGLE INC., AND INTEL 

CORPORATION

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base salary structures in a consistent and uniform manner, linked by systems of internal equity (as 

confirmed by the expert reports of Dr. Kevin Hallock) that caused the salary structures to move 

together. Thus, the formula’s reliance on base salary provides a neutral and uniform metric by 

which to allocate the Settlement, consistent with Plaintiffs’ expert opinions. “A plan of allocation 

that reimburses class members based on the extent of their injuries is generally reasonable.” In re 

Oracle Sec. Litig., No. C-90-0931-VRW, 1994 WL 502054, at *1 (N.D. Cal. June 18, 1994). The 

Settlement’s plan of allocation is appropriate.

Class Members Dr. Hsu, Mr. Kohnfelder, Eric Veach, and Mark Zavislak argue that each 

Class Member should have been provided with estimates of their individual allocation amounts. 

Jue Supp. Decl., Exs. C, L, N. However, a precise award estimate for each Class Member cannot 

be computed until the Notice Administrator confirms and processes all opt-outs (taking into 

account opt-outs who thereby will receive nothing and reallocating their shares of the Settlement 

fund to the remaining Class Members); considers the Court’s determination of the requests for 

attorney’s fees, unreimbursed out-of-pocket costs, Named Plaintiff service awards, and Settlement 

administration costs; processes Defendants’ Class Member data; and resolves all data questions. 

The Notice provided the Settlement’s plan of allocation, apprising Class Members of how the

Settlement would be divided. See Notice at 6 (“How much money can I get from the 

Settlement?”). The Notice also provided the gross Settlement amount, as well as proposed 

deductions for attorney’s fees, unreimbursed out-of-pocket costs, Class Representative service 

awards, and costs of administering the Settlement. Id. at 6, 8. Additionally, the Notice provided 

contact information for Class Counsel. Hundreds of Class Members contacted Class Counsel 

directly, through email or telephone, to ask questions. ECF No. 1090, Declaration of Dean M. 

Harvey in Support of Final Approval (“Harvey Decl.”) ¶ 2. When Class Members asked questions 

regarding their individual allocation from the Settlement, Class Members were informed about 

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ORDER GRANTING PLAINTIFFS’ MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT 

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how the Settlement’s plan of allocation worked, the likely average net recovery, and why a more 

precise allocation estimate would not be possible until further information became available.7 Id.

Even if an estimate of individual allocation amounts were not provided, Dr. Veach and Mr. 

Zavislak argue that the Notice should have contained the tools to allow Class Members to estimate 

their individual fractions of recovery. In particular, Dr. Veach and Mr. Zavislak object to the 

Notice’s failure to include the “Total of base salaries of all Class Members paid on the basis of 

employment in Class Positions during the Class Period,” which is the denominator in the proposed 

allocation formula. Id., Exs. L, N. The denominator, however, is a fluid number, which will 

change depending not only on how many potential Class Members opt out, but also on the 

individual salaries of those who opt out. That number also could not be calculated with precision 

at the time the Notice was approved because Defendants were entitled to a pro rata reduction if the 

number of opt-outs reached 4% of the potential Class. See ECF No. 1033-1, Settlement 

Agreement, Part VIII.T. The Notice’s failure to include the allocation formula’s denominator, 

which could not have been calculated with precision at the time the Notice was approved, was 

therefore not error.

Accordingly, the Court finds that the Settlement is fair, adequate, and reasonable within 

the meaning of Rule 23(e) of the Federal Rules of Civil Procedure.

II. The Notice Program Was Appropriate

Federal Rule of Civil Procedure 23(c)(2)(B) requires that the settling parties provide 

settlement Class Members with “the best notice that is practicable under the circumstances, 

 

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The Court notes that subsequent to the July 9, 2015 hearing on final approval, Class 

Counsel consulted with the Settlement Administrator and created individual allocation estimates 

for Dr. Hsu, Mr. Kohnfelder, Dr. Veach, and Mr. Zavislak. ECF No. 1106. Class Counsel 

provided those estimates to the four objectors on July 16, 2015, and asked whether, after receiving 

this information, any would request a late opt-out of the pending Settlement if given the option. 

Id. All four objectors declined to seek a late opt-out upon receiving estimates of their individual 

allocations. ECF No. 1109.

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including individual notice to all members who can be identified through reasonable effort. The 

notice must clearly and concisely state in plain, easily understood language: (i) the nature of the 

action; (ii) the definition of the class certified; (iii) the class claims, issues, or defenses; (iv) that a 

class member may enter an appearance through an attorney if the member so desires; (v) that the 

court will exclude from the class any member who requests exclusion; (vi) the time and manner 

for requesting exclusion; and (vii) the binding effect of a class judgment on members under Rule 

23(c)(3).”

The Court finds that the notice program, previously approved by the Court, ECF No. 1054 

at 5, has been implemented and complies with Rule 23(c)(2)(B). Notice was sent to all Class 

Members by first class mail. The Notice, which was reviewed and approved by this Court, 

provided a clear description of who is a member of the Class, Class Members’ rights, and options 

under the Settlement. The Notice explained how to receive money from the Settlement, how to 

opt out of the Settlement, how to object to the Settlement, how to obtain copies of relevant papers 

filed in the case, and how to contact Class Counsel and the Notice Administrator.

The Court ordered Heffler Claims Group (the claims administrator previously appointed 

regarding the prior settlements with Intuit, Inc., Lucasfilm Ltd., and Pixar) to transmit Class 

Member information in a secure manner to Gilardi & Co., LLC (the notice administrator 

appointed to administer the instant Settlement; “Notice Administrator”). ECF No. 1054 at 6-7. 

Heffler did so. ECF No. 1086, Declaration of Kenneth Jue (“Jue Decl.”) ¶ 2. The Court ordered 

that the Notice Administrator shall, by April 6, 2015, “cause the Settlement Notice to be mailed by 

first-class mail, postage prepaid, to Class Members pursuant to the procedures described in the 

Settlement, and to any Class Member who requests one; and, in conjunction with Class Counsel, 

shall maintain the case-specific website providing case information, court documents relating to 

the Settlement and the Notice.” The Notice Administrator did so. Id. ¶¶ 3-7. The Court found 

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that this notice “satisfies the requirements of the Federal Rules of Civil Procedure and of due 

process and, accordingly, is approved for dissemination to the Class.” ECF No. 1054 at 5.

Class Members had a variety of methods by which to view relevant documents, contact the 

Notice Administrator or Class Counsel, opt out of the Settlement, or object to the Settlement. 

These methods included mail, telephone, a case-specific website, and email. Jue Decl. ¶¶ 3-7. For 

instance, the Notice Administrator received 780 calls to its toll-free telephone number. Id. ¶ 6. 

The Notice Administrator received 56 requests for mailed copies of the Notice over the phone, by 

email, and by mail. Id. ¶ 7. The Notice Administrator sent a copy of the Notice whenever one 

was requested. Id. Class Members also contacted Class Counsel, through both email and 

telephone, with questions and requests. Harvey Decl. ¶ 2. Class Counsel answered Class Member 

questions and responded to requests. Id.

III. The Plan of Allocation Is Fair, Reasonable, and Adequate

The Plan of Allocation is fair, reasonable, and adequate. It will provide each Class 

Member with a fractional share based upon each Class Member’s total base salary received during 

the alleged conspiracy period. See In re Oracle Sec. Litig., 1994 WL 502054, at *1 (“A plan of 

allocation that reimburses class members based on the extent of their injuries is generally 

reasonable.”). The Plan of Allocation here is a simple, efficient way to allocate the Settlement 

funds to Class Members based on the extent of their injuries, which are proportional to their 

differing salaries. Such fractional shares are “cost-effective, simple, and fundamentally fair.” In 

re Airline Ticket Comm’n Antitrust Litig., 953 F. Supp. 280, 285 (D. Minn. 1997); see also In re 

Elec. Carbon Prods. Antitrust Litig., 447 F. Supp. 2d 389, 404 (D.N.J. 2006) (finding pro rata 

distribution “eminently reasonable and fair to the class members.”). The Court also notes that 

there will be no reversion of unclaimed funds to any Defendant. Accordingly, the Plan of 

Allocation is approved.

IT IS SO ORDERED.

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Dated: September 2, 2015

______________________________________

LUCY H. KOH

United States District Judge

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