Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_16-cv-01352/USCOURTS-casd-3_16-cv-01352-3/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 47:0227(b)(3) Telephone Consumer Protection Act of 1991

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

JOHN KERR, EDWARD LI, 

TIM BARNARD, and KENNETH 

CURTIS, individually and on behalf of 

all others similarly situated,

Plaintiffs,

vs.

ZACKS INVESTMENT RESEARCH, 

INC., an Illinois corporation, 

NATIONAL MARKETING 

RESOURCES, LLC, a Missouri limited 

liability company; PARADIGM 

DIRECT LLC, a Delaware limited 

liability company; RESPONSE 

NORTH, LLC, a Utah limited liability 

company; ZACKS INVESTMENT 

MANAGEMENT, INC. an Illinois 

corporation; and DOES 6-50, inclusive,

Defendants.

CASE NO. 16-CV-01352 GPC BLM

ORDER GRANTING 

PRELIMINARY APPROVAL OF 

SETTLEMENT AND PROVIDING 

FOR NOTICE

[DKT. NO. 108]

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Pending before the Court is Plaintiffs’ Unopposed Motion for Preliminary 

Approval of Settlement (“Motion”) relating to the settlement between plaintiffs John 

Kerr (“Kerr”), Edward Li (“Li”), Tim Barnard (“Barnard”), Kenneth Curtis (“Curtis”), 

(collectively, “Plaintiffs”) and defendants Zacks Investment Management, Inc. 

(“ZIM”) and Zacks Investment Research, Inc. (“ZIR”) (together, “Zacks”); Response 

North, LLC (“Response North”); National Marketing Resources, LLC (“NMR”); and 

Paradigm Direct LLC (“Paradigm”) (collectively, “Defendants”).

1

 Dkt. No. 108. A 

hearing was held as to this matter on November 9, 2017, where the Court ordered the 

parties to submit supplemental briefing. Dkt. No. 113. On November 15, 2017, 

plaintiffs filed a supplemental brief and revised Class Notices. Dkt. No. 115. 

Having read and considered the moving papers, including the Settlement 

Agreement, and finding good cause, the Court finds and orders as follows:

1. Based upon the Court’s review of the Settlement Agreement, the Motion

(Dkt. No. 108), the supporting memorandum, the supporting declaration and attached 

exhibits, Plaintiffs’ Supplemental Briefing and the attached exhibits (Dkt. No. 115), 

and the entire record, Plaintiffs’ Unopposed Motion for Preliminary Approval of 

Settlement is GRANTED. 

2. The Court hereby conditionally certifies the following classes for 

settlement purposes only (the “Classes”): 

The “Zacks Class” is defined as follows: 

“All natural persons nationwide who, between and including May 

6, 2012 and June 30, 2017, received a telephone call that was 

(1) made to their cellular telephone and (2) initiated by or on 

behalf of ZIR or ZIM using an automatic telephone dialing 

system. Excluded from the Zacks Class are all employees of 

defendants, all employees of defendants’ counsel, all employees 

of plaintiffs’ counsel, and judicial officers, their family members, 

and court staff assigned to the Lawsuit.”

 

1 Capitalized terms, not defined herein, have the same meaning as in the 

Settlement Agreement (Dkt. No. 108-3).

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The “Response North TCPA Class” is defined as follows: 2

“All natural persons nationwide who received from Response 

North a telephone call reflected in contact databases produced by 

Response North, which (1) was placed as part of the Zacks Book 

Campaign and/or the Options Trading Campaign and (2) was 

received on a cellular telephone. Excluded from the Response 

North TCPA Class are all employees of Response North, all 

employees of Response North’s counsel, all employees of 

plaintiffs’ counsel, and judicial officers, their family members, 

and court staff assigned to the Lawsuit.” 

The “Response North Privacy Class” is defined as follows: 

“All California residents who received from Response North a 

telephone call reflected in contact databases produced by 

Response North, which (1) was made on a telephone line that was 

subject to recording by Response North and (2) was received by 

the recipient in the State of California. Excluded from the 

Response North Privacy Class are all employees of Response 

North, all employees of Response North’s counsel, all employees 

of plaintiffs’ counsel, and judicial officers, their family members, 

and court staff assigned to the Lawsuit.”

3. The Court finds, for settlement purposes only, that the Classes meet the 

requirements for certification under Fed. R. Civ. P. 23(a) and 23(b)(3) in that: (i) the 

Classes are so numerous that joinder is impracticable; (ii) there are questions of law 

and fact that are common to all Class Members, which predominate over individual 

issues; (iii) regarding typicality: (a) Kerr’s claims are typical of the claims of the 

Response North TCPA Class and the Response North Privacy Class and (b) the claims 

of Li, Barnard, Curtis, Cares, Johnson, and Abjanic are typical of the claims of the

Zacks Class; (iv) Kerr, Li, Barnard, Curtis, Cares, Johnson, Abjanic, and Class 

Counsel will fairly and adequately protect the interests of the Classes; and (v) a class 

action is superior to other available methods for the fair and efficient adjudication of 

 

2 As stated in Exhibit 1 to Plaintiff’s Supplemental Briefing, the Zacks Book 

Campaign refers to “certain telephone calls to the cellular telephones of certain 

individuals in connection with telemarketing efforts relating to a book 

published by ZIR.” The Options Trading Campaign refers to “certain telephone 

calls to the cellular telephones of certain individuals in connection with 

telemarketing efforts . . . relating to an educational seminar regarding options 

trading.” See Dkt. No. 115. 

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the controversy. The Court appoints Kerr as the representative of the Response North 

TCPA Class and the Response North Privacy Class; Li, Barnard, Curtis, Cares, 

Johnson, and Abjanic as the representatives of the Zacks Class; Dostart Hannink & 

Coveney, LLP as Class Counsel; and CPT Group, Inc. as the Settlement

Administrator.

4. The Court preliminarily approves the Settlement, including the monetary 

relief, procedure for payment of Class Counsel’s attorneys’ fees and litigation 

expenses to the extent ultimately awarded by the Court, and procedure for payment of

class representative incentive awards to the extent ultimately awarded by the Court. 

The Court has reviewed the monetary relief that has been provided as part of the 

Settlement and recognizes its significant value to the Classes. It appears to the Court 

on a preliminary basis that the Settlement is fair, adequate, and reasonable as to all 

potential Class Members when balanced against the cost and uncertainty associated 

with further litigation of liability and damages issues. It further appears that settlement 

of the Litigation at this time will avoid substantial additional costs by all Parties, as 

well as the delay and risks that would be presented by the further prosecution of the 

Litigation. It also appears that the Settlement has been reached as a result of intensive, 

serious, and non-collusive arm’s-length negotiations. 

5. The Court approves the Amended Summary Class Notices, the Amended

Publication Notice, and the Amended Long Form Class Notice, which are attached as 

Exhibits 1-7 to the Supplemental Brief in Support of Plaintiffs’ Unopposed Motion 

for Preliminary Approval (“Supplemental Brief”) (ECF No. 115). The Settlement 

Administrator shall use for all purposes the Amended Notices (Exhibits 1-7 of the 

Supplemental Brief), rather than the original notices (Exhibits A-F of the Settlement 

Agreement). The Court approves the Claim Forms (Exhibits G and H to the 

Settlement Agreement). The Court also approves the Parties’ revised agreement, as 

set forth in the Supplemental Brief, to publish the Amended Publication Notice three 

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times in the Wall Street Journal. Along with the foregoing, the notice procedure 

described in the Settlement meets the requirements of Fed. R. Civ. P. 23 and due 

process and constitutes the best practicable notice under the circumstances. The 

Settlement Administrator is directed to distribute the Amended Summary Class 

Notices via email or mail no later than thirty (30) days after entry of this Order, and 

to take all steps necessary to establish a settlement website. The date on which the 

Amended Summary Class Notices are emailed or mailed by the Settlement 

Administrator is the “Notice Date.” 

6. Any objections to the Settlement or to any of its provisions must be filed 

with this Court and served upon Class Counsel, Defendants’ counsel, and the 

Settlement Administrator no later than sixty (60) days following the Notice Date, or 

else such objection will be waived. 

7. As set forth in the Settlement, any Class Member who wishes to be 

excluded from a Class shall mail, email, or personally deliver to the Settlement

Administrator a written request to be excluded no later than sixty (60) days following 

the Notice Date. Individuals in the Classes who do not timely request exclusion shall 

be bound by all determinations of the Court, the Settlement, and any Judgment that 

may be entered thereon. 

8. If they have not already done so, Zacks and Response North shall 

promptly comply with the requirements of 28 U.S.C. § 1715. 

9. The Parties shall file any motion for final approval, and Class Counsel 

shall file its motion for attorneys’ fees, litigation expenses, and service payments to 

Kerr, Li, Barnard, Curtis, Cares, Johnson, and Abjanic, on the dates required under 

the Local Rules and under controlling law.

10. A final approval hearing shall be held in this Court on April 6, 2018, at 

1:30 p.m., at which time the Court will determine whether the Settlement should be 

granted final approval. At that time, the Court will also consider Class Counsel’s 

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motion for attorneys’ fees, litigation expenses, and the proposed service payments to 

Kerr, Li, Barnard, Curtis, Cares, Johnson, and Abjanic. 

11. Any Class Member may appear at the Final Approval Hearing and object 

to the Settlement (“Objectors”). Objectors may present evidence and file briefs or 

other papers that may be proper and relevant to the issues to be heard and determined 

by the Court. No Class Member or any other person shall be heard or entitled to 

object, and no papers or briefs submitted by any such person shall be received or 

considered by the Court, unless on or before the date that is sixty (60) days after the 

original date of emailing or mailing of the Summary Class Notices, that person has 

filed the objections, papers, and briefs with the Clerk of this Court and has served by 

hand or by first-class mail copies of such objections, papers, and briefs upon Class 

Counsel (Dostart Hannink & Coveney, LLP, Attention Zach P. Dostart, 4180 La Jolla 

Village Drive, Suite 530, San Diego, California 92037) and Defendants’ counsel

(Burke, Warren, MacKay & Serritella, P.C., Attention Danielle J. Gould, 330 North 

Wabash Avenue, 22nd Floor, Chicago, Illinois 60611; Lewis Brisbois Bisgaard & 

Smith LLP, Attention Stephen Turner, 633 West 5th Street, Suite 4000, Los Angeles, 

California 90071; and Meylan Davitt Jain Arevian & Kim LLP, Attention Raymond 

B. Kim, 444 South Flower Street, Suite 1850, Los Angeles, California 90071). Any 

Participating Class Member who does not object in the manner provided for in this 

order shall be deemed to have waived such objection and shall forever be foreclosed 

from objecting to the Settlement.

12. If the Settlement does not become effective in accordance with the terms 

of and as defined in the Settlement, or if the Settlement is not finally approved by the 

Court, or is terminated, canceled or fails to become effective for any reason, this order 

shall be rendered null and void and shall be vacated, and the Parties shall revert to 

their respective positions before entering into the Settlement. Accordingly, if the 

Settlement does not become effective for any reason: (i) the Settlement shall be null 

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and void and shall have no further force and effect with respect to any Party in this 

Litigation, and shall not be used in this Litigation or in any other proceeding for any 

purpose and (ii) all negotiations, proceedings, documents prepared, and statements 

made in connection therewith shall be without prejudice to any person or Party hereto, 

shall not be deemed or construed to be an admission by any Party of any act, matter, 

or proposition, and shall not be used in any manner or for any purpose in any 

subsequent proceeding in this Litigation, provided, however, that the termination of 

the Settlement shall not shield from subsequent discovery any factual information 

provided in connection with the negotiation of the Settlement that would ordinarily be 

discoverable but for the attempted settlement. 

13. The Court reserves the right to adjourn or continue the date of the Final 

Approval Hearing and all dates provided for in the Settlement without further notice 

to Class Members, and retains jurisdiction to consider all further matters arising out 

of or connected with the proposed Settlement. 

14. In accordance with the terms of the Settlement, the Court hereby adopts 

the following dates for performance of the specified activities leading to the Final 

Approval Hearing:

November 22, 2017 Deadline for Class Counsel to provide the 

Settlement Administrator with the Zacks 

Database and the Response North Database. 

December 1, 2017 ZIR, ZIM, or their insurer shall transfer the sum 

of $250,000.00 into an interest-bearing account 

administered by the Settlement Administrator.

Response North or its insurer shall transfer the 

sum of $200,000.00 into an interest-bearing 

account administered by the Settlement 

Administrator.

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December 18, 2017 Deadline for Settlement Administrator to email 

or mail the Summary Class Notices to all 

persons listed in the Zacks Database and the 

Response North Database. This is the “Notice 

Date.”

Deadline for Settlement Administrator to 

establish a website on which it will make 

available the operative complaint, the Settlement 

Agreement, the order granting preliminary 

approval of the Settlement, a Long Form Class 

Notice, the Zacks Claim Form (in a format that 

may be printed), the Response North Claim 

Form (in a format that may be printed), and any 

other materials agreed to by the Parties.

The date on or after which the Settlement 

Administrator will cause the Publication Notice 

to be published in the Wall Street Journal (may 

be within 3 days after the Notice Date).

February 16, 2018 Claim/Exclusion/Objection Deadline; Last day 

for Class Members to submit a Claim; Last day 

for Class Members to submit a request for 

exclusion or to file and serve any written 

objection to the Settlement and any notice of 

intent to appear at Final Approval Hearing 

March 2, 2018 Deadline for Claims Administrator to provide to 

Class Counsel and Defendants’ counsel a 

written report summarizing the Claims that have 

been received and the Claims that have been 

validated, and listing any request for exclusion

or objection that has been received by the 

Settlement Administrator.

April 6, 2018 at 1:30 PM Final Approval Hearing

15. The parties are ordered to carry out the Settlement in the manner provided 

in the Settlement.

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IT IS SO ORDERED.

Dated: November 17, 2017

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