IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

SCOTT MCMAHON, on behalf of )

plaintiff and a class, )

)

Plaintiff, )

vs. ) 12-cv-1410

)

LVNV FUNDING, LLC, RESURGENT ) Honorable Judge Alonso

CAPITAL SERVICES, L.P., ALEGIS )

GROUP, LLC, and TATE & KIRLIN )

ASSOCIATES, INC, )

 )

Defendants.

FINAL APPROVAL ORDER

Upon consideration of the parties’ request for final approval of the Class Settlement 

Agreement (“Agreement”), between Scott McMahon (“McMahon”), individually and as a

representative of the class of persons defined below ("Class"), and Defendants, LVNV Funding 

(“LVNV”), Resurgent Capital Services, L.P. (“Resurgent”), Alegis Group, LLC (“Alegis”), and 

Tate & Kirlin Associates, Inc. (“Tate”) (Collectively, “Defendants”), the Court orders and finds as 

follows:

1. On November 20, 2018, the Court preliminarily approved the Agreement on behalf 

of Plaintiff and the Class consisting of:

Class Definition: (a) all individuals in Illinois (b) to whom LVNV, Resurgent or any debt 

collector employed by LVNV or Resurgent (c) sent a letter seeking to collect a debt that 

referred to a “settlement” (d) which debt was (i) a credit card debt on which the last 

payment had been made more than five years prior to the letter, or (ii) a debt arising out of 

the sale of goods (including gas) on which the last payment had been made more than four 

years prior to the letter (e) which letter was sent on or after February 28, 2011 and on or 

before March 19, 2012, (f) where the individual after receipt of the letter, (i) made a 

payment, (ii) filed suit, or (iii) responded by requesting verification or contesting the debt.

2. Edelman, Combs, Latturner & Goodwin, LLC has been appointed Class Counsel.

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3. The Court approved the parties' proposed Class Notice and directed it be mailed to 

the last known address of the class members as shown on Defendants’ records on or before 

December 20, 2018. The Court is informed that actual notice was sent by first class mail to 

approximately 3,074 class members by the Settlement Administrator. A total of 670 envelopes 

were returned by the United States Postal Service as “undeliverable” with no forwarding address 

available. A total of 7 notices were either forwarded by the U.S. Postal Service to a new address 

or were returned by the U.S. Postal Service with a new address and remailed by the Settlement 

Administrator. No Class Members requested exclusion, and no objections were filed or received. 

4. The Court is informed that the Settlement Administrator received 24 claim forms 

which were postmarked after the February 19, 2019 deadline for submissions, which the parties

have jointly requested be included as valid claimants such that the late claimants are entitled to 

receive a portion of the settlement funds. The Court hereby approves the inclusion of the late 

claim forms received as of March 20, 2019.

5. The Court is further informed that the Settlement Administrator received 3 claim 

forms which were completed by an agent or power of attorney of the class member ("Questionable 

Claim Forms"). At the parties’ request and with the approval of this Court, the 3 Questionable 

Claim Forms are hereby approved by this Court, such that each will receive a portion of the Class 

Settlement Fund.

6. On March 21, 2019, the Court held a fairness hearing to which class members, 

including any with objections, were invited. No class members objected or requested exclusion 

from the settlement at the fairness hearing.

7. The Court finds that the provisions for notice to the class satisfy the requirements 

of the Federal Rules of Civil Procedure 23 and due process. 

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8. The Court finds that the settlement is fair, reasonable, and adequate and hereby 

finally approves the Agreement submitted by the parties, including the Release and payments by 

Defendants. 

9. Defendants have reported that they have delivered the Class Recovery of 

$85,900.00 to the Settlement Administrator to be held in trust until the Effective Date of the 

Agreement. Within two (2) weeks of the Effective Date, the Settlement Administrator will 

distribute the Class Recovery among class members who submitted claim forms ("Participating 

Class Members"). Participating Class Members will receive a pro rata share of the Tier 1 Class 

Recovery and a return of any payments made within 45 days of the placement of the debt for 

collection from the Tier 2 Class Recovery by check. Checks issued to Participating Class Members 

will be void after 90 days (“void date”);

10. Defendants have reported that they have delivered two checks to Class Counsel to 

be held in trust until the Effective Date of the Agreement. The first check, in the amount of 

$5,000.00, will be held in trust for Plaintiff’s recovery and incentive awards. The second check, 

in the amount of $446,000.00, will be held in trust for Attorney Fees and costs as set forth in of 

the Agreement. 

11. Upon the Effective Date, the Plaintiff and the Class Members grant the following 

release:

Each Plaintiff and Class Member who does not submit a valid and timely request 

for exclusion, releases and discharges the Defendants, as well as their predecessors, 

successors, assigns, affiliates, parent corporations, subsidiaries, holding companies, 

divisions, unincorporated business units, partners, insurers, members, officers, 

directors, shareholders, members, managers, employees, agents, representatives, 

officials, attorneys, associates and trustees (in their respective capacities as such), 

(collectively, “Released Parties”), from any and all actual or potential claims, 

actions, causes of action, suits, counterclaims, cross claims, third party claims, 

contentions, allegations, and assertions of wrongdoing, and any demands for any 

and all debts, obligations, liabilities, damages (whether actual, compensatory, 

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treble, punitive, exemplary, statutory, or otherwise), attorneys’ fees, costs,

expenses, restitution, disgorgement, injunctive relief, any other type of equitable, 

legal or statutory relief, any other benefits, or any penalties of any type whatever, 

whether known or unknown, suspected or unsuspected, contingent or 

noncontingent, or discovered or undiscovered, whether asserted in federal court, 

state court, arbitration or otherwise, and whether triable before a judge or jury or 

otherwise, that were alleged in the Litigation or that arise out of or relate to the 

conduct alleged in the Litigation, including, without limitation, those based on 

violation of the FDCPA, FDCPA state equivalents, or any other state, federal, or 

local law, statute, regulation or common law.

12. The Court finds the Agreement fair and made in good faith.

13. The terms of the Agreement are incorporated into this order. 

14. The Court approves Chicago Law and Education Foundation as the designated cy 

pres recipient. If, following the Void Date of the Participating Class Members' checks, there 

remains any uncashed checks or undistributed funds, those funds will be distributed to the Chicago 

Law and Education Foundation within 30 (thirty) days following the last Void Date of the 

settlement checks.

15. The Court approves Class Counsel’s request for an award of attorney’s fees and 

costs of $446,000.00, which is paid in addition to the Class Recovery.

16. The Court approves Class Counsel’s request for an award of $5,000.00 to Plaintiff 

for his damages and as an incentive for representing the Class, which is also paid in addition to the 

Class Recovery.

17. The claims of Plaintiff and the Class are dismissed with prejudice and without costs.

ENTERED:

3/22/19 ________________________________

Jorge L. Alonso

United States District Judge

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