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The Honorable Robert J. Bryan 

UNITED STATES DISTRICT COURT 

FOR THE WESTERN DISTRICT OF WASHINGTON 

AT TACOMA 

CAMERON PIERCE and PATRICIA PIERCE, 

husband and wife; KAREN KIRBY, a single 

woman; GREGORY SHERMAN and PAULA 

SHERMAN, husband and wife, MICHAEL 

LEPAGE and GERTRUDE LEPAGE, husband and 

wife; LARRY BROWN, a single man, RALPH 

MARTINELLI, a single man, on behalf of 

themselves and a class of similarly situated 

individuals, 

 Plaintiffs, 

 v. 

NOVASTAR MORTGAGE, INC., a foreign 

corporation, 

 Defendant. 

Case No. C05-5835 RJB 

JUDGMENT

Pursuant to Fed. R. Civ. P. 54, this matter came on for hearing for entry of Final 

Judgment. The Court having considered all pleadings and proceedings herein and being fully 

advised in the premises, the Court hereby ORDERS, ADJUDGES AND DECREES: 

 1. The Court finds that the parties have complied with the notice requirements 

as set forth in the Preliminary Approval Order (Dkt. 264), and that the implemented notice 

given to the Class was the best notice practicable under the circumstances of these 

proceedings, and that said notice satisfies the requirements of Fed. R. Civ. P. 23(e)(1)(B) 

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and due process. 

2. Pursuant to Fed. R. Civ. P. 23(e)(1)(C), after hearing on September 28, 2007, at 

which no objection to the Settlement Agreement (Dkt. 267 and attached hereto as Ex. B) was 

lodged, the Court hereby finally approves the Settlement Agreement and finds that it is fair, 

reasonable and adequate as to the parties and is in the best interests of the certified Class. 

3. Pursuant to Fed. R. Civ. P. 23(e)(2), the Court specifically finds that the parties 

have not entered into any “agreement made in connection with the proposed settlement, 

voluntary dismissal, or compromise.” 

4. The Settlement Agreement (Dkt. 267 and attached hereto as Ex. B) is hereby 

incorporated by reference and the parties are ordered to comply with its terms and requirements. 

Without limiting those specific requirements, the Court orders: 

 a. Class Settlement Fund and Attorney Fee Award. NovaStar is hereby 

ordered to pay $5,100,000 plus accrued interest to class counsel as follows: $3.3 million for the 

Class Settlement Fund plus interest accrued at 4.15% from September 12, 2007, and $1.8 million 

as an attorney fee award plus interest accrued at 4.15% from September 12, 2007. 

 b. Post-Settlement Attorney Fees and Costs. NovaStar is hereby also 

ordered to pay $75,000 in post-settlement attorney fees and costs plus interest accrued at 4.15% 

from September 28, 2007. 

5. Class counsel are hereby ordered to distribute the funds NovaStar pays pursuant 

to paragraph 4(a) above as follows: 

 a. $ 3,174,579 plus interest at 4.15% accrued from September 12, 2007, shall 

be distributed to the Class in accordance with the distribution plan attached hereto as Ex. A; 

 b. $102,920 plus interest at 4.15% accrued from September 12, 2007, shall 

be distributed to Class Counsel in class expenses; 

 c. $22,500 plus interest at 4.15% accrued from September 12, 2007, shall be 

distributed to the class representatives in the following manner: 

 1. $4,500 plus accrued interest to Cameron and Patricia Pierce, 

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 2. $3,000 plus accrued interest to Karen Kirby, 

 3. $4,500 plus accrued interest to Gregory and Paula Sherman, 

 4. $4,500 plus accrued interest to Michael and Gertrude LePage 

 5. $3,000 plus accrued interest to Larry Brown, and 

 6. $3,000 plus accrued interest to Ralph Martinelli; and 

 d. $ 1,800,000 plus interest at 4.15% accrued from September 12, 2007, shall 

be distributed to class counsel as reasonable attorney fees and costs under the settlement 

agreement (Dkt. 267 and attached hereto as Ex. B). 

 e. If after six months, class counsel has been unable to distribute any awards 

to class members, class counsel shall prepare a report to the Court so that the Court can 

determine what to do with any residuum from the Class Settlement Fund. 

6. Without affecting the finality of this Final Judgment, which releases and 

dismisses the claims of the plaintiffs and class as set forth in the Settlement Agreement (Dkt. 267 

and attached hereto as Ex. B), the Court hereby retains continuing jurisdiction over this 

Settlement Agreement for the limited purpose of (a) ensuring payment by NovaStar; (b) 

resolving any disputes regarding the actual distribution, should they arise; and (c) making 

decisions about distribution of any residuum of the Class Settlement Fund, should that 

circumstance arise. 

IT IS SO ORDERED. 

DATED this 28th day of SEPTEMBER, 2007. 

 A

ROBERT J. BRYAN 

 United States District Judge 

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