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Matthew C. Helland, CA SBN 250451

helland@nka.com

Daniel S. Brome, CA SBN 278915

dbrome@nka.com

NICHOLS KASTER, LLP

235 Montgomery St.

Suite 810

San Francisco, CA 94111

Telephone: (415) 277-7235

Facsimile: (415) 277-7238

Matthew H. Morgan, MN SBN 304657

morgan@nka.com

Reena I. Desai, MN SBN 0388311

rdesai@nka.com

NICHOLS KASTER, PLLP

4600 IDS Center

80 South 8th St.

Minneapolis, MN 55402

Telephone: (612) 256-3200

Facsimile: (612) 215-6870

Admitted pro hac vice

Attorneys for Plaintiffs and the putative 

classes 

Andrew M. Paley, CA SBN 149699

apaley@seyfarth.com

Sheryl L. Skibbe, CA SBN 199441

sskibbe@seyfarth.com

Ryan McCoy, CA SBN 276026

rmccoy@seyfarth.com

SEYFARTH SHAW LLP

560 Mission St., 31st Floor

San Francisco, CA 94105

Telephone: (415) 397-2823

Facsimile: (415) 397-8549

Attorneys for Defendants Farmers Insurance 

Exchange.

IN THE UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA

David DeLuca and Barry Francis, individually, 

on behalf of others similarly situated, and on 

behalf of the general public, and Melissa 

Laughlin, individually.

 Plaintiffs,

v.

Farmers Insurance Exchange, 

 Defendants.

Case No. 3:17-cv-00034-EDL

SETTLEMENT AGREEMENT

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 1 of 49
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SETTLEMENT AGREEMENT

This Settlement Agreement is voluntarily made and entered into this 27 day of May 2020, 

by and between Defendant Farmers Insurance Exchange (“Farmers”), and Named Plaintiffs

David DeLuca, Barry Francis (“Named Plaintiffs”), individually and on behalf of the Class (as 

defined below), and Melissa Laughlin, individually, by and through their counsel of record, 

subject to the approval of the Court, as provided below. This Settlement Agreement is intended 

by Named Plaintiffs and Farmers to fully, finally, and forever resolve, discharge, and settle the 

Released Claims (as defined below), upon and subject to the terms and conditions hereof, as 

follows:

1. Recitals. 

On January 4, 2017, Plaintiffs David DeLuca and Barry Francis filed a putative opt-in 

collective action and Rule 23 class action complaint on behalf of themselves and others similarly 

situated, styled DeLuca et al. v. Farmers Insurance Exchange, et. al, No. 3:17-cv-00034-EDL

(N.D. Cal) (the “Action”), alleging that Defendant improperly classified its special investigators 

as exempt from overtime under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 216(b) and 

under California law. Plaintiffs claim that Farmers failed to properly compensate them for all 

hours worked, and assert claims for unpaid wages and ancillary penalties and damages under the 

FLSA and California law. Plaintiffs also alleged violations of California meal and rest break 

requirements. Defendant filed its Answer to the Complaint on February 1, 2017, denying the 

allegations in the Complaint and raising affirmative defenses. The Court conditionally certified 

the case as a collective under the FLSA on August 15, 2017. On February 27, 2018, the Court 

granted Rule 23 class certification of a class of special investigators who worked for Farmers in 

California between January 4, 2013 through February 27, 2018 (the “Class Period”) with regard 

to the overtime, wage statement, Labor Code section 203, and second meal break violation 

claims. The Parties subsequently stipulated to decertification of the meal break claims.

On February 19, 2020, the Parties participated in a mandatory settlement conference with 

Magistrate Judge Westmore. That settlement conference ended with the Parties agreeing in 

principle to the financial terms of a settlement that would fully resolve this matter, subject to the 

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Court’s approval. The Parties then negotiated the remaining terms of the Settlement which are

now memorialized in this Agreement.

2. Definitions. 

For purposes of this Settlement Agreement, the following definitions shall apply, in 

addition to the definitions set forth in other Sections of this Settlement Agreement:

A. “Plaintiffs” shall mean and refer to the 78 individuals included within the scope of 

this Settlement; each may be referred to individually as a “Plaintiff.” A list of the 

Plaintiffs is set forth in Exhibit A. “Plaintiffs” includes (1) the Named Plaintiffs, 

David DeLuca, Barry Francis, and Melissa Laughlin, (2) the “Opt-in Plaintiffs,” 

those 37 individuals who filed timely consent forms to join the Action and did not 

revoke their consent during the course of the Action, or have their FLSA claims 

dismissed, and (3) the “Rule 23 Class Members,” those 57 individuals who 

worked for Farmers as special investigators in California during the Class Period.

Seventeen of the Opt-In Plaintiffs also are part of the certified Rule 23 Class. 

Plaintiff Melissa Laughlin alleges a claim under New York State law only and 

does not have a claim under the FLSA or California State law.

B. “Notice of Settlement” shall mean the written notices provided to all Plaintiffs 

advising them of this Settlement, a copy of which is attached as Exhibits B, C, 

and D.

C. “Participating Plaintiffs” shall mean any Opt-in Plaintiff who are included within 

the scope of the Settlement and who timely execute and return a “Release of

Claims Form,” an example of which is contained in Exhibits C and D, and the 

Rule 23 Class Members. 

D. “Rejecter” shall mean any Opt-in Plaintiff within the scope of the Settlement who 

communicates a written rejection within the timeline outlined in Section 6.

E. “Non-Responder” shall mean any Opt-in Plaintiff within the scope of the 

Settlement who does not return a signed Release of Claims Form and does not 

meet the definition of a Rejecter (i.e., who does not respond to the notice). 

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F. “Released Claims” shall mean and refer to the claims released by the Participating

Plaintiffs as set forth in Section 13.

G. “Parties” shall mean and refer to Plaintiffs and Defendant, collectively; each may 

also be referred to separately as a “Party.”

H. “Class Counsel” shall mean the law firm of Nichols Kaster, PLLP. 

I. “Administrator” means CPT Group, Inc.

J. “Released Parties” as used herein means Defendant Farmers Insurance Exchange 

and all of its former, present, or future parents, subsidiaries, affiliates, partners, 

officers, governors, employees, agents, shareholders, attorneys-in-fact, and the 

predecessors, and successors, assigns, and legal representatives of all such entities 

and individuals, including but not limited to Farmers Insurance Company, Inc., 

Farmers Group, Inc., and any profit-sharing, savings, health and other employee 

benefit plans or any nature, the successors of such plans and those plans’ 

respective trustees, administrators, agents, employees, fiduciaries, and other 

persons acting on their behalf, and each of them.

K. “Preliminary Approval” refers to the date on which the Court grants preliminary 

approval of the Settlement.

L. “Final Approval Order” refers to the final order by the Court approving the 

Settlement following the Fairness Hearing.

M. “Final Effective Date” refers to the first day after the date by which both of the 

following as occurred: (i) final approval of the Settlement is granted by the United 

States District Court, Northern District of California, or other court assuming 

jurisdiction of this matter, and (ii) the Court’s Judgment approving the Settlement 

becomes Final. Final shall mean the latest of: (i) if there is an appeal of the 

Court’s Judgment, the date the Judgment is affirmed on appeal, the date of 

dismissal of such appeal, or the expiration of the time to file a petition for writ of 

certiorari to the United States Supreme Court, or, (ii) if a petition for writ of 

certiorari, or the date the Judgment is affirmed pursuant to such petition; or (iii) if 

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no appeal is filed, the expiration date of the time for filing or noticing any appeal 

of the Judgment. 

3. The Settlement. 

The Settlement includes all Plaintiffs listed on Exhibit A. 

Defendant agrees to pay a maximum amount of $5,400,000.00 (the “Settlement 

Amount”), to resolve all of Participating Plaintiffs’ Released Claims as described in Section 13.

The Settlement Amount includes all amounts to be paid by Defendant for payments to the 

Participating Plaintiffs including enhancement awards, Class Counsel’s attorneys’ fees, 

settlement administration costs, litigation costs, and expenses of Class Counsel. All applicable 

federal, state, and local taxes, and other withholdings on amounts attributable to claims for 

unpaid wages shall be deducted from each Plaintiff’s Individual Settlement Allocation. 

Defendant’s share of payroll taxes on amounts allocated to settle claims of unpaid wages under 

this Agreement shall be paid separately, and not from, the Settlement Amount.

Class Counsel has computed a reasonable allocation of the Settlement Amount among the 

Plaintiffs (the “Individual Settlement Allocation”) based on each Plaintiff’s payroll records, and 

Class Counsel’s estimate of each Plaintiff’s hours worked during the relevant time period of their 

employment with Farmers. Exhibit A sets forth the Individual Settlement Allocation for each 

Plaintiff, to be paid from the Settlement Amount. The estimate of each person’s Individual 

Settlement Allocation an assumption that the Court approves all the anticipated fees, costs, 

administration costs, and enhancements that Class Counsel intends to requests. If the Court does 

not approve all requested fees, costs, and enhancements, each Plaintiff’s Individual Settlement 

Allocation may vary from the estimate set forth in Exhibit A. 

Payments to Plaintiffs pursuant to this Settlement Agreement are not intended by the 

Parties to be compensation for purposes of determining eligibility for or benefit calculations of 

any health and welfare benefit plan, retirement benefit plan, vacation benefit plan, 

unemployment compensation, including, without limitation, all plans, subject to Employee 

Retirement Income Security Act (“ERISA”). The Parties agree that the payments are not 

intended to represent any modification of any employee’s previously-credited hours of service or 

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other eligibility criteria under any employee pension benefit plan, employee welfare benefit plan, 

or other program or policy.

Subject to Court approval, Plaintiffs Francis and Deluca, as the Rule 23 Class 

Representatives, and Class Counsel intends to request the Court approve a $10,000 named 

plaintiff enhancement award to be paid out of the Settlement Amount. Also subject to Court 

approval, Class Counsel intends to request that the Court approve an enhancement award of 

$1,000 to each Plaintiff who was deposed in this matter, excluding the Named Plaintiffs,

although Defendant reserves the right to dispute the reasonableness of these awards. The 

approval of enhancement awards in the amounts sought is not a material term of this Agreement 

and the award of any of these items at less than requested by Class Counsel does not give rise to 

a basis to abrogate this Agreement. If the Court does not approve the full amount of

enhancement awards requested by Class Counsel, the other terms of this Agreement shall apply. 

Any requested amounts that are not approved by the Court will be apportioned to the Plaintiffs’ 

Individual Allocation on a pro rata basis.

The Net Settlement Amount is the Settlement Amount minus the Court approved 

enhancement awards, Court approved attorneys’ fees and costs, Court approved settlement 

administration costs, and the Individual Settlement Allocations allocated to all Rejecters and 

Non-Responders. The Net Settlement Amount is the maximum available for distribution to the 

Opt-In Plaintiffs and Rule 23 Class Members.

4. Class Certification Under Fed. R. Civ. P. 23. 

Pursuant to Federal Rule of Civil Procedure 23, the following is the previously certified 

class:

California Class: All persons who were or are employed by Defendant in the State 

of California as special investigators, senior special investigators, or general special 

investigators, other than those in the “Nationals” group, at any time within four (4) years prior to 

the date of the filing of this Complaint through February 27, 2018, the date class certification 

was granted.

5. Notice of Settlement; Options to Respond.

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Class Counsel will be responsible for calculating each Plaintiff’s Individual Allocation

based on Class Counsel’s estimate of hours worked by each Plaintiff during the relevant time 

period of their employment with Farmers. The Administrator will be responsible for distributing 

the Notice of Settlement, attached hereto as Exhibits B, C, and D, to the Plaintiffs within 7 days

of Preliminary Approval.

a. Opt-in Plaintiffs will have forty-five (45) days from the date of mailing of the 

Notice of Settlement to respond in writing to the Settlement (“Response 

Period”). In order to participate in the Settlement and receive payment, Opt-in 

Plaintiffs must submit a Release of Claim Form (attached as part of Exhibits C 

and D) to the Settlement Administrator. Opt-in Plaintiffs who do not respond 

to the Notice of Settlement by submitting a Release of Claim Form (NonResponders) shall have their claims dismissed without prejudice, and shall 

have thirty (30) days from the date of the Final Approval Order to file a 

subsequent action in order to preserve consent-based tolling, and shall not 

receive any payment through the Settlement. Opt-in Plaintiffs who timely 

submit to the Settlement Administrator a request to withdraw their consent to 

join form (Rejecters) shall have their claims dismissed without prejudice, and 

shall have thirty (30) days from the date of the Final Approval Order to file a 

subsequent action in order to preserve consent-based tolling, and shall not 

receive any payment through the Settlement. The Individual Settlement 

Allocation for each Rejecter and Non-Responder, if any, shall be deducted 

from the Settlement Amount, and Farmers shall be not required to fund the 

Rejecters’ or Non-Responders’ portion of the Settlement Amount.

b. Rule 23 Class Members will have 45 days from the date of mailing of the 

Notice of Settlement to submit a written objection. The Notice will provide 

that Rule 23 Class Members who wish to object to the Settlement must file 

with the Court and serve on the Settlement Administrator, not later than fortyfive calendar days after the date the Settlement Administrator initially mails 

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the Notice to the Class Members (“Objection Deadline”), his or her objections 

to the settlement, the reasons therefore, and any supporting papers objecting to 

the Settlement, unless a longer time is required by the Court. The statement 

will indicate whether the Rule 23 Class Member intends to appear and object 

to the Settlement at the hearing for the Final Approval Order. A Rule 23

Class Member who does not file and serve an objection in the manner and by 

the deadline specified in the Notice will be deemed to have waived all 

objections and will be foreclosed from making any objections to the 

Settlement, whether by appeal or otherwise. The Settlement Administrator 

shall send all objections to counsel for Defendant and Class Counsel not later 

than two business day after receipt of said objections. 

c. Opt-in Plaintiffs who are also Rule 23 Class Members will have the same 

rights as other Opt-in Plaintiffs as to the FLSA portion of their Individual 

Settlement Allocation, and the same rights as other Class Members as to the 

California portion of their Individual Settlement Allocation. Such Opt-in 

Plaintiffs who are also Rule 23 Class Members will receive their full 

Individual Settlement Allocation, only if they timely execute a Release of 

Claims form. If an Opt-In Plaintiff, who also is a Rule 23 Class Member, is a 

Rejecter or a Non-Responder, then he/she shall not receive the portion of 

his/her Individual Settlement Allocation attributed to the release of FLSA 

claims, but will still be entitled to receive the portion of his/her Individual 

Settlement Allocation attributed to the release of California state law claims. 

In addition to the mailing of the Settlement Notice by the Administrator, Class Counsel 

shall make all reasonable efforts to communicate each Plaintiff’s Individual Settlement 

Allocation and to gather signed Release of Claims Forms from each Opt-in Plaintiff and Named 

Plaintiff. In the event any Settlement Notice is returned undeliverable, the Administrator and/or 

Class Counsel shall perform a skip trace and take any other reasonable steps to ensure the 

Settlement Notice is received by the Plaintiff.

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6. Effect of Rejection. 

Rejecter(s) shall be dismissed without prejudice and will not be bound by the release 

outlined in Section 13. Any Rejecter shall have thirty (30) days from the date of the Final 

Approval Order within which to file a subsequent claim should he or she choose to do so, in 

order to receive the benefit of the additional 30 days of tolling provided by this Settlement. 

Failure to re-file his/her claim within this timeline will result in his/her forfeiture of this 

additional 30 days of tolling that would otherwise have resulted from this Settlement, but not the 

consent-based tolling from the pendency of this case. Rejecters shall not receive any share of the 

Settlement Amount, and will have their claims dismissed without prejudice upon final approval

by the Court. The Individual Settlement Allocation for each Rejecter shall be deducted from the 

Settlement Amount, and Farmers shall be not required to fund the Rejecters’ portion of the 

Settlement Amount. 

7. Effect of Non-Response. 

Any Non-Responder shall be dismissed without prejudice and will not be bound by the 

release outlined in Section 13. Non-Responders will not receive any settlement amount, 

including their Individual Settlement Allocation. Any Non-Responder shall have thirty (30) days 

from the date of the Final Approval Order within which to file a subsequent claim should he or 

she choose to do so, in order to receive the benefit of the additional 30 days of tolling provided 

by this Settlement. Failure to re-file his/her claim within this timeline will result in his/her 

forfeiture of this additional 30 days of tolling that would otherwise have resulted from this 

Settlement, but not the consent-based tolling from the pendency of this case. The Individual 

Settlement Allocation for each Non-Responder, if any, shall be deducted from the Settlement 

Amount, and Farmers shall be not required to fund the Non Responder portion of the Settlement 

Amount.

Rule 23 Class Members do not need to respond in order to be included in the Settlement. 

Rule 23 Class Members shall receive a distribution through the Settlement, and shall have their 

California claims dismissed with prejudice upon final approval in accordance with this 

Settlement.

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8. Designation of Types of Payments.

The Parties agree that 50% of the Individual Settlement Allocation to each Plaintiff shall 

be treated as payment for the settlement of disputed claims for unpaid wages and 50% shall be 

treated as payment for the settlement of disputed claims for penalties, interest, and liquidated 

damages. Enhancement awards will be reported on a 1099.

9. Settlement Administration.

The Parties agree to mutually select CPT Group, Inc. to serve as the Settlement 

Administrator in this Action. This administration duty shall include without limitation, setting 

up an escrow account for funding of the Settlement, obtaining tax identification number(s) for 

Farmers applicable to the Settlement; performing an initial National Change of Address 

(“NCOA”) search of the mailing addresses of Plaintiffs; mailing the Notice; performing one skip 

trace on Notices returned as undeliverable; establishing a hotline telephone number to 

communicate with Plaintiffs about the Settlement; reviewing and submitting to Class Counsel 

and Defendant’s counsel any received objections, Release of Claim forms, and requests to 

withdraw consent to join forms; mailing the Individual Settlement Allocations, and tax forms to 

the Participating Plaintiffs, and making all required distributions; make any cy pres payments;

and provide a report to Counsel for the parties of any individuals who did not cash or otherwise 

negotiate their settlement checks 30, 60 and 75 days after distribution. The Settlement 

Administrator will report payment of the Individual Settlement Allocations to all required taxing 

and other authorities, take appropriate withholdings, forward payments for withholdings and 

employer’s portion of payroll taxes and requisite reporting documentation to the applicable 

taxing agencies, and issue Internal Revenue Service Forms W-2s and 1099s. The Settlement 

Administrator will establish a Qualified Settlement Fund (“QSF”), pursuant to Section 468B(g) 

of the Internal Revenue Service for the purposes of administering the Settlement. Subject to 

Court approval, all Settlement Administration Costs shall be taken from the Settlement Amount. 

The Parties expect Settlement Administration Costs to not exceed $14,000. Any unapproved 

amount of Settlement Administration Costs shall be allocated to the Net Settlement Amount and 

apportioned to the Individual Settlement Allocations. The award of Settlement Administrator 

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Costs in the amount sought is not a material term of this Agreement and the award of an amount 

less than requested by Class Counsel does not give rise to a basis to abrogate this Agreement.

Defendant shall deposit into an account set up by the Settlement Administrator equal to 

the Settlement Amount less any amounts allocated to Individual Settlement Allocations to 

Rejecters and Non-Respondents. The Settlement Administrator will be responsible for issuing 

settlement checks to Plaintiffs and payment to Class Counsel. From the wage portion of each 

Plaintiff’s Individual Settlement Allocation, the Administrator shall withhold from such 

distribution all applicable federal, state, and local income and employment payroll taxes required 

to be withheld, and cause the appropriate deposits of taxes and other withholdings to occur. 

Each Plaintiff’s share of applicable federal, state, and local income and employment payroll 

taxes withheld from his or her distribution and deposited with the applicable governmental 

authorities in accordance with this Settlement Agreement (“Employee Taxes”) shall be a part of, 

and paid out of and shall not be in addition to, the Settlement Amount.

The Administrator shall calculate the applicable federal, state, and local taxes that are 

normally payable by an employer from the employer’s funds (for example, FUTA/SUTA and the 

employer’s portion of FICA) (“Employer Taxes”) based on the wage portion of each 

Participating Plaintiff’s Individual Settlement Amount. Defendant shall be responsible for 

payment of Employer Taxes. Employer Taxes are separate from, and in addition to, the 

Settlement Amount.

The Settlement Administrator shall provide Defendant’s counsel and Class Counsel with 

weekly summary reports, including the total number and identities of the individuals: whose

Notices were returned as undeliverable, who objected to the settlement, who signed and returned

Release of Claims forms, and who requested permission to withdraw their consent to join form. 

The Settlement Administrator shall maintain records of its work, which shall be available for 

inspection upon request by Defendant’s counsel or Class Counsel.

Other than the obligations set forth in this Settlement Agreement, Defendant shall have 

no additional obligation to identify or locate any Plaintiff, or have any liability in connection 

with the provision of information to the Settlement Administrator or otherwise.

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10. Settlement Payment and Distribution of Checks to Participating Plaintiffs.

Within seven (7) calendar days of the Final Effective Date, Defendant shall fund the 

settlement account; within seven (7) calendar days of receiving funds from the Defendant, the 

Administrator shall make the settlement payments to Participating Plaintiffs and any approved 

attorneys’ fees and costs. 

Checks to Participating Plaintiffs shall indicate on their face that they will be void after 

ninety (90) days of issuance. Accordingly, Participating Plaintiffs shall have ninety (90) calendar 

days from check issuance to cash, deposit, or otherwise negotiate each of their Settlement 

checks. Promptly at the end of the 90-day period, the Settlement Administrator will send the 

value of all uncashed checks to the approved cy pres recipients. 

The Administrator shall notify the Parties of the status of Settlement checks 30, 60 and 75 

days after distribution. The Parties agree to work together in good faith to ensure that all 

Settlement checks are received and cashed by the Participating Plaintiffs. In the event that a 

Participating Plaintiff’s Settlement check has been lost or stolen, Class Counsel will promptly 

notify the Administrator for reissuance, if appropriate. In no event will Farmers be required to 

add any amounts to the Settlement Amount for any reason, including because a Participating 

Plaintiff’s Settlement check was lost or stolen, or because a Participating Plaintiff failed to cash 

his/her Settlement check. 

No amount of the Settlement Amount will revert to Defendant, but Defendant will not be 

responsible for funding that portion of the Settlement Amount attributable to the Individual 

Settlement Allocations of Rejecters or Non-Responders. If any checks are not cashed, or for any 

other reason there is a residual amount of the settlement fund remaining after distribution and the 

expiration of the time period to cash settlement checks (90 days), that amount will be donated 

fifty percent to Legal Aid at Work and fifty percent to Bet Tzedek as a cy pres beneficiaries, 

subject to approval by the Court. 

11. Taxation and No Tax Advice. 

Each Participating Plaintiff shall be obligated to obtain his or her own independent tax 

advice concerning the proper income reporting and tax obligations regarding any and all 

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payments he or she receives pursuant to this Settlement Agreement, and shall further assume the 

responsibility of remitting to the Internal Revenue Service and any other relevant taxing 

authorities any and all amounts required by law to be paid out of any monies received under this 

Settlement Agreement, without any contribution whatsoever from Defendant or Class Counsel. 

Nothing in this Settlement Agreement shall be construed as Defendant, Defendant’s Counsel

Seyfarth Shaw LLP, or Class Counsel providing any advice regarding the reporting or payment 

of taxes or the tax consequences of a Participating Plaintiff’s participation in any portion of this 

Settlement Agreement. 

12. Attorneys’ Fees and Costs. 

Class Counsel may request Court approval for payment of up to 30% from (and not in 

addition to) the Settlement Amount, or $1,620,000, as payment for its attorneys’ fees. Class 

Counsel may also request Court approval for reimbursement of up to $100,000 from (and not in 

addition to) the Settlement Amount in costs. The Notice of Settlement will inform Plaintiffs of 

Class Counsel’s attorneys’ fees and costs request. The award of an attorneys’ fees and costs by 

the Court in the amounts sought is not a material term of this Agreement and the award of any of 

these items at less than requested by Class Counsel does not give rise to a basis to abrogate this 

Agreement. If the Court does not approve the full amount of attorneys’ fees or costs requested 

by Class Counsel, the other terms of this Agreement shall apply. Any requested amounts that are 

not approved by the Court will be apportioned to the Plaintiffs’ Individual Settlement Allocation 

on a pro rata basis.

The Administrator shall wire transfer the attorneys’ fees and costs approved by the Court 

to Class Counsel within seven (7) days of receipt of the funds. The Administrator will issue 

Nichols Kaster, PLLP an IRS Form 1099 for the attorneys’ fees and costs approved by the Court. 

13. Release.

Named Plaintiffs Deluca and Francis agree to generally release the Released Parties from 

any and from all causes of action, claims, rights, damages, punitive or statutory damages, 

penalties, liabilities, expenses, and losses and issues of any kind or nature whatsoever, that they

have or may have had against any of the Released Parties through the date of execution of this 

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 13 of 49
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Settlement Agreement (“Representative Plaintiffs’ Released Claims”). Named Plaintiffs Deluca 

and Francis acknowledge that they may have claims that are presently unknown and that the 

release of Named Plaintiffs’ Released Claims contained in this Settlement Agreement is intended 

to and will fully, finally, and forever discharge all claims against the Released Parties, whether 

now asserted or un-asserted, known or unknown, suspected or unsuspected, which now exist, or 

heretofore existed or may hereafter exist, which if known, might have affected their decision to 

enter into this release. In making this waiver, Named Plaintiffs Deluca and Francis agree that, 

although they may discover facts in addition to or different from those that are currently known 

or believed to be true with respect to Representative Plaintiffs’ Released Claims, it is their 

intention to fully, finally, and forever settle and release any and all Representative Plaintiffs’ 

Released Claims, known or unknown, suspected or unsuspected, which now exist, or heretofore 

existed, or may hereafter exist, and without regard to the subsequent discovery or existence of 

such additional or different facts.

Named Plaintiffs Deluca and Francis warrant and represent that they have not assigned 

or, transferred, to any person or entity any of Named Plaintiffs’ Released Claims or any rights, 

claims, or causes of action arising out of Named Plaintiffs’ Released Claims. In addition, Named 

Plaintiffs shall defend, hold harmless, and indemnify the Released Parties, or any of them, from 

and against any claims, damages, litigation, causes of action, and expenses, including reasonable 

attorneys’ fees, resulting from any breach by Named Plaintiffs of this warranty and

representation, or any breach by Named Plaintiffs of their release of Named Plaintiffs’ Released 

Claims.

Named Plaintiff Laughlin knowingly and voluntarily, irrevocably and unconditionally, 

forever and fully releases the Released Parties from/for any and all claims and causes of action 

for unpaid minimum wages and overtime compensation, record keeping or wage statement 

violations, failure to timely pay wages, liquidated damages, penalties, and interest under the New 

York State law while or she was employed by Defendant as a salary grade 32, 33, or 34 Special 

Investigator, other than in the Nationals Group, up to the date of Preliminary Approval.

It is understood and agreed that upon the Final Approval Order, any Participating Opt-in 

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 14 of 49
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Plaintiff shall, knowingly and voluntarily, irrevocably and unconditionally, forever and fully 

release the Released Parties from/for any and all claims and causes of action for unpaid

minimum wages and overtime compensation, liquidated damages, penalties, and interest under 

the Fair Labor Standards Act while he or she was employed by Defendant as a salary grade 32, 

33, or 34 Special Investigator, other than in the Nationals Group, up to the date of Preliminary 

Approval (“Opt-In Plaintiffs’ Released Claims”). An Opt-In Plaintiff who also is a Rule 23 

Class Member shall also release his/her Rule 23 Released Claims as set forth below.

It is understood and agreed that upon the Final Approval Order, any Rule 23 Class 

Member shall, knowingly and voluntarily, irrevocably and unconditionally, forever and fully 

release Released Parties from/for any and all claims and causes of action for unpaid minimum

wages and overtime compensation, record keeping or wage statement violations, failure to timely 

pay wages, and waiting time penalties, and civil and statutory penalties attributable to the 

underlying claims (excluding penalties available under the Private Attorneys General Act) and

interest under California law arising out of the released claims, while the Rule 23 Class Member 

was employed by Defendant as a salary grade 32, 33, or 34 Special Investigator, other than in the 

Nationals Group, up to the date of Preliminary Approval (“Rule 23 Released Claims”). This 

release is limited to the Rule 23 Class Members’ wage and hour claims currently in this case, and 

is not a general release. Any such Rule 23 Class Member shall be deemed to have expressly 

waived the rights and benefits they may otherwise have had relating to these Released Claims 

consistent with Section 1542 of the California Civil Code, which provides:

A general release does not extend to claims which the creditor does 

not know or suspect to exist in his or her favor at the time of 

executing the release, which if known to him or her must have 

materially affected his or her Settlement with the debtor.

14. No Admission of Liability. 

Nothing contained in this Settlement Agreement shall be construed as or deemed an 

admission of liability, damages, culpability, negligence, or wrongdoing on the part of Defendant

or the Released Parties. Defendant and the Released Parties deny any liability or wrongdoing of 

any kind associated with the claims alleged and the allegations contained in the Complaint.

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 15 of 49
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15. Effect of Settlement Not Being Final.

In the event that the Settlement does not become Final, then the Settlement Agreement 

shall become null and void, and all negotiations, proceedings, and statements relating thereto 

shall be without prejudice as to the rights of any and all Parties hereto, and all Parties and their 

respective predecessors and successors shall be deemed to have reverted to their respective 

positions in the Action as of the date and time immediately prior to the execution of this 

Settlement Agreement. If the Court does not approve either preliminarily or finally any material 

term or condition of the Settlement Agreement, or if the Court effects a material change to the 

Parties’ settlement, then this entire Settlement Agreement will be, at either Party’s discretion, 

voidable and unenforceable. The Settlement shall not constitute, in this or any other proceeding, 

an admission of any kind by Defendant that certification of a class or collective action is 

appropriate or proper. In the event that the Settlement is not finally approved, or the Settlement 

is otherwise terminated, Defendant expressly reserves all rights to challenge certification of any 

class or collective action on all available grounds, including, without limitation, seeking to 

decertify the class and collective action on the grounds, among others, that the claims asserted 

cannot be manageably tried consistent with Due Process.

16. Inadmissibility of This Agreement. 

This Settlement Agreement is a settlement document and shall be inadmissible as 

evidence in any proceeding, except an action or proceeding to approve, interpret, or enforce its 

terms.

17. Reasonable Compromise of Bona Fide Dispute. 

The Parties agree that the terms of this Settlement Agreement represent a reasonable 

compromise of disputed claims and issues following a mandatory settlement conference with a 

respected Magistrate Judge of the Northern District of California, arising from a bona fide 

dispute over the merits of Plaintiffs’ claims and Defendant’s defenses, and agree to represent the 

same to the Court. The Parties further agree that the Settlement is a fair, reasonable, and 

adequate resolution of Plaintiffs’ claims.

18. Voiding the Agreement.

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 16 of 49
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64106462v.1

Defendant retains the right to void, at its sole discretion, the Settlement Agreement if 

three or more of the Opt-In Plaintiffs do not sign Release of Claim Forms (whether because they 

are Rejecters or Non-Responders). Defendant shall communicate their desire to exercise this 

option in writing via email and U.S. mail to Daniel Brome, Nichols Kaster, LLP, 235 

Montgomery Street, Suite 810, San Francisco, CA 94104, dbrome@nka.com. If Defendant 

desires to exercise this option, it must do so within seven (7) days after the Administrator

provides Defendant the final list of Participating Plaintiffs, Rejecters, and Non-Responders, 

unless such deadline is extended by mutual agreement of the Parties.

19. Effect of Disapproval or Reduction in Attorneys’ Fees by the Court. 

If, in approving this Settlement Agreement, the Court declines to approve the requested 

amount of Class Counsel’s requested attorneys’ fees or costs, such reduction shall not be 

considered a material breach or change to this Settlement Agreement, shall not be a ground to 

terminate and void this Settlement Agreement. Any such reduction in the attorneys’ fees or costs 

may be appealed by Class Counsel, however, such an appeal may result in a delay in payment to 

Plaintiffs of the amounts contemplated in this Agreement. 

20. Timeline of Settlement Events. 

The Parties agree to the following timeline for completion of Settlement:

• May 27, 2020: Deadline to file Motion for Preliminary Approval. 

Defendant’s counsel will be given an opportunity to comment on said motion 

prior to filing, and such comments shall be implemented to the extent they are 

deemed reasonable by Plaintiffs and Class Counsel. Defendant reserves the 

right to file any responsive pleading following the filing of said motion. 

• 7 days after Preliminary Approval: Deadline to mail Settlement notices. 

The date on which the Settlement notices are mailed shall be referred to as the 

“Notice Mailing.”

• 30 days after Notice Mailing: Deadline to file motion for attorneys’ fees.

• 45 days after Notice Mailing: Deadline for Opt-in Plaintiffs to postmark 

or otherwise return Release of Claims forms, or file a request to withdraw 

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 17 of 49
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64106462v.1

their consent to join forms.; deadline for Rule 23 Class Members to object to 

the settlement.

• 60 days after Preliminary Approval: Deadline for Plaintiffs to file 

Motion for Final Settlement Approval.

• 7 days after Final Effective Date: Defendant to fund settlement account.

• 7 days after the Effective Date: Administrator to distribute Settlement 

payments to Participating Plaintiffs and to wire Settlement payment for 

attorneys’ fees and costs to Class Counsel.

21. Mutual Full Cooperation. 

Counsel for the Parties agree to and shall use their best efforts to fully cooperate with 

each other to take all actions reasonably necessary to implement the terms of this Settlement 

Agreement, and neither Party shall take any action to oppose implementation of this Settlement 

Agreement or any of its terms. 

22. Communications. 

Unless otherwise specifically provided, all notices, demands, or other communications 

given under this Settlement Agreement shall be in writing and shall be sent via e-mail and U.S. 

mail, addressed as follows:

To the Plaintiffs:

Daniel Brome

Nichols Kaster, LLP

235 Montgomery Street, Suite 810

San Francisco, CA 94104

Telephone: (415) 277-7235

dbrome@nka.com

To the Defendant:

Ryan McCoy

rmccoy@seyfarth.com

Seyfarth Shaw LLP

560 Mission St., 31st Floor

San Francisco, CA 94105

Telephone: (415) 397-2853

Facsimile: (415) 397-8549

23. Construction. 

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 18 of 49
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Settlement Agreement

64106462v.1

The Parties agree that the terms and conditions of this Settlement Agreement are the 

result of lengthy and intensive arms’-length negotiations between the Parties and that this 

Settlement Agreement shall not be construed in favor of or against any Party by reason of the 

extent to which any Party or his, her, or its counsel participated in the drafting of this Settlement 

Agreement..

24. Captions and Interpretations. 

Section titles or captions contained in this Settlement Agreement are inserted as a matter 

of convenience and for reference, and in no way define, limit, extend, or describe the scope of 

this Settlement Agreement or any of its provisions.

25. Modification. 

This Settlement Agreement, including the attached Exhibits, may not be changed, altered, 

or modified, except in writing and signed by counsel for the Parties. This Settlement Agreement 

may not be discharged except by performance in accordance with its terms or by a writing signed 

by counsel for the Parties and approved by the Courts.

26. Integration Clause. 

This Settlement Agreement, including the attached Exhibits, contains the entire 

agreement between the Parties relating to the Settlement of the Actions, and all prior or 

contemporaneous agreements, understandings, representations, and statements, whether oral or 

written and whether by a Party or such Party’s legal counsel, are merged in this Settlement 

Agreement. No rights under this Settlement Agreement may be waived except in writing signed 

by the counsel for the Parties set forth in Section 25.

27. Counterparts and Facsimile Signatures. 

This Settlement Agreement may be executed in counterparts, and when counsel have 

signed and delivered at least one such counterpart, each counterpart shall be deemed an original, 

and, when taken together with other signed counterparts, shall constitute one Settlement 

Agreement. This Settlement Agreement may be executed by facsimile signatures or email, 

which shall be deemed to be originals.

28. Applicable Law. 

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 19 of 49
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64106462v.1

This Settlement Agreement shall be governed by and construed in accordance with 

federal law and the law of the State of California, to the extent federal law does not apply.

29. Retention of Jurisdiction. 

The Parties intend to request that the Court retain jurisdiction with respect to the 

implementation and enforcement of the terms of the Settlement Agreement, and all Parties 

submit to the jurisdiction of the Court for purposes of implementing and enforcing the terms of 

this Settlement Agreement.

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Settlement Agreement

64106462v.1

Dated: May__, 2020 NICHOLS KASTER, PLLP

By: 

Reena I. Desai

Attorneys for Plaintiffs and the Rule 23 Class

Dated: May , 2020 SEYFARTH SHAW LLP

By: 

Andrew M. Paley

Attorneys for Defendants

Dated: May , 2020 Farmers Insurance Exchange

By: 

[name]

Authorized Representative

Dated: May , 2020 David Deluca

By: 

David Deluca

Dated: May , 2020 Barry Francis

By: 

Barry Francis

Date: May , 2020 Melissa Laughlin

By: ____________________________________

Melissa Laughlin

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 21 of 49
EXHIBIT A

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 22 of 49
Personnel 

Number Optin State Law

Pro Rata 

Allocation Enhancement

Total 

Allocation

70171712 1 California $76,064.28 $1,000.00 $77,064.28

70136989 0 California $48,267.12 $48,267.12

70090501 1 California $111,730.49 $111,730.49

70050187 1 $16,330.37 $16,330.37

70103154 1 $78,325.08 $78,325.08

70116282 0 California $50,755.71 $50,755.71

70175301 1 $28,604.24 $28,604.24

70103375 0 California $8,024.17 $8,024.17

70177593 0 California $47,236.07 $47,236.07

70128843 0 California $20,983.69 $20,983.69

70050139 1 $3,029.45 $3,029.45

10084757 0 California $46,338.26 $46,338.26

70126228 0 California $24,660.91 $24,660.91

70063666 0 California $57,398.62 $57,398.62

70144324 0 California $20,337.55 $20,337.55

10081766 0 California $1,938.58 $1,938.58

70135374 1 California $74,719.70 $1,000.00 $75,719.70

70150476 1 $13,014.22 $13,014.22

70050252 0 California $16,417.09 $16,417.09

10082529 1 California $54,894.07 $1,000.00 $55,894.07

70147770 1 California $13,411.91 $10,000.00 $23,411.91

70103381 0 California $11,539.23 $11,539.23

70103384 1 California $111,217.07 $111,217.07

10082716 1 $37,675.48 $1,000.00 $38,675.48

70056467 0 California $7,076.02 $7,076.02

70050259 1 California $94,582.20 $10,000.00 $104,582.20

70142335 0 California $29,966.90 $29,966.90

10082452 0 California $92,748.45 $92,748.45

70057062 1 California $141,816.95 $1,000.00 $142,816.95

70227070 0 California $23,673.06 $23,673.06

70050170 1 $15,532.99 $1,000.00 $16,532.99

70054501 1 $132,730.41 $1,000.00 $133,730.41

70125680 1 California $43,579.97 $1,000.00 $44,579.97

70095382 1 California $91,127.86 $1,000.00 $92,127.86

70201720 0 California $29,753.29 $29,753.29

70081664 1 $42,945.57 $42,945.57

70098607 0 California $28,833.14 $28,833.14

70059288 0 California $8,055.10 $8,055.10

70050258 0 California $41,866.24 $41,866.24

70124563 1 California $98,701.34 $1,000.00 $99,701.34

70050610 1 $5,490.25 $5,490.25

70050145 0 California $91,498.47 $91,498.47

70050149 1 $36,081.02 $36,081.02

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 23 of 49
70150091 1 New York $76,955.43 $1,000.00 $77,955.43

70092839 0 California $20,321.46 $1,000.00 $21,321.46

70050146 1 California $54,180.52 $54,180.52

70136147 0 California $31,218.95 $31,218.95

70050155 1 $106,646.91 $1,000.00 $107,646.91

70056551 0 California $62,877.69 $62,877.69

10083340 1 $28,158.84 $1,000.00 $29,158.84

70050225 0 California $0.00 $0.00

70054707 1 $43,656.25 $1,000.00 $44,656.25

70056462 0 California $31,972.62 $31,972.62

70103369 1 California $156,611.76 $1,000.00 $157,611.76

70061786 0 California $20,006.52 $1,000.00 $21,006.52

70094914 0 California $24,293.67 $24,293.67

70122354 1 $12,019.78 $1,000.00 $13,019.78

70169280 0 California $30,645.32 $30,645.32

70050226 1 California $64,634.52 $1,000.00 $65,634.52

70081293 0 California $14,844.81 $1,000.00 $15,844.81

70221322 0 California $1,256.46 $1,000.00 $2,256.46

70141098 1 $69,169.24 $69,169.24

70116236 1 California $40,533.13 $1,000.00 $41,533.13

70107714 1 $44,673.16 $1,000.00 $45,673.16

10080953 1 $35,624.40 $1,000.00 $36,624.40

70058199 0 California $20,605.42 $20,605.42

70143817 0 California $53,451.25 $53,451.25

70146701 0 California $27,927.41 $27,927.41

70059127 0 California $74,228.74 $74,228.74

70103378 0 California $4,503.37 $4,503.37

70068480 1 California $77,517.87 $1,000.00 $78,517.87

70049808 1 $40,233.89 $40,233.89

70063314 0 California $73,981.68 $73,981.68

70056242 0 California $9,372.26 $9,372.26

10085722 1 $135,882.90 $1,000.00 $136,882.90

70059047 0 California $20,598.88 $20,598.88

70218498 1 California $66,240.60 $66,240.60

70093495 0 California $16,181.70 $16,181.70

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 24 of 49
EXHIBIT B

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 25 of 49
A UNITED STATES FEDERAL COURT HAS AUTHORIZED THIS NOTICE. 

YOU ARE NOT BEING SUED.

You are receiving this notice because you are a Class Member in the lawsuit entitled Deluca v. Farmers 

Insurance Exchange, (the “Lawsuit”) which asserts claims that Farmers (“Defendant”) violated state and 

federal wage and hour laws by, among other things, allegedly failing to pay for all overtime hours worked 

by Class Members during the Class Period, and failing to provide the California Class Members with 

compliant wage statements, and failing to timely pay overtime wages to the California Class upon 

termination of employment. This notice is to inform you of the terms of a proposed settlement of the 

class and collective action lawsuit.

This proposed settlement has received preliminary approval from the Court and will resolve all claims of 

the parties who wish to participate in the settlement. Because you previously received a notice that the 

Court certified this case as a class action lawsuit and you did not opt-out of the lawsuit in response to the 

prior notice, you are a member of the Settlement Class (i.e., a “Class Member”).

Defendant denies all of the claims and allegations, denies that Plaintiffs or that any of the Class Members 

are entitled to any relief, and denies that absent a settlement, any class should be certified. Plaintiffs and 

Defendant recognizes the costs and risks of continued litigation, however, and believes that the proposed 

settlement is a fair and reasonable resolution. The settlement provides that Defendant will pay up to a 

maximum of $5,400,000 to settle this case (the “Settlement Fund”).

The Court conditionally certified this lawsuit as a collective action under the federal FLSA on August 15, 

2017. Notice of the lawsuit was sent by mail and email to all eligible workers providing them with an 

opportunity to join the lawsuit to assert their federal FLSA claims. The Court later certified the case as a 

class action for the claims under California state law. Because you worked in California and did not optout of the class, you are a member of the certified California Class, and so may participate in this 

settlement as a Class Member for the claims the Lawsuit asserted under California state law, even if you 

did not join the lawsuit as a federal FLSA Opt-in Plaintiff. This notice provides information on how to 

participate in the settlement and your options.

The Court has preliminarily approved the settlement. You will receive your share of the Settlement Fund

through a settlement payment in the pre-tax amount that is estimated to be [$XXXXXXX]. This is just an 

estimate. The actual amount you receive will depend on whether a number of factors, including whether 

the Court approves all of the fees, costs, and enhancement awards requested by Class Counsel. As 

detailed below, you will receive that payment only after the Court grants final approval of the settlement.

YOUR LEGAL RIGHTS ARE AFFECTED BY THIS SETTLEMENT, AND YOU HAVE A 

CHOICE TO MAKE NOW. THIS CHART SUMMARIZES YOUR RIGHTS AND OPTIONS. 

PLEASE REVIEW THE CHART AND THE FOLLOWING PAGES CAREFULLY.

UNITED STATES DISTRICT COURT –NORTHERN DISTRICT OF CALIFORNIA

Notice of Class and Collective Action Settlement

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 26 of 49
2

You May: Effect of Choosing the Option: Due Date:

Do nothing.

• You will receive a settlement check in the pre-tax 

amount estimated to be [$XXXXX].

• You will release your California state law wage and 

hour claims (defined in Question 6, below) and will 

be bound by the terms of the settlement as to those 

claims. You will give up your right to sue Defendant

for these claims. 

• If you do not cash your settlement payment within 

90 days after the check was issued, you will still 

give up your right to sue Defendant under these state 

laws, but your payment will be donated to charity. 

You do not need to do 

anything to receive a

settlement payment. You 

need only cash your check no 

later than 90 days after it is 

issued.

Please promptly notify the 

Claims Administrator if you 

move.

File an Objection

• You can remain a Class Member and still write to 

the Court explaining why you disagree with the 

settlement. 

• To object to the settlement, you must submit a 

written notice identifying your objection.

• Even if you object to the settlement, you will remain 

in the Settlement Class and will receive a payment, 

and will release your claims under California law, 

although the Court may order modifications to the 

settlement after considering the objections.

The Objection must be sent 

to the Claims Administrator

via email or mail postmarked 

no later than [DATE].

Appear at 

the Hearing

• You can also ask to speak to the Court about the 

fairness of the settlement.

The hearing is scheduled for 

[DATE]. This date may 

change without further 

notice.

Questions about the settlement should be directed to Class Counsel:

Daniel S. Brome Reena I. Desai

Nichols Kaster, LLP Nichols Kaster, PLLP

235 Montgomery St., Suite 810 4600 IDS Center

San Francisco, CA 94104 80 South 8th St.

(415) 277-7235 Minneapolis, MN 55402

(612) 256-3200

1. WHY DID I GET THIS NOTICE?

The Court directed this Notice be sent to you because Defendant’s records show that you worked 

for Defendant as a special investigator, senior special investigator, or general special 

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 27 of 49
3

investigator, other than those in the “Nationals” group, in California at some point between 

January 4, 2014 and February 27, 2018, and you previously received a notice that the Court 

certified this case as a class action and you did not opt-out of the case in response to that notice

This proposed settlement will affect your legal rights. Therefore, it is important that you read 

this notice carefully.

2. WHAT IS A CLASS ACTION?

In a class action lawsuit, one or more people called “Named Plaintiffs” or “Representative 

Plaintiffs” sue one or more defendants on behalf of other people who may have similar claims. 

All these people together are a “Class” or “Class Members.” The Court can determine whether it 

will allow a lawsuit to proceed as a class action. In a class action, the Court resolves the 

common issues for everyone in the class except for those people who choose to exclude 

themselves from the class. Class Actions are brought under state law. Here, a class action was 

brought for those Class Members who worked in California under California laws. This lawsuit 

also covers the claims of the individuals who joined the collective action part of the case after 

receiving notice from the Court that it conditionally certified a collective action with regard to 

claims for unpaid wages under federal law. Because you did not file a consent to join form in 

response to that notice, you are not part of that portion of the case.

3. WHAT IS THIS CASE ABOUT?

The Lawsuit generally involves claims under federal and state wage and hour laws. The 

Plaintiffs are former special investigators who worked for Farmers. Plaintiffs allege that Farmers 

misclassified special investigators as “exempt” employees, and failed to pay overtime premiums 

under applicable California and federal law for overtime hours worked. Additionally Plaintiffs 

allege that Defendant failed to provide compliant written wage statements, and failed to pay all 

final wages to the Class Members. Through the Lawsuit, Plaintiffs sought to recover unpaid 

wages, including overtime wages, statutory penalties, and other related relief. 

Farmers denies all liability in the Lawsuit, that any of Plaintiffs’ claims and allegations have 

merit, and denies that a class or collective action is proper for any purpose other than settlement. 

Plaintiffs believe that the Settlement is fair, adequate, and reasonable, and that it is in the best 

interest of the Settlement Class. 

4. WHO IS INCLUDED?

The Honorable Judge Thomas S. Hixson of the United States District Court for the Northern

District of California granted preliminary approval of the Settlement. On February 27, 2018 

Judge Elizabeth D. Laporte (Ret.) certified the California claims as a class action, and certified 

the following Class. This is the California Class for purposes of this settlement:

o California Class: All persons employed by Defendants in the State of California as 

special investigators, senior special investigators, or general special investigators, 

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 28 of 49
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other than those in the “Nationals” group, at any time within four (4) years prior to 

the date of the filing of this Complaint through February 27, 2018 who were 

classified as exempt from overtime pay under applicable law. 

The settlement also includes individuals who opted into the lawsuit as an Opt-in Plaintiff and 

covers their claims for unpaid wages under federal law. Additionally, one Named Plaintiff 

brings claims individually under New York state law. The settlement also includes the two 

California Named Plaintiffs’ claims for missed second meal periods; those claims are asserted on 

an individual basis, not on a class basis so Class Members like you are not releasing your claims 

for missed meal periods.

5. WHAT ARE THE SETTLEMENT BENEFITS?

Under the terms of the Settlement, Farmers agrees to pay the “Total Settlement Amount” of up to 

$5,400,000. Deducted from the Total Settlement will be sums, to be approved by the Court, for 

Class Counsel’s attorneys’ fees and costs, settlement administration costs, and service payments 

to two of the Named Plaintiffs and other Class Members who were deposed in this case. Class 

Counsel anticipates asking the Court to approve awards of 30% of the Total Settlement Amount 

($1,620,000) for attorneys’ fees, up to $100,000 in litigation costs to Class Counsel, up to $XX

for the costs of settlement administration, up to $10,000 each in service payments to two Named 

Plaintiffs, and up to $1,000 each ($26,000 total) in payments to the 26 Opt-ins and Class 

Members who were deposed in the matter. The amount remaining after these items are deducted 

from the Total Settlement Amount is the Net Settlement Fund. 

Each Class Member shall ultimately be entitled to a pro rata portion of the Net Settlement Fund, 

which will be based on a calculation performed using your dates of work and earnings history 

within the applicable statute of limitations (based on Defendant’s records), and Class Counsel’s 

estimate of an assumed number of hours worked per week that is either (a) taken from your 

deposition testimony (if you were deposed) or (b) the average number of weekly hours worked 

according to deposition testimony from 17 California Class Members. A reduction was applied 

to the California state law claims of any Class Member who has been identified as previously 

releasing those claims through a separate lawsuit or severance. From this calculation, each Class 

Member was allocated her or his pro rata share of the Net Settlement Fund. Based on your work 

records, your estimated settlement share, after attorneys’ fees and costs, administration costs, and 

service and enhancement awards is [XXX].

Payments to Class Members will be reported as one-half W-2 wage earnings and one-half

penalties, interest, and liquidated damages, reported on a 1099. Each Class Member will be 

responsible for the payment of any personal taxes owing on that amount.

6. WHAT HAPPENS IF I DO NOTHING?

If you do nothing, you still will receive a settlement payment and you will give up your state law 

wage and hour claims against Defendant.

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 29 of 49
5

If the Court approves the settlement, settlement checks will be distributed to Class Members 

after the Court’s order approving the settlement is final. 

Through this settlement, you will knowingly and voluntarily, irrevocably and unconditionally, 

forever and fully release and covenant not to sue Defendant from/for the following claims (the 

“Released Claims”):

Any and all claims and causes of action for unpaid minimum wages, overtime 

compensation, record keeping or wage statement violations, failure to timely pay 

wages, and waiting time penalties, and civil and statutory penalties attributable 

to the underlying claims (excluding penalties available under the Private 

Attorneys General Act), and interest under California law arising out of the 

released claims, while employed by Defendant as a salary grade 32, 33, or 34 

Special Investigator, other than in the Nationals Group, up to [date of 

preliminary approval]. 

This release is limited to the claims listed above, and is not a general release. This Release will 

be final and binding upon Final Approval. You can talk to one of the lawyers appointed as Class 

Counsel (listed in response to Question 12 below) for free or you can talk to your own lawyer if 

you have questions about the Released Claims and what the release means. Any fees you incur 

by consulting with your own lawyer, aside from Class Counsel, are not covered by this 

Settlement.

7. WHAT HAPPENS IF I DO NOT CASH MY SETTLEMENT PAYMENT?

If you do not cash your settlement checks within 90 days, you still will give up the right to sue 

Defendant for your California state law claims as explained in Paragraph 6, and your settlement 

amount will be donated to charity. You will be legally bound by the Court’s judgment in this 

case for the California state law claims. 

8. HOW DO I OBJECT TO THE SETTLEMENT?

If you do not like the settlement, you may file an objection to it. This means you can tell the 

Court that you disagree with the settlement or some of its terms. The Court will consider your 

views but may approve the settlement anyway.

Any Class Member may comment on, or object to, the Settlement, or any portion thereof. Class 

Members may do so in writing by sending comments or objections to the Claims Administrator 

by [DATE]. The Claims Administrator’s contact information is as follows:

[INSERT]

You may also appear at the Court’s Fairness Hearing to make an objection. A Class Member 

who fails to submit a written comment or objection in the manner described above and by the 

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 30 of 49
6

specified deadline and who does not appear at the Court’s Fairness Hearing will be deemed to 

have waived any objections and will be foreclosed from making any comments on or objections 

to the Settlement (whether by appeal or otherwise).

The Claims Administrator will file all objections with the Court and provide all objections to 

Class Counsel and Defendants’ lawyers.

9. DO I HAVE A LAWYER REPRESENTING MY INTERESTS IN THIS CASE?

Yes. The Court appointed the following lawyers to serve as Class Counsel for the Settlement 

Class:

Daniel S. Brome

dbrome@nka.com

NICHOLS KASTER LLP

235 Montgomery St., Suite 810

San Francisco, CA 94104

Telephone: (415) 277-7235

Matthew H. Morgan

morgan@nka.com

Reena I. Desai

rdesai@nka.com

NICHOLS KASTER LLP.

4600 IDS Center

80 South 8th St.

Minneapolis, MN 55402

Telephone: (612) 256-3200

More information about Class Counsel and their experience is available at www.nka.com.

You may hire your own attorney, if you wish, however, you will be responsible for any fees and 

expenses that attorney charges you.

10. HOW WILL THE LAWYERS BE PAID?

Class Counsel will ask the Court to approve from the Total Settlement Amount (1) attorneys’ 

fees of 30% of the Total Settlement Amount ($1,620,000) payable to Class Counsel, and (2) up 

to $100,000 in litigation costs payable to Class Counsel. The Court may award less than these 

amounts from the Total Settlement Amount. If the Court approves an amount of fees or costs 

less than requested by Class Counsel, the unapproved amounts will be made available for 

distribution to the Settlement Class Members.

11. WHEN AND WHERE WILL THE COURT DECIDE WHETHER TO APPROVE 

THE SETTLEMENT?

The Court will hold a Fairness Hearing to consider whether to grant Final Approval to the 

settlement on insert date/time/location. The hearing may be moved to a different date and/or 

time without additional notice. At this hearing, the Court will consider whether the Settlement is 

fair, reasonable, and adequate and decide whether to grant final approval. If there are objections, 

the Court will consider them. The Court will also decide how much from the Total Settlement 

Amount to award to Class Counsel in attorneys’ fees and costs, and whether to approve the 

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 31 of 49
7

service payments to the Named Plaintiffs. We do not know how long these decisions will take. A 

Class Member may appear at the Final Approval Hearing and orally present his or her objection 

to the Court. 

12. DO I HAVE TO ATTEND THE HEARING?

No. Class Counsel will answer questions the Court may have, but you may appear at your own 

expense. If you send a written objection, the Court will consider it. You may also pay your own 

lawyer to attend the hearing if you desire.

13. IF I HIRE MY OWN LAWYER, CAN MY LAWYER APPEAR AT THE FINAL 

APPROVAL HEARING TO TELL THE COURT ABOUT MY OPINIONS 

REGARDING THE SETTLEMENT?

Yes. You have the right to appear through counsel at the Final Approval Hearing. You may also 

appear without a lawyer and directly tell the Court your opinions about the settlement so long as 

your written objection was timely submitted. Note that if you choose to have a lawyer appear on 

your behalf, the cost of having that lawyer appear will be at your own expense.

14. WHERE DO I OBTAIN MORE INFORMATION?

If you want additional information, you may call or write Class Counsel at the address and 

telephone number listed above. Alternatively, you may contact the Settlement Administrator at:

[CPT Contact Info]

The specific terms of the settlement have also been filed with the Court. You can look at and 

copy these documents at any time if you have a Public Access to Court Electronic Records 

(“PACER”) account, you may view the documents on the Court’s Case Management/Electronic 

Court Filing website: www.pacer.gov.

PLEASE DO NOT CONTACT THE COURT DIRECTLY ABOUT THIS SETTLEMENT

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 32 of 49
EXHIBIT C

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 33 of 49
A UNITED STATES FEDERAL COURT HAS AUTHORIZED THIS NOTICE. 

YOU ARE NOT BEING SUED.

You are receiving this notice because you are an Opt-in Plaintiff and a Class Member in the lawsuit 

entitled Deluca v. Farmers Insurance Exchange, (the “Lawsuit”) which asserts claims that Farmers 

(“Defendant”) violated state and federal wage and hour laws by, among other things, allegedly failing to 

pay for all hours worked including overtime hours worked by special investigators during the Class 

Period, and failing to provide the California Class Members with compliant wage statements, and failing 

to timely pay overtime and minimum wages to the California Class upon termination of employment. 

This notice is to inform you of the terms of a proposed settlement of the class and collective action 

lawsuit.

This proposed settlement has received preliminary approval from the Court and will resolve all claims of 

the parties who wish to participate in the settlement. You filed a consent to join form to assert your 

claims under the Fair Labor Standards Act (“FLSA”); additionally, because you previously received a 

notice that the Court certified this case as a class action lawsuit with regard to claims under California 

state law, and you did not opt-out of the lawsuit in response to the prior notice, you are a member of the

California Class portion of the Lawsuit..

Defendant denies all of the claims and allegations, denies that Plaintiffs or that any of the Class Members 

are entitled to any relief, and denies that absent a settlement, any class or collective action should be 

certified. Plaintiffs and Defendant recognizes the costs and risks of continued litigation, however, and 

believe that the proposed settlement is a fair and reasonable resolution. The settlement provides that 

Defendant will pay up to a maximum of $5,400,000 to settle this case (the “Settlement Fund”).

The Court conditionally certified this lawsuit as a collective action under the federal FLSA on August 15, 

2017. Notice of the lawsuit was sent by mail and email to all eligible workers providing them with an 

opportunity to join the lawsuit to assert their federal FLSA claims. You joined the lawsuit as a federal 

FLSA Opt-in Plaintiff at that time; additionally, because you worked in California and did not opt out of 

the class, you are also a member of the certified California Class, and so may also participate in this 

settlement as a Class Member for the claims the Lawsuit asserted under California state law. This notice 

provides information on how to participate in the settlement and your options.

The Court has preliminarily approved the settlement. You will receive your share of the Settlement Fund 

through a settlement payment in the pre-tax amount for your federal FLSA and California state law claims 

that is estimated to be a total of [$XXXXXXX]. This is just an estimate. The actual payment receive will 

depend on a number of factors, including whether the Court approves all of the fees, costs, and 

enhancement awards requested by Class Counsel. As detailed below, you will receive the full payment 

only after the Court grants final approval of the settlement if you return your Release of Claim Form. If 

you do not return your Release of Claim Form, you will not receive a payment for your claims under the 

UNITED STATES DISTRICT COURT –NORTHERN DISTRICT OF CALIFORNIA

Notice of Class and Collective Action Settlement

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 34 of 49
2 

FLSA, and your FLSA claims will be dismissed without prejudice, but you will retain the right to file a 

separate individual lawsuit for these claims, if you so choose. Regardless of whether submit a Release of 

Claims Form, you still will receive a lesser amount to settle only your California state law claims.

YOUR LEGAL RIGHTS ARE AFFECTED BY THIS SETTLEMENT, AND YOU HAVE A 

CHOICE TO MAKE NOW. THIS CHART SUMMARIZES YOUR RIGHTS AND OPTIONS. 

PLEASE REVIEW THE CHART AND THE FOLLOWING PAGES CAREFULLY. 

You May: Effect of Choosing the Option: Due Date:

Timely Sign and 

Submit the 

Attached Release 

of Claim Form

• You will receive a settlement check for your federal

and state law claims in the pre-tax amount estimated

to be [$XXXXX] (which represents $XXX.XX for

your California state law claims and an additional

$XXX.XX to release your federal FLSA claims.)

• You will release your federal FLSA and California

state law wage and hour claims (defined in Question

6, below) and will be bound by the terms of

settlement as to those claims. You will give up your

right to sue Defendant for these claims.

• If you do not cash your settlement payment within

90 days after the check was issued, you will still

give up your right to sue Defendant under these

laws, but your payment will be donated to charity.

The signed Release of Claim 

Form must be sent to the 

Settlement Administrator via 

email or fax or postmarked 

no later than [DATE].

If you do nothing. 

• You will receive a settlement check in the pre-tax

amount estimated to be [$XXXXX], which

represents the settlement amount for your California

state law claims only.

• You will release your California state law wage and

hour claims (defined in Question 6, below) and will

be bound by the terms of settlement as to those

claims. You will give up your right to sue

Defendant for these claims.

• If you do nothing, you will not receive the amount

allocated to your federal FLSA claims and you will

not release your federal FLSA claims, but your

FLSA claims will be dismissed without prejudice to

your ability to file a separate individual lawsuit for

these claims. You will have thirty (30) days

subsequent to this Settlement’s Final Approval to

preserve consent-based tolling.

• If you do not cash your settlement payment within

90 days after the check was issued, you will still

give up your right to sue Defendant under the

California state laws, but your payment will be

You do not need to do 

anything to receive this lower 

settlement amount. You need 

only cash your check no later 

than 90 days after it is issued. 

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 35 of 49
3 

donated to charity. 

Exclude yourself

from the federal

FLSA settlement

by making a 

written exclusion 

request.

• You can elect to exclude yourself from the federal

FLSA settlement and retain your right to sue

Defendant for your federal FLSA claims.

• To exclude yourself, you must submit a signed

exclusion request. If you exclude yourself, you will

not receive a settlement check for your federal

FLSA claims, but you will still receive a settlement

check in the amount of $XXX for your California

state law claims. Your claims under the FLSA will

be dismissed without prejudice to your ability to file

a separate individual lawsuit for these claims.

• If you want to file your federal FLSA claims

individually, you will have thirty (30) days

subsequent to this Settlement’s Final Approval to

preserve consent-based tolling.

The Exclusion Request must 

be sent to the Claims 

Administrator via email or 

mail postmarked no later 

than [DATE]. 

File an Objection 

• You can remain in the settlement and still write to

the Court explaining why you disagree with the

settlement.

• To object to the settlement, you must submit a

written notice identifying your objection.

• Even if you object to the settlement, you will remain

in the Settlement Class and will receive a payment

for your California claims, and will release your

claims under California law, although the Court may

order modifications to the settlement after

considering the objections.

The Objection must be sent 

to the Claims Administrator

via email or mail postmarked 

no later than [DATE].

Appear at 

the Hearing

• You can also ask to speak to the Court about the

fairness of the settlement.

The hearing is scheduled for 

[DATE]. This date may 

change without further 

notice. 

If you wish to see a full copy of the settlement agreement, or if you have questions about the 

settlement you should contact Class Counsel: 

Daniel S. Brome Reena I. Desai

Nichols Kaster, LLP Nichols Kaster, PLLP

235 Montgomery St., Suite 810 4600 IDS Center 

San Francisco, CA 94104 80 South 8th St. 

(415) 277-7235 Minneapolis, MN 55402 

(612) 256-3200

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 36 of 49
4 

1. WHY DID I GET THIS NOTICE?

The Court directed this Notice be sent to you because you are an Opt-in Plaintiff and a Class 

Member in the lawsuit. You previously filed a consent to join form in this case and Defendant’s 

records show that you worked for Defendant as a special investigator, senior special investigator, 

or general special investigator, other than those in the “Nationals” group, in California at some 

point between January 4, 2014 and February 27, 2018, and you previously received a notice that 

the Court certified this case as a class action as to the California state law claims, and you did not 

opt-out of the class in response to that notice. 

This proposed settlement will affect your legal rights. Therefore, it is important that you read 

this notice carefully. 

2. WHAT IS A CLASS ACTION AND WHAT IS A COLLECTIVE ACTION?

In a class action lawsuit, one or more people called “Named Plaintiffs” or “Representative 

Plaintiffs” sue one or more defendants on behalf of other people who may have similar claims. 

All these people together are a “Class” or “Class Members.” The Court can determine whether it 

will allow a lawsuit to proceed as a class action. In a class action, the Court resolves the 

common issues for everyone in the class except for those people who choose to exclude 

themselves from the class. Class Actions are brought under state law. Here, a class action was 

brought for those Class Members who worked in California under California laws.

In a collective action lawsuit, one or more people called “Named Plaintiffs” or “Representative 

Plaintiffs” sue one or more defendants on behalf of other people who may have similar claims. 

In order to join a collective action, a person must file a plaintiff consent form with the court. All 

the people who file consent forms are together considered to be part of the “Collective.” The 

court can determine whether it will allow a lawsuit to proceed as a collective action. In a 

collective action, one court resolves common issues for everyone in the collective. Collective 

actions are brought under the federal FLSA, as in this case.

3. WHAT IS THIS CASE ABOUT?

The Lawsuit generally involves claims under federal and state wage and hour laws. The 

Plaintiffs are former special investigators who worked for Farmers. Plaintiffs allege that Farmers 

misclassified special investigators as “exempt” employees and failed to pay overtime premiums 

for overtime hours worked under applicable state and federal law. Additionally Plaintiffs allege 

that Defendant failed to provide compliant written wage statements, and failed to pay all final 

wages to the Class Members under California law. Through the Lawsuit, Plaintiffs sought to 

recover unpaid overtime wages, statutory penalties, and other related relief. 

Farmers denies all liability in the Lawsuit, denies that any of Plaintiffs’ claims and allegations 

have merit, and asserts that a class or collective action is inappropriate for any purpose other than 

settlement. Plaintiffs believe that the Settlement is fair, adequate, and reasonable, and that it is in 

the best interest of the Settlement Class. 

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 37 of 49
5

4. WHO IS INCLUDED?

The Honorable Judge Thomas S. Hixson of the United States District Court for the Northern

District of California granted preliminary approval of the Settlement. On February 27, 2018 

Judge Elizabeth D. Laporte (Ret.) certified the California overtime claims as a class action, and

certified the following Class. This is the California Class for purposes of this Settlement:

o California Class: All persons employed by Defendants in the State of California as 

special investigators, senior special investigators, or general special investigators, 

other than those in the “Nationals” group, at any time within four (4) years prior to 

the date of the filing of this Complaint through February 27, 2018 who were 

classified as exempt from overtime pay under applicable law. 

Defendant identified you as falling within that definition, and you previously received a notice of 

class certification and did not opt-out of the California claims class. The Settlement also 

includes individuals, such as you, who filed consent to join forms to opt into the lawsuit as an 

Opt-in Plaintiff as to the federal FLSA claims. The settlement also includes an individual 

Named Plaintiff bringing claims under New York state law. The settlement also includes the two 

California Named Plaintiffs’ individual claims for missed second meal periods.

5. WHAT ARE THE SETTLEMENT BENEFITS?

Under the terms of the Settlement, Farmers agrees to pay the “Total Settlement Amount” of up to 

$5,400,000. Deducted from the Total Settlement will be sums, to be approved by the Court, for 

Class Counsel’s attorneys’ fees and costs, settlement administration costs, and service payments 

to two of the Named Plaintiffs and other Class Members who were deposed in this case. Class 

Counsel anticipates asking the Court to approve awards of 30% of the Total Settlement Amount 

($1,620,000), up to $100,000 in litigation costs to Class Counsel, up to $14,000 for the costs of 

settlement administration, up to $10,000 each in service payments to two Named Plaintiffs, and 

up to $1,000 each ($26,000 total) in payments to the 26 Opt-ins and Class Members who were 

deposed in the matter. The amount remaining after these items are deducted from the Total 

Settlement Amount is the Net Settlement Fund. 

Each Plaintiff and Class Member shall ultimately be entitled to a pro rata portion of the Net 

Settlement Fund, which will be based on a calculation performed using your dates of work and 

earnings history within the applicable statute of limitations (based on Defendant’s records), and

Class Counsel’s estimate of an assumed number of hours worked per week that is either (a) taken 

from your deposition testimony (if you were deposed) or (b) the average number of weekly hours 

worked according to deposition testimony from 25 Opt-in Plaintiffs. A reduction was applied to 

the California state law claims of any Class Member who has been identified as previously 

releasing those claims through a separate lawsuit or severance. From this individual calculation, 

each Class Member was allocated her or his pro rata share of the Net Settlement Fund. Based on 

your work records, your total estimated pre-tax settlement share, after attorneys’ fees and costs,

administration costs, service and enhancement awards is [XXX].

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 38 of 49
6 

Payments to Class Members will be reported as one-half W-2 wage earnings and one-half

penalties, interest, and liquidated damages, reported on a 1099. Each Class Member will be 

responsible for the payment of any personal taxes owing on that amount. 

6. WHAT HAPPENS IF I DO NOTHING?

If you do nothing, you still will receive a lower settlement payment for your California state law 

claims only, and you will release your claims under California state law. You will not receive 

your federal FLSA allocation and your claims under the FLSA will be dismissed from this case 

without prejudice to your ability to file a separate individual lawsuit for these claims. If you 

decide to bring these FLSA claims against Defendant, you must file your claim within thirty 

(30) days of final approval in order to preserve consent-based tolling.

If the Court approves the settlement, settlement checks will be distributed to Class Members 

after the Court’s order approving the settlement is final . 

Through this settlement, you will knowingly and voluntarily, irrevocably, and unconditionally, 

forever and fully release and covenant not to sue Defendant from/for the following claims (the 

“Released Claims”):

Any and all claims and causes of action for minimum wage or overtime 

compensation, wage statement violations, failure to time pay wages and 

waiting time penalties, civil and statutory penalties attributable to the 

underlying claims, and interest under California law arising out of the 

released claims, while employed by Defendant as a salary grade 32, 33, 

or 34 Special Investigator, other than in the Nationals Group, up to [date 

of preliminary approval]. 

This release is limited to the claims listed above, and is not a general release. This Release will 

be final and binding upon Final Approval. You can talk to one of the lawyers appointed as Class 

Counsel (listed in response to Question 12 below) for free or you can talk to your own lawyer if 

you have questions about the Released Claims and what the release means. Any fees you incur 

by talking to your own lawyer, aside from Class Counsel, will not be covered by this Settlement. 

7. WHAT HAPPENS IF I SEND IN A RELEASE OF CLAIMS FORM?

If you timely sign and return the attached Release of Claims Form, you will receive a settlement 

check for your full allocation, based on federal and California state law claims. 

You will give up your claims under the federal FLSA, as explained in the attached Release of 

Claims Form, and you will release the California state law claims listed in Question 6.

All Release of Claims Forms must be sent to the Claims Administrator via email, fax or 

postmarked by [ENTER DATE 45 DAYS FROM MAILING].

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 39 of 49
7 

9. HOW DO I EXCLUDE MYSELF FROM THE FLSA COLLECTIVE

SETTLEMENT?

If you wish to withdraw your consent to join form and exclude yourself from the FLSA portion 

of this this Lawsuit you may be excluded from the FLSA portion of the Lawsuit (i.e., “reject”) by 

sending a timely letter in writing that contains your name, address, telephone number, the last 

four digits of your social security number, and the dates and location of your work for Farmers, 

as well as your signature (“Request for Exclusion”) to the Claims Administrator. The Request for 

Exclusion must be signed, dated and mailed no later than [DATE]. The Claims Administrator’s

contact information is as follows:

[INSERT]

If you ask to be excluded, will not receive the federal FLSA portion of your settlement amount 

and you will not release your federal FLSA claims against Defendant. 

10. HOW DO I OBJECT TO THE CALIFORNIA PORTION OF THE SETTLEMENT?

If you do not like the the portion of the settlement related to the California state law claims, you 

may file an objection to it. This means you can tell the Court that you disagree with the 

settlement or some of its terms. The Court will consider your views but may approve the 

settlement anyway. 

Any California Class Member may comment on, or object to, the Settlement, or any portion 

thereof. Class Members may do so in writing by sending comments or objections to the Claims 

Administrator by [DATE]. The Settlement Administrator’s contact information is as follows:

[INSERT] 

You may also appear at the Court’s Fairness Hearing to make an objection. A Class Member 

who fails to submit a written comment or objection in the manner described above and by the 

specified deadline and who does not appear at the Court’s Fairness Hearing will be deemed to 

have waived any objections and will be foreclosed from making any comments on or objections 

to the Settlement (whether by appeal or otherwise). 

The Settlement Administrator will file all objections with the Court and provide all objections to 

Class Counsel and Defendant’s lawyers. 

11. DO I HAVE A LAWYER REPRESENTING MY INTERESTS IN THIS CASE?

Yes. The Court appointed the following lawyers to serve as Class Counsel for the Settlement 

Class:

Daniel S. Brome Matthew H. Morgan

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 40 of 49
8 

dbrome@nka.com

NICHOLS KASTER LLP

235 Montgomery St., Suite 810 

San Francisco, CA 94104 

Telephone: (415) 277-7235 

morgan@nka.com

Reena I. Desai

rdesai@nka.com

NICHOLS KASTER LLP

4600 IDS Center 

80 South 8th St. 

Minneapolis, MN 55402 

Telephone: (612) 256-3200 

More information about Class Counsel and their experience is available at www.nka.com. 

You may hire your own attorney, if you wish, however, you will be responsible for any fees and 

expenses that attorney charges you. 

12. HOW WILL THE LAWYERS BE PAID?

Class Counsel will ask the Court to approve from the Total Settlement Amount (1) attorneys’ 

fees of 30% of the Total Settlement Amount ($1,620,000) payable to Class Counsel, and (2) up 

to $100,000 in litigation costs payable to Class Counsel. The Court may award less than these 

amounts from the Total Settlement Amount. If the Court approves an amount of fees or costs 

less than requested by Class Counsel, the unapproved amounts will be made available for 

distribution to the Settlement Class Members.

13. WHAT HAPPENS IF I DO NOT CASH MY SETTLEMENT PAYMENT?

If you do not cash your settlement checks within 90 days, you will give up the right to sue 

Defendant for your federal FLSA and California state law claims as explained in Paragraphs 6 

and 7, and your settlement amount will be donated to charity. You will be legally bound by the 

Court’s judgment. 

14. WHEN AND WHERE WILL THE COURT DECIDE WHETHER TO APPROVE

THE SETTLEMENT?

The Court will hold a Fairness Hearing to consider whether to grant Final Approval to the 

settlement on insert date/time/location. The hearing may be moved to a different date and/or 

time without additional notice. At this hearing, the Court will consider whether the Settlement is 

fair, reasonable, and adequate and decide whether to grant final approval. If there are objections, 

the Court will consider them. The Court will also decide how much from the Total Settlement 

Amount to award to Class Counsel in attorneys’ fees and costs, and whether to approve the 

service payments to the Named Plaintiffs. We do not know how long these decisions will take. A 

Class Member may appear at the Final Approval Hearing and orally present his or her objection 

to the Court. 

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 41 of 49
9 

15. DO I HAVE TO ATTEND THE HEARING?

No. Class Counsel will answer questions the Court may have, but you may appear at your own 

expense. If you send a written objection, the Court will consider it. You may also pay your own 

lawyer to attend the hearing if you desire. 

16. IF I HIRE MY OWN LAWYER, CAN MY LAWYER APPEAR AT THE FINAL

APPROVAL HEARING TO TELL THE COURT ABOUT MY OPINIONS

REGARDING THE SETTLEMENT?

Yes. You have the right to appear through counsel at the Final Approval Hearing. You may also 

appear without a lawyer and directly tell the Court your opinions about the settlement so long as 

your written objection was timely submitted. Note that if you choose to have a lawyer appear on 

your behalf, the cost of having that lawyer appear will be at your own expense. 

17. WHERE DO I OBTAIN MORE INFORMATION?

If you want additional information, you may call or write Class Counsel at the address and 

telephone number listed above. Alternatively, you may contact the Settlement Administrator at: 

_________ 

The specific terms of the settlement have also been filed with the Court. You can look at and 

copy these documents at any time if you have a Public Access to Court Electronic Records 

(“PACER”) account, you may view the documents on the Court’s Case Management/Electronic 

Court Filing website: www.pacer.gov. 

PLEASE DO NOT CONTACT THE COURT DIRECTLY ABOUT THIS SETTLEMENT

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 42 of 49
10 

IN THE UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA

David DeLuca and Barry Francis, individually 

and on behalf of all others similarly situated, 

and Melissa Laughlin, individually, 

 Plaintiffs, 

v. 

Farmers Insurance Exchange, 

Defendant.

Case No. 3:17-cv-00034-EDL

RELEASE OF CLAIMS FOR [FIRST, LAST] 

______________________________________________________________________________ 

I received the Notice of Settlement which informed me that I will receive pre-tax payments 

estimated to be $[AMOUNT] (less applicable withholdings) if I return this Release of Claims 

form so that it is received by the Claims Administrator or postmarked by [DATE]. 

By signing and returning this Release of Claims form, I agree that in exchange for my settlement 

payments, I knowingly and voluntarily, irrevocably and unconditionally, forever and fully 

release and covenant not to sue Defendant and/or Released Parties from/for any and all claims 

and causes of action for unpaid minimum wages and overtime compensation, liquidated 

damages, penalties and interest under the Fair Labor Standards Act, which I have or might have, 

known or unknown, that has arisen or could have arisen from my work with Defendant as up to 

[date of preliminary approval].

DATE: ____________ ________________________________ 

[FIRST LAST] 

Submit by mail or electronically to [SETTLEMENT ADMINISTRATOR]. Must be postmarked 

by [DATE] 

[INSERT SETTLEMENT ADMINISTRATOR INFORMATION]

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 43 of 49
EXHIBIT D

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 44 of 49
1

 

IN THE UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA

David DeLuca and Barry Francis, individually 

and on behalf of all others similarly situated,

and Melissa Laughlin, individually,

 Plaintiffs,

v.

Farmers Insurance Exchange, 

 Defendant.

Case No. 3:17-cv-00034-TSH

NOTICE OF SETTLEMENT FOR

[FIRST] [LAST]

YOUR ESTIMATED PRE-TAX 

SETTLEMENT PAYMENT: $XXX

______________________________________________________________________________

You are receiving this Notice because you worked for Farmers as a special investigator and 

timely joined this case as an “Opt-in” Plaintiff. Your decision to participate in this 

settlement may have legal consequences so please review this Notice carefully. To obtain 

your share of the settlement, you must return the Release of Claims form to the Claims 

Administrator by:

[DATE] 

I. DESCRIPTION OF THE LAWSUIT

On January 4, 2017, Plaintiffs filed this class and collective action on behalf of 

themselves and other similarly-situated special investigators who worked for Farmers (the 

“Lawsuit”). The Lawsuit generally involves claims under federal and California state wage and 

hour laws. The Plaintiffs are former special investigators who worked for Farmers. Plaintiffs 

allege that Farmers misclassified special investigators as exempt and failed to pay overtime 

compensation for overtime hours worked under applicable federal and California law. 

Additionally, Plaintiffs allege that Defendant failed to provide complete written wage statements, 

and failed to pay all final wages to the Class Members under California law. Through the 

Lawsuit, Plaintiffs sought to recover unpaid overtime wages, statutory penalties, liquidated 

damages, and other related relief. 

The Court conditionally certified this lawsuit as a collective action under the federal 

FLSA on August 15, 2017. Notice of the lawsuit was sent by mail and email to all eligible 

workers providing them with an opportunity to join the lawsuit to assert their federal FLSA 

claims. The Court later certified the case as a class action for the claims under California state 

law. Because you filed a “consent to join form,” you are part of the collective action part of the 

Lawsuit alleging claims for unpaid wages under federal law.

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 45 of 49
2

Farmers denies all liability, denies that any of Plaintiffs’ claims and allegations have 

merit, and asserts that a collective or class action is inappropriate for any purpose other than 

settlement. 

This notice provides information on how to participate in the settlement and your options.

II. SETTLEMENT

On February 19, 2020, through arms-length and comprehensive negotiations at a 

mandatory settlement conference with a federal Magistrate Judge, the parties reached agreement 

on the financial terms of a settlement. Plaintiffs’ Counsel has obtained for the special 

investigators what they believe to be a fair and reasonable settlement offer in light of disputed 

issues. The parties agreed to a total maximum settlement of $5,400,000. This amount covers 

both the federal claims for the people who opted into the collective action portion of the Lawsuit 

and the claims under California law for the individuals who are part of the class action portion of 

the Lawsuit concerning California state law claims. Because you did not work in California, you 

are not part of the class that the Court certified in this case.

A. Your Settlement Amount

Your individual settlement offer is based on a calculation performed by Plaintiffs’ 

counsel using the date your “opt-in” consent form was filed with the Court, your dates of work

for Farmers, and earnings history within the three-year statute of limitations (based on 

Defendant’s records), and an assumed number of hours per week that is either (a) taken from 

your deposition testimony (if you were deposed) or (b) the average number of weekly hours 

worked according to deposition testimony from 25 other Opt-in Plaintiffs. From this potential 

damage calculation, each Plaintiff was allocated her or his pro rata share of the total settlement 

reached, after a deduction for attorneys’ fees, litigation costs, administration costs, Named 

Plaintiff service awards, and enhancements to each Plaintiff that was deposed in the matter that 

Plaintiffs’ counsel expects to request that the Court approve. Please note that your individual 

settlement offer reflected in this notice is just an estimate. The final amount could change based 

on whether the Court approves all of the requested fees, costs, service awards and enhancements. 

Any non-approved amounts will be made available for distribution to both the Opt In Plaintiffs 

and the individuals who are part of the California class as part of their individual settlement 

amounts. 

If you execute and return the enclosed Release of Claims form to the Claims 

Administrator by [DATE], you will receive your settlement payment after the Court grants final 

approval of the settlement.

You will have 90 days to cash your settlement checks. Any uncashed checks will be 

donated to charity.

B. Attorneys’ Fees and Costs 

Plaintiffs’ Counsel will ask the Court to approve 30% of the total settlement ($1,620,000) 

as payment for attorneys’ fees, plus reimbursement of litigation costs of up to $100,000. These 

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 46 of 49
3

amounts, along with estimates for settlement administration costs, service and enhancement 

awards were already accounted for in determining your estimated allocation. Your settlement 

payment will be reported as one-half W-2 wage earnings and one-half penalties, interest, and 

liquidated damages, reported on a 1099. You will be responsible for the payment of any personal 

taxes owing on that amount. Standard employment tax withholdings will be made from the 

portion of your settlement award allocated to the settlement of your claim for unpaid wages.

C. Scope of Release 

Please read the Release of Claims form. If you accept your settlement offer, you agree to 

release all claims under the federal Fair Labor Standards Act (“FLSA”) for unpaid minimum 

wages and overtime claims against Defendant. If you do not sign the Release of Claim form , 

your claims will be dismissed by the Court without prejudice, and you will not receive a 

settlement payment, but you will be entitled to file a separate individual lawsuit if you so choose.

You will have 30 days to re-file your claims in order to preserve consent-based tolling; after that 

point, the statute of limitations will run until you file a new case.

D. Your Options

In order to participate in the settlement and receive your settlement payment, estimated to 

be $XXX, YOU MUST SIGN AND RETURN THE RELEASE FORM WITH A 

POSTMARK DATED BY [DATE]. A postage paid return envelope is enclosed for your 

convenience. You may also return your signed form by email or fax. The Settlement

Administrator’s address is as follows:

[INSERT INFORMATION].

You have the right to withdraw from this Lawsuit if you do not wish to release your 

claims in exchange for your settlement payment. If you do so, you will not release any claims, 

you will retain the right to timely bring your own claims against Defendant, but you will not 

receive any settlement payments from this settlement. If you wish to withdraw from this Lawsuit 

and reject the settlement, you must write to the settlement administrator including your name,

address, telephone number, the last four digits of your social security number, and the dates and 

location of your work for Farmers, and signature and indicate that you reject the settlement. You 

must do so with a postmark by [DATE]. If you do not sign a Release of Claim form (whether or 

not you inform the Settlement Administrator that you wish to reject your settlement offer), your 

claims in this case will be dismissed without prejudice to your right to file a separate individual 

lawsuit. You will have 30 days after the Court’s order approving the settlement is final to file a 

new lawsuit without any loss of time under the applicable statute(s) of limitations. To reject this 

settlement and withdraw from the Lawsuit, you must send your rejection in writing to the 

Settlement Administrator.

If you do not respond by the deadline by returning the enclosed Release of Claims form, 

you will not receive payment, and your claims will be dismissed. You will retain your rights to 

sue Defendant, and you will have 30 days after the Court enters an order approving the 

settlement to file an individual lawsuit without any loss of time under the applicable statute(s) of 

limitations.

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 47 of 49
4

III. QUESTIONS 

If you would like to review the full Settlement Agreement, or if you have any questions 

about the settlement, you should contact Plaintiffs’ Counsel:

Daniel S. Brome Reena I. Desai

Nichols Kaster, LLP Nichols Kaster, PLLP

235 Montgomery St., Suite 810 4600 IDS Center

San Francisco, CA 94104 80 South 8th St. 

(415) 277-7235 Minneapolis, MN 55402

(612) 256-3200

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 48 of 49
5

IN THE UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA

David DeLuca and Barry Francis, individually 

and on behalf of all others similarly situated,

and Melissa Laughlin, individually,

 Plaintiffs,

v.

Farmers Insurance Exchange, 

 Defendant.

Case No. 3:17-cv-00034-EDL

RELEASE OF CLAIMS FOR [FIRST, LAST]

______________________________________________________________________________

I received the Notice of Settlement which informed me that I will receive pre-tax payments 

estimated to be $[AMOUNT] (less applicable withholdings) if I return this Release of Claims 

form so that it is received by the Claims Administrator or postmarked by [DATE].

By signing and returning this Release of Claims form, I agree that in exchange for my settlement 

payments, I knowingly and voluntarily, irrevocably and unconditionally, forever and fully 

release Defendant from/for any and all claims and causes of action for unpaid minimum wages

and overtime compensation, liquidated damages, penalties and interest under the Fair Labor 

Standards Act, which I have or might have, known or unknown, that has arisen or could have 

arisen from my work with Defendant as a salary 32, 33, or 34 special investigator, other than in 

the Nationals Group, up to [preliminary approval date].

This release is limited to specific wage and hour claims, and is not a general release. This 

Release will be final and binding upon Final Approval.

DATE: ____________ ________________________________

[FIRST LAST]

Submit by mail or electronically to [Administrator]. Must be postmarked by [DATE]

[INSERT ADMINISTRATOR INFORMATION]

Case 3:17-cv-00034-TSH Document 212-2 Filed 05/27/20 Page 49 of 49