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United States District Court 

Northern District of California 

IN THE UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF CALIFORNIA 

JUAN QUINTANILLA VASQUEZ, et al., 

Plaintiffs, 

v. 

LIBRE BY NEXUS, INC., 

Defendant. 

Case No. 17-cv-00755 CW 

 

ORDER REGARDING THE PARTIES’ 

RESPONSES TO ORDER ENFORCING 

THE SETTLEMENT AGREEMENT 

On July 30, 2021, the Court issued an order granting Plaintiffs’ motion to enforce the 

settlement agreement. Docket No. 203. In relevant part, the Court ordered Defendant Libre by 

Nexus, Inc. (LBN): (1) to pay into a trust account controlled by the settlement administrator 

$34,142.60 in attorneys’ fees and costs to Plaintiffs’ counsel for their efforts in enforcing the 

settlement agreement, id. at 4; (2) to pay the $80,000 in administration costs approved by the 

Court as part of the settlement agreement, id.; (3) to file with the Court declarations under penalty 

of perjury, signed by its principals, along with contemporaneous business records or verifications 

from third-party accountants or both, sufficient to demonstrate its compliance with the Court’s 

July 31, 2021, order, id. at 5-6; (4) to attach to these declarations “client billing records, 

notifications to clients, and any other documents (redacted as needed for privacy) sufficient to 

show . . . LBN’s timely implementation of the $1.53 million debt relief for the Class in this action 

(independent of debt relief that LBN may have provided in other actions),” id. at 7-8; and (5) to 

attach to these declarations supporting documents verifying that the sum of each participant’s bills 

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and payments to LBN has never exceeded the bond amount and showing the beneficiaries and 

amounts of fee waivers provided by LBN to date (broken down by year), id. at 7. 

Since the Court’s July 30, 2021, order, each side has filed declarations regarding LBN’s 

compliance, or lack thereof, with the Court’s July 30 order and the terms of the settlement 

agreement. See Docket Nos. 208, 210, 212, 213, 214, 215. 

Plaintiffs’ counsel, Jesse Newmark, represents in his latest declaration of December 21, 

2021, that LBN still has not paid the attorneys’ fees and costs of settlement administration that it 

owes and that it still has not provided adequate proof of compliance with respect to the settlement 

agreement’s provisions regarding debt relief, fee waivers, payment caps to bond amounts, monthly 

discounts and late fee limits, and benchmarks for cash payments. See Docket No. 215. 

Mr. Newmark requests that the Court enter an order requiring LBN to: 

(1) pay the Court-ordered administration costs and attorney’s fees, 

with interest, and submit a declaration confirming that the 

payments were made by the end of the year as LBN most recently 

stated; (2) complete providing all debt relief, fee waiver credits, 

and interest to the Class, and submit sufficient records to show 

compliance as the Court previously ordered; (3) for the total 

payment cap, provide Class Counsel in native format the 

spreadsheet that LBN previously submitted as a PDF, as well as 

individual analysis and documentation sufficient to explain any 

instances where a Class Member’s total monthly payments 

exceeded their bond amount; (4) provide sufficient documentation 

that LBN timely implemented the monthly discounts and late fee 

limits, as the Court previously ordered, or immediately implement 

the terms and provide appropriate interest for any charges in 

violation of those terms; (5) as to the payment cap, payment 

discounts, and late fee limits, provide sufficient documentation to 

show LBN has in fact implemented these requirements through its 

accounting system, such that the burden will not be left on Class 

Members to ensure they do not make payments in excess of their 

bond amounts and that they receive the required discounts; and (6) 

prepare and provide to Class Counsel financial statements by 

external accountants sufficient to comply with the Court’s order 

for conducting the revenue comparison for the cash payments to 

the Class. 

Id. ¶ 9. Mr. Newmark also requests that the Court order LBN to “timely implement its new 

accounting system.” Id. ¶ 10. 

Mr. Newmark represents that the court in RLI Ins. Co. v. Nexus Servs., Inc., No. 5:18-cv00066-MFU-JCH (W.D. Va. Aug. 12, 2021) “issued a detailed order discussing Nexus and LBN’s 

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continued failure to comply with the court-ordered payments and other terms, including their 

failure to respond to post-judgment discovery as to rapidly declining revenue and questionable 

transfers of income and assets by the principals.” Id. ¶ 12 (citation omitted). In light of this, Mr. 

Newmark requests that, if LBN continues to fail to comply with the Court’s orders and terms of 

the settlement agreement, the Court “consider ordering LBN to start making the required cash 

payments to the Class now, as an appropriate and fair remedy.” Id. ¶ 13. In his declaration, Mr. 

Newmark does not cite any authority that would permit the Court to modify the settlement 

agreement in the manner he requests. 

As of the date of this order, LBN has not filed any response to Mr. Newmark’s declaration. 

Because the declarations and records that LBN has filed to date do not show that LBN is in 

full compliance with the Court’s July 30, 2021, order, the Court’s subsequent orders, and the terms 

of the settlement agreement, the Court hereby orders LBN, within fourteen days of the date this 

order is filed, to: 

1. pay the Court-ordered administration costs and attorneys’ fees to the extent that it 

has not done so, with interest, and file a declaration confirming that the payments 

were made1; 

2. complete providing all debt relief, fee waiver credits, and interest to the Class, and 

provide to Plaintiffs’ counsel sufficient records to show compliance as the Court 

previously ordered; 

3. for the total payment cap, provide Plaintiffs’ counsel in native format the spreadsheet 

that LBN previously submitted as a PDF, as well as individual analysis and 

documentation sufficient to explain any instances where a Class Member’s total 

monthly payments exceeded his or her bond amount; 

4. provide sufficient documentation to Plaintiffs’ counsel that LBN timely implemented 

the monthly discounts and late fee limits, as the Court previously ordered, or 

1

 To the extent that LBN takes the position that it is unable to pay the attorneys’ fees and 

costs of settlement administration within fourteen days, it shall file a declaration disclosing its 

financial position and attaching financial records that support any statements in that declaration 

about LBN’s financial condition or ability to pay. 

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immediately implement the terms, provide appropriate interest for any charges in 

violation of those terms, and provide sufficient proof to Plaintiffs’ counsel of having 

done so; 

5. as to the payment cap, payment discounts, and late fee limits, provide sufficient

documentation to Plaintiffs’ counsel to show that LBN has, in fact, implemented

these requirements through its accounting system, such that the burden will not be

left on Class Members to ensure that they do not make payments in excess of their

bond amounts and that they receive the required discounts;

6. prepare and provide to Plaintiffs’ counsel financial statements by external

accountants sufficient to comply with the Court’s order for conducting the revenue

comparison for the cash payments to the Class; and

7. provide a declaration describing the progress made in implementing the new

accounting system LBN has promised, including the date it will be implemented.

Plaintiffs have not filed a motion to modify the settlement agreement, nor have they 

pointed to any authority for doing so. Plaintiffs may file such a motion if there is authority for 

doing so; any such motion shall satisfy the requirements of Civil Local Rule 7. Alternatively, 

Plaintiffs may consider other remedies that may be available to them, which could include a new 

lawsuit for breach of contract, a debtors’ examination, other financial discovery, or a contempt 

motion. 

IT IS SO ORDERED. 

Dated:

CLAUDIA WILKEN 

United States District Judge 

January 12, 2022

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