Source: https://www.sec.gov/Archives/edgar/data/1048911/000119312515406264/d102741dex106.htm
Timestamp: 2019-04-19 20:41:52+00:00

Document:
A. Certain disputes and differences have arisen between the Parties concerning FXGs classification of package delivery drivers as independent contractors instead of employees. Plaintiffs allege that based upon this employment classification, they and the members of the Certified Class, the Overtime Sub-Class, and the Meal and Rest Period Settlement Sub-Class were, among other things, unlawfully deprived of the benefits of the California labor laws, were not paid all wages due, and bore expenses that should have been borne by FXG.
Payment of Wages in Violation of California Labor Code § 201 et seq.; (4) Illegal Deductions From Wages in Violation Of California Labor Code § 221 and 223; (5) For Unlawful Coercion in Violation of California Labor Code § 450 et seq.; (6) Fraud; (7) Unfair Business Practices in Violation of California Business and Professions Code §§ 17200 et seq.; (8) Injunctive Relief under Cal. Bus. & Prof. Code § 17203; (9) Declaratory Relief under the Declaratory Judgment Act, 28 U.S.C. § 2201; California Code of Civil Procedure § 1060; (10) For an Accounting; (11) Civil Penalties under Labor Code § 269((12) Wrongful Termination in Violation of Public Policy; and (13) Injunctive and Declaratory Relief for Waiver of Claims in Violation of California Civil Code § 1668. In addition, in the Third Cause of Action, the 17 original Plaintiffs reassert their individual claims for failure to provide meal and rest periods in violation of Labor Code Sections 226.7, 510 and IWC Wage Order 9, and Plaintiff Marjorie Pontarolo asserts a new class claim for violation of these statutes on behalf of a sub-class of Alexander class members who have continued to personally drive a vehicle on a full-time basis after August 1, 2011. FXG denies all of the allegations asserted in the Lawsuit and denies that it has committed any violation of law, misconduct, wrongdoing, or any other actionable conduct, and also denies that it has misclassified the Plaintiffs or the members of the Certified Class or Overtime Sub-Class, or the Meal and Rest Period Settlement Sub-Class.
C. The MDL Court certified certain of Plaintiffs state-law claims (i.e., claims 1, 2, 4, 5, 79) and later ruled on the Parties motions for summary adjudication that the class members and overtime sub-class members were independent contractors under California law. On or around May 27, 2011, the Judicial Panel on Multidistrict Litigation ordered that this case be remanded back to the Northern District of California for all future proceedings.
D. After further discovery on remand, the parties settled Family Medical Leave Act-related claims that had been included in Plaintiffs Third Amended Complaint.
E. Plaintiffs appealed the MDL Courts ruling on independent contractor/employee status to the United States Court of Appeals for the Ninth Circuit and FXG conditionally cross-appealed (the Appeal). FXGs cross-appeal argued that if the Ninth Circuit reversed the MDL Courts grant of summary judgment to FXG, it should also reverse the MDL Courts decision to certify the proposed classes.
F. On August 27, 2014, the Ninth Circuit issued an opinion in the Alexander action in which it reversed the MDL Courts grant of partial summary judgment in favor of FXG and its denial of the Plaintiffs motion for partial summary judgment. The Ninth Circuit held instead that the Plaintiff drivers for FXG were employees under California law and remanded to the Northern District of California with instructions to enter summary judgment for Plaintiffs on their employment status.
G. The Parties, through counsel, have engaged in arms-length settlement negotiations. All Parties in the Lawsuit have agreed to settle the Lawsuit on behalf of the Certified Class, the Overtime Sub-Class, the Meal and Rest Period Settlement Sub-Class, and the individual Plaintiffs.
regarding Plaintiffs individual claims, constitutes the compromise of all the disputed claims at issue in the Lawsuit and that it is the desire and intention of each of the Parties to effect a final and complete resolution of the Lawsuit and of the Released Claims of the Plaintiffs, the Certified Class, the Certified Overtime Sub-Class, and the Meal and Rest Period Settlement Sub-Class, including all costs and attorneys fees incurred.
Plaintiffs and Class Counsel: (1) have examined and considered the benefits to be provided to Class Members, Overtime Sub-Class Members, and the Meal and Rest Period Settlement Sub-Class Members under the settlement provided for in this Agreement (the Settlement); (2) have considered the laws of California and the claims that have been and could be asserted relating to the classification of the members of the Certified Class, the Certified Sub-Class, and the Meal and Rest Period Settlement Sub-Class as independent contractors; and (3) believe the Settlement to be fair, reasonable, and adequate, and in the best interest of the Certified Class, the Certified Overtime Sub-Class, and the Meal and Rest Period Settlement Sub-Class, taking into account the benefits provided to the members of the Certified Class, the Certified Overtime Sub-Class, and the Meal and Rest Period Settlement Sub-Class through the terms of the Settlement, the decisions rendered in the Lawsuit, the risks of litigation, and the length of time that would be required to complete the litigation and any appeals.
I. The Parties further acknowledge that this Settlement is a compromise of disputed claims and that FXG is not in any way admitting liability by entering into this Settlement. FXG has at all times disputed, and continues to dispute, the allegations in the Lawsuit and denies any liability for any of the claims that have or could have been raised in the Lawsuit regarding the classification of the Plaintiffs and the members of the Certified Class, the Certified Overtime Sub-Class, and the Meal and Rest Period Settlement Sub-Class as independent contractors, but believes that the Settlement as provided in this Agreement will avoid the substantial expense and disruption of continued litigation.
J. The Parties believe that the Settlement is fair, reasonable and adequate. The Settlement was arrived at through arms-length negotiations, taking into account all relevant factors, and will materially benefit the members of the Certified Class, the Certified Overtime Sub-Class, and the Meal and Rest Period Settlement Sub-Class. The Parties recognize the uncertainty, risk, expense, and delay attendant to continuing the Lawsuit through trial and any appeal. Accordingly, the Parties desire to fully, finally, and forever settle, compromise, and discharge all disputes and claims arising from or relating to the Lawsuit.
preparation and mailing of the notice required by the Class Action Fairness Act, 28 U.S.C. § 1715; (4) receipt and evaluation of Exclusion Requests from Unnotified General Class Members, and Meal and Rest Period Settlement Sub-Class Members; (5) receipt and adjudication of Forms submitted by General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members for payment under this Settlement; (6) processing objections to this Settlement; (7) establishment and maintenance of the Class Settlement Fund, which is intended to be a qualified settlement fund under Internal Revenue Code § 468B and Treasury Regulation § 1.468B-1, as described in Section III.A below; (8) preparing and filing federal income tax returns for the Class Settlement Fund, as well as any other tax filings the Class Settlement Fund must make under federal, state, or local law; (9) paying and depositing the federal taxes owed by the Class Settlement Fund under Treasury Regulation § 1.468B-2, as well as any state or local taxes owed by the Class Settlement Fund; (10) preparing, filing, and issuing all necessary tax reporting forms for the Class Settlement Fund, including IRS Forms 1099 and/or W-2 regarding the distribution of payments to Class Members, Class Counsel, and Plaintiffs; (11) providing FXG with copies of all tax reporting and filings made for the Class Settlement Fund, including copies of the checks and IRS Forms 1099 and W-2 issued to Class Members, Class Counsel, and Plaintiffs, and any other documentation to show that the tax reporting and filings were timely transmitted to the claimants and the applicable taxing authorities; (12) mailing of settlement payments to Eligible Class Members and Eligible Sub-Class Members who timely submit Valid Claims; (13) mailing of payment(s) for attorneys fees and costs to Class Counsel; (14) mailing of incentive awards to Plaintiffs; and (15) performance of any other actions specified in this Agreement or mutually requested by the Parties in writing.
For the purposes of this definition, and with regard to the terms of this Settlement Agreement, persons shall be defined to include both individuals and other business entities (whether partnerships, limited liability companies, sole proprietorships, corporations, or other business structures) who were signatories to operating agreements with FXG during the specified time period. It shall also include business entities (of whatever type) which entered into, or assumed an assignment of, an FXG Operating Agreement on or after October 15, 2007 where the authorized officer or owner of the business entity is or was a Class Member.
excused employment absences) from November 17, 2000 through October 15, 2007 to provide package pick-up and delivery services pursuant to the Operating Agreement; 3) were dispatched out of a terminal in the state of California; and 4) at any time during the class period operated a vehicle with gross vehicle weight rating of less than 10,001 pounds.
For the purposes of this definition, and with regard to the terms of this Settlement Agreement, persons shall be defined to include both individuals and other business entities (whether partnerships, limited liability companies, sole proprietorships, corporations, or other business structures) who were signatories to operating agreements with FXG during the specified time period. It shall also include business entities (of whatever type) which entered into, or assumed an assignment of, an FXG Operating Agreement on or after October 15, 2007 where the authorized officer or owner of the business entity is or was a Sub-Class Member.
All persons who: 1) entered into a FedEx Ground or FedEx Home Delivery Form Operating Agreement (now known as OP-149 and Form OP-149-RES) between November 17, 2000 and October 15, 2007; 2) drove a vehicle on a full-time basis (meaning exclusive of time off for commonly excused employment absences) from August 1, 2011 through August 31, 2015, to provide package pick-up and delivery services pursuant to the Operating Agreement; and 3) were dispatched out of a terminal in the state of California.
For the purposes of this definition, and with regard to the terms of this Settlement Agreement, persons shall be defined to include both individuals and other business entities (whether partnerships, limited liability companies, sole proprietorships, corporations, or other business structures) who were signatories to operating agreements with FXG during the specified time period. It shall also include business entities (of whatever type) which entered into, or assumed an assignment of, an FXG Operating Agreement (OA) on or after October 15, 2007 where the authorized officer or owner of the business entity is or was a Sub-Class Member and who continued personally to perform services under OA on or after August 1, 2011 through August 31, 2015.
E. General Class Member means any individual or business entity meeting the qualifications set forth in Section I.B. above, and/or any individual or business entity who was a signatory to an FXG Operating Agreement during the specified time period who the Parties otherwise agree to shall be considered a member of the Class. A preliminary list of General Class Members is attached hereto as Exhibit A1. Notwithstanding the attached list, nothing shall prevent the Parties, through their counsel, from mutually agreeing to subsequently modify the list of General Class Members to correct errors or omissions therein.
list, nothing shall prevent the Parties, through their counsel, from mutually agreeing to subsequently modify the list of Class Members and Overtime Sub-Class Members to correct errors or omissions therein.
G. Settlement Sub-Class Member or Meal and Rest Period Settlement Sub-Class Member means any individual or business entity meeting the qualifications set forth in Section I.D. above, and/or any individual or business entity who was a signatory to an FXG Operating Agreement during the specified time period who the Parties otherwise agree to shall be considered a member of the Class. A preliminary list of Meal and Rest Period Settlement Subclass Members is attached hereto as Exhibit A3. Notwithstanding the attached list, nothing shall prevent the Parties, through their counsel, from mutually agreeing to subsequently modify the list of the Meal and Rest Period Settlement Sub-Class Members to correct errors or omissions therein.
H. Class Counsel means Beth Ross, Esq., Aaron Kaufmann, Esq., David Pogrel, Esq., and Elizabeth Gropman, Esq. of Leonard Carder LLP.
I. Court means the judge presiding over the Lawsuit, currently United States District Judge Edward M. Chen.
J. Effective Date means the first business day after the following has occurred: (i) 45 days have lapsed from the entry by the Court of the Final Approval Order and the judgment thereon, and no notice of appeal of the judgment or any Order in the Lawsuit has been filed, the time provided for in Rule 4 of the Federal Rules of Appellate Procedure to take any such appeal has expired, and any right to take any such appeal from the judgment or from any such Order has been waived or otherwise lost; or (ii) if an appeal has been taken, each such appeal has been finally adjudicated and the Final Approval Order and judgment have been upheld in all respects by each such final adjudication, and either the time for initiation of the next step in the appellate process (e.g., a petition for writ of certiorari) has expired without any action by appellant(s) or the next step in the appellate process was invoked and has been concluded without any impact on the Final Approval Order or judgment.
K. Eligible Class Member means each General Class Member, Overtime Sub-Class Member, and Meal and Rest Period Settlement Sub-Class member who timely and properly completes in full, signs under penalty of perjury, and submits the Forms, in accordance with the requirements of the Preliminary Approval Order.
L. Fairness Hearing means the final hearing, to be held after notice has been provided to the General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members in accordance with Section IV of this Agreement, to determine whether to grant final approval to the Settlement and enter the Final Approval Order.
M. Final Approval Order means the proposed Order Granting Final Approval to the Class Action Settlement Agreement and Entry of Final Judgment, to be entered by the Court with the terms and in the form of Exhibit B to this Agreement.
as a Valid Claim, all Forms must be submitted to the Settlement Administrator through the webportal established and maintained by the Settlement Administrator or, in the alternative, placed in the United States Mail with first-class postage, addressed to the Settlement Administrator, and postmarked by the United States Postal Service.
O. Forms means, collectively, Form W-9 and the Claim Form to be included with the Settlement Notice.
P. Form W-9 means the Internal Revenue Services Form W-9 (Request for Taxpayer Identification Number and Certification), which will be included with the Settlement Notice.
Q. Claim Form means the proposed form attached hereto as Exhibit C, to be approved by the Court and submitted, in accordance with Section III of this Agreement, to the Settlement Administrator by General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members who wish to receive a payment pursuant to the Settlement.
R. Settlement Notice means, individually or collectively as the context may indicate, the proposed written notice attached hereto as Exhibit D, to be approved by the Court and mailed to Notified General Class Members, Overtime Sub-Class Members and Meal and Rest Period Settlement Sub-Class Members in accordance with Section IV of this Agreement.
S. Preliminary Approval Order means the proposed Order Granting Preliminary Approval to Class Action Settlement Agreement, to be entered by the Court with the terms and in the form of Exhibit F to this Agreement.
T. Released Claims, as to Plaintiffs and all Class Members and Sub-Class Members, means all claims, actions, causes of action, administrative claims, demands, debts, damages, penalties, costs, interest, attorneys fees, obligations, judgments, expenses, or liabilities, in law or in equity, whether now known or unknown, contingent or absolute, except as specifically provided below, which: (i) are owned or held by Plaintiffs, General Class Members, and Overtime Sub-Class Members and/or by their affiliated business entities (if any), or any of them, as against Releasees, or any of them; and (ii) arise under any statutory or common law claim which was asserted Plaintiffs operative complaint or, whether or not asserted, which could have been asserted in this action arising out of the factual allegations set forth in the operative complaint and that are related to, or arise from, the employment classification of the Class or Subclass such as claims under California Labor Code §§ 201 et seq., 221, 223, 224, 450 et seq., 510, 1194 et seq., 2699, 2802, 3200 et seq., IWC 9, California Business and Professions Code §§ 17200 et seq. and 17203; the Declaratory Judgment Act, 28 U.S.C. § 2201; California Code of Civil Procedure § 1060 and (iii) pertain to any time up to and including August 31, 2015.
complaint for failure to provide them with meal and rest periods as required by California Labor Code Sections 226.7, 510 and IWC Wage Order 9 between August 1, 2011 and August 31, 2015 as alleged in the Third Cause of Action. It is expressly understood between the parties that this release of claims does not extend to and does not release claims that are owned or held by General Class Members, Sub-Class Members, or Meal and Rest Period Settlement Sub-Class Members and/or by their affiliated business entities (if any), as against Releasees, or any of them, for claims premised on alleged violations of California Labor Code Sections 226.7, 510 and IWC Wage Order 9 (if any) that accrued at any time prior to August 1, 2011, which claims were not certified as class claims in this action and are not covered by this Settlement Agreement.
V. Releasees means: (a) FXG, its consolidated subsidiaries, successors, predecessors, assigns, affiliates, parent companies, shareholders, officers, directors, agents, insurers, attorneys, and employees; and (b) FXGs past, present, and future shareholders, officers, directors, agents, employees, attorneys, and insurers.
W. Settlement Administrator means the qualified firm approved by the Court to administer the Settlement and the Class Settlement Fund as described in Section III.A of this Agreement.
have 30 days after the mailing of the deficiency notice in which to cure the deficiency. If a Class Member or Sub-Class Member fails to cure the deficiency within that time, the Settlement Administrator shall deem the deficient claim to be an invalid claim.
Y. Class Settlement Fund means the fund that will be established and maintained to resolve the claims at issue, as described in Section III.A. below, and which is intended to be a qualified settlement fund within the meaning of Internal Revenue Code § 468B and Treasury Regulation § 1.468B-1.
Z. Notified General Class Member means a Class Member who, prior to execution of this Settlement Agreement, received notice of his/her/its membership in the Certified Class and did not opt out in the manner and time prescribed by the MDL Court.
AA. Unnotified General Class Member means a Class Member who is not a Notified General Class Member.
BB. Class and Settlement Notices means, individually or collectively as the context may indicate, the proposed written notices attached hereto as Exhibit E, to be approved by the Court and mailed to Unnotified General Class Members and Sub-Class Members and Meal and Rest Period Settlement Sub-Class Members in accordance with Section IV of this Agreement.
CC. Exclusion Request means a request to opt out of the Certified Class by any Unnotified General Class Member or a request to opt-out of the portion of the settlement allocated to Meal and Rest Period Claims by any Member of the Meal and Rest Period Settlement Sub-Class.
The events set forth in this Section II, in addition to the occurrence of the Effective Date as described in Section I., are conditions precedent to this Agreement becoming effective.
f. Provide to FXG and Class Counsel, 14 days after the first mailing of the Settlement Notice and Forms and then updated every 14 days thereafter, (i) a list of the names and addresses of all Class Members and Sub-Class Members who have submitted Forms and whose Forms the Settlement Administrator has determined constitute Valid Claims; (ii) a separate list of the names and addresses of all Class Members and Sub-Class Members who have submitted Forms and whose Forms the Settlement Administrator has determined do not constitute Valid Claims; (iii) a separate list of the names and addresses of all Class Members and Sub-Class Members who have submitted documents indicating that they wish to object to the Settlement; and (iv) a list of the names and addresses of all Unnotified General Class Members and Meal and Rest Period Settlement Sub-Class Members who have submitted Exclusion Requests along with copies of the Exclusion Requests.
w. Petition the Court for termination of the Class Settlement Fund once all of the duties listed above in subsections (a) to (u) have been completed.
4. Approve reasonable compensation and costs to the Settlement Administrator in accordance with the terms of Exhibit H hereto.
5. Approve the §1.468B-3 Statement that FXG will provide to the Settlement Administrator by February 15 of the year following the calendar year in which FXG transfers the Settlement Payment to the Class Settlement Fund.
6. Approve the form, contents, and methods of notice to be given to the General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members as set forth in Section IV of this Agreement, and direct the Settlement Administrator to provide such notices.
7. Establish procedures and deadlines for General Class Members, Overtime Sub-Class Members and Meal and Rest Period Settlement Sub-Class Members to object to the Settlement and to submit Forms to the Settlement Administrator, all consistent with Sections III and VI of this Agreement.
9. Schedule the Fairness Hearing for a date which is no sooner than 100 days after the Court enters an order preliminary approving the proposed class settlement described in this Settlement Agreement.
Released Claims and enjoins any and all General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members from asserting, filing, maintaining, or prosecuting any of the Released Claims in the future; (4) orders the dismissal with prejudice of all Released Claims, and incorporates the releases and covenant not to sue stated in this Agreement, with each of the Parties to bear its, his, or her own costs and attorneys fees (except as provided in Section VII below; (5) authorizes the payment the Settlement Administrator to pay Valid Claims, in accordance with the terms of this Agreement; (6) authorizes the payment of incentive awards to each of the Plaintiffs as detailed in Section VII below; and (7) retains the Courts jurisdiction over the administration of the Settlement and enforcement of this Agreement.
Plaintiffs, Class Counsel, and FXG will cooperate and take all reasonable actions to accomplish the above. If the Court fails to enter the Preliminary Approval Order or the Final Approval Order substantially in the form submitted by the Parties, Plaintiffs, Class Counsel, and FXG will use all reasonable efforts that are consistent with this Agreement to cure any defect identified by the Court. If, despite such efforts, the Court does not enter the Preliminary Approval Order and Final Approval Order, the Parties will return to their prior positions in the Lawsuit in accordance with Section XI.A of this Agreement.
The Settlement Administrator will sign a written acknowledgment and acceptance of its duties in the form of Exhibit I hereto. FXG shall have a right to petition the Court for a remedy if FXG reasonably believes that the Settlement Administrator is failing to perform its duties.
governed by the terms of the individual settlement agreement entered into between plaintiffs and Defendant. The Parties intend the Class Settlement Fund to be a qualified settlement fund under Internal Revenue Code § 468B and Treasury Regulation § 1.468B-1. Accordingly, FXG shall retain no rights or reversionary interests in the Settlement Payment once transferred to the Class Settlement Fund. Furthermore, FXGs obligation to make the Settlement Payment is contingent on (1) the Courts entry of the Preliminary Approval Order appointing the Settlement Administrator and approving the Settlement Administrator to establish and maintain the Class Settlement Fund; and (2) the Courts entry of the Final Approval Order releasing and dismissing with prejudice all of the Released Claims. Under no circumstances shall FXG be required to pay more under this Settlement than the amount of the Settlement Payment. The Class Settlement Fund is a common fund that includes Class Counsels fees and costs as described more fully in Section VII.A of this Agreement, the incentive award payments to Plaintiffs as described more fully in Section VII.B of this Agreement, and the Administrative Expenses, Costs of Notice, and Costs of Claims Administration described in Section V of this Agreement.
If an Eligible Class Member, Overtime Sub-Class Member or Meal and Rest Period Settlement Subclass Member timely submits a Valid Claim (the Claimant, for purposes of this Section III), the Claimant shall receive a payment based on a calculation made by Class Counsel (the Payment Calculation(s)). Class Counsel shall make and submit to the Settlement Administrator and FXG their Payment Calculation(s) for each Claimant no later than fifteen (15) business days after entry by the Court of the Final Approval Order. The Payment Calculation(s) shall take into account the dates and duration of contracting, the hours and days of work, and vehicles used and miles driven by those vehicles, the division of FedEx Ground for which Class members drove, as well as any other factors Class Counsel may, in their judgment, deem relevant. Class Counsel assumes and accepts all responsibility and liability associated with their Payment Calculation(s).
If any Class Member, Overtime Sub-Class Member or Meal and Rest Break Period Settlement Sub-Class Member does not timely submit a Valid Claim, or if an Unnotified General Class Member or Meal and Rest Period Settlement Sub-Class Member makes an Exclusion Request, then the amount of the Class Settlement Fund that was preliminarily attributed to that Class Member or Sub-Class Member (or in the case of Meal and Rest Period Settlement Sub-Class Members, the amount allocated to their Meal and Rest Period Settlement payment) shall be finally allocated, on a pro rata basis, to General Class Members who have submitted Valid Claims. For purposes of this final allocation, each persons pro rata portion of the unclaimed funds shall be equal to his/her proportionate share of the Class Settlement Fund allocable to all persons who file Valid Claims. Although General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members who do not timely submit a Valid Claim are not entitled to receive a settlement payment under this Agreement, they shall still be bound by the other provisions of this Agreement, including without limitation the release of claims in Section I.R.
1. Mailing, by first-class United States Mail, the Settlement Notice (with the Fairness Hearing date and deadlines established by the Court in the Preliminary Approval Order) and the Forms to all General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members that can be identified through a reasonable effort.
2. Mailing, by first-class United States Mail, the Class and Settlement Notice (with the Fairness Hearing date and deadlines established by the Court in the Preliminary Approval Order) and the Forms to all Unnotified General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members that can be identified through a reasonable effort.
3. Notifying the appropriate federal and state officials under CAFA.
5. Receiving and evaluating all Exclusion Requests submitted by Unnotified General Class Members and Meal and Rest Period Settlement Sub-Class Members.
6. Providing to FXG and Class Counsel: (i) a list of the names and addresses of all General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members who have submitted Forms and whose Forms the Settlement Administrator has determined to constitute Valid Claims; (ii) a separate list of the names and addresses of all General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members who submitted Forms and whose Forms the Settlement Administrator has determined do not constitute Valid Claims; (iii) a separate list of the names and addresses of all General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members who have submitted documents indicating that they wish to object to the Settlement; and (iv) a list of the names and addresses of all Unnotified General Class Members and Meal and Rest Period Settlement Sub-Class Members who have submitted Exclusion Requests along with copies of the Exclusion Requests.
7. Mailing, by first-class United States Mail, a notice of deficiency to each Class Member and Sub-Class Member that timely submitted Forms and whos Forms the Settlement Administrator has determined to be deficient in some respect.
9. Mailing, by first-class United States Mail, settlement payments to General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members with Valid Claims in accordance with the Payment Calculation for each such Class Member and Sub-Class Member provided to the Settlement Administrator by Class Counsel.
10. Mailing, by first-class United States Mail, payment(s) for attorneys fees and costs to Class Counsel.
11. Mailing, by first-class United States Mail, incentive awards to Plaintiffs.
12. Establishing and maintaining the Class Settlement Fund as a qualified settlement fund under Internal Revenue Code § 468B and Treasury Regulation § 1.468B-1, for the purpose of resolving the contested claims of Eligible Class Members and Eligible Sub-Class Members.
13. Maintaining the assets of the Class Settlement Fund in a non-interest bearing escrow account segregated from the assets of FXG and any person related to FXG.
14. Obtaining an employer identification number (EIN) for the Class Settlement Fund.
15. Preparing and filing federal income tax returns for the Class Settlement Fund, as well as any other tax filings the Class Settlement Fund must make under federal, state, or local law.
16. Cooperating with FXG to jointly file a relation-back election, if necessary.
17. Paying and depositing the federal taxes owed by the Class Settlement Fund under Treasury Regulation § 1.468B-2, as well as any state or local taxes owed by the Class Settlement Fund.
18. Preparing, filing, and issuing all necessary tax reporting forms for the Class Settlement Fund, including IRS Forms 1099 and W-2 regarding the distribution of payments to Class Members, Class Counsel, and Plaintiffs.
19. Providing FXG with copies of all tax reporting and filings made for the Class Settlement Fund, including copies of the checks and IRS Forms 1099 issued to Class Members, Class Counsel, and Plaintiffs, and any other documentation to show that the tax reporting and filings were timely transmitted to the claimants and the applicable taxing authorities.
20. Paying any additional tax liabilities (including penalties and interest) that arise from the establishment and administration of the Class Settlement Fund. Any such tax payment shall be made solely from the assets of the Class Settlement Fund without any recourse against FXG for additional monies.
21. Providing the Final Accounting to FXG and Class Counsel.
22. Liquidating any remaining assets of the Class Settlement Fund after all payments to Class Members, Class Counsel, and Plaintiffs have been made and all tax obligations have been satisfied, and distributing such assets as directed by the Court.
23. Petitioning the Court for termination of the Class Settlement Fund once all of the duties listed above in subsections (1) to (22) have been completed.
Upon occurrence of the Effective Date, the Settlement Administrator shall, as soon as thereafter reasonably practicable, but within no more than 10 additional business days: mail, by first-class United States Mail, to Claimants (as defined in Section III.A) checks in the amounts determined by Class Counsel pursuant to Section III.A and drawn on the account of the Class Settlement Fund. To the extent checks are not cashed within one hundred and eighty (180) days, these funds shall be deposited with the Cy Pres recipients, the Impact Fund (Berkeley, CA) and California Rural Legal Assistance Foundation (San Francisco, CA), in equal shares.
The Settlement Administrator will sign a written acknowledgment and acceptance of its duties in the form of Exhibit I hereto. The Settlement Administrator with receive reasonable compensation and costs in accordance with the terms of Exhibit H hereto. If FXG reasonably believes that the Settlement Administrator is failing to perform its duties, FXG shall have the right to petition the Court for a remedy.
Members and Meal and Rest Period Settlement Sub-Class Members with copies of the Class and Settlement Notice and Forms, as well as contact information for Class Counsel in the event they have questions. Plaintiffs will request the Court to approve the Settlement Notice, Class and Settlement Notice, and Forms in the Preliminary Approval Order.
As soon as practicable, but no later than 30 days after the Courts entry of the Preliminary Approval Order, the Settlement Administrator shall send or cause to be sent, by first-class United States Mail, a copy of the Settlement Notice and Forms to every Notified General Class Member and Sub-Class Member who can be identified through reasonable effort, and a copy of the Class and Settlement Notice and Forms to every Unnotified General Class Member and Meal and Rest Period Settlement Sub-Class Member who can be identified through reasonable effort. Before the mailing of such Settlement Notices, Class and Settlement Notices, and Forms, the Settlement Administrator will obtain or cause to be obtained address updates utilizing a national change of address database.
The parties agree that the dissemination of the Settlement Notice, Class and Settlement Notice, and Forms by mail in the manner specified in this Section IV satisfies the notice requirements of due process and Rule 23 of the Federal Rules of Civil Procedure. Plaintiffs will request the Court to approve, in the Preliminary Approval Order, the direct mailing of the Settlement Notice, Class and Settlement Notice, and Forms as set forth in this Section IV.
All costs (i) of preparing and disseminating the Settlement Notices, Class and Settlement Notices, and Forms provided for in Section IV above, and (ii) all other Administration Expenses, including payments made for the services of the Settlement Administrator shall be payable from the Class Settlement Fund. Unless otherwise specifically agreed in writing, FXG shall not be responsible for any cost that may be incurred by, on behalf of, or at the direction of Plaintiffs or Class Counsel in (a) responding to inquiries about the Agreement, the Settlement, or the Lawsuit, (b) defending the Agreement or the Settlement against any challenge to them, (c) defending against any challenge to any order or judgment entered pursuant to the Agreement, or (d) for any other reason except to the extent provided by law.
1. 30 days after entry of the Preliminary Approval Order: Date on or before which Settlement Notices, Class and Settlement Notices, and Forms will be mailed to General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members and the Summary Notice will be published.
2. 60 days after mailing of the Settlement Notice and Claim Forms: Date on or before which Exclusion Requests by Unnotified General Class Members and Meal and Rest Period Settlement Sub-Class Members must be either postmarked by the United States Postal Service or actually received by the Settlement Administrator.
3. 60 days after mailing of the Settlement Notice and Claim Forms: Date on or before which objections to the Settlement, the Agreement, or the amount of fees and expenses that Class Counsel has requested, together with all supporting memoranda and other material, must be filed with the Court and served on Class Counsel and FXG.
4. 14 days before the Fairness Hearing: Date on or before which any person or attorney seeking to appear at the Fairness Hearing, for the purpose of objecting to the Settlement, the Agreement, or the amount of fees and expenses that Class Counsel has requested, must file with the Court and serve on Class Counsel and FXG an entry of appearance in the Lawsuit and notice of intention to appear at the Fairness Hearing.
5. 60 days after mailing of the Settlement Notice and Claim Forms: Final Claims Date on or before which, to meet the timing requirement for a claim to qualify as a Valid Claim, all Forms must be submitted to the Settlement Administrator through the web-portal established and maintained by the Settlement Administrator or, in the alternative, postmarked by the United States Postal Service after being placed in the United States Mail with first-class postage, addressed to the Settlement Administrator.
6. The parties will coordinate with the Court to set a date for the Fairness Hearing that is no sooner than 100 days after entry of the Preliminary Approval Order.
At the Fairness Hearing, Plaintiffs shall request the Court to enter the Final Approval Order, substantially in the form of Exhibit B, which: (1) grants final approval to the Settlement and this Agreement as fair, reasonable, and adequate to the Certified Class, the Overtime Sub-Class, and the Meal and Rest Period Settlement Sub-Class; (2) provides for the release of all Released Claims and enjoins Class Members, Overtime Sub-Class Members, and the Meal and Rest Period Settlement Sub-Class Members from asserting, filing, maintaining, or prosecuting any of the Released Claims in the future; (3) orders the dismissal with prejudice of all Released Claims, and incorporates the releases and covenant not to sue stated in this Agreement, with each of the parties to bear its or their own costs and attorneys fees, except as provided in Section VII below with respect to Class Counsels attorneys fees and costs; (4) authorizes the Settlement Administrator to pay Valid Claims in accordance with the terms of the Agreement; (5) authorizes the payment of Class Counsels attorneys fees and costs as detailed in Section VII below; (6) authorizes the payment of incentive awards to each of the Plaintiffs as detailed in Section VII below; and (7) preserves the Courts continuing jurisdiction over the administration of the Settlement and enforcement of the Agreement.
the MDL Court or this Court), the settlement of the Lawsuit, any appeal in connection with the Settlement, implementation of the Settlement, or otherwise (the Fee and Expense Application) in an amount not to exceed twenty-two percent (22%) of the common Class Settlement Fund. The Fee and Expense Application shall be subject to Court approval, and the Court will determine what amount of fees and costs shall be awarded and issue an Order stating the amount of fees and costs to be awarded.
B. FXG shall not oppose Class Counsels request for an incentive award for up to ten thousand dollars ($10,000.00) to Plaintiffs Dean Alexander, Peter Allen, Albert Anaya, Suzanne Andrade, Jerrett Henderson, Ely Ines, Paul Infantino, Jorge Isla, Eric Jeppson, Gupertino Magana, Bernard Mendoza, Jesse Padilla, Joey Rodriguez, Dale Rose, Allan Ross, Agostino Scalercio, and Anthony Ybarra, and for up to One Thousand Five Hundred Dollars ($1,500) to Plaintiff Marjorie Pontarolo, above what each is otherwise eligible to receive under Section III of this Agreement. The incentive awards shall be paid from the common Class Settlement Fund.
C. The agreed amounts set forth above in this Section will be subject to Court approval, which approval shall be stated in the Final Approval Order of the Court. Upon the Effective Date, the Settlement Administrator shall, as soon as practicable, but within no more than ten (10) additional business days, pay to Class Counsel and Plaintiffs those amounts specified above from the Class Settlement Fund, as approved by the Court. Class Counsel shall provide to the Settlement Administrator in a timely manner all information needed with respect to the issuance of the checks for those amounts, including their and Plaintiffs tax identification/Social Security numbers on Form W-9. The Settlement Administrator shall have no obligation to make payments under this Section until such information is received.
If any notice of an appeal from the Final Approval Order, the judgment thereon, or any Order in the Lawsuit is filed by any party, objector, Class Member, Overtime Sub-Class Member, Meal and Rest Period Settlement Sub-Class Member, or other person, the Settlement shall not be or become final or effective, and the Settlement Administrator shall not be obliged to make any payment to Class Counsel or to Plaintiffs, until 10 business days after the Effective Date.
D. Upon transferring the Settlement Payment to the Class Settlement Fund, FXG will have no responsibility or liability for any amount of attorneys fees or costs for work performed or expenses incurred in connection with the Lawsuit to any of the Plaintiffs counsel or any other counsel for Plaintiffs or any Class Member or Sub-Class Member, including any prior firm of the Plaintiffs counsel or those involved in the MDL proceedings. In the event any claim for attorneys fees or costs in connection with the Lawsuit is made by any counsel other than Class Counsel, the parties agree that FXG has no obligation of any kind to satisfy any such claim. Class Counsel agrees to indemnify FXG against any claims for fees or costs made by other counsel for work performed in connection with the Lawsuit. Class Counsel represent that there are no liens related to any fees associated with the claims of the General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members as of the execution date of this Agreement. FXG shall have no responsibility or liability for any amount of attorneys fees or costs attributable to the Lawsuit, including any incurred in connection with the Lawsuit during the MDL proceedings. Any attorneys fees or costs dispute between Class Counsel and any other attorney(s) will not interfere with the Settlement, the provisions of this Settlement Agreement, the dismissal of the Lawsuit, or the releases obtained pursuant to the Settlement Agreement.
By executing this Agreement, the Plaintiffs, on behalf of themselves and the General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members (including their affiliated business entities, if any), acknowledge that, upon entry of the Final Approval Order by the Court, the Lawsuit shall be dismissed with prejudice, an order of dismissal with prejudice shall be entered, and all Released Claims (as defined in Section I. T and U above) shall thereby be conclusively settled, compromised, satisfied, and released as to the Releasees.
In connection with such release of claims, Plaintiffs, General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members hereby acknowledge that they are aware that they or their attorneys may hereafter discover claims or facts in addition to or different from those which they now know or believe to exist with respect to the Released Claims, but that it is their intention to hereby fully, finally, and forever settle and release all of the Released Claims, known or unknown, suspected or unsuspected, that they may have against Releasees. In furtherance of such intention, the release herein given to the Releasees by the Plaintiffs, General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members shall be and remain in effect as a full and complete general release of all Released Claims.
Notwithstanding the above, the Court shall retain jurisdiction over the parties, General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members, and the Settlement with respect to the future performance of the terms of this Settlement Agreement, and to assure that all payments and other actions required by the Settlement are properly carried out.
Plaintiffs, on behalf of themselves, the General Class Members, Overtime Sub-Class Members, and Meal and Rest Period Settlement Sub-Class Members, and their affiliated business entities (if any), (a) covenant and agree that neither Plaintiffs nor any of the Class Members or Sub-Class Members, nor any of Plaintiffs, Class Members, or Sub-Class Members affiliated business entities (if any), nor anyone authorized to act on behalf of any of them, will commence, authorize, or accept any benefit from any judicial or administrative action or proceeding, other than as expressly provided for in this Settlement, against Releasees, or any of them, in either their personal or corporate capacity, with respect to any claim, matter, or issue that in any way arises from, is based on, or relates to any alleged loss, harm, or damages allegedly caused by Releasees, or any of them, in connection with the Released Claims; (b) waive and disclaim any right to any form of recovery, compensation, or other remedy in any such action or proceeding brought by or on behalf of any of them; and (c) agree that this Settlement shall be a complete bar to any such action.
The preliminary schedule for notice, approval, and payment procedures carrying out this settlement is as follows. The schedule may be modified depending on whether and when the Court grants necessary approvals and orders notice to the class, and sets further hearings. In the event of such modification, the parties shall cooperate in order to complete the settlement procedures as expeditiously as reasonably practicable. To the extent this Section X conflicts with one or more other provisions of this Agreement, the other provision(s) shall supersede this Section X.
Within 20 Days of entry of Preliminary Approval Order Plaintiffs to file Fee and Expense Application.
Within 30 Days of entry of Preliminary Approval Order Mailing of Settlement Notices.
30 days after mailing of Notice Packet Settlement Administrator to conduct trace/search efforts and send a follow up mailing to individuals whose Notice Packet was returned as undeliverable or whose listed address is found to be inaccurate.
60 days after mailing of Notice Packet Last day for Class Members to file claims, opt out (Unnotified General Class Members and Meal and Rest Period Settlement Sub-Class members only), challenge dates used to calculate Work Weeks, or submit written objections.
35 court days before final approval hearing Plaintiffs file Motion for Final Approval, including Administrator Report.
Final Approval Hearing To Be Determined.
Within 20 days of notice of entry of order granting final approval Settlement Administrator to make the final calculation of payments from the Net Settlement Fund to be distributed to the Participating Class Members and provide all Counsel with a report listing the amount of all payments to be made to each Eligible Settlement Class Member.
Within 5 Business Days of Settlement Effective Date Defendant to Deposit Settlement Fund and Employer Taxes with Settlement Administrator.
Within 10 days of Settlement Effective Date Settlement Administrator to distribute and pay: (1) Participating Class Member Payment; (2) PAGA payment to the LWDA; (3) administration costs to Settlement Administrator; (4) class representatives service awards; (5) all court-approved attorneys fees and litigation costs and expenses.
180 days after payment of settlement checks Expiration of class member settlement checks.
Within 10 days of date of expiration of class member settlement checks. Settlement Administrator to pay any residual funds in the Reserve Fund to the cy pres beneficiaries and close the settlement fund.
A. Each of the parties has had the opportunity to receive, and has received, independent legal advice from her, his, or its attorneys regarding the advisability of making the Settlement, the advisability of executing this Agreement, and the legal and income-tax consequences of this Settlement, and fully understands and accepts the terms of this Settlement.
B. Plaintiffs represent and warrant that no portion of any claim, right, demand, action, or cause of action against any of the Releasees that Plaintiffs are releasing in this Agreement, and no portion of any payment to which Plaintiffs may be entitled, has been assigned, transferred, or conveyed by or for Plaintiffs in any manner; and no person other than the Plaintiffs, the Class Members, and the Sub-Class Members have any legal or equitable interest in the claims, demands, actions, or causes of action to be released in this Agreement.
C. Any other person or entity (including, but not limited to, insurers, lien holders, business partners, related or associated business entities, or other creditors) that has any judgments, liens, subrogation interests, or related claims which arise out of the Released Claims or the damages alleged by the Plaintiffs, the Certified Class, and the Certified Sub-Class as a result of the Released Claims must be satisfied from the payments to Claimants as detailed in Section III. Plaintiffs, Class Members, and Sub-Class Members agree that they are liable for, and will release, hold harmless, defend, and indemnify the Releasees from and against any and all Released Claims, known or unknown, that may be brought by any person, firm, corporation, or other entity, including any lien holders, against the Releasees for any such judgments, liens, interests or claims that exist arising out of the Released Claims.
D. None of the Parties relies or has relied on any statement, representation, omission, inducement, or promise of any other party (or any officer, agent, employee, representative, or attorney for any other party) in executing this Agreement, or in making the Settlement provided for herein, except as expressly stated in this Agreement.
E. Each of the Parties has investigated the facts pertaining to the Settlement and this Agreement, and all matters pertaining thereto, to the full extent deemed necessary by that party and his or its attorneys.
F. Each of the Parties has carefully read, and knows and understands the full contents of this Agreement and is voluntarily entering into this Agreement after having had the opportunity to consult with, and having in fact consulted with, his or its attorneys.
G. Section titles or captions contained herein are inserted as a matter of convenience and for reference, and in no way define, limit, extend or describe the scope of this Settlement or any provision hereof.
H. Each of the Parties has participated in the drafting of all provisions of this Agreement, has had an adequate opportunity to read, review, and consider the effect of the language of this Agreement, and has agreed to its terms.
I. It is understood and agreed that this Agreement is for the compromise of disputed claims and is not to be construed as or deemed to be an admission of any liability, fault, or responsibility on the part of FXG or any other Releasee.
J. It is understood and agreed that the terms and conditions of this Agreement are the result of lengthy, intensive, arms-length negotiations between the Parties and that this Agreement shall not be construed in favor of or against any party by reason of the extent to which any party or her, his, or its counsel participated in the drafting of this Agreement.
K. This Agreement constitutes and comprises the entire agreement among the Parties with respect to the subject matter hereof. It supersedes all prior and contemporaneous oral and written agreements and discussions. It may be amended only by an agreement in writing, signed by all Parties hereto.
L. The Parties agree that any dispute regarding the interpretation or enforcement of the terms of this Settlement or in connection with this Agreement shall be resolved by the Court.
fees and costs shall not be a basis for withdrawal. At FXGs option, expressed in written notice to Class Counsel, this Agreement shall become null and void, and no obligation on the part of any of the Parties will accrue, if the Court materially alters any of the terms of this Agreement to the detriment of FXG, or fails to enter the Preliminary Approval Order or the Final Approval Order in substantially the form submitted by the Parties. Any appeal by Class Counsel of the attorneys fees and costs awarded by the Court in connection with this Settlement shall not be a basis for any party to have this Agreement become null and void. If this Agreement becomes null and void, the Parties shall move forward with the Lawsuit as though no settlement had been reached, all of the Parties to the Lawsuit being placed in the same position they were before this Settlement was proposed, negotiated and agreed upon.
None of the terms of this Agreement is severable from the others. However, if the Court should rule that any term is void, illegal, or unenforceable for any reason, FXG, in its sole discretion, and Plaintiffs, in their sole discretion (but acting in accord with their duties and obligations to the Certified Class, the Certified Sub-Class, and the Meal and Rest Period Settlement Sub-Class), may elect to waive any such deficiency and proceed with the Settlement under the terms and conditions ultimately approved by the Court.
This Agreement may be amended only by written agreement signed by the Parties. Except as otherwise stated above, each of the Parties, including FXG and Plaintiffs on behalf of themselves, the Certified Class, the Certified Sub-Class, and the Meal and Rest Period Settlement Sub-Class expressly accepts and assumes the risk that, if facts or laws pertinent to matters covered by this Agreement are hereafter found to be other than as now believed or assumed by that party to be true or applicable, this Agreement shall nevertheless remain effective.
This Agreement is binding on, and shall inure to the benefit of, the Parties, the Class Members, and the Sub-Class Members, and their respective agents, employees, representatives, officers, directors, parents, subsidiaries, assigns, executors, administrators, insurers, and successors in interest. All Releasees other than FXG, which is a party, are intended to be third-party beneficiaries of this Agreement.
FXG, Plaintiffs, and their respective counsel (including Class Counsel) agree to prepare and execute any additional documents that may reasonably be necessary to effectuate the terms of this Agreement.
Internal Revenue Code § 468B and the Treasury Regulations thereunder shall be governed by federal income tax law.
The Parties are entering into this Settlement for the purpose of compromising and settling disputed claims. Nothing in this Agreement or in the documents relating to the Settlement shall be construed, deemed, or offered as an admission by any of the parties, or by any member of the Certified Class or the Certified Sub-Class, for any purpose in any judicial or administrative action or proceeding, whether in law or in equity, and regardless of whether this Agreement ultimately becomes effective.
No representation has been made to the Plaintiffs, Class Members or Sub-Class Members, or their attorneys by FXG regarding the taxability of any portion of the payments under this Agreement. Plaintiffs, Class Members, Sub-Class Members, and Class Counsel are solely responsible for their own tax filing and payment obligations arising from this Agreement, except that the Settlement Administrator will provide Plaintiffs, Class Members, Sub-Class Members, and Class Counsel with copies of IRS Forms 1099 and/or W-2 as applicable for any payments the Class Settlement Fund makes to them under this Agreement.
This Agreement may be executed in counterparts, and, when so executed, shall constitute a binding original. A signature, or copy of a signature, transmitted electronically, including by facsimile or email, shall serve as an original for all purposes.
Class Counsel Counsel for FedEx Ground Package System, Inc.

References: § 201
 § 221
 § 450
 § 17203
 § 2201
 § 1060
 § 269
 § 1668
 § 1715
 § 468
 § 1
 § 1
 § 2201
 § 1060

V. 
 § 468
 § 1
 § 468
 § 1
 § 468
 § 1
 § 1
 § 468