Court Opinion

ID: 9840310
Source: CourtListenerOpinion
Date Created: 2023-09-15 21:01:15.377443+00
Date Added: 2024-06-11T10:12:08.090114
License: Public Domain

EXHIBIT 1
UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA
            NOTICE OF CLASS ACTION, PROPOSED SETTLEMENT
                 AGREEMENT, AND FAIRNESS HEARING.
 If you are African American, Black, and/or Hispanic and were employed by the
 Consumer Financial Protection Bureau (“CFPB” or “Bureau”) at any time
 between February 13, 2011 and April 19, 2022, and served during that time in a
 non-supervisory position(s) that was (1) assigned to the Bureau’s Office of
 Consumer Response, (2) in pay bands identified by the Bureau as 4, 4A, 4B, 40,
 41, 5, 5A, 5B, 5C, 51, 52, 53, 6, 6A, or 60, and (3) classified by the Bureau as falling
 within occupational job series code 301 (except that serving in the following
 positions does not qualify you for class membership: Consumer Response
 Implementation Manager (position description #110090), Consumer Response
 Manager (Quality Control) (position description #111410), Policy Analyst
 (position description #110210), or Consumer Response Analyst (position
 description #110770)), a class action settlement will affect your rights.

       A federal court has authorized this notice. This is not a solicitation from a lawyer.

 On [preliminary approval date], Judge Beryl A. Howell of the U.S. District Court for the District
 of Columbia granted preliminary approval of a proposed class action settlement in the lawsuit
 Jones v. Chopra, Civil Action No. 18-cv-2132. The Court ordered this notice to inform you of your
 rights and options under the Settlement. The proposed Settlement will provide a Settlement Fund
 of $6 million for a class of certain African American, Black, and/or Hispanic CFPB employees to
 resolve claims of race discrimination and retaliation against the Bureau.

                   Your Legal Rights and Options in this Settlement:
Do Nothing Wait for the Court. Stay in the lawsuit. Seek money if the Court approves the
(for now)  Settlement. Give up certain rights.
and Wait
           The Court still must decide whether to approve the Settlement. If you wish to
           participate in the Settlement, you may wait for further notice. If the Court approves the
           Settlement, you will be mailed a separate notice about your rights and what you must
           do to seek money from the Settlement.
Exclude       Opt out of the Settlement’s monetary relief. Receive no money from the
Yourself      Settlement. Keep any rights to sue CFPB separately for the claims in this lawsuit.
(Opt Out)
              You must opt out, or seek exclusion from, the Settlement by [45 days after mailing
              Notice].
Comment       Write to the Court about your view of the Settlement or why you don’t think it is
or Object     fair to the class.
              You must object to the Settlement by [45 days after mailing Notice]
       These options—and the deadlines to exercise them—are explained in this notice.

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                                                What This Notice Contains
                                                  TABLE OF CONTENTS

1.    Purpose of This Notice...................................................................................................... 2
2.    Background: About the Lawsuit ........................................................................................ 2
3.    Class Definition................................................................................................................ 3
4.    Summary of Settlement Terms .......................................................................................... 4
5.    How to Proceed: Your Options ......................................................................................... 4
6.    What Will Happen If the Settlement Is Approved .............................................................. 6
7.    Release ............................................................................................................................ 6
8.    How Will My Settlement Award Be Calculated? ............................................................... 6
9.    Are There Tax Consequences for Any Money I Might Get? ............................................... 8
10. The Lawyers Representing You and the Class ................................................................... 8
11. Terms and Payments Specific to the Named Plaintiffs........................................................ 9
12. The Fairness Hearing........................................................................................................ 9
13. Getting More Information ................................................................................................. 9

 1.        Purpose of This Notice
 The purpose of this notice is to inform you about: (i) this lawsuit, (ii) the Settlement and
 Settlement Class definition that the Court has preliminarily approved, and (iii) your legal rights
 and options in connection with the Settlement and a hearing to be held before the Court on [date
 of Fairness Hearing], to consider the fairness, reasonableness, and adequacy of the
 Settlement and related matters. This notice also describes the steps to be taken by those who
 wish to be excluded from the Class or to object to the Settlement, and, for those who remain
 in the Class, the steps necessary to seek a share of the Settlement Fund if the Court approves
 the Settlement.

 2.        Background: About the Lawsuit

In 2014, Plaintiffs Carzanna Jones and Heynard Paz-Chow retained Class Counsel to represent them
with respect to their claims of race discrimination in employment against the Consumer Financial
Protection Bureau. On July 25, 2014, Paz-Chow filed an Equal Employment Opportunity (“EEO”)
administrative complaint alleging discrimination and retaliation with the Bureau’s Office of Civil
Rights. On November 12, 2014, Jones filed an EEO administrative complaint alleging
discrimination and retaliation with the Bureau’s Office of Civil Rights, also alleging systemic
discrimination against herself and other similarly situated employees. On September 13, 2018,
Jones and Paz-Chow filed a complaint (the “Complaint”) in the Court to initiate a putative class
action on behalf of themselves and others similarly situated against the Defendants pursuant to 42

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U.S.C. § 2000 et seq., among other claims. This Complaint alleged, among other things, that Blacks
or African Americans and Hispanics employed as Consumer Response Specialists were subjected
to and harmed by the Bureau’s agency-wide discriminatory and retaliatory policies and practices,
including paying the Named Plaintiffs lower wages than non-minority employees because of their
race or color, and discrimination in other terms and conditions of their employment. On December
6, 2018, the Complaint was amended, with leave of Court. The amended complaint describes
Plaintiffs’ claims and can be found at [insert website url]. The lawsuit is known as Jones, et al.
v. Chopra et al., Civil Action No. 18-cv-2132.

The Bureau denied and continues to deny all of the allegations and claims asserted in this
lawsuit, including alleged liability under federal, state, or local anti-discrimination laws, and
denies that the Named Plaintiffs or Class Members are entitled to any relief. The Court has not
made, and will not make, any determination on the merits of this matter or decide who is right
and who is wrong. By entering into the proposed Settlement, the Bureau does not admit any
wrongdoing. The Settlement resolves claims of race and color discrimination, harassment, and
retaliation in terms and conditions of employment, including claims brought or that could have
been brought in the lawsuit under Title VII of the Civil Rights Act of 1964, 42 U.S.C.
§§ 2000e, et seq., as well as state and local anti-discrimination laws.

The Court has reviewed the Settlement and has preliminarily approved it as being fair, adequate,
and reasonable. Before deciding whether to give the Settlement Final Approval, the Court wishes
to inform the Class of the general terms of the Settlement and of the right of Class Members to
comment on, or to opt out of, the Settlement.

 3.     Class Definition
You are a member of the Class affected by the Settlement if you fit within this definition:
       Black, African American, and/or Hispanic employees of the Bureau who, at any time
       between February 13, 2011 and April 19, 2022, served in a non-supervisory
       position(s) that was assigned to the Bureau’s Office of Consumer Response, that
       was in pay bands identified by the Bureau as 4, 4A, 4B, 40, 41, 5, 5A, 5B, 5C, 51,
       52, 53, 6, 6A, or 60, and that was classified by the Bureau as falling within
       occupational job series code 301 (except that service in any of the following
       positions does not make an individual eligible to be a member of the class:
       Consumer Response Implementation Manager (associated with position
       description number 110090), Consumer Response Manager (Quality Control)
       (associated with position description number 111410), Policy Analyst (associated
       with position description number 110210), or Consumer Response Analyst
       (associated with position description number 110770).

If you received this notice in a mailing addressed to you, then the Bureau’s records show that you
are a Class Member, i.e., that you fit the definition above. If so, you have legal rights and
options that you can exercise before the Court finally approves the Settlement.

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 4.     Summary of Settlement Terms
The Bureau has agreed to create a Settlement Fund in the total amount of $6 million. The
Settlement Fund will cover payments to Class Members, service awards to the Named Plaintiffs,
Class Counsel’s attorneys’ fees and costs, employer payroll taxes, and the costs of administering
the Settlement Fund.

The Bureau has also agreed to provide training and information on the rules for making a complaint
of discrimination through the National Treasury Employees Union or through the Equal
Employment Opportunity process.

 5.     How to Proceed: Your Options

Option A: Do Nothing (for Now) and Wait Until the Court Decides on Final Approval of the
Settlement

The Court still must decide whether to grant Final Approval of the Settlement. If you wish to
participate in the Settlement, and do not wish to comment or object, you may do nothing in response
to this Notice and wait for further Notice from the Court. If the Court approves the Settlement, you
will receive a separate Notice advising you of your rights and the process and deadlines by which
you may act to receive a payment from the Settlement Fund.
Option B: Opt Out and Exclude Yourself from the Settlement

If you do not want to participate in the Settlement, but wish to retain your own rights to sue the
Bureau separately for the legal claims covered by this Settlement, you must request to opt out of,
or be excluded from, this Settlement. If you opt out, you will not be eligible for any monetary award
from the Settlement. However, you will keep any rights you might have to sue the Bureau separately
for the legal claims covered by this Settlement. You may not opt out of the programmatic relief of
the Settlement.

If you wish to opt out, you must mail a written, signed statement that you are opting out of the
Settlement to the Claims Administrator, at the address listed below. To be effective, this opt out
statement must be postmarked on or before [forty-five (45) days after the Notice was mailed to
Class Members] and include the following language:

       I hereby opt out of the class action settlement in the lawsuit Jones v. Chopra, Civil
       Action No. 18-2132 in the United States District Court for the District of Columbia.
       I understand that by requesting to be excluded from the monetary settlement in this
       case, I will receive no money from the Settlement Fund created under the
       Settlement Agreement. I understand that I may bring a separate legal action seeking
       damages for claims that I would have released as part of this settlement if I did not
       opt out, but I might receive nothing or less than what I would have received if I had
       filed a claim under the class monetary settlement procedure in this case. I also
       understand that I may not seek exclusion from the class with respect to injunctive
       relief and that I am bound by the injunctive provisions of the Settlement Agreement.

The address of the Claims Administrator is:

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Address
Address
Address
Address

If you submit an opt out, you may rescind your opt out (i.e., you may change your mind and stay in
the Class). To be effective, such rescissions must be submitted in writing and received by the Claims
Administrator by [date], which is one day before the Fairness Hearing on [Fairness Hearing Date].

Class Members who submit timely and valid requests for exclusion will have no right to object to
the monetary relief or related claims resolution process in Court and will no longer be represented
by Class Counsel.

You may not opt out of the programmatic relief to be provided as part of this Settlement.

Option C: Comment On or Object to the Settlement

The Court must assess the overall fairness and reasonableness of the Settlement to the Class. Class
Members who have not opted out may comment on or object to the Settlement’s programmatic
relief and to the monetary relief. Class Members who have opted out may not object to or comment
on the monetary relief, but may object to or comment on the injunctive relief.
In order to have your comment or objection to the Settlement considered by the Court or to speak
at the Fairness Hearing, you must submit a written comment or objection to the Settlement prior
to the Fairness Hearing that includes a detailed description of the basis of the comment or
objection. The objection must state whether it applies only to the objector, to a specific subset of
the Class, or to the entire Class, and also state with specificity the grounds for the objection. You
do not need to be represented by counsel to comment on or object to the Settlement.
Comments or objections must be filed with the Court, with copies served on and sent via e-mail to
Class Counsel and Counsel for the Bureau no later than [45 days after this Notice is mailed].

  The address of Class Counsel is:           The address of counsel for the Bureau is:
  Linda D. Friedman                          Deputy General Counsel for the Office of Litigation
  George S. Robot                            Legal Division
  Stowell & Friedman, Ltd.                   Consumer Financial Protection Bureau
  303 W. Madison, Suite 2600                 1700 G. St. NW
  Chicago, IL 60606-3395                     Washington, DC 20552
  lfriedman@sfltd.com                        cfpb_litigation@cfpb.gov
  grobot@sfltd.com

Only Settlement Class Members who timely file and serve their signed, written objections and
state in writing their intent to appear at the Fairness hearing may appear at the Fairness Hearing.
No one may appear at the Fairness Hearing for the purpose of objecting to the Settlement
Agreement without first having filed and served their objection(s) in writing no later than [45 days

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after this Notice is mailed].

 6.     What Will Happen If the Settlement Is Approved

If you do not opt out, you will remain a part of the Settlement Class and be eligible to seek payment
from the Settlement Fund. The Court will hold the Fairness Hearing and you, as a Class Member,
will be represented by Class Counsel at no cost to you. If the Court gives Final Approval to the
Settlement, you will receive a separate notice called the “Final Notice” advising you of your rights
and the process to receive a payment from the Settlement Fund. This process is described in section
8 of this notice.

 7.     Release
If the Court grants Final Approval of the Settlement, then all Settlement Class Members who do
not opt out will release the Bureau from all employment-related claims of race and color
discrimination, harassment, and retaliation that relate to each Settlement Class Member’s
employment in a position that qualifies for class membership. To “release” a claim means that you
cannot sue the Bureau or related parties for any of the claims covered by the release. Unless you
opt out of the Settlement, you will be covered by the release and lose your claims, even if you do
not submit a Claim Form for a Discretionary Award (discussed further below).

 8.     How Will My Settlement Award Be Calculated?

Each Class Member, including you, will be eligible for a Monetary Award from the Settlement
Fund. There are two types of Monetary Awards, and you will be eligible for both. The Monetary
Awards are called the Time in-Pay Band Award and the Discretionary Award. You do not have to
take action now, and instructions will be included in the Final Notice that will be sent to you if the
Court approves the Settlement Agreement.
Time in Pay Band Award

If the Court approves the Settlement Agreement, you will have to fill out and submit to the Claims
Administrator IRS Form W-4 and/or W-9 in order to receive a Time in Pay Band Award. You do
not need to submit that form until you are instructed to do so in the Final Notice.
The Time in Pay Band Award is calculated based on how long you worked in a particular pay band
between February 13, 2011 and December 31, 2022 while meeting the criteria of the class, meaning
that you (1) were assigned to the Bureau’s Office of Consumer Response, (2) worked in a non-
supervisory position in the 301 job series, (3) were in a pay band identified by the Bureau as 4,
4A, 40, 41, 5, 5A, 52, 53, 6, 6A, or 60, and (4) were not employed as a Consumer Response
Implementation Manager (associated with position description number 110090), a Consumer
Response Manager (Quality Control) (associated with position description number 111410), a
Policy Analyst (associated with position description number 110210), or a Consumer Response
Analyst (associated with position description number 110770)).

The Time in Pay Band Award will be calculated based on the following formula:

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           Payment Per Year in Which                 Pay Band
           Settlement Class Member Met
           Class Definition
           $5,250                                    Pay Bands 4A, 4B, 40, or 41

           $4,500                                    Pay Band 5A or 51

           $4,000                                    Pay Band 5B or 52

           $1,500                                    Pay Band 5C or 53

           $500                                      Pay Band 6 or 60

A Special Master appointed by the Court will determine your Time in Pay Band Award. If after
the Special Master determines your Time in Pay Band Award you believe the amount of your Time
in Pay Band award is incorrect, you may submit a request for correction and any supporting
documentation. The Special Master will review these materials and issue an additional Time in
Pay Band Award if necessary. Aside from this opportunity to submit a request for correction, all
Time in Pay Band Awards are final, binding, and non-appealable and you will not have the right to
challenge the Time in Pay Band Award approved by the Special Master.

Discretionary Award
If the Court approves the Settlement Agreement, you will have to fill out and submit to the Claims
Administrator a Claim Form and IRS Forms W-4 and/or W-9 in order to receive a Discretionary
Award. You do not need to submit this information until you are instructed to do so in the Final
Notice.

A Claim Form must be completed in its entirety, including responding to questions seeking
evidence of alleged (a) race discrimination, (b) retaliation, (c) financial losses, and (d) any
emotional distress. To seek financial recovery for any period after your employment with the
Bureau, you must submit documentary evidence of post-CFPB income and work history, including
employment search history and other efforts to obtain employment. To seek financial recovery for
alleged emotional distress, you must complete the section of the Claim Form regarding emotional
distress and may submit any additional documentation you deem appropriate.

The Special Master appointed by the Court and/or a Neutral that works with the Special Master
will assess your claim and determine a Discretionary Award based on all available information
and the individual facts and circumstances of your claim and all claims submitted by Settlement
Class Members.

Class Counsel will be available to assist Class Members in the claims resolution process. You may
also retain your own attorney to assist you in this process, at your own expense. Your Claim Form
will remain strictly confidential and will be disclosed to only Class Counsel, the Special Master,

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and any Neutral evaluating your claim. Neither your Claim Form nor the contents thereof will be
disclosed to the Bureau.

All Discretionary Awards will be reviewed and approved by the Special Master appointed by the
Court to make sure they are fair and consistent. You will not have a right to challenge the
Discretionary Award approved by the Special Master. All Discretionary Awards are final, binding,
and non-appealable.

 9.     Are There Tax Consequences for Any Money I Might Get?

Yes, any award you receive from the Settlement Fund will have tax consequences for you. The
Special Master will be responsible for allocating any monetary payments appropriately between
different types of income or monetary compensation (e.g., wages, interest, emotional distress). The
Claims Administrator will withhold, remit, and report your share of payroll taxes from the
Settlement Fund based on the W-4 form you fill out. Ultimately, you will be responsible for any
and all individual taxes owed on any Monetary Award.

Class Counsel are not tax advisors and cannot give you advice on any tax matters. Class Counsel
urge you to consult your tax advisor for answers to any questions you may have about the tax
implications of any potential award. The Bureau makes and has made no representations as to the
taxability of any portion of any award you receive from the Settlement Fund.

 10.    The Lawyers Representing You and the Class
As a Settlement Class Member, you are represented in this litigation by Class Counsel:

Linda D. Friedman
George S. Robot
Stowell & Friedman, Ltd.
303 W. Madison, Suite 2600
Chicago, IL 60606-3395
Telephone: (312) 431-0888
lfriedman@sfltd.com
grobot@sfltd.com

Unless you opt out, you will continue to be represented by Class Counsel in connection with
implementation of the Settlement at no cost to you. Although it is not required, you may, if you
wish, retain your own attorney at your own expense.

How Will the Lawyers Be Paid?

Class Counsel have pursued these claims on behalf of the Named Plaintiffs and the Class without
receiving any compensation for their services or reimbursement of the litigation expenses they
incurred. If you are a Class Member and receive an award from the Settlement Fund, you will not
owe any fees or expenses to the lawyers who have represented you as part of the Class. As is
common in class action cases, Class Counsel will ask the Court to award them attorneys’ fees of
not more than 25% of the Settlement Fund, plus reimbursement of their reasonable litigation
expenses. The Court will decide how much to award Class Counsel for fees and expenses, which

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will be paid from the Settlement Fund.

 11.     Terms and Payments Specific to the Named Plaintiffs
Class Members have been represented in this litigation by Named Plaintiffs Carzanna Jones and
Heynard Paz-Chow. The Named Plaintiffs may participate in the Settlement claims process just
like any other Class Member. In addition, Class Counsel will ask the Court to grant service
awards of $50,000 for each of the Named Plaintiffs. Class Counsel will argue that these awards
would recognize the benefits the Named Plaintiffs achieved for the Class, the risks they faced in
bringing the case, and the time they spent pursuing the lawsuit and the Settlement for Class
Members.

 12.     The Fairness Hearing
The Fairness Hearing on the Settlement will be held at _____ a.m./p.m. on _________, 2023, in
the courtroom of the Honorable Beryl A. Howell at the United States District Court for the District
of Columbia, 333 Constitution Avenue NW, Washington, DC 20001. At this hearing, the Court
will determine whether the proposed Settlement is fair, reasonable, and adequate and whether it
should be approved. The Court will also consider the amount of fees and expenses to award to
Class Counsel, the amount of the service awards to grant to the Named Plaintiffs, and whether, in
accordance with the Settlement, an order and judgment should be entered bringing the lawsuit to
an end.

Do I Have to Come to the Fairness Hearing?

No. You are not required to come to the hearing, but you are welcome to come at your own
expense. Class Counsel will appear at the Fairness Hearing on behalf of all Class Members at no
cost to you. If you file and serve an objection by the deadline, you may but do not have to come to
Court to talk about it. If you do not file and serve an objection by the deadline, you cannot object
to the settlement at the Fairness Hearing. As long as you filed your written objection as explained
above, the Court will consider it. You may also hire a lawyer to attend for you, but it is not required.
If the Court gives final approval to this Settlement, the Court’s judgment will be final and binding
on all Class Members who have not timely opted out.

 13.     Getting More Information
If you have further questions, you can get free help at [insert website url], by calling the Claims
Administrator at [number], or by calling or writing to Class Counsel in this case at the contact
number/address listed in section 10.

This Notice contains only a summary of the terms of the Settlement. For further information, the
complete terms of the Settlement Agreement, and numerous other documents connected with the
Settlement, are available for review and/or download at [insert website url].

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Again, the important deadlines are:
Last Day to Opt Out of the Settlement Class: [45 days after mailing notice]
Last Day to Object to the Settlement: [45 days after mailing notice]
Fairness Hearing: [to be set by the Court]

PLEASE DO NOT CALL OR CONTACT THE COURT, THE OFFICE OF THE CLERK
   OF COURT, OR THE CFPB WITH QUESTIONS REGARDING THIS NOTICE.

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