SAMUEL CONTI, Senior District Judge.
Plaintiffs Old Comp Inc., RadioShack Corp., Unisys Corp., and ViewSonic Corp. (collectively, the "Movants"), all plaintiffs that had opted out of various settlement classes, now move to retract their exclusion from those settlement classes in order to participate in the settlements. ECF No. 2403 ("Mot."). They "seek to streamline this litigation by including their claims in the direct and indirect purchaser settlement classes in the above-captioned matter, thus avoiding additional costly opt-out actions against the Defendants." The motion is fully briefed, with the Direct Purchaser Plaintiffs ("DPPs") opposing, ECF No. 2417 ("Opp'n"), and the Movants having filed a reply brief, ECF No. 2450 ("Reply"). The Court finds the motion appropriate for decision without oral argument, Civ. L.R. 7-1(b), and DENIES it, as explained below.
The Movants requested exclusion from five different settlements that the DPPs and IPPs entered with five separate groups of defendants. For each settlement, the Court granted preliminary and final approvals, and entered judgments:
Specifically, Old Comp requested exclusion from the Chunghwa IPP settlement class; RadioShack requested exclusion from the Chunghwa IPP settlement class; Unisys requested exclusion from the CPT/Philips, Panasonic, LG, and Toshiba DPP settlement classes; and ViewSonic requested exclusion from all five settlement classes. Mot. at 3 n.1 & Ex. A. There has been no distribution of settlement proceeds yet, so the entire amount of the settlements is held in the Net Settlement Funds until all settlement negotiations have concluded and final distribution is made.
The Movants contend that at this stage, there is no harm in allowing them to withdraw their requests for exclusion, since claims administration has not yet begun, the settlement fund has not yet been distributed to class members, and further settlement negotiations are ongoing. Mot. at 4. They claim that if their motion for exclusion is denied, separate litigation by them against the defendants who have settled will consume more Court resources and require the parties to spend more time and money litigating numerous cases.
Indeed, this Court recently granted a similar motion in the case
The DPPs first contend that the Movants' motion should have been made under Federal Rule of Civil Procedure 60, since the Court has entered judgment in all of the settlements mentioned above. The Movants respond that Rule 60 is inapplicable, because "there is no authority suggesting that administrative opt-out requests are final judgments governed by [Rule 60(b)], nor could they be because letters mailed to the CRT claims administrators did not ultimately dispose of or resolve either the Movants' claims against the settling defendants or any class members' claims." Reply at 2.
Rule 60(b) permits the Court, "on motion and just terms," to relieve a party from a final judgment in the event of (1) mistake, inadvertence, surprise, or excusable neglect; (2) newly discovered evidence; (3) fraud; (4) a void judgment; (5) the satisfaction, release, or discharge of the judgment; or (6) any other reason justifying relief. The DPPs claim that Rule 60(b) governs the Movants' motion because each judgment, entered in the settlements listed above, states that no excluded or opted-out class member is entitled to settlement proceeds. Opp'n at 3 (citing ECF No. 1792 ¶ 5 ("Toshiba J.")). The same warning of exclusion was provided in the notices mailed to class members when the Court approved the preliminary settlements.
The Movants state that court's real concerns in evaluating opt-in requests should be to avoid exploitation and prejudice to the settlement classes. Reply at 3 (citing
The DPPs contend that, first, the Movants have not established that their exclusion from the settlements poses any unfairness to them, particularly since they acted on the advice of experienced counsel. Opp'n at 6. Second, the DPPs argue that the value of the present class members' claims will be diminished if the Motion is granted.
The Movants contend that none of this matters because the DPPs produce "no actual evidence of harm to the class," nor do the DPPs account for the facts that ViewSonic and Unisys did not make any purchases from Philips, or that no defendant has utilized a blow provision. Reply at 4. The Movants state again that they are clear victims of the price-fixing cartel at issue in this case; that their opt-outs were not exploitative; that their inclusion would not prejudice existing class members; that no class member could have relied on the Movants' exclusions because those members had no guarantee that they would have been entitled to the Movants' shares of the settlements; and that granting the Motion would have no effect on other excluded class members' decisions in this case or others.
The Court disagrees with the Movants' equitable arguments. The DPPs have shown the Court that, as expected in a case of this MDL's complexity and age, settlement negotiations and agreements are the products of long negotiations and difficult calculations. They are also, much like a party's decision to opt out of a settlement class, the products of highly skilled, experienced lawyers' reasoned decisions. The Court declines to grant the Movants' motion, because the Court finds that doing so in this particular MDL could up-end the existing settlements and derail those to come. Granting the Motion would encourage uncertainty and disrupt the class action process, though the Court notes that it finds no bad faith or gamesmanship in the Movants' conduct in this case so far. Moreover, the Court is keenly aware of the drain on resources that opt-out cases create. But the Movants consciously chose to pursue separate litigations, and the Court declines to risk the collapse of the parties' careful settlements at this point in the case.
The Movants' Motion is therefore DENIED. These parties are highly encouraged to pursue settlements of their own.