VINCE CHHABRIA, District Judge.
WHEREAS, a purported class action is pending before the Court captioned 4EC Holdings, LLC v. Linebarger Goggan Blair & Sampson, LLP, Case No. 3:14-cv-01944 VC (the "Litigation");
WHEREAS, the Court has received and reviewed the Amended and Corrected Stipulation of Class Action Settlement and Release dated August 18, 2015 (together with its attached exhibits, the "Amended Stipulation") that has been entered into by Plaintiff 4EC Holdings, LLC ("Plaintiff" or "4EC") and Defendant Linebarger Goggan Blair & Sampson LLP ("Defendant" or "Linebarger");
WHEREAS, the Amended Stipulation sets forth the terms and conditions for a proposed settlement of the Litigation (the "Settlement") and for dismissal of the Litigation with prejudice on the terms and conditions specified in the Amended Stipulation;
WHEREAS, Plaintiff made an unopposed application pursuant to Fed. R. Civ. P. 23(e) for an order preliminarily approving the Settlement of this Litigation in accordance with the Amended Stipulation;
WHEREAS, the Court on August 20, 2015, held a hearing to consider whether to grant preliminary approval to the Settlement and to direct that notice be given to the Settlement Class;
WHEREAS, the Court has considered the terms of the Amended Stipulation and the papers and arguments presented by the Parties at the preliminary-approval hearing and finds good cause for entry of this order; and
WHEREAS, all defined terms included in this order (the "Notice Order") not otherwise defined herein shall have the meanings as set forth in the Amended Stipulation;
NOW, THEREFORE, IT IS HEREBY ORDERED:
1. The Court does hereby preliminarily approve the Amended Stipulation and the Settlement set forth in it, subject to further consideration at the Final Fairness Hearing described below.
2. A hearing (the "Final Fairness Hearing") shall be held before this Court at
3. Pursuant to Fed. R. Civ. P. 23, the Court preliminarily certifies, solely for purposes of effectuating the Settlement, a Class of every Person who, during the period February 6, 2002, through September 15, 2013, inclusive, paid money in response to one or more demand letters sent by Linebarger to such Person on behalf of a Client, where the money was paid to extinguish a debt owed by such Person to the Client and Linebarger received a fee for the collection of that debt. For purposes of this Class definition, a Client is any California government entity that retained Linebarger to assist it with the collection of debts owed to such California government entity. Excluded from the Class are those Persons who timely and validly request exclusion from the Class pursuant to the procedures described in the Individual Notice and Detailed Notice appended to this Notice Order and described in Paragraph 5 below.
4. With respect to the Class, this Court preliminarily finds, solely for purposes of effectuating this Settlement, that (a) the Class Members are so numerous that joinder of all Class Members in this Litigation is impracticable; (b) there are questions of law and fact common to the Class that predominate over any individual questions; (c) the claims of 4EC are typical of the claims of the Class; (d) Class Representative and Class Counsel have fairly and adequately represented and protected the interests of all of the Class members; and (e) a class action is superior to other available methods for the fair and efficient adjudication of the controversy, considering: (i) the interests of the Class members in individually controlling separate actions versus their avoiding the expense of prosecuting separate actions; (ii) the extent and nature of any litigation concerning the controversy already commenced by Plaintiff; (iii) the desirability or undesirability of continuing the litigation of these claims in this particular forum; and (iv) the difficulties likely to be encountered in the management of the class action.
5. Subject to technical revisions by the Settlement Administrator to enhance readability and control the costs of postage, the Court approves, as to form and content, the following: (a) the Individual Legal Notice of Class Action Settlement Involving Debt Collection (the "Individual Notice") attached hereto as Exhibit A-1; and (b) the Detailed Legal Notice of Class Action Settlement Involving Debt Collection ("Detailed Notice") attached hereto as Exhibit A-2. The Court further finds that mailing the Individual Notice and posting of Detailed Notice as set forth in Paragraph 6 of this Notice Order meet the requirements of Fed. R. Civ. P. 23 and due process, are the best notice practicable under the circumstances, and shall constitute due and sufficient notice to all Persons entitled thereto.
6. Pursuant to Fed. R. Civ. P. 53(c), the Court appoints Gilardi & Co. LLC as the Settlement Administrator. The Court adopts the following procedures for providing notice to the class:
(f) Not later than
7. All Settlement Class Members shall be bound by all determinations and judgments in the Litigation concerning the Settlement, whether favorable or unfavorable to the Settlement Class.
8. Any Class member who desires to request exclusion from the Settlement Class shall do so within the time set forth and in the manner described in the Individual Notice and Detailed Notice. All potential Class Members who submit valid and timely requests for exclusion in the manner set forth in the Individual Notice and Detailed Notice shall have no rights under the Amended Stipulation, shall not share in the distribution of the Settlement Fund or the Net Settlement Fund, and shall not be bound by the Amended Stipulation or the Judgment entered in the Litigation.
9. Any Class member may enter an appearance in the Litigation, at his, her or its own expense, individually or through counsel of his, her or its own choice. All Class members who do not enter such an appearance will be represented by Class Counsel.
10. Any Class member may appear and show cause why the proposed Settlement should or should not be approved as fair, reasonable and adequate, why a judgment should or should not be entered thereon, or why attorneys' fees and expenses should or should not be awarded to Class Counsel. Any Class member wishing to appear and make such a showing shall file a statement of his, her or its comments and objections regarding the proposed Settlement, together with any supporting papers and briefs, with the Clerk of the United States District Court for the Northern District of California, on or before
11. All funds deposited with the Settlement Administrator and constituting any portion of the Settlement Fund shall be deemed and considered to be in custodia legis of the Court, and shall remain subject to the jurisdiction of the Court, until such time as such funds shall be distributed pursuant to the Amended Stipulation and/or further order(s) of the Court.
12. All papers in support of the Settlement and Class Counsel's initial application for an award of attorneys' fees and expenses ("Fee Application") shall be filed and served on or before
13. Neither Linebarger nor any of its Related Parties shall have any responsibility for or liability with respect to any application for an award of attorneys' fees and expenses that may be submitted by Class Counsel (aside from Linebarger's obligation under the Amended Stipulation to fund the Settlement Fund), or to any allocation of any such award among Class Counsel. Any such application shall be considered separately from the fairness, reasonableness and adequacy of the Settlement.
14. All reasonable expenses incurred in notifying Class members, as well as administering the Settlement, shall be paid as set forth in the Amended Stipulation. In the event the Settlement is not finally approved by the Court, or otherwise fails to become effective, neither Class Representative nor Class Counsel shall have any obligation to repay any amounts actually and properly disbursed from the Settlement Fund for such expenses, as provided in the Amended Stipulation.
15. Neither the Amended Stipulation, nor any of its terms or provisions, nor any of the negotiations or proceedings connected with it, shall be construed as an admission or concession by Linebarger of the truth of any of the allegations in the Litigation, or of any liability, fault or wrongdoing of any kind and shall not be construed as, or deemed to be evidence of or an admission or concession that 4EC or any Class member has suffered any damages, harm or loss.
16. In the event that the Settlement does not become effective in accordance with the terms of the Amended Stipulation, or if the Effective Date does not occur, then this Notice Order shall be rendered null and void to the extent provided by and in accordance with the Amended Stipulation; and the Parties shall be restored to the positions they held in the Litigation as of October 21, 2014, without waiver of any rights, claims, defenses, or arguments they may otherwise have had; and the Parties shall proceed with the Litigation as provided in the Amended Stipulation.
17. The Court retains jurisdiction to consider all further applications arising out of or connected with the proposed Settlement. The Court may approve the Settlement, with such modifications as may be agreed to by the Parties, if appropriate, without further notice to the Class.
A proposed $3.4 million Settlement has been reached in a lawsuit pending in the U.S. District Court for the Northern District of California (the "Court") called 4EC Holdings, LLC v. Linebarger Goggan Blair & Sampson, LLP, Case No. 3:14-cv-01944 VC. This suit involves claims based on debt collection efforts in California by Linebarger Goggan Blair & Sampson, LLP ("Linebarger"). The Settlement will pay $2.0 million in cash directly to Settlement Class Members. If you received this notice in the mail, you might be a Settlement Class Member. If so, the Settlement could affect your legal rights. To learn more, read this notice. For more details, call 1-__________ or visit www. ______.com.
The Plaintiff in this lawsuit claims that Linebarger, a Texas-based law firm that helps various California governmental entities collect debts owed to them, engaged in the illegal practice of law in California or other misconduct by sending letters into California seeking payment of these debts. These were debts owed to California governmental entities, for example, from unpaid taxes, tolls, fines or fees for services (such as court costs or fees for services at a public hospital). Linebarger denies all of Plaintiff's claims and also denies that proposed class members suffered any injury.
The proposed Settlement is between Linebarger and a class of plaintiffs including all Persons who, between February 6, 2002, and September 15, 2013, paid money in response to demand letters sent by Linebarger on behalf of certain California government entities, seeking payment of debts owed to the governmental entities, where Linebarger received fees for collecting the debts.
Linebarger will establish a $3.4 million Settlement Fund, which will be used to make payments to Settlement Class Members, lawyers appointed to represent the Settlement Class ("Class Counsel"), and the Settlement Administrator. The payment to each Settlement Class Member will be approximately 8.36% of the total debt the Class Member paid between February 6, 2002, and September 15, 2003, in response to demand letters sent by Linebarger to collect a debt owed to a California entity. If the Settlement is approved, Payments will be mailed to Settlement Class Members 30 days after it becomes effective. To learn more, call 1-__________ or visit
The proposed Settlement does not mean that Linebarger acted properly or improperly, and the Court has made no such finding.
Making payments under the Settlement will require Linebarger to share with the Settlement Administrator and Class Counsel certain financial information and other personally identifiable information regarding Settlement Class Members. Settlement Class Members will waive all claims against the governmental entities and their agents (including Linebarger) for any violation of their privacy rights under California or federal law relating to this disclosure of such information.
That said, all such personal information will be kept confidential and used only in connection with the distribution of payments to Settlement Class Members. If you have any questions about this issue, call 1-________ or go to
The Court has scheduled a Final Fairness Hearing at ________, on ________, 2015, at the United States District Court for the Northern District of California, 450 Golden Gate Ave., Courtroom 17, San Francisco, CA 94102. At this hearing, the Court will consider the fairness of the proposed Settlement and a request by Class Counsel (including McGrane LLP, shierkatz RLLP, and Coblentz, Patch, Duffy & Bass LLP) for an award of attorneys' fees, costs and expenses. Their initial request will be for $1,230,000 in fees, costs, and expenses. Under circumstances explained in the Detailed Notice, available at
The Court will decide how much fees, costs, and expenses to award to Class Counsel, and all fees, costs, and expenses awarded by the Court will be paid out of the Settlement Fund. You or your own lawyer may ask to appear and speak at the hearing, at your own cost, but you don't have to. If the Settlement is approved, however, it will release Linebarger from liability for the claims alleged in the case. The Settlement Agreement and detailed class notice available at www._____.com explain this fully.
If you don't want to be legally bound by this Settlement, you must exclude yourself by _________,
To learn more, call, go to the website, or write ____________, P.O. Box _____________.
This notice summarizes a proposed Class Settlement in this case, which involves claims based on debt collection efforts in California by Linebarger Goggan Blair & Sampson, LLP. The Settlement will pay cash directly to Class Members. If you are included in the Settlement, your legal rights will be affected whether you act or do not act.
These rights and options —
For the precise terms and conditions of the Settlement, please see the Settlement Agreement available at www.________.com, by contacting Class Counsel at ______, by accessing the Court docket in this case through the Court's Public Access to Court Electronic Records (PACER) system at https://ecf.cand.uscourts.gov, or by visiting the office of the Clerk of the Court for the United States District Court for the Northern District of California, 450 Golden Gate Ave., Courtroom 4, 17
The Court in charge of this case still has to decide whether to approve the Settlement. Money will be distributed only after the Court does so, and after any appeals are resolved. Please be patient.
A Court authorized this notice because you have a right to know about a proposed Settlement in this class action lawsuit and your rights under the proposed Settlement, including the right to receive money, before the Court decides whether to approve the Settlement. If the Court approves the Settlement, and after any appeals are resolved, payments will be made to eligible Settlement Class Members. This notice explains the lawsuit, the Settlement, your legal rights, the benefits available, who may be eligible for them, and how to get them.
Judge Vince Chhabria in the United States District Court for the Northern District of California, San Francisco Division, is overseeing this lawsuit. The case is known as 4EC Holdings, LLC v. Linebarger Goggan Blair & Sampson, LLP, Case No. 3:14-cv-01944 VC. The Plaintiff in this class action lawsuit is 4EC Holdings, LLC ("4EC Holdings"). The Defendant is Linebarger Goggan Blair & Sampson, LLP ("Linebarger").
The Plaintiff in this lawsuit claims that Linebarger, a Texas-based law firm that assists various California governmental entities ("Clients") with collecting debts owed to them, engaged in the illegal practice of law and other misconduct in California by sending letters into California seeking payment of these debts. These debts include amounts owing to governmental entities, for example, from unpaid taxes, tolls, fines or fees for services (such as court costs or fees for services at a public hospital). Plaintiff has also alleged that the letters were misleading, constituted false advertising, and/or otherwise constituted an unfair business practice.
Linebarger has denied all of these claims and maintains that it did not act wrongfully or unlawfully and that class members suffered no injury.
This lawsuit is a class action. In a class action, one or more people called "Class Representatives" (in this case, 4EC Holdings) sue on behalf of others who have similar claims. All these people are considered to be a "Class" or "Class Members." One court resolves the issues for all Class Members, except for those who exclude themselves from the Class.
The Court did not decide in favor of Plaintiff or Linebarger. Instead, after several months of negotiations and a mediation led by Retired United States District Judge Vaughn Walker, both sides agreed to settle. That way, they avoid the cost of a trial, and Class Members have an opportunity to obtain compensation. The Plaintiff and its attorneys think the Settlement is best for all Class Members. The Settlement does not mean that Linebarger did anything wrong.
To see if you can get benefits from this Settlement, you first have to decide if you are a Class Member.
On August __, 2015, Judge Chhabria entered an order granting preliminary approval of the Settlement and certifying the following "Class" for purposes of this Settlement:
For purposes of this Class definition, the term "Client" means any California governmental entity that retained Linebarger to help it collect debts during the Class Period. The Class Period is the period from February 6, 2002, through September 15, 2013.
To represent the class, the Court has appointed Plaintiff 4EC Holdings as Class Representative and its counsel of record, McGrane LLP, shierkatz RLLP, and Coblentz, Patch, Duffy & Bass LLP as Class Counsel. If you want to be represented in this lawsuit by your own attorney, you may hire one at your own expense, and you may appear in this litigation through your own attorney.
Linebarger has agreed not to send written collection communications to California citizens without having at least one active member of the California State Bar as either partner or as a regular salaried employee.
In addition, Linebarger will pay $3,400,000 to create a Settlement Fund, which will be used: (i) to make payments to Settlement Class Members; (ii) to pay certain costs of administering the Settlement, as approved by the Court; (iii) to pay attorneys' fees and expenses to Class Counsel in the amount awarded by the Court; and (iv) to make a charitable contribution on behalf of the Settlement Class to the Public Justice Foundation of Oakland (or another charity selected by the Court), if the Court approves such a contribution.
To be eligible for a payment, you must be a Settlement Class Member.
The Class Member Payment to each Settlement Class Member will be the product of three factors defined in the Settlement Agreement: the Class Member Base defined in paragraph 1.10 of the Settlement Agreement, the Linebarger Fee Percentage (25.05%) defined in paragraph 1.25 of the Settlement Agreement, and the Class Payment Percentage (33.39%) defined in paragraph 1.11 of the Settlement Agreement. Through application of this formula, each Settlement Class Member will be eligible to receive a Class Member Payment equal to 8.36% of the total debt that the Class Member paid between February 6, 2002, and September 15, 2013, in response to one or more demand letters sent by Linebarger to collect a debt owed to a California governmental entity. If, for example, the total debt paid by a Settlement Class Member under such circumstances was $100.00, the Settlement Class Member would be eligible to receive a Class Member Payment of $8.36. To learn more, call 1-________ or visit www.________.com.
If Linebarger's records indicate that you are a Settlement Class Member, you will receive a Class Member Payment about 30 days after the Settlement becomes effective.
Check the website
Settlement Class Payments will be mailed to Settlement Class Members only after the Court grants "final approval" of the Settlement, and any appeals are resolved. If Judge Chhabria approves the Settlement after a hearing on ______,
Unless you exclude yourself, you will remain in the Class. This means that you cannot sue Linebarger over the claims settled in this case. It also means that all of the Court's orders will apply to you and legally bind you. If you stay in the Class, you will receive a Class Member Payment and agree to "release and discharge" Linebarger as described in Sections 1.34-1.36, and VII.3 of the Amended Stipulation of Class Settlement and Release ("Settlement Agreement"). A complete copy of the Settlement Agreement can be obtained at
If you do not want a payment from this Settlement, but you want to keep the right to sue Linebarger about the issues in this case, then you must take steps to get out. This is called excluding yourself from — or is sometimes referred to as "opting out" of — the Settlement.
To exclude yourself from the Settlement, you must complete and return a request for exclusion to the address below in this section. Be sure to include the case number (3:14-cv-01944 VC), your full name, address, telephone number, and your signature. You must mail your request for exclusion postmarked by ________,
You cannot exclude yourself on the phone, by email, or at the website.
No. Unless you exclude yourself, you give up any right to sue Linebarger for the claims that this Settlement resolves. You must exclude yourself from this Class to sue Linebarger over the claims resolved by this Settlement. Remember, the exclusion deadline is _______,
No. If you exclude yourself, you will not receive a payment.
The Court appointed McGrane LLP, shierkatz RLLP, and Coblentz, Patch, Duffy & Bass LLP to represent you and other Class Members as "Class Counsel." You do not have to pay Class Counsel. If you want to be represented by your own lawyer, and have that lawyer appear in court for you in this case, you may hire one at your own expense.
From the inception of this lawsuit to the present, Class Counsel have not received any payment for their services in bringing or prosecuting this case. Nor have they been reimbursed for any out-of-pocket expenses.
If the Court approves the Settlement, Class Counsel will make one or more motions, or "Fee Application(s)," to the Court for awards of attorneys' fees, costs, and expenses to be paid from the Settlement Fund. Class Counsel's initial Fee Application will request an award of $1,230,000 in fees, costs, and expenses. In the event that some Settlement Class Members do not cash their settlement checks and, as a result, cash remains in the Settlement Fund after the deadline for cashing such checks, Class Counsel might file a supplemental Fee Application seeking up to $470,000 in additional fees, costs, and expenses, for a total award of up to $1,700,000 in attorneys' fees, costs, and expenses. Class Counsel's Fee Application(s) may also include an application on behalf of 4EC Holdings for appropriate compensation for its time and effort serving as the Class Representative. Such awards will be paid from the Settlement Fund. Class Counsel's initial Fee Application will be heard at the Court's Final Fairness Hearing described below. If Class Counsel choose to make any supplemental Fee Application(s), such Application(s) will be heard at a later date determined by the Court. The Court will consider Class Counsel's Fee Application(s) separately from the fairness and adequacy of the Settlement to the Settlement Class.
Class Counsel's Fee Application(s) will be based on various factors, including the time and effort already invested in the prosecution of the lawsuit, the benefits obtained for the Class by bringing this lawsuit, as well as the time and effort that will be required of Class Counsel prior to final approval of this Settlement. Linebarger reserves the right to object to the amount of Class Counsel's Fee Application(s).
If you wish to object to the Settlement, you can ask the Court to reject it. You may also object to the Fee Application. The Court will consider your views.
You can ask the Court to deny approval of the Settlement by filing an objection. You cannot ask the Court to order a larger Settlement; the Court can only approve or deny the Settlement. If the Court denies approval, no Settlement payments will be sent out and the lawsuit will continue. If that is what you want to happen, you must object.
Likewise, you may object to the Fee Application. Your objection may address either the request to approve the Settlement, the Fee Application, or both. You may also appear at the Final Fairness Hearing, either in person or through your own attorney. If you appear through your own attorney, you are responsible for paying that attorney.
If you want to appear and show cause why the proposed Settlement should not be approved as fair, reasonable and adequate, why a judgment should or should not be entered thereon, or why attorneys' fees and expenses should or should not be awarded to Class Counsel, you or your attorney must file a statement of your comments and objections regarding the proposed Settlement, together with any supporting papers and briefs, with the Clerk of the United States District Court for the Northern District of California, on or before ______________, 2015, and deliver copies of any such materials to (a) William McGrane, Esq., McGrane LLP, Four Embarcadero Center, Suite 1400, San Francisco, California 94111,
Objecting is telling the Court that you oppose approval of the Settlement and/or the Fee Application. You can object only if you stay in the Class. Excluding yourself is telling the Court that you don't want to be part of the Class. If you exclude yourself, you have no basis to object because the case no longer affects you.
The Court will hold a hearing to decide whether to approve the Settlement. You may attend and you may ask to speak, but you do not have to.
The Court has scheduled a Final Fairness Hearing at _____, on _________,
No. Class Counsel will answer questions that the Judge may have. But, you are welcome to come at your own expense. If you send an objection, you do not have to come to Court to talk about it. As long as you filed and mailed your written objection on time, the Court will consider it. You may also pay your own lawyer to attend, but it is not necessary.
If you submitted an objection to the Settlement and/or the Fee Application and indicated you want to speak at the Final Fairness Hearing, you may ask the Court for permission to speak at the Final Fairness Hearing. You cannot speak at the hearing if you exclude yourself.
If you are a Settlement Class Member and you do nothing, you will receive the Class Member Payment described in paragraph 9, above, and give up the right to sue Linebarger for the Claims resolved in this case.
This notice summarizes the proposed Settlement. More details are in the Settlement Agreement, which is available at www._____________.com. If you have questions, visit the website, or call 1-_________, or write to Class Counsel at P.O. Box ___, ______________.
