COLLEEN KOLLAR-KOTELLY, UNITED STATES DISTRICT JUDGE.
Pending before this Court is Plaintiffs' [218] Motion for Approval of Settlement Notice Program, pertaining to Plaintiffs' proposed settlement with Defendant Southwest Airlines Co. and the [218-1] Memorandum in support thereof; and Plaintiffs' [257] Motion for Approval of Settlement Notice Program, pertaining to Plaintiffs' proposed settlement with Defendant American Airlines, Inc. and the [257-1] Memorandum in support thereof.
In the Plaintiffs' American Motion, Plaintiffs acknowledge that "[t]he Notice Program sought through [the second motion] is in substance the same as that previously proposed in connection with the Southwest Settlement [and] [further,] [t]he notice forms submitted in connection with the Southwest settlement have been revised to include information concerning the American settlement." Pls.' Am. Mot., ECF No. 257, at 1. The Court notes that the two motions submitted by the Plaintiffs are significantly analogous as they discuss the same Notice Program and same arguments in support thereof. Similarly, the Non-Settling Defendants' Response to the American Motion reiterates that "the non-settling Defendants have not refused, and do not object to, providing relevant customer e-mail addresses in their possession [i]f the Court decides that information is necessary to effectuate the "best notice practicable" pursuant to Rule 23(c)(2)(B) and Rule 23(e)(1)...." See Non-Settling Defs.' Am. Resp., ECF No. 263, at 1; see also Non-Settling Defs.' SW Resp., ECF No. 219, at 1. The Non-Settling Defendants estimate however that it may take "up to a month" to retrieve the e-mail addresses. Id.
Accordingly, the issue to be resolved by this Court is a determination of what constitutes the "best notice practicable" under the circumstances of this particular multidistrict litigation. For the reasons explained herein, the Court shall GRANT the Plaintiffs' motions for approval of Settlement Notice Program and order the production of customer e-mail addresses by the Non-Settling Defendants. A separate Order, including a schedule for notice and final approval of the Settlement, accompanies this Memorandum Opinion.
Plaintiffs are purchasers of air passenger transportation for domestic travel directly from Defendants — American Airlines, Inc. ("American"), Delta Air Lines, Inc. ("Delta"), Southwest Airlines Co. ("Southwest"), and United Airlines, Inc. ("United") — or their predecessors and/or through websites including Travelocity.com, Orbitz.com, Priceline.com, Expedia.com, and Flyfar.ca. See Corrected Consolidated Amended Class Action Complaint, ECF No. 184, ¶¶ 11-22. The plaintiffs named in the Complaint include individuals who are residents of various states and the District of Columbia, a non-profit corporation, and a corporation. Id. Plaintiffs define the putative class, with certain exceptions, as: "All persons and entities that purchased air passenger transportation services for flights within the United States and its territories and the District of Columbia from Defendants or any predecessor, subsidiary or affiliate thereof, at any time between July 1, 2011 and the present." Id. ¶ 142. Plaintiffs assert that they do not know the exact number of
The basis of Plaintiffs' lawsuit is Plaintiffs' allegation that Defendants colluded to limit capacity on their respective airlines in a conspiracy to fix, raise, maintain, and/or stabilize prices for air passenger transportation services within the United States, its territories, and the District of Columbia in violation of Sections 1 and 3 of the Sherman Antitrust Act (15 U.S.C. §§ 1, 3), and that Plaintiffs suffered pecuniary injury by paying artificially inflated ticket prices as a result of this purported antitrust violation. Id., ¶¶ 1, 11-22. Defendants filed a motion to dismiss the Plaintiffs' Consolidated Amended Complaint, but that motion was denied by this Court. See Order, ECF No. 123, Memorandum Opinion, ECF No. 124. The Court entered a subsequent Scheduling Order regarding Discovery and Briefing on the Motion for Class Certification, ECF No. 152, and appointed a Special Master to consider and rule upon discovery disputes. See Order Appointing Special Master, ECF No. 154. That Scheduling Order was later amended, see ECF No. 207, and discovery is currently ongoing.
On December 29, 2017, Plaintiffs filed a [196] Motion for Preliminary Approval of Settlement with Southwest Airlines Co., and the Court entered an Order Preliminarily Approving the Settlement with Defendant Southwest. See January 3, 2018 Order, ECF No. 197. In that January 3, 2018 Order, the Court found that "the prerequisites for a class action have been met" and certified for settlement purposes the following Settlement Class:
On June 15, 2018, Plaintiffs filed a [248] Motion for Preliminary Approval of Settlement with Defendant American Airlines, Inc., and the Court entered an Order preliminarily Approving the Settlement with Defendant American. See June 18, 2018 Order, ECF No. 249. In that June 18, 2018 Order, the Court found that "the prerequisites for a class action have been met" and certified a Settlement Class virtually identical to the aforementioned Settlement Class, except that the dates run "between July 1, 2011 and June 14, 2018." See June 18, 2018 Order, ECF No. 249, at 2.
Now pending before this Court are Plaintiffs' two [almost verbatim] motions for approval of the Settlement Notice Program. Plaintiffs move this Court for approval of their proposed Settlement Notice Program, which is intended to advise Settlement Class Members of their rights regarding objecting to the Settlement Agreement and excluding themselves from the Settlement Class, the procedure for submitting such exclusion request; and specifics about the Fairness Hearing and their right to appear at that Hearing. Plaintiffs further request that this Court order the Non-Settling Defendants — Delta and United — to provide Plaintiffs with e-mail
Pursuant to Federal Rule of Civil Procedure 23(e)(1), a district court, when approving a class action settlement, "must direct notice in a reasonable manner to all class members who would be bound by the proposal." Furthermore, "[f]or any class certified under Rule 23(b)(3), the court must direct to class members the best notice that is practicable under the circumstances, including individual notice to all members who can be identified through reasonable effort." Fed. R. Civ. P. 23(c)(2)(B). As the Supreme Court has explained, "Rule 23 instructs the court to `direct to the members of the class the best notice practicable under the circumstances, including individual notice to all members who can be identified through reasonable effort'" in order "[t]o alert class members to their right to `opt out' of a (b)(3) class[.]" Amchem Prods., Inc. v. Windsor, 521 U.S. 591, 617, 117 S.Ct. 2231, 138 L.Ed.2d 689 (1997) (citing Fed. R. Civ. P. 23(c)(2)(B)).
The Due Process Clause also gives unnamed class members the right to notice of a class action settlement but does not require actual notice to all class members who may be bound by the litigation. Fidel v. Farley, 534 F.3d 508, 513-14 (6th Cir. 2008) (citing DeJulius v. New England Health Care Employees Pension Fund, 429 F.3d 935, 943-44 (10th Cir. 2005)). Notice need only be reasonably calculated to reach the class in order to satisfy due process. Peters v. National R.R. Passenger Corp., 966 F.2d 1483, 1486 (D.C. Cir. 1992) (discussing notice by first class mail). Notice of a proposed settlement is adequate and satisfies Rule 23 and due process if it "fairly apprise[s] the prospective members of the class of the terms of the proposed settlement and of the options that are open to them in connection with the proceedings." Wal-Mart Stores, Inc. v. Visa U.S.A., Inc., 396 F.3d 96, 114-15 (2d Cir. 2005). Case 1:15-mc-01404-CKK Document 268 Filed 08/22/18 Page 6 of 13
In the instant case, Plaintiffs have retained Kinsella Media, LLC ("KM") and Shannon Wheatman Ph.D. "to design and implement a comprehensive class notice program." Pls.' Am. Mem., ECF No. 257-1, at 9.
Second, Plaintiffs propose a paid media publication plan whereby they will place advertisements about the proposed settlement in Time Magazine and on a variety of websites, distributions channels, and social media networks, to supplement the direct e-mail notice. Third, Plaintiffs will employ an earned media program, which includes a press release "distributed to PR Newswire's US1 news circuit reaching approximately 15,000 print and online media outlets and more than 5,400 websites, databases, and online services." Pls.' Am. Mem., ECF No. 257-1, at 11. Finally, Plaintiffs will establish a website that enables potential Class Members access to additional information about the settlement and the case, including a toll-free number for further inquiries.
As previously noted, the Non-Settling Defendants do not object to providing customer e-mail addresses if they are given thirty days in which to accomplish this task. The Non-Settling Defendants note however that "extensive physical mailing address information [is] also available in the non-settling Defendants' transactional data, much of which has already been produced to Plaintiffs[,]" although Plaintiffs counter this statement with their assertion that "the non-settling Defendants have produced very little residential contact information." See Non-Settling Defs.' SW Resp., ECF No. 219, at 1; Pls' SW Reply, ECF No. 225, at 6.
The Non-Settling Defendants assert that at least for Delta, the proposed e-mail notice may reach fewer passengers than notice by mail. The Non-Settling Defendants suggest that the best notice practicable may be a combination of e-mail and traditional mail notice, with no reference to any difference in costs associated with e-mail versus traditional mail and how it will affect the total settlement fund. In contrast,
Pls.' SW Reply, ECF No. 225, at 5 (internal citation omitted); see Wheatman Decl., ECF No. 218-2, ¶ 18. The total settlement corpus was $15 million based on the Plaintiffs' settlement with Southwest, but it is now closer to $60 million based on Plaintiffs' settlement with American for $45 million. See Memorandum in support of Motion for Preliminary Approval of Settlement with Defendant American, ECF No. 248-1, at 2.
The Non-Settling Defendants rely on Eisen v. Carlisle & Jacquelin, 417 U.S. 156, 176, 94 S.Ct. 2140, 40 L.Ed.2d 732 (1974) for the proposition that individual notice to identifiable class members is an unambiguous requirement of Rule 23, and further, that such notice need not be "tailored to fit the pocketbooks of particular plaintiffs." Defendants' reliance on Eisen
Plaintiffs contend that courts commonly approve notice programs providing for e-mail notice and in support of this contention, they cite Levine v. Am. Psychological Ass'n, (In re APA Assessment Fee Litig.), 311 F.R.D. 8, 13 (D.D.C. 2015) (involving a class or 75,000 people, where e-mail notice was utilized for 51,000 people and traditional mail notice for the rest); In re Livingsocial Mktg. & Sales Practice Litig., 298 F.R.D. 1, 8 (D.D.C. 2013) (involving a class of 10.9 million persons contesting gift certificates sold via the internet, in which notice was given through e-mail); and In re Sony PS3 "Other OS" Litig., Case No. 10-cv-01811-YGR, 2017 WL 5598726 (N.D. Cal. Nov. 21, 2017) (involving breach of contract claims by purchasers of computer entertainment consoles, where dissemination of settlement information was to be completed by giving notice "to Class Members via email for those Class members for whom an email address is available").
The type of notice to which a class member is entitled "depends upon the information available to the parties about that person." In re Pool Products Distrib. Market Antitrust Litig., 310 F.R.D. 300, 317 (E.D. La. 2016) (citing In re Nissan Motor Corp. Antitrust Litig., 552 F.2d 1088, 1098 (5th Cir. 1977)). "[N]o
In an effort to determine if notification through a combination of e-mail and publication constitutes the best notice practicable in this case involving an estimated 84-153 million prospective members of the class and a settlement corpus that now stands at $60 million, the Court asked the Non-Settling Defendants to indicate what percentage of their airline reservations are completed using the Internet. See April 16, 2018 Minute Order. American Airlines and Non-Settling Defendants Delta and United estimated that for all three airlines, for the period 2011-2017, the majority of domestic airline travel was booked online using the airline's website or an online travel agent.
April 16, 2018 Minute Order. Southwest responded that "approximately 89% of [its] reservations are made over the internet" and it "has postal addresses for approximately 90% of purchasers." See Southwest's Resp. to the Court's April 16, 2018 Minute Order, ECF No. 227, at 2.
Pursuant to a Minute Order dated April 25, 2018, the Court requested that Plaintiffs respond to the following question:
April 25, 2018 Minute Order. The Plaintiffs responded by estimating the cost of e-mail notification and publication based on three difference scenarios: (1) assuming they only had the Southwest customer e-mails already in their possession, which would necessitate a broader range of publication; (2) assuming they had additional e-mail addresses, which would allow a more narrow scope of publication; and (3) assuming they had virtually all the e-mail addresses in the Non-Settling Defendants' possession,
For the foregoing reasons, the Court shall GRANT Plaintiffs' Motions for Approval of Settlement Notice Program, and the Non-Settling Defendants will be permitted thirty days in which to compile and provide the relevant customer e-mail addresses to the Plaintiffs. A separate Order accompanies this Memorandum Opinion.