UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

Transcription

1 Case 2:06-cv JLL-MF Document 184 Filed 05/01/15 Page 1 of 12 PageID: 3691 Case 2:06-cv JLL-MP Document Filed 01/23/15 Page 1 of 12 PagelD: 3244 UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY RALPH DEMMICK, on behalf of Civ. Act. No (JLL) himself and all others similarly situated; DONALD BARTH, on behalf of himself and all others similarly situated, V. Plaintiffs, CELLCO PARTNERSHIP, a Delaware General Partnership doing business as Verizon Wireless; and DOES 1 through 10, Defendant. ORDER APPROVING PLAN OF ALLOCATION AND DISTRIBUTION OF THE SETTLEMENT FUND 0

2 Case 2:06-cv JLL-MF Document 184 Filed 05/01/15 Page 2 of 12 PageID: 3692 Case 2:06-cv JLL-MF Document Filed 01/23/15 Page 2 of 12 PagelD: 3245 The Court, having reviewed the Plan of Allocation and Distribution of the Settlement Fund proposed by plaintiffs Ralph Demmick and Donald Barth, individually and in their capacities as the certified Class Representatives, and finding the Plan of Allocation and Distribution of the Settlement Fund to be fair, reasonable and in the best interests of the Settlement Class Members (as defined in the Settlement Agreement and certified in the Preliminary Approval Order and the Final Approval Order), hereby ORDERS, ADJUDGES, and DECREES as follows: DEFINED TERMS 1. The capitalized terms used in this Order Approving Plan of Allocation and Distribution of the Settlement Fund shall have the same meaning as defined in the Settlement Agreement. 2. Cash Component refers to the $36.7 million in cash that was transferred by Verizon Wireless to the court-appointed Settlement Administrator and deposited into an interest earning account, together with all interest earned thereon until the Date of Distribution (as defined herein below). 3. Calling Units Component refers to the $27.5 million in calling units (based upon a conversion ratio of 10 cents per unit for the 275 million total calling units) to be distributed to the In-Network Settlement Class Members by means of personal identification numbers ( PINs ). 1

3 Case 2:06-cv JLL-MF Document 184 Filed 05/01/15 Page 3 of 12 PageID: 3693 Case 2:06-cv JLL-MP Document Filed 01/23/15 Page 3 of 12 PageD: The Cash Component and the Calling Units Component, together, constitute the Settlement Fund in this action. 5. The Settlement Classes consist of: (a) the FSP Settlement Class (as defined in the Settlement Agreement and certified in the Preliminary Approval Order); and (b) the In-Network Settlement Class (as defined in the Settlement Agreement and certified in the Preliminary Approval Order). 6. Date of Distribution refers to the date on which checks andlor PINs are mailed to Settlement Class Members. 7. Settlement Administrator refers to Kurtzman Carson Consultants LLC, the Court-appointed settlement administrator in this action. 8. Net Settlement Fund means the portion of the Settlement Fund that remains for allocation and distribution to the Settlement Classes after the courtordered disbursements in paragraph 10 below. 9. Remaining Cash Component means the portion of the Cash Component that is available for allocation and distribution to the Settlement Classes after the court-ordered disbursements described in paragraph 10 below. COURT ORDERED DISBURSEMENTS 10. Consistent with the orders entered by this Court, the Settlement Administrator shall make the following disbursements from the Cash Component of the Settlement Fund: 2

4 Case 2:06-cv JLL-MF Document 184 Filed 05/01/15 Page 4 of 12 PageID: 3694 Case 2:06-cv JLL-MF Document Piled Page 4 of 12 PageD: 3247 a. $ 19,260,000 in attorneys fees and $352, in expenses shall be disbursed to Class Counsel as set forth in the Court s Order Awarding Attorneys Fees and Expenses to Class Counsel, plus a pro rata share of the interest earned by the Settlement Fund through the date of disbursement; b. $30, in incentive awards shall be disbursed to the Class Representatives as set forth in the Court s Order Granting Incentive Awards to Class Representatives, plus a pro rata share of the interest earned by the Settlement Fund through the date of disbursement; and c. $2,057,647 in fees and expenses incurred or to be incurred by the Settlement Administrator for notice and settlement administration services performed for the benefit of the FSP Settlement Class and the In-Network Settlement Class. ALLOCATION OF THE NET SETTLEMENT FUND 11. The allocation of the Net Settlement Fund as between the FSP Settlement Class and the In-Network Settlement Class shall be as follows: a. After April 29, 2015, which is the deadline for Settlement Class Members to submit claims, the Settlement Administrator shall determine: (i) the total number of FSP Settlement Class Members who are eligible to receive benefits from the Net Settlement Fund; (ii) the total number of In-Network Settlement Class Members who are eligible to receive benefits from the Net Settlement Fund; 3

5 Case 2:06-cv JLL-MF Document 184 Filed 05/01/15 Page 5 of 12 PageID: 3695 Case 2:06-cv JLL-MF Document Fi ed 01/23/15 Page 5 of 12 PagelD: 3248 and (iii) the total number of FSP Settlement Class Members and In-Network Class Members combined who are eligible to receive benefits from the Net Settlement Fund. For purposes of this paragraph, Settlement Class Members eligible to receive benefits are (x) those who are on the Class List provided by Verizon Wireless as set forth in the Settlement Agreement; and (y) those who file timely claims pursuant to the process set forth in the Plan of Allocation and Distribution; in each case provided that the eligible Settlement Class Member did not submit a timely and valid Request for Exclusion as set forth in the Settlement Agreement. b. The Settlement Administrator shall calculate the portion of the Remaining Cash Component to be allocated to the FSP Settlement Class ( FSP Settlement Class Cash Sub Fund ) by multiplying the Remaining Cash Component by a fraction represented by (i)/(iii) from paragraph 11. a. above. The fraction shall be calculated such that each Settlement Class Member who is in both the FSP Settlement Class and the In-Network Settlement Class shall receive two pro rata shares of the Net Settlement Fund. c. The Settlement Administrator shall calculate the portion of the Remaining Cash Component to be allocated to the In-Network Settlement Class ( In-Network Settlement Class Cash Sub Fund ) by multiplying the Remaining Cash Component by a fraction represented by (ii)/(iii) from paragraph 11. a. above. The fraction shall be calculated such that each Settlement Class Member who is in 4

6 Case 2:06-cv JLL-MF Document 184 Filed 05/01/15 Page 6 of 12 PageID: 3696 Case 2:06-cv JLL-MP Document Filed 01/23/15 Page 6 of 12 PagelD: 3249 both the FSP Settlement Class and the In-Network Settlement Class shall receive two pro rata shares of the Net Settlement Fund. d. All $27.5 million of the Calling Units Component shall be allocated to the In-Network Settlement Class. DISTRIBUTION OF THE FSP SETTLEMENT CLASS CASH SUB FUND 12. The FSP Settlement Class Cash Sub Fund calculated under paragraph Ii.b. above shall be distributed to the members of the FSP Settlement Class as follows: a. The Settlement Administrator shall divide the FSP Settlement Class Cash Sub Fund by the total number of eligible FSP Settlement Class Members, as defined in paragraph 11.a above, to yield the FSP Settlement Class Member Cash Benefit Amount, which shall be the same dollar amount for each eligible member of the FSP Settlement Class; b. For all eligible FSP Settlement Class Members who are Distribution Customers as defined in the Settlement Agreement, the FSP Settlement Class Member Cash Benefit Amount shall be distributed to each such eligible FSP Settlement Class Member by Verizon Wireless by means of a bill credit, in accordance with the procedures set forth in Article IV.3 of the Settlement Agreement; and 5

7 Case 2:06-cv JLL-MF Document 184 Filed 05/01/15 Page 7 of 12 PageID: 3697 Case 2:06-cv JLL-MF Document Filed 01/23/15 Page 7 of 12 PagelD: 3250 c. For all eligible FSP Settlement Class Members who are not Distribution Customers, the FSP Settlement Class Member Cash Benefit Amount shall be distributed to each such eligible FSP Settlement Class Member by the Settlement Administrator by means of a check mailed to the last known mailing address of each such eligible FSP Settlement Class Member (which address shall be updated, in the case of FSP Settlement Class Members on the Class List, according to Article V.1). DISTRIBUTION OF THE IN-NETWORK SETTLEMENT CLASS CASH SUB FUND 13. The In-Network Settlement Class Cash Sub Fund calculated under paragraph 11.c. above shall be distributed to the members of the In-Network Settlement Class as follows: a. The Settlement Administrator shall divide the In-Network Settlement Class Cash Sub Fund by the total number of eligible In-Network Settlement Class Members, as defined in paragraph 11.a above, to yield the In Network Settlement Class Member Cash Benefit Amount, which shall be the same dollar amount for each eligible member of the In-Network Settlement Class; b. For all eligible In-Network Settlement Class Members who are Distribution Customers as defined in the Settlement Agreement, the In-Network Settlement Class Member Cash Benefit Amount shall be distributed to each such 6

8 Case 2:06-cv JLL-MF Document 184 Filed 05/01/15 Page 8 of 12 PageID: 3698 Case 2:06-cv JLL-MP Document Piled 01/23/15 Page 8 of 12 PagelD: 3251 eligible in-network Settlement Class Member by Verizon Wireless by means of a bill credit in accordance with the procedures set forth in Article IV.3 of the Settlement Agreement; and c. For all eligible In-Network Settlement Class Members who are not Distribution Customers, the In-Network Settlement Class Member Cash Benefit Amount shall be distributed to each such eligible In-Network Settlement Class Member by the Settlement Administrator by means of a check mailed to the last known mailing address of each such eligible In-Network Settlement Class Member (which address shall be updated, in the case of In-Network Settlement Class Members on the Class List, according to Article V.1). DISTRIBUTION OF CALLING UNITS TO THE IN-NETWORK SETTLEMENT CLASS 14. The $27.5 million Calling Units Component shall be distributed to the members of the In-Network Settlement Class as follows: a. The Settlement Administrator shall determine the total number of In-Network Settlement Class Members eligible to receive calling units, defined as (i) those who are on the Class List provided by Verizon Wireless as set forth in the Settlement Agreement; and (ii) those who file timely claims by April 29, 2015; in each case provided that the eligible Settlement Class Member did not submit a timely and valid Request for Exclusion as set forth in the Settlement Agreement. 7

9 Case 2:06-cv JLL-MF Document 184 Filed 05/01/15 Page 9 of 12 PageID: 3699 Case 2:06-cv JLL-MF Document IZiled 01/23/15 Page 9 of 12 PageD: 3252 b. The Settlement Administrator shall divide the 275 million calling units in the Calling Units Component by the total number of eligible 1n- Network Settlement Class Members, as defined in paragraph 14.a, above, to yield the In-Network Settlement Class Member Calling Unit Amount, which shall be the same number of calling units for each eligible member of the In-Network Settlement Class and which shall be rounded down to the nearest calling unit; c. Each eligible In-Network Settlement Class Members who is on the List as defmed in the Settlement Agreement shall receive the In-Network Settlement Class Member Calling Unit Amount by means of an that conveys: (1) the PIN number needed to access the calling units; (2) how to access and use the calling units; and (3) the ternis and conditions applicable to the use of the calling units; and d. Each eligible In-Network Settlement Class Member who is not on the List shall receive the In-Network Settlement Class Member Calling Unit Amount by means of a sealed postcard mailing that conveys: (1) the PIN number needed to access the calling units; (2) how to access and use the calling units; and (3) the terms and conditions applicable to the use of the calling units. 8

10 Case 2:06-cv JLL-MF Document 184 Filed 05/01/15 Page 10 of 12 PageID: 3700 Case 2:06-cv JLL-MF Document Filed 01/23/15 Page 10 of 12 PagelD: 3253 RETURNED AND/OR UNCASHED SETTLEMENT CLASS MEMBER CHECKS 15. In order to encourage every Settlement Class Member who is the recipient of a cash benefit in the form of a check to promptly cash the check that is received, each such check shall bear the following notation: CASH THIS CHECK PROMPTLY. IT IS VOID IF NOT CASHED BY 90 DAYS AFTER THE DISTRIBUTION DATE. 16. Any check issued to a Settlement Class Member that is returned to the Settlement Administrator as undeliverable or that is not cashed by the Settlement Class Member within ninety (90) days of the Date of Distribution shall be deemed to have been forfeited by the Settlement Class Member. RETURNED AND/OR UNIMSTRIBUTED CALLING UNITS PINS 17. Any calling units PIN sent to Settlement Class Members by as to which the Settlement Administrator receives send failure, bounce-back, or other similar failure notices shall be resent to those Settlement Class Members by mail. Any calling units PIN sent to Settlement Class Members by mail that are returned to the Settlement Administrator as undeliverable shall be deemed to have been forfeited by those Settlement Class Members. 9

11 Case 2:06-cv JLL-MF Document 184 Filed 05/01/15 Page 11 of 12 PageID: 3701 Case 2:06-cv JLL-MP Document RIed Page 11 of 12 PagelD: 3254 FURTHER PROCEEDINGS 18. Within 150 days after the Distribution Date, the Settlement Administrator shall submit a report to the Court setting forth: (a) the total dollar amount of the checks deemed to have been forfeited by Settlement Class Members under paragraph 16 above; (b) the total amount of calling units represented by the PINs deemed to have been forfeited by Settlement Class Members under paragraph 17 above; (c) the total amount of calling units undistributed as a result of the rounding down procedure described in paragraph 14(b) above; and (d) an estimate of the cost of further distribution of these forfeited amounts to the Settlement Class Members. 19. Also within 150 days after the Distribution Date, Class Counsel shall file with the Court a Statement of Recommendation with respect to the further allocation and distribution of: (a) the total dollar amount represented by the checks deemed to have been forfeited by Settlement Class Members under paragraph 16 above; (b) the total amount of calling units represented by the PINs deemed to have been forfeited by Settlement Class Members under paragraph 17 above; and (c) any calling units remaining as a result of the rounding down procedure described in paragraph 14(b) above 20. After considering the report submitted by the Settlement Administrator and the Statement of Recommendation by Class Counsel, the Court 10

12 Case 2:06-cv JLL-MF Document 184 Filed 05/01/15 Page 12 of 12 PageID: 3702 Case 2:06-cv JLL-MF Document Filed 01123/15 Page 12 of 12 PagelD: 3255 shall issue an Order directing the manner of distribution of: (a) the total dollar amount represented by the checks deemed to have been forfeited by Settlement Class Members under paragraph 16 above; (b) the total amount of calling units represented by the PINs deemed to have been forfeited by Settlement Class Members under paragraph 17 above; and (c) any calling units remaining as a result of the rounding down procedure described in paragraph 14(b) above. IT IS SO ORDERED. Dated / Honorable Jose L. Linares United States District Judge 11