NOTICE OF CLASS ACTION SETTLEMENT Mirkarimi v. Nevada Property 1 LLC dba The Cosmopolitan of Las Vegas S.D. Cal. Case No. 12-cv BTM (DHB)

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1 NOTICE OF CLASS ACTION SETTLEMENT Mirkarimi v. Nevada Property 1 LLC dba The Cosmopolitan of Las Vegas S.D. Cal. Case No. 12-cv BTM (DHB) PLEASE READ THIS NOTICE CAREFULLY. THIS NOTICE CONTAINS IMPORTANT INFORMATION ABOUT A PROPOSED CLASS ACTION SETTLEMENT. YOUR RIGHTS MAY BE AFFECTED BY THIS SETTLEMENT. The purpose of this Notice is to inform you about a proposed settlement ( Settlement ) of a class action lawsuit that is pending in the United States District Court for the Southern District of California (the Court ). The lawsuit is called Mirkarimi v. Nevada Property 1 LLC dba The Cosmopolitan of Las Vegas, S.D. Cal. Case No. 12-cv BTM (DHB) (the Lawsuit ). This Notice will explain: (1) what the Lawsuit is about; (2) the main terms of the Settlement; and (3) your rights and options under the Settlement. A full version of the Settlement Agreement is available at the following website: (the Website ). To receive money under the Settlement, you must fill out and return a Claim Form on or before November 23, If you do not return a Claim Form by this deadline, you will not receive money under the Settlement. I. What the Litigation is About The plaintiff in the Lawsuit, Sasan Mirkarimi ( Plaintiff ), claims that the defendant, Nevada Property 1 LLC dba The Cosmopolitan of Las Vegas ( The Cosmopolitan ) recorded certain telephone calls received from or placed to persons in California in violation of California law. The Cosmopolitan denies this claim. The Lawsuit is brought on behalf of the following class ( Class ): All natural persons who, while physically present in the State of California, either: (a) placed a telephone call to The Cosmopolitan between July 12, 2011 and August 3, 2012 that was recorded by The Cosmopolitan; or (b) received a telephone call from The Cosmopolitan between July 12, 2011 and February 20, 2015 that was recorded by The Cosmopolitan. Excluded from the Class are all employees of The Cosmopolitan, all attorneys and employees of plaintiff s counsel, the judicial officers to whom the Lawsuit is assigned and each such judicial officer s spouse, minor children, and court staff, and any person, or the spouse of a person, who is within a third degree of relationship to such judicial officer or to the judicial officer s spouse. The parties have exchanged detailed information about the claims, defenses, and alleged damages in the Lawsuit. After lengthy settlement negotiations overseen by an independent mediator, the parties have reached a proposed Settlement. Plaintiff and his counsel believe that the Settlement is fair, reasonable, and in the best interests of the Class Members. In entering into Questions? Please Call: 1 (888)

2 the Settlement, The Cosmopolitan denies any and all allegations of liability, fault, or wrongdoing asserted in the Lawsuit. On August 24, 2015, the Court preliminarily approved the Settlement, certified the Class for settlement purposes only, appointed the law firm of Dostart Clapp Hannink & Coveney, LLP as counsel for the Class ( Class Counsel ), appointed Plaintiff as representative of the Class, and authorized the parties to provide this Notice to the Class. II. The Main Terms of the Settlement Subject to Court approval, the main terms of the Settlement are as follows: 1. Settlement Amount. The Cosmopolitan will pay the total amount of Fourteen Million, Five Hundred Thousand Dollars ($14,500,000) (the Settlement Amount ), plus any post judgment interest accrued on the Settlement Amount pursuant to 28 U.S.C The Settlement Amount will be used to pay the claims of the Class Members who return timely and valid Claim Forms, as well as the attorneys fees and litigation expenses of Class Counsel, a service payment to the Plaintiff, and the costs of claims administration. 2. Change in Business Practices. For a period of at least three (3) years following approval of the Settlement, The Cosmopolitan will not record a telephone call with any person who is using a telephone number with a California area code without first informing the person at the outset of the call that the call may be recorded. 3. Applicable Class Period. For purposes of the Settlement, the Applicable Class Period is: (a) for calls that were made by Class Members to The Cosmopolitan, the period between July 12, 2011 and August 3, 2012; or (b) for calls that were made by The Cosmopolitan to Class Members, the period between July 12, 2011 and February 20, Eligibility for Payment. In order to receive a settlement payment, Class Members must complete and return a Claim Form by the deadline set forth in Section III.1 below and their claim must be approved by the Claims Administrator. A claim will be approved only if the Claims Administrator determines, based on information provided by the Class Member as well as The Cosmopolitan s records, that the Class Member placed a telephone call to, or received a telephone call from, The Cosmopolitan on a line that was subject to recording while the Class Member was physically present in California during the Applicable Class Period. The Claims Administrator will notify each claimant by postcard whether his or her Claim Form has been approved. 5. Settlement Payments. After deduction of Court-approved attorneys fees, litigation expenses, the service payment to the Plaintiff, and the fees and costs of claims administration, the remaining amount (the Net Settlement Amount ) will be divided equally between the Class Members who return timely and valid Claim Forms ( Participating Class Members ). IRS regulations concerning tax withholding will be followed. The amount of the settlement payment to be received by each Participating Class Member depends on both the Net Settlement Amount and the number of Participating Class Members. Based on the terms of settlement, it appears likely that the Net Settlement Amount Questions? Please Call: 1 (888)

3 will be approximately $10,000,000 (although the actual amount could be more or less than that). For illustrative purposes, if the Net Settlement Amount were $10,000,000, and if there are 20,000 Participating Class Members, each Participating Class Member would receive $500; if there are 40,000 Participating Class Members, each Participating Class Member would receive $250. These figures are for illustrative purposes only. The actual payment could be higher or lower depending on the final Net Settlement Amount and the number of Participating Class Members. 6. Attorneys Fees, Litigation Expenses, and Service Payment. From the Settlement Amount, Class Counsel will request an award of attorneys fees of up to thirty percent (30%) of the Settlement Amount, plus up to $150,000 in out-of-pocket expenses incurred on behalf of the Class. In addition, Class Counsel will ask the Court to award up to $30,000 from the Settlement Amount to Plaintiff as a service payment for prosecuting the Lawsuit on behalf of the Class. 7. Release. Class Members who do not exclude themselves from the Settlement will be deemed to release all of the claims described in Section IV below. 8. Cy Pres. Following the date settlement checks are mailed by the Claims Administrator, Participating Class Members will have 120 days to cash the settlement check. Any check that is not cashed within that period will be void. Any portion of the Net Settlement Amount that remains unpaid at the end of that period will be distributed 50% to Consumer Federation of California and 50% to San Francisco Consumer Action. III. Your Rights and Options under the Settlement You have four options under the Settlement. You may: (1) claim your share of money under the Settlement; (2) exclude yourself from the Settlement; (3) object to the Settlement; or (4) do nothing. 1. To Claim Money under the Settlement. A. If you received a green, pre-printed Claim Form, all you need to do to make a claim is sign the Claim Form under penalty of perjury and return it to the Claims Administrator via the Website, U.S. mail, or . The deadline for returning the Claim Form is November 23, If you miss this deadline, you will not receive any money under the Settlement, but you will be bound by the other terms of the Settlement if you do not opt out of the Settlement. The Claims Administrator s contact information is as follows: Nevada Property 1 Settlement c/o CPT Group Inc Aston Irvine, CA Tel.: 1 (888) Questions? Please Call: 1 (888)

4 B. If you did not receive a green, pre-printed Claim Form, you must complete a blank Claim Form, sign it under penalty of perjury, and include on that Claim Form the telephone number(s) that you used to place calls to, or receive calls from, The Cosmopolitan during the Applicable Class Period (defined in Section II.3 above). To increase the likelihood that your Claim Form will be approved by the Claims Administrator, you should also include with your Claim Form any telephone bills or other documents that show your calls to or from one of the following Cosmopolitan numbers during the Applicable Class Period: The Claims Administrator will review your Claim Form, your telephone number(s), and any telephone bills or other documents you have submitted and compare that information against The Cosmopolitan s records to determine whether you are eligible for a settlement payment. The Claims Administrator will notify you by postcard whether your claim has been approved. The Claim Administrator s decision in this regard will be final. The deadline for returning the Claim Form and any telephone bills or supporting documents to the Claims Administrator via the Website, U.S. mail, or is November 23, If you miss this deadline, you will not receive any money under the Settlement, but you will be bound by the other terms of the Settlement if you do not exclude yourself from the Settlement. 2. To Exclude Yourself from the Settlement. If you wish to request exclusion from the Settlement, then on or before November 23, 2015, you must send, via U.S. mail or , a letter to the Claims Administrator at the address listed in Section III.1.A above. The letter must contain the following: (1) the name of the Lawsuit (Mirkarimi v. Nevada Property 1 LLC dba The Cosmopolitan of Las Vegas, S.D. Cal. Case No. 12-cv BTM (DHB)); (2) your name; (3) your address; (4) the telephone number(s) you used to place calls to, or receive calls from, Cosmopolitan during the Applicable Class Period; (5) the following statement: I declare under penalty of perjury that, to the best of my knowledge, I placed a telephone call to, or received a telephone call from, The Cosmopolitan during the Applicable Class Period while I was physically present in California, but I wish to exclude myself from the Settlement ; and (6) your signature. Questions? Please Call: 1 (888)

5 If you do not request exclusion in the manner described above, your request for exclusion will not be valid, and you will be bound by the terms of the Settlement, including the release of claims described in Section IV below. 3. To Object to the Settlement. If you wish to object to the Settlement, then on or before November 23, 2015, you must file a written objection with the United States District Court for the Southern District of California, 333 West Broadway, Suite 420, San Diego, CA ATTN: Clerk of Court. The objection must explain the basis for your objection and you must serve copies of your objection on the following attorneys: CLASS COUNSEL James F. Clapp James T. Hannink Zach P. Dostart Dostart Clapp Hannink & Coveney, LLP 4370 La Jolla Village Dr. Ste. 970 San Diego, CA Tel.: (858) Fax: (858) COUNSEL FOR THE COSMOPOLITAN Angela C. Agrusa Allen P. Lohse David B. Farkas Liner LLP 1100 Glendon Ave., 14 th Floor Los Angeles, CA Tel.: (310) Fax: (310) Any objection must include: (1) the name of the Lawsuit (Mirkarimi v. Nevada Property 1 LLC dba The Cosmopolitan of Las Vegas, S.D. Cal. Case No. 12-cv BTM (DHB)); (2) your name; (3) your address; (4) the telephone number(s) you used to place calls to, or receive calls from, The Cosmopolitan during the Applicable Class Period; (5) the following statement: I declare under penalty of perjury that, to the best of my knowledge, I placed a telephone call to, or received a telephone call from, The Cosmopolitan during the Applicable Class Period, and I wish to object to the settlement ; and (6) your signature. You must also explain the legal and factual basis for your objection. If you do not object in the manner described above, you will be deemed to have waived any and all objections to the Settlement, including without limitation the definition of the Class, the scope of the release, and Class Counsel s request for attorneys fees, litigation expenses, and the service payment to the Plaintiff. If you intend to object to the Settlement but also wish to receive your share of the Settlement if it is approved by the Court, you must also submit a timely and valid Claim Form as explained above. YOU MAY NOT SUBMIT BOTH A CLAIM FORM AND A LETTER REQUESTING TO OPT OUT OF THIS SETTLEMENT. 4. If You Do Nothing. If you do nothing, you will not receive any money under the Settlement, but you will be bound by the terms of the Settlement, including the release of claims described in Section IV below. Questions? Please Call: 1 (888)

6 IV. Release of Claims If the Settlement is approved by the Court, and regardless of whether they have submitted Claim Forms to participate in the distribution of the Settlement Amount, the Class Members (other than the Class Members who have properly excluded themselves), on behalf of themselves, and each of their respective heirs, representatives, successors, assigns, trusts, executors, and attorneys, are deemed to release and discharge The Cosmopolitan, and each of The Cosmopolitan s past and present officers, directors, employees, shareholders, members, partners, agents, representatives, predecessors, successors, parents, subsidiaries, affiliates, assigns, insurance companies, and attorneys, from any and all claims during the Applicable Class Period arising from the facts alleged in the Lawsuit, or which could have been alleged based on the facts pled in the Lawsuit, including all claims for violation of California Penal Code sections 632, 632.7, and V. Final Approval Hearing The Court will hold a hearing on January 4, 2016 at 11:00 a.m. to determine whether the Settlement should be finally approved and to rule on Class Counsel s motion for attorneys fees, litigation expenses, and the service payment to the Plaintiff. The Court is located at 333 West Broadway, Courtroom 15B, San Diego, CA The hearing may be continued without further notice. YOU ARE NOT REQUIRED TO ATTEND THE HEARING, BUT YOU MAY IF YOU CHOOSE. VI. For More Information This Notice contains only a summary of the terms of the proposed Settlement. You may view the Settlement Agreement and other important documents on the Website. You may also review the pleadings and other papers filed in the Lawsuit at the Court s Business Office, located at 333 West Broadway, Suite 420, San Diego, CA If you have additional questions about the Settlement, please contact Class Counsel. Their contact information is below. PLEASE DO NOT CONTACT THE COURT ABOUT THIS NOTICE. CLASS COUNSEL Dostart Clapp Hannink & Coveney, LLP 4370 La Jolla Village Dr. Ste. 970 San Diego, CA Tel: (858) Fax: (858) Questions? Please Call: 1 (888)

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