NOTICE OF PROPOSED CLASS ACTION SETTLEMENT

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1 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK x : IN RE CANON INKJET PRINTER LITIGATION : No. 2:14-cv-3235-LDW-SIL : x NOTICE OF PROPOSED CLASS ACTION SETTLEMENT A settlement of a proposed class action lawsuit has been reached with Canon U.S.A., Inc. ( Canon USA ), concerning certain models of Canon-brand inkjet printers which are listed below. The individual plaintiffs who commenced the lawsuit claim that such printers suffer from a Print Head Issue, that is, an issue involving the print head installed in the printer and/or related to a UO52 error message displayed by the printer. Canon USA denies the claim and asserts that the printers are not defective in any manner. The proposed settlement would entitle eligible Settlement Class Members (as defined below) to receive certain benefits described in this Notice. You may qualify as a Settlement Class Member if you purchased (1) in new condition from either Canon USA or one of its authorized Printer resellers, or (2) in refurbished condition directly from Canon USA, one or more of the following models of Canon-brand inkjet printers: ip3600 ip4700 ip4820 ip4920 ix6520 ix7000 MG5120 MG5220 MG5320 MG6120 MG6220 MG8120 MG8220 MP500 MP530 MP560 MP600 MP610 MP620 MP640 MP730 MP800 MP960 MP970 MP990 MX700 MX712 MX850 MX860 MX870 MX882 MX892 MX7600 PRO9000MKII PRO9500MKII These models include all models that are derivatives of the models listed above, which are signified by a suffix following the model numbers listed above. The models covered by the Settlement are collectively referred to in this Notice as the Printers. If you are a Settlement Class Member, your rights are affected whether or not you take any action. These rights, and your options, as well as the deadlines to exercise them, are explained below. What is the Purpose of This Notice? This Notice explains the class action lawsuit, the terms of the settlement of that lawsuit (which are referred to in this Notice as the Settlement ); Settlement Class Members legal rights and ability to obtain benefits from the Settlement; and Settlement Class Members options concerning the Settlement. If the Court grants final approval to the Settlement, Settlement Class Members who are eligible to receive a

2 benefit, and who follow the procedures described below for the submission of timely and valid claims for benefits, shall be entitled to receive the benefit they have chosen. The court in which this lawsuit is pending is the United States District Court for the Eastern District of New York, situated in Central Islip, New York. The lawsuit, which is entitled In re Canon Inkjet Printer Litigation, Case No. 2:14-cv-3235 (LDW), is pending before United States District Judge Leonard D. Wexler. The three (3) consumers who commenced the lawsuit are referred to in this Notice as the Plaintiffs. The Plaintiffs sued a single defendant, Canon USA. In a class action lawsuit, one or more plaintiffs assert claims on behalf of other people who may have similar claims. All of such people are collectively referred to as a class and, for purposes of this Notice, all of the persons comprising the class on whose behalf the Plaintiffs brought their claims are referred to as the Settlement Class or Settlement Class Members. A class action lawsuit, like this one, resolves issues on behalf of all Settlement Class Members, except for those who request to be excluded from the Settlement Class. Plaintiffs and Canon USA have reached a Settlement to resolve the lawsuit. The Court has preliminarily approved the Settlement and, if the Settlement is finally approved, Settlement Class Members may be entitled to benefits as described below. If the Court issues a final approval of the Settlement, the lawsuit will be dismissed with prejudice, and the Settlement Class Members will be bound by the Settlement and the accompanying dismissal and releases, and such Settlement Class Members will no longer have the right to assert legal claims against Canon USA relating to the subject matter of the lawsuit. What is the Background of the Class Action Lawsuit? Canon USA is the exclusive distributor in the United States of Canon-brand products, including the Printers. In 2014, the Plaintiffs filed several lawsuits against Canon USA that were all based upon the contention that a defect existed in the Printers relating to a component called a print head. The Print Head Issues asserted by the Plaintiffs included, among other things, the appearance of a message stating UO52 Print Head Error on the display panel of the Printers. In their lawsuits, the Plaintiffs asserted various legal claims against Canon USA on behalf of themselves, and on behalf of other consumers who had purchased the Printers, based upon the alleged existence of a Print Head Issue involving the Printers. These lawsuits were consolidated into a single action before United States District Judge Leonard D. Wexler in the United States District Court for the Eastern District of New York, entitled In re Canon Inkjet Printer Litigation. The Court appointed the law firms of Federman & Sherwood and Chimicles & Tikellis LLP as interim co-lead counsel for the Plaintiffs. Canon USA denied, and continues to deny, that there is any defect in the Printers, or that the Plaintiffs have legitimate legal claims against it. The Court has not ruled on any of the Plaintiffs claims against Canon USA. Over the course of several months, attorneys for the Plaintiffs and Canon USA negotiated a resolution of the dispute in order to avoid the expense and risk of further litigation. In connection with such negotiations, Canon USA voluntarily provided to the Plaintiffs extensive data and other information relating to the Printers. The parties thereafter agreed to the Settlement, pursuant to which all of the claims asserted in the lawsuit are to be resolved. 2

3 On June 24, 2015, the Court issued an order preliminarily approving the Settlement, and directing the parties to take various steps prior to a further hearing at which the Court will determine whether to enter a final order and judgment approving the Settlement. The publication of this Notice is one of the steps which the Court directed the parties to take. It is the view of the Plaintiffs and their attorneys that the Settlement is in the best interest of the Settlement Class Members. What is the Settlement Class? The Settlement Class Members include all persons who purchased either (1) in new condition from either Canon USA or one of its authorized Printer resellers, or (2) in refurbished condition directly from Canon USA, one or more of the following models of Canon-brand inkjet printers: ip3600 ip4700 ip4820 ip4920 ix6520 ix7000 MG5120 MG5220 MG5320 MG6120 MG6220 MG8120 MG8220 MP500 MP530 MP560 MP600 MP610 MP620 MP640 MP730 MP800 MP960 MP970 MP990 MX700 MX712 MX850 MX860 MX870 MX882 MX892 MX7600 PRO9000MKII PRO9500MKII These models include all models that are derivatives of the models listed above, which are signified by a suffix following the model numbers listed above. If you purchased one or more of the listed models in the condition described above from a seller as defined above, you may be a Settlement Class Member, unless you take steps to exclude yourself from the Settlement Class by opting-out in the manner described in this Notice. Settlement Class Members who do not exclude themselves will be bound by the Settlement if it is finally approved by the Court, and will be barred from pursuing another legal action concerning the subject matter of the lawsuit. Settlement Class Members who exclude themselves from the Settlement Class will neither benefit from, nor be bound by, the Settlement. If you have purchased a Canon-brand inkjet printer that is NOT one of the models listed above, you are NOT a member of the Settlement Class and you will neither benefit from, nor be bound by, the Settlement; provided, however, that if you separately purchased one of the models listed above, you will be a Settlement Class Member unless you take steps to exclude yourself (as set forth above). What Are the Settlement Benefits? Eligible Settlement Class Members may be entitled to benefit from the terms of the Settlement in two ways: 1. Warranty Extension 3

4 For Print Head Issues only, Canon USA has agreed to extend for nine (9) months the term of the express, limited one-year written warranty that it provides for the Printers. This means that, for a period of nine (9) months subsequent to the expiration of the one-year term of Canon USA s express warranty for your Printer, the terms of that warranty shall apply with respect to a Print Head Issue experienced by your Printer. In other words, for Print Head Issues, the term of the written warranty provided to you by Canon USA for your Printer will now expire nine (9) months from the date that the original, one-year period of the warranty would have expired. 2. Cash Payment or Voucher Settlement Class Members who are deemed eligible to receive a benefit from the Settlement, in accordance with the terms and conditions described in this Notice, shall have a choice of two possible benefits: (a) a cash payment of up to fifty dollars ($50.00); or (b) a voucher valued at up to seventy-five dollars ($75.00), redeemable at the online Canon store ( There is no limit on the number of cash payments or vouchers that may be claimed by Settlement Class Members pursuant to the Settlement. However, the total dollar value of all such cash payments and vouchers will not exceed the sum of $930, (the Settlement Fund ). If the Settlement Fund is not sufficient to disburse the entire dollar value of all cash payments and vouchers claimed by eligible Settlement Class Members, the Settlement Fund will be disbursed on a pro rata basis. This means that the amount of each cash payment and/or voucher will be reduced equally by the same percentage amount, so that the total dollar value of the combination of all such cash payments and vouchers do not exceed $930, In other words, it is possible that, if the number of eligible Settlement Class Members claiming a benefit brings the total dollar value of all such benefits above $930,000.00, the dollar value of each such benefit will be reduced by an equal percentage, so that the total dollar value of the benefits does not exceed $930, As a result, it is possible, though not certain, that each cash payment claimed by an eligible Settlement Class Member ultimately may total less than $50.00, and each voucher claimed by an eligible Settlement Class Member ultimately may be valued at less than $ How Do I Submit a Claim to Receive a Settlement Benefit? To receive a cash payment or voucher, (1) you must submit a completed Claim Form and supporting documentation prior to the deadline for submissions, (2) you must be deemed eligible to receive such a benefit, and (3) the Court must finally approve the Settlement. Completed Claim Forms and supporting documentation must be submitted to Angeion Group, which has been designated by the Court to administer the claims process (Angeion Group is referred to in this Notice as the Claim Administrator ). All such submissions must be made on or before December 7, Untimely submissions will be rejected. To be timely, a submission must be either sent by or fax, or submitted through this website, on or before December 7, 2015 or, if submitted by regular mail, it must be postmarked no later than December 7, You can access a Claim Form by clicking this link: You may complete the Claim Form online and submit it through this website, or you can download the Claim 4

5 Form, complete it, and submit the Claim Form and the documentation required to be submitted with the Claim Form (which is more fully described below) to the Claims Administrator via fax, or mail: Fax: (215) Mail: Canon Inkjet Printer Settlement c/o Angeion Group 1801 Market Street, Suite 660 Philadelphia, PA The Claim Form requires you to provide certain information concerning, among other things, the purchase of your Printer and any Print Head Issue that your Printer experienced. Please be careful to read and follow all of the instructions on the Claim Form. In addition, in order to be deemed eligible for a benefit from the Settlement, you will be required to submit with your completed Claim Form the following information: (1) Proof of your purchase of your Printer: A copy of an invoice, receipt or other documentation reflecting the purchase of your Printer. If Canon USA s records reflect that you registered your Printer with Canon USA at the time of purchase (and, in any event, prior to February 18, 2015), you are excused from this requirement. However, you still will be required to provide proof satisfying the second requirement below; and (2) Proof that you incurred an out-of-pocket expense for the specific purpose of remedying a Print Head Issue: A copy of an invoice, receipt or other documentation reflecting that (a) (b) you paid to have your Printer repaired to resolve a Print Head Issue; or you purchased a new print head or a replacement printer because of a Print Head Issue experienced by your Printer. If Canon USA has a record that you sent an or called Canon USA about a Print Head Issue before February 18, 2015, and you have incurred an outof-pocket expense (for a repair, a purchase of a new print head, or a purchase of a replacement printer), you are excused from the requirement of proving that your out-of-pocket expense was incurred for the specific purpose of remedying a Print Head Issue. However, you, must still provide proof that you incurred the out-of-pocket expense. You will further be required to indicate whether, if you are deemed eligible for a benefit from the Settlement, you wish to receive a cash payment or a voucher. 5

6 After the submission of your Claim Form and supporting documentation, the Claims Administrator will determine whether you are eligible to receive a benefit from the Settlement. Submissions made after December 7, 2015, and submissions without the required documentation, will be rejected. In addition, any Settlement Class Member who contacted Canon USA seeking assistance with a Print Head Issue involving their Printer, and was provided by Canon USA with a replacement print head or printer, free of charge, will be deemed ineligible for a benefit. In the event that the Court grants final approval of the Settlement, it is anticipated that benefits will be disbursed by the Claim Administrator to eligible Settlement Class Members at a reasonable time following the Court s issuance of its order and judgment granting final approval of the Settlement. Please note that such order and judgment will not be issued until sometime after December 14, 2015, when the Court is scheduled to hold a hearing concerning final approval of the Settlement. In the event of an appeal of the Court s order and judgment, there may be a further delay of indeterminate length in the disbursement of benefits from the Settlement. If you are deemed an eligible Settlement Class Member and elect to receive a cash payment, that payment, in the form of a check, will be mailed by the Claims Administrator to you at the address that you provided in your Claim Form. You must cash your check within one hundred eighty (180) days of its date. The Claims Administrator will void any uncashed checks disbursed to Settlement Class Members after the expiration of one hundred eighty (180) days from the date of such checks. If you are deemed an eligible Settlement Class Member and elect to receive a voucher, the voucher will be mailed by the Claims Administrator to you at the address that you provided in your Claim Form. The voucher that you receive will be fully transferrable (meaning that anyone can redeem it), and it may be used to purchase any item offered for sale by Canon USA at the Canon online store, which can be accessed at All vouchers provided to Settlement Class Members must be redeemed within twelve (12) months of the date they are issued by the Claims Administrator. Any vouchers that are not used during that 12-month period will become void, and cannot be redeemed. What Claims Are Released By the Settlement? If you meet the definition of a Settlement Class Member, you are part of the Settlement Class unless you file a written request to be excluded from the Settlement Class. If you remain a Settlement Class Member, you will be bound by the Settlement and the Court s orders, regardless of whether you file a Claim Form or receive a benefit from the Settlement. The settlement agreement signed by the Plaintiffs and Canon USA ( Settlement Agreement ) contains a release of claims by Settlement Class Members. This means that, if the Court enters a final order and judgment approving the Settlement, all Settlement Class Members will be deemed to have released Canon USA and any other Released Party (as defined in the Settlement Agreement) from any liability for Released Claims (as defined in the Settlement Agreement) relating to the Settlement Class Member s Printer. Settlement Class Members will be deemed to have given up all their rights concerning the Released Claims, and will be barred from commencing a lawsuit against Canon USA or any other Released Party seeking to assert such a claim. In addition, each of the Released Parties and Releasing Parties (as defined in the Settlement Agreement) will be deemed to mutually release one another, and 6

7 their respective affiliates, employees, officers, directors and representatives, from all claims relating to the subject matter of the lawsuit. How Do I Exclude Myself From the Settlement Class? If you wish to exclude yourself, or opt out, of the Settlement Class (which means you will not receive a benefit from the Settlement), you must send a written request for exclusion to the Claims Administrator by November 24, To be timely, a request for exclusion must be sent to the Claims Administrator by or by fax on or before November 24, 2015, or, if sent by mail, the request for exclusion must be postmarked no later than November 24, Fax: (215) Mail: Canon Inkjet Printer Settlement c/o Angeion Group 1801 Market Street, Suite 660 Philadelphia, PA A valid request for exclusion must: (1) be in writing; (2) be signed by you; (3) contain a clear statement of your intent to be excluded from the Settlement Class; and (4) contain your address, telephone number, address and the model of Printer that you purchased. Requests for exclusion will only be accepted from the person signing the request. Mass or class-wide opt-outs are not permitted. If you opt-out of the Settlement Class, you will not: (1) be legally bound by anything that happens in the lawsuit; (2) receive any Settlement benefit; (3) gain any rights from the Settlement; or (4) be entitled to object to any aspect of the Settlement. If you choose to opt-out, you should not submit either a Claim Form or a written objection to the Settlement. You may, however, choose to bring your own lawsuit against Canon USA concerning your Printer. How Do I Object to the Settlement? If you are a Settlement Class Member, you may choose to object to the Settlement by informing the Court why you believe the Settlement (or any portion of it) should not be approved. The Court will consider your views only if you submit a timely and valid written objection. To object to the Settlement, you must send a written objection to the Claims Administrator by November 24, To be timely, an objection must be sent to the Claims Administrator by or by fax on or before November 24, 2015, or, if sent by mail, the objection must be postmarked no later than November 24, Fax: (215) Mail: Canon Inkjet Printer Settlement c/o Angeion Group 1801 Market Street, Suite 660 Philadelphia, PA

8 A valid objection must be in writing, and must be signed by you. A valid objection also must contain the following information: (1) your name, address, telephone number and address and, if you are represented by an attorney in connection with your objection, the name, address, telephone number and address of your attorney; (2) the Printer model you purchased; (3) copies of documentation (such as an invoice or receipt) establishing that you either (a) purchased a Printer in new condition from either Canon USA or one of its authorized Printer resellers, or (b) purchased a Printer in refurbished condition directly from Canon USA; (4) copies of documentation (such as an invoice or receipt for repairs) reflecting that your Printer experienced a Print Head Issue; (5) a list of all legal proceedings (if any) over the last five (5) years in which you have filed an objection to a proposed class action settlement; (6) a statement specifically identifying those portions of the Settlement to which you object, and the reasons for your objection(s); and (7) a statement indicating whether you plan to attend the hearing scheduled by the Court to determine whether to finally approve the Settlement. If you file an objection, you will remain in the Settlement Class, and you will be entitled to submit a completed Claim Form to seek to obtain a Settlement benefit. You will further be bound by any orders of the Court and, if the Court finally approves the Settlement without modification, you will be bound by the terms of the Settlement, including those to which you objected. When is the Court Hearing to Consider Final Approval of the Settlement? On December 14, 2015, the Court will hold a hearing to decide whether to grant final approval of the Settlement. The hearing will be held at 11:00 a.m. at the United States Courthouse for the Eastern District of New York, located in Courtroom 940 at 100 Federal Plaza, Central Islip, New York The hearing will be held before United States District Judge Leonard D. Wexler. At that time, the Court will determine whether the Settlement Class was properly certified for settlement purposes; whether the Settlement is fair, adequate and reasonable; and whether a final order and judgment should be entered fully and finally resolving the lawsuit pursuant to the Settlement. The Court will hear at that time from those Settlement Class members, if any, who filed timely written objections to the Settlement. The Court also will decide whether the attorneys representing the Plaintiffs and the Settlement Class are entitled to an award of fees and expenses not to exceed $370, (an amount which was negotiated by the parties), and whether each of the Plaintiffs is entitled to receive an incentive award in the sum of $ for acting as a representative of the Settlement Class in this lawsuit (an amount which was also negotiated between the parties). If the Court grants the applications for attorneys fees, expenses and incentive awards, those amounts would be paid by Canon USA. After the hearing, the Court will make a final decision on these issues. The hearing may be continued or rescheduled by the Court without further notice. The parties are not able to predict the date when the Court will render its final decision. If the Court decides to finally approve the Settlement, it will enter a final order and judgment which, among other things, will: (1) order the parties to implement the terms of the Settlement; (2) dismiss the lawsuit against Canon USA with prejudice; and (3) make the releases contained in the Settlement Agreement effective. If the Court does not finally approve the Settlement, you will not receive any Settlement benefit. If the Settlement is not approved or otherwise fails to be consummated for any reason, 8

9 no Settlement Class Member will be legally affected by the terms of the Settlement, and the parties to the lawsuit will return to the same position they were in prior to their agreement to the Settlement (i.e., the parties will continue to litigate the lawsuit). Who are the Representatives of the Settlement Class? The Court has assigned the following attorneys to represent you and the other Settlement Class Members: William B. Federman Benjamin F. Johns Federman & Sherwood Chimicles & Tikellis LLP North Pennsylvania Avenue One Haverford Centre Oklahoma City, OK West Lancaster Avenue Haverford, PA If you would like to be represented by your own attorney, you may hire one at your own expense. You are also represented by the Plaintiffs, who the Court has assigned to serve as Class Representatives for you and the other Settlement Class Members. How Do I Obtain a Copy of the Settlement Agreement? If you wish to obtain a copy of the Settlement Agreement signed by the parties, you may do so by contacting the Claims Administrator and requesting a copy. For any such request, you may contact the Claims Administrator by via , fax or by mail: Phone: 1(888) Fax: (215) Mail: Canon Inkjet Printer Settlement c/o Angeion Group 1801 Market Street, Suite 660 Philadelphia, PA Please include in your request the name of the lawsuit as it appears at the top of this Notice. Please do not contact the Court to request documents or with questions about the Settlement. 9

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