UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA

Transcription

1 UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA IF YOU PURCHASED CERTAIN TRADER JOE S PRODUCTS LABELED ALL NATURAL OR 100% NATURAL BETWEEN OCTOBER 24, 2007 AND FEBRUARY 6, 2014, YOU COULD RECEIVE A PAYMENT FROM A CLASS ACTION SETTLEMENT. A federal court authorized this notice. This is not a solicitation from a lawyer. This Notice informs you of a proposed settlement of class action claims against Trader Joe s Company ( Trader Joe s ) alleging that Trader Joe s mislabeled the following products All Natural or 100% Natural : Joe-Joe s Chocolate Vanilla Creme Cookies; Joe-Joe s Chocolate Sandwich Creme Cookies; Trader Joe s Jumbo Cinnamon Rolls; Trader Joe s Buttermilk Biscuits; Trader Giotto s 100% Natural Fat Free Ricotta Cheese; and Trader Joe s Fresh Pressed Apple Juice (the Products ). Trader Joe s denies it or any of the Released Parties (as defined in the Agreement) did anything wrong or unlawful, and asserts that the Products labels and related marketing materials, including Trader Joe s website, were truthful, accurate, not misleading, and consistent with the law. Trader Joe s enters into this settlement solely to avoid the further expense, inconvenience, and distraction of any burdensome and protracted litigation and to be completely free of any further controversy with respect to this lawsuit. Accordingly, Trader Joe s has agreed, under the terms of the settlement, to provide you with the opportunity to submit a valid and timely Claim Form through which you may be eligible to receive monetary compensation as discussed below. Your legal rights are affected whether you act, or don t act. Read this notice carefully. SUBMIT A CLAIM FORM BY JUNE 16, 2014 EXCLUDE YOURSELF BY JUNE 2, 2014 OBJECT BY JUNE 2, 2014 GO TO THE HEARING ON JULY 9, 2014 DO NOTHING Your Legal Rights and Options in this Settlement: The only way to get a payment. Get no payment. This is the only option that allows you to ever be part of any other lawsuit or other proceeding against Trader Joe s or its suppliers regarding the legal claims in this case. Write to the Court about why you don t like the settlement and tell the Court why you don t think the settlement should be approved. Ask to speak in Court about the fairness of the settlement. Get no payment and give up your legal rights to sue Trader Joe s and its suppliers concerning any of the claims in this case. Any questions? Read on and visit These rights and options and the deadlines to exercise them are explained in this notice. The Court in charge of this case still has to decide whether to approve the settlement. Payments will be made if the Court approves the settlement and after appeals are resolved. Please be patient

2 BASIC INFORMATION... PAGE 3 1. Why has this notice been publicized? 2. What is this lawsuit about? 3. Why is this a class action? 4. Why is there a settlement? WHO IS IN THE SETTLEMENT... PAGE 3 5. How do I know if I am part of the settlement? 6. I m still not sure if I m included. THE SETTLEMENT BENEFITS WHAT YOU RECEIVE... PAGE 4 7. What does the settlement provide? 8. Do I have to do anything? HOW YOU CAN REQUEST A PAYMENT SUBMITTING A CLAIM FORM... PAGE 5 9. How can I receive a payment? 10. When can I expect a payment? 11. What am I giving up by participating in the settlement? EXCLUDING YOURSELF FROM THE SETTLEMENT... PAGE How do I exclude myself from the settlement? 13. If I don t exclude myself, can I sue Trader Joe s for the same thing later? 14. If I exclude myself, may I still receive money from this settlement? THE LAWYERS REPRESENTING YOU... PAGE Do I have a lawyer in the case? If so, who? 16. How will the lawyers be paid? OBJECTING TO THE SETTLEMENT... PAGE How do I tell the Court that I don t like the settlement? 18. What s the difference between objecting and excluding? THE COURT S FINAL APPROVAL HEARING... PAGE When and where will the Court decide whether to approve the settlement? 20. Do I have to come to the hearing? 21. Can I appear at the Final Settlement Approval Hearing? IF YOU DO NOTHING... PAGE What happens if I do nothing at all? GETTING MORE INFORMATION... PAGE Are there more details about the settlement? - 2 -

3 BASIC INFORMATION 1. Why has this notice been publicized? This Notice, given pursuant to an order of the Court dated February 6, 2014 describes a proposed settlement of a class action against Trader Joe s in a lawsuit known as Larsen et al. v. Trader Joe s Company, Civil Action No. 3:11-cv WHO. This Notice provides a summary of the terms of the proposed settlement. It also explains the lawsuit, your potential legal rights under the proposed settlement, what benefits may be available to you under the proposed settlement, and how to get them. If you are a Settlement Class Member, your legal rights are affected whether you act or do not act, so read this Notice carefully. 2. What is this lawsuit about? This lawsuit claims that certain Trader Joe s food products were improperly labeled, marketed, supplied, made and sold as being All Natural and/or 100% Natural even though they contained one or more of the following allegedly synthetic ingredients: ascorbic acid, cocoa processed with alkali, sodium acid pyrophosphate, xanthan gum, and vegetable mono- and diglycerides. The products at issue are: Joe-Joe s Chocolate Vanilla Creme Cookies; Joe-Joe s Chocolate Sandwich Creme Cookies; Trader Joe s Jumbo Cinnamon Rolls; Trader Joe s Buttermilk Biscuits; Trader Giotto s 100% Natural Fat Free Ricotta Cheese; and Trader Joe s Fresh Pressed Apple Juice. Trader Joe s denies all charges of wrongdoing or liability, defended itself throughout this litigation and asserts that the labeling, packaging, sale, distribution, supply, marketing and advertising, including statements made on the Products labels and on Trader Joe s website, were truthful, accurate, not misleading, and not in violation of the law. The Court has not decided who is right. Having taken into account the burdens and expense of litigation, including the risks and uncertainties of litigation and the difficulties and delays inherent in such litigation, both sides have agreed to settle the dispute and to provide benefits to consumers. 3. Why is this a class action? In a class action, one or more people, called Class Representatives (in this case Tamar Larsen and Aran Eisenstat), sue on behalf of people who have similar claims. Collectively, these people are referred to as a class or class members. In a class action, one court resolves the issues for all class members, except for those who exclude themselves from the class. U.S. District Judge William H. Orrick presides over this class action. 4. Why is there a settlement? The Court did not decide in favor of Plaintiffs or Trader Joe s. Instead, both sides agreed to a settlement. That way, they avoid the cost of a trial, and the people allegedly affected will get compensation. The Class Representatives and their attorneys think the settlement is best for everyone who is a member of the Settlement Class. WHO IS IN THE SETTLEMENT To see if you may be entitled to money from this settlement, you first have to decide if you are a Settlement Class Member. 5. How do I know if I am part of the settlement? You are a member of the proposed Settlement Class (i.e., Settlement Class Member ) if you purchased, on or after October 24, 2007 through February 6, 2014, certain Trader Joe s food products that were labeled All Natural or 100% Natural but contained allegedly synthetic ingredients. The Trader Joe s food products are: Joe Joe s Chocolate Vanilla Creme Cookies; Joe Joe s Chocolate Sandwich Creme Cookies; Trader Joe s Jumbo Cinnamon Rolls; Trader Joe s Buttermilk Biscuits; Trader Giotto s 100% Natural Fat Free Ricotta Cheese; and Trader Joe s Fresh Pressed Apple Juice ( Products ). Specifically excluded from the Settlement Class are: (i) Trader Joe s and its employees, principals, officers, directors, agents, affiliated entities, legal representatives, successors and assigns; (ii) the judges to whom this action has been or is assigned and any members of their immediate families; and (iii) all consumers who have filed a timely Request for Exclusion from the Settlement Class. Settlement Class Members may be entitled to payments described below for their eligible purchases of Trader Joe s Products

4 6. I m still not sure if I am included. If you are still not sure whether you are included, you can get free help at or by visiting www. tjallnaturalclassaction.com, or by contacting Co-Lead Counsel in this case [see Question 15 below]. 7. What does the settlement provide? THE SETTLEMENT BENEFITS WHAT YOU MAY RECEIVE The settlement, if finalized and approved, will create a restitution fund of $3,375,000. Under the settlement, a Settlement Class Member who timely submits a completed Claim Form is eligible to receive payment for up to ten (10) total purchases of any of the following products: Joe Joe s Chocolate Vanilla Creme Cookies; Joe Joe s Chocolate Sandwich Creme Cookies; Trader Joe s Jumbo Cinnamon Rolls; Trader Joe s Buttermilk Biscuits; Trader Giotto s 100% Natural Fat Free Ricotta Cheese; and Trader Joe s Fresh Pressed Apple Juice. Settlement Class Members with valid Proofs of Purchase (i.e., receipts or other documentation from a third-party commercial source reasonably establishing the fact and date of purchase during the Class Period of one or more of the Products, including bar codes or UPCs so long as the Product(s) claimed can be identified from the packaging submitted) may make additional claims for such Products. Product Joe-Joe s Chocolate Vanilla Creme Cookies $2.70 Joe-Joe s Chocolate Sandwich Creme Cookies $2.70 Trader Joe s Jumbo Cinnamon Rolls $3.99 Trader Joe s Buttermilk Biscuits $2.93 Trader Giotto s 100% Natural Fat Free Ricotta Cheese $3.62 Trader Joe s Fresh Pressed Apple Juice $2.79 Potential Cash Refund Per Product Under the terms of the settlement, the restitution fund will first be used to pay any and all court-ordered Attorneys Fees and Expenses, incentive awards, and Settlement Administration Expenses incurred. What remains of the fund will be used to pay valid and eligible cash claims. If the total amount of valid and eligible Claims exceeds the remainder of $3,375,000 (after deducting court-ordered Attorneys Fees and Expenses, incentive awards, and Settlement Administration Expenses incurred), then each Authorized Claimant s Award shall be proportionately reduced based on the available funds. An Authorized Claimant is a Settlement Class Member who timely submits a valid Claim Form in accordance with the terms of the settlement. All value remaining of Trader Joe s total financial commitment of $3,375,000, 120 days after checks have been issued to Authorized Claimants shall comprise the Residual Fund, and such value shall be distributed as Products to Settlement Class Members at specified Trader Joe s retail locations nationwide. The value of any checks that are not cashed within 120 days from the date issued or that are returned to the Class Action Settlement Administrator as undeliverable after mailing to the Authorized Claimant at the address provided by the Authorized Claimant on the Claim Form, will cease to be the property of those Authorized Claimants and shall be added to the Residual Fund. Trader Joe s actual costs of distributing Products to Settlement Class Members at its retail locations shall be value deducted from the Residual Fund up to a maximum of ten percent (10%) of the value of the Residual Fund. While Trader Joe s believes that the Products labels and packaging were truthful, accurate, not misleading, and not in violation of the law, in addition to the restitution fund, Trader Joe s has removed the All Natural and 100% Natural language from the Products labels and will not, in the future, use such language on the Products labels unless the Products are reformulated or there is a change in the law such that it is clear that the use of All Natural or 100% Natural on the Products would not be false or misleading. 8. Do I have to do anything? You have to decide whether to stay in the Settlement Class or ask to be excluded, and you have to decide this now. If you are an eligible Settlement Class Member and you wish to receive monetary compensation for purchases of Trader Joe s Products, you must complete and submit a signed Claim Form in a timely manner. This form is necessary to ensure that only eligible Settlement Class Members receive a monetary benefit

5 HOW YOU CAN REQUEST A PAYMENT SUBMITTING A CLAIM FORM 9. How can I request a payment? If you are an eligible Settlement Class Member and wish to receive this benefit, you must timely submit a completed Claim Form to the Class Action Settlement Administrator as described below. In addition, Settlement Class Members who wish to claim more than ten (10) total Products must also submit valid Proof(s) of Purchase for each additional Product claimed. Proof of Purchase is not required for claims of ten (10) or less Products. Proof of Purchase means receipts or other documentation from a third-party commercial source reasonably establishing the fact and date of purchase during the Class Period of one or more of the Products, including bar codes of UPCs if the Product(s) claimed can be identified from the packaging submitted. The Class Action Settlement Administrator will determine the validity of all Claims, subject to review by the Court. Submission of multiple Claim Forms from the same household will be subject to audit by the Class Action Settlement Administrator for validity. Failure to provide all information requested on the Claim Form will not necessarily result in nonpayment of a Claim. Instead, the Class Action Settlement Administrator will take all adequate, reasonable and customary steps to determine the Settlement Class Member s eligibility for payment and the amount of payment based on the information contained in the Claim Form or otherwise submitted, the amount of money available to pay all valid Claims, and such other reasonably available information from which eligibility of payment can be determined. The Claim Form is attached to this Notice and is also available at the settlement website at where it can be filed electronically. You can also request that a Claim Form be mailed to you by calling the Class Action Settlement Administrator at The fully completed and signed Claim Form must be submitted online at or sent via U.S. Mail to the Class Action Settlement Administrator at Trader Joe s Settlement, P.O. Box 3063, Faribault, MN The deadline for submission of the Claim Form is June 16, The Claim Form must be submitted online or postmarked on or before June 16, 2014 to be timely. 10. When can I expect payment? The Court will hold a Final Approval Hearing on July 9, 2014 during which it will decide whether it will finally approve all terms of the settlement. If the Court approves the settlement, there may be appeals or other challenges. Payment is contingent upon the Court s final approval of the proposed settlement. After the Court enters an order and judgment finally approving the settlement and all objections and appeals (if any) are resolved, the checks will be mailed within 35 days. The progress of the approval process and expected dates of payment will be updated periodically on the settlement website and can also be obtained by calling the Class Action Settlement Administrator s toll free number. The entire process could take more than a year, so please be patient. 11. What am I giving up by participating in the settlement? If you meet the definition of Settlement Class Member you are part of the Settlement Class unless you exclude yourself, and that means that you can t sue, continue to sue, or be part of any lawsuit, arbitration or other proceeding against Trader Joe s or any Released Party (as defined in the Settlement Agreement) about the legal issues in this case. It also means that all of the Court s orders will apply to you and legally bind you. If you sign the Claim Form, you will agree to release claims as described below and in this Notice. Specifically, you will agree to fully, finally, and forever expressly release, relinquish, and discharge Trader Joe s (and any Released Party) from: any and all individual, class, representative, group or collective claim, liability, right, demand, suit, matter, obligation, damage, loss, action or cause of action, of every kind and description that a Settlement Class Member (and Releasing Party) has or may have, including assigned claims, whether an Unknown Claim (as defined in the Settlement Agreement), asserted or un-asserted, latent or patent, that is, has been, could reasonably have been or in the future might reasonably be asserted under any body of law by a Releasing Party either in a court or any other judicial or other forum against any of the Released Parties arising from, or in any way relating to the allegations asserted in this Action and pertaining to the Products purchased from October 24, 2007 through the entry of Preliminary Approval. When and if the settlement is approved, Plaintiffs and Settlement Class Members who do not validly exclude themselves from the Settlement Class pursuant to the settlement, will be deemed to have released Trader Joe s and other Released Parties (as defined in the Settlement Agreement). You will be bound by the settlement whether or not you file a Claim Form or receive a payment. A copy of the Settlement Agreement is available at the settlement website,

6 EXCLUDING YOURSELF FROM THE SETTLEMENT If you don t want a payment from this settlement, but you want to keep the right to sue or continue to sue Trader Joe s, on your own, about the legal issues in this case (whether in a court of law or other proceeding), you must take steps to get out. This is called excluding yourself or is sometimes referred to as opting out of the Settlement Class. 12. How do I exclude myself from the settlement? If you wish to opt out or be excluded from the Settlement Class, you must send a completed Request for Exclusion Form to the Class Action Settlement Administrator by U.S. Mail to: Trader Joe s Settlement, P.O. Box 3063, Faribault, MN in a timely manner. The Request for Exclusion Form must be postmarked on or before June 2, 2014 to be timely. The Request for Exclusion must: (i) be personally signed by you; (ii) request exclusion from the Settlement Class; and (iii) include a statement that you are a member of the Settlement Class. Exclusions can only be filed individually not on behalf of a group or class (i.e., mass or class opt outs are not allowed). You will be bound to the terms of the settlement, if you fail to comply with these requirements. If you exclude yourself from the Settlement Class and the proposed settlement is finally approved, you will not be: (i) legally bound by anything that happens in this lawsuit; (ii) entitled to object to any aspect of this settlement; and (iii) entitled to receive any benefits of the settlement and will remain free to pursue any legal rights you may have against Trader Joe s at your own expense. The representative Plaintiffs and their lawyers will not represent you as to any claims against Trader Joe s. 13. If I don t exclude myself, can I sue Trader Joe s for the same thing later? No. Unless you exclude yourself, you give up the right to sue Trader Joe s or any of the Released Parties (as defined in the Settlement Agreement) for the Released Claims (as defined in the Settlement Agreement). If you have a pending lawsuit or other proceeding, speak to your lawyer in that lawsuit or proceeding immediately. You must exclude yourself from this Settlement Class to continue litigating the claims this settlement resolves. Remember, the exclusion deadline is June 2, If I exclude myself, may I still receive money from this settlement? No. If you exclude yourself, do not send in a Claim Form asking for money. But, you may sue, continue to sue, or be part of a different lawsuit or other proceeding against Trader Joe s. 15. Do I have a lawyer in this case? If so, who? THE LAWYERS REPRESENTING YOU The Court appointed the following attorneys to represent you and the other Settlement Class Members. Together these attorneys are Co-Lead Counsel. Joseph N. Kravec, Jr., Esq. FEINSTEIN DOYLE PAYNE & KR AVEC, LLC 429 Forbes Avenue, 17th Floor Pittsburgh, PA Janet Lindner Spielberg, Esq. LAW OFFICE OF JANET LINDNER SPIELBERG Wilshire Blvd., Ste. 400 Los Angeles, CA Michael D. Braun, Esq. BRAUN LAW GROUP, P.C W. Pico Blvd., Ste. 280 Los Angeles, CA Neither Co-Lead Counsel, Trader Joe s Counsel, or the Class Action Settlement Administrator may advise on the tax consequences of participating or not participating in the settlement. 16. How will the lawyers be paid? Co-Lead Counsel have pursued this lawsuit on a contingent basis and have paid all costs of the action. These attorneys have not yet been paid or recovered any of their expenses associated with the lawsuit. As part of the settlement, Co-Lead Counsel will apply to the Court for Attorneys Fees and Expenses not to exceed a total of $950,000 subject to the terms of the settlement. Co-Lead Counsel will also request that the Court approve Trader Joe s payment of an incentive award of $2,500 each to Mr. Eisenstat and Ms. Larsen, the Class Representatives. Trader Joe s will not oppose either request. Any amount awarded as fees, expenses or compensation will be deducted from the fund prior to distribution to the Settlement - 6 -

7 Class. Co-Lead Counsel s application for reasonable Attorneys Fees and Expenses will be filed with the Court no later than May 1, 2014 and may be reviewed by any interested party. The application will be available at The Court will determine the reasonableness of Co-Lead Counsel s request for Attorneys Fees and Expenses, as well as the proposed incentive awards at the Final Approval Hearing. OBJECTING TO THE SETTLEMENT 17. How do I tell the Court that I don t like the settlement? If you are a Settlement Class Member but do not like the proposed settlement and think the Court should not approve it, you may object. Objecting is simply telling the Court that you don t like something about the settlement. You can object only if you stay in the Settlement Class (i.e., if you do not opt out or exclude yourself ). As a Settlement Class Member, you will be bound to the settlement and Court orders regardless of your objection and regardless of whether you believe the terms of the settlement are favorable to the Settlement Class. You will be bound by the settlement even if you have another claim, lawsuit, arbitration or other proceeding pending against Trader Joe s. To object, you must provide a letter with the following information: (i) your name, address, telephone number, and address and, if represented by counsel, the name, address, telephone number, and address of your counsel; (ii) all objections, as well as the specific reasons, if any, for each objection, including any legal support you wish to bring to the Court s attention and any evidence you wish to introduce in support of your objection; (iii) Proof of Purchase of a Product or a statement, sworn to under penalty of perjury pursuant to 28 U.S.C. 1746, attesting to the fact that you purchased one or more Products during the Settlement Class Period; and (iv) notice if you intend to appear at the Final Approval Hearing, either in person or through counsel. If you intend to appear at the Final Approval Hearing, please refer to the section below titled Can I appear at the Final Approval Hearing?, for additional information on how to formalize your intent to appear. File the objection with the Court, postmarked no later than June 2, 2014: OFFICE OF THE CLERK United States District Court Northern District of California San Francisco Division Clerk s Office 450 Golden Gate Avenue 18. What s the difference between objecting and excluding? Objecting is simply telling the Court that you don t like something about the settlement. You can object only if you stay in the Settlement Class. Excluding yourself (or opting out ) is telling the Court that you don t want to be part of the Settlement Class. If you exclude yourself, you have no basis to object because the case no longer affects you. THE COURT S FINAL APPROVAL HEARING The Court will hold a hearing to decide whether to approve the settlement. You may attend and you may ask to speak, but you don t have to. 19. When and where will the Court decide whether to approve the settlement? The Court will conduct a Final Approval Hearing at the United States District Court for the Northern District of California, located 450 Golden Gate Ave., San Francisco, CA before the Honorable William H. Orrick in Courtroom 2, 17th Floor on July 9, 2014 at 2:00 p.m. (or at the dates and times to which the Court may, without further notice, reschedule the hearing). The purpose of the Final Approval Hearing will be to determine whether the proposed settlement is fair, adequate, and proper and whether the Court should award Attorneys Fees and Expenses to Co-Lead Counsel, award incentive awards to the Class Representatives, and enter final judgment approving the settlement and dismissing the lawsuit. If there are objections, the Court will consider them. After the hearing, the Court will make the final decision on these issues. We do not know how long it will take the Court to make a final decision

8 20. Do I have to come to the hearing? No. Co-Lead Counsel will address questions raised by Judge Orrick. You are welcome to come at your own expense. If you send an objection, you don t have to come to Court to talk about it. As long as you mailed your written objection on time, the Court will consider it. You may also pay your own lawyer to attend, but it s not necessary. 21. Can I appear at the Final Settlement Approval Hearing? You may attend the Final Approval Hearing, but your attendance is not required nor will it affect your eligibility to submit the Claim Form. You do not need to appear in court, and you do not need to hire your own attorney to represent you in this case, although you are free to do so. Any Settlement Class Member may appear at the Final Approval Hearing (also known as the Fairness Hearing ) in person or by a duly appointed authorized attorney and show cause, if any, why the settlement should not be approved. 22. What happens if I do nothing at all? IF YOU DO NOTHING If you do nothing, you ll get no money from this settlement. And, unless you exclude yourself, you won t be able to start, continue, or be part of any other lawsuit or other proceeding against Trader Joe s or the Released Parties (as defined in the Settlement Agreement) about the legal issues in this case, ever again. 23. Are there more details about the settlement? GETTING MORE INFORMATION Yes. You can call toll free; write to Trader Joe s Settlement, P.O. Box 3063, Faribault, MN , or visit the settlement website at where you will find answers to common questions about the settlement, a Claim Form, plus other information to help you determine whether you are a Settlement Class Member and whether you are eligible for a payment