How To Settle A Class Action Lawsuit Against Jimmy Johns

Transcription

1 LOS ANGELES SUPERIOR COURT FOR THE COUNTY OF LOS ANGELES STARKS vs. JIMMY JOHN S LLC, et al. CASE NO. BC01 NOTICE OF PROPOSED CLASS ACTION SETTLEMENT THIS NOTICE MAY AFFECT YOUR RIGHTS. PLEASE READ IT CAREFULLY. YOU MAY BE ENTITLED TO RECEIVE COMPENSATION FROM THIS PROPOSED SETTLEMENT To: Any and all patrons of Jimmy John s restaurants in the United States who purchased a sandwich described as including sprouts between February 1, 01 and July 1, 01 that did not actually include sprouts, such as the Vegetarian, Totally Tuna, Turkey Tom, Beach Club, Gourmet Veggie Club and Club Tuna sandwiches. PLEASE DO NOT CONTACT THE COURT OR THE COURT CLERK REGARDING THIS MATTER. YOU ARE RECEIVING THIS NOTICE BECAUSE YOU MAY BE ENTITLED TO PARTICIPATE IN THIS CLASS ACTION SETTLEMENT. IN ORDER TO RECEIVE COMPENSATION UNDER THIS SETTLEMENT, YOU MUST COMPLETE THE SETTLEMENT CLAIM FORM THAT WILL BE AVAILABLE AT JIMMYJOHNS.COM FOLLOWING FINAL APPROVAL OF THE SETTLEMENT. THE FOLLOWING RECITATION DOES NOT CONSTITUTE THE FINDINGS OF THE COURT. IT SHOULD NOT BE UNDERSTOOD TO BE AN EXPRESSION OF THE COURT S VIEWS ON THE MERITS OF ANY CLAIM OR DEFENSE RAISED BY THE PARTIES. WHY IT IS IMPORTANT TO READ THIS NOTICE: The Superior Court of the State of California in and for the County of Los Angeles (the Court ) has granted preliminary approval to a proposed settlement (the Settlement ) of a class action lawsuit regarding the purchase of sandwiches described as including sprouts but which did not include sprouts beginning in or around February 01 at Jimmy John s restaurants. Because your rights may be affected by the Settlement, it is important that you read this notice carefully. You may be a Class Member in this Lawsuit. The purpose of this Notice is to provide you with a brief description of the class action lawsuit, what investigation of the claims has taken place, and, finally, to inform you of the terms of the proposed Settlement and to discuss your rights and options in connection with the lawsuit and the Settlement.

2 WHAT THE CASE IS ABOUT: This lawsuit was filed by Heather Starks ( Plaintiff ), a customer of Jimmy John s restaurants, and relates to the purchase of sandwiches purported to include sprouts, but not actually including sprouts, at Jimmy John s restaurants. Plaintiff alleged that she purchased sandwiches advertised in online and in-store menus, among other places, as including sprouts, which did not in fact include sprouts. Defendants Jimmy John s LLC and Jimmy John s Franchise LLC (collectively Defendant ) deny the allegations in Plaintiff s Complaint. Defendant denies that it has any legal or equitable responsibility for any damages, injunctive relief or penalties alleged by Plaintiff. Furthermore, Defendant disputes Plaintiff s ability to certify a class in this lawsuit. Although Defendant denies any wrongdoing, it has chosen to resolve the matter based upon the terms and conditions set forth in the settlement agreement now before the Court for approval. The settlement agreement provides for the certification of a class of patrons who were exposed to Defendants menus, and who purchased, from a Jimmy John s restaurant in the United States, a sandwich identified on a Jimmy John s menu as containing alfalfa sprouts but which in fact did not contain alfalfa sprouts (the Subject Food Products ), where such purchase occurred between February 1, 01 and July 1, 01 (the Class Period ). Note that although Jimmy John's corrected all of its menus no later than March, 01, the parties agreed to have the Class Period under this Settlement extend to July 1, 01. THE SETTLEMENT OF THE CLAIMS: Plaintiff filed a class action civil lawsuit against Defendant styled, Heather Starks v. Jimmy John s, LLC, et al. in Los Angeles Superior Court, Case No. BC01 (the Action ). In the operative pleading, Plaintiff alleges the following causes of action: (1) interference with contract; () intentional misrepresentation; () negligent misrepresentation, () fraud; () violation of California s False Advertising Act, California Business and Professions Code sections 00, et seq.; () violation of California s Business and Professions Code sections 00, et seq.; () Violation of California s Consumers Legal Remedies Act, Civil Code sections 0, et seq.; and () Violation of the federal Lanham Act, 1 U.S.C.. On November, 01, the parties participated in a full-day mediation in Los Angeles before the highly experienced mediator Jeffrey Krivis. The parties were able reach a resolution, agreeing to settle this matter and enter into a Joint Stipulation and Agreement to Settle the Class Action. The parties continued to negotiate the terms of settlement for several months following the mediation, and ultimately executed a settlement agreement in July 01. The Class Representative and Class Counsel believe the settlement is in the best interest of the Class. Through this Settlement, neither Defendant nor any of its employees have admitted any liability or wrongdoing and, in fact Defendant expressly denies any wrongdoing. The Court did not decide in favor of Plaintiff or Defendant. The settlement agreement has been preliminarily approved by the Court. A full copy of the settlement agreement is embodied in the document entitled JOINT STIPULATION OF CLASS ACTION SETTLEMENT as preliminarily approved by the Court, as well as other public documents filed in this case, can be inspected in the Office of the Court Clerk located at 00 S. Commonwealth Ave., Los Angeles, CA. THE TERMS OF THE CONDITIONAL CLASS ACTION SETTLEMENT: On behalf of the Class Members, the Class Representative has reached a voluntary settlement agreement with Defendant and on August, 01, the Court conditionally certified a class, for settlement purposes only, comprised of the following persons (collectively, the Class ): The Class: All United States based consumers who were exposed to Defendants menus, and who purchased, from a Jimmy John s restaurant in the United States, a sandwich identified on a Jimmy John s menu as containing alfalfa sprouts but which in fact did not contain alfalfa sprouts, where

3 such purchase occurred between February 1, 01 and the entry of preliminary approval in this Action. Without admitting liability, Defendant has agreed to provide vouchers to any Jimmy John s restaurants, with a face value of $1.0 and good for any side item (pickle, potato chips or cookie) or soda, to all participating claimants who timely complete the online claim form available on up to a maximum of $, less the actual costs of the settlement administration. Additionally, Defendant has agreed to cease and desist from advertising or otherwise representing that any of its sandwiches include sprouts if they in fact do not include sprouts. Defendant has also agreed to make donations to charity in the amount of at least $0,000.00, and perhaps more, depending on the number of Class Members who timely complete the online claim form. Class Members who do not opt out of the Class pursuant to the procedures set forth in this notice will be bound by the settlement and will release all of the Released Claims against Defendant in this action (see below for more information). This Settlement is conditioned upon the Superior Court of the State of California in and for the County of Los Angeles entering an order at or following the hearing finally approving the settlement (the Settlement Fairness Hearing ) as fair, reasonable, adequate, and in the best interests of the Settlement Class. Additionally, each of the following payments will be sought, subject to final approval by the Court: (1) for Class Representative Heather Starks, a sum of $,000 in addition to what she would receive as Participating Claimant in this action to compensate her for acting on behalf of the Class including her time required in the role of Class Representative (such as assisting with the investigation of the claims, being questioned at a deposition, and being involved with the settlement negotiations); () to Class Counsel, attorneys fees and costs in the amount of $0,000; and () settlement administration fees and costs expected to be approximately $1,000 to be paid to the Settlement Administrator for administering this Settlement. WHAT YOU NEED TO DO IN RESPONSE TO THIS NOTICE: You may be a member of the conditionally certified Class. All Class Members have the following five options: 1. If you wish to participate in the class action settlement and receive an individual settlement payment and remain a member of the settlement class, you (or in the event of a deceased Class Member, the estate or authorized beneficiary) must properly complete the Settlement Claim Form, which will be available online at jimmyjohns.com after final approval of this settlement by the Los Angeles Superior Court before the close of the claim period, which is estimated to be May 1, 01. If you properly and timely submit a Settlement Claim Form, you will receive an electronic voucher that you may print and redeem at any Jimmy John s restaurant. If you receive a payment under this Settlement, you will also be releasing the Released Claims against Defendant (see next section for definition of Released Claims). If you wish to receive a payment under the Settlement, you must not Opt Out of the Settlement.. You may elect to Opt Out of the Settlement Class and thus exclude yourself from the Settlement including: (1) receiving the associated voucher payment; and () the associated release of claims and stipulated Judgment. If you wish to exercise this option, you must send to the Claims Administrator a completed and signed Opt Out Form on or before October 0, 01. If your Opt Out Form is not received by the Claims Administrator on or before October 0, 01, you will be deemed to have forever waived your right to opt out of the Settlement Class. Class Members who do not properly opt out of the class action settlement shall be Members of the Settlement Class. Class Members who do properly opt out of the class action settlement shall have no further role in

4 this action, and for all purposes they shall be regarded as if they never were a party to this action and, thus, they shall not be entitled to any benefits as a result of this Settlement, including payment of any voucher, but will retain your rights against the Defendant. If a Class Member completes and submits both a Qualifying Settlement Claim Form and an Opt Out Form, the Settlement Claim Form shall be accepted, the Opt Out Form will disregarded and the claim will be paid and the Class Member will become bound by the Judgment.. Third, provided you do not opt out of the Settlement Class, you may participate in this lawsuit at your own expense by obtaining your own attorney. Class Members who choose this option will be responsible for their own attorneys fees or costs incurred as a result of this election.. Fourth, provided you do not opt out of the Settlement Class, you may object to the Settlement by submitting written objections to Court, Class Administrator, Class Counsel and Defense Counsel, postmarked on or before October 0, 01 at the following address: Kevin Shenkman, SHENKMAN & HUGHES, 0 Wight Road, Malibu, California 0 (for Class Counsel) and to Glenn Dickinson, Light Gabler LLP, 0 Paseo Camarillo, Suite 00, Camarillo, California 0 (for Defense Counsel). The written objection must be signed and dated, and additionally state the Class Member's name, date and location in which you purchased a sandwich described as including sprouts but that did not in fact include sprouts between February 1, 01 and July 1, 01, the case name and number (Starks v. Jimmy John s LLC, et al. Los Angeles County Superior Court, Case No. BC01), and the basis for the objection. If you wish to speak at the Settlement Hearing, your written objection should include a request for the Court to allow you to speak at the Settlement Hearing. Late objections will not be valid and will not be considered by the Court or the Settling Parties.. Fifth, if you take no action, you will remain a member of the Settlement Class (i.e., a Class Member who does not opt out of participation in the Settlement) and be bound by the Judgment. You will have a right to submit a Claim Form following the final approval of the settlement. Regardless of whether you are eligible to receive a payment under the Settlement, if you choose to remain a Member of the Settlement Class, you will be represented by the attorneys for Plaintiffs, who have been designated by the Court as Class Counsel: Kevin Shenkman, Mary R. Hughes and John L. Jones II, SHENKMAN & HUGHES, 0 Wight Road, Malibu, California 0 RELEASE OF CLAIMS OF SETTLEMENT CLASS MEMBERS: If the Court approves the Settlement, Class Members who do not opt out of the Settlement will remain subject to the judgment rendered by the Court pursuant to the settlement agreement and be precluded from bringing similar claims in the future for the period February 1, 01 to July 1, 01. Specifically, after Court approval, the Settlement will fully release and discharge all Released Claims (as defined below) of Class Members. Released Claims shall collectively mean: any and all allegations set forth in the pleadings in the Action, including any and all claims asserted in the original and subsequently amended complaints filed in the Action; any and all claims against the Defendants arising from or related to the transactions, occurrence and events alleged in the Action, and/or the events leading up to, arising from, and/or related thereto, including intentional misrepresentation, negligent misrepresentation, constructive fraud, concealment, or similar or related causes of action; and any and all forms of recovery, including fines, penalties, interest, restitution, liquidated damages, punitive damages, declaratory relief, and/or injunctive relief allegedly due and owing arising from or related to the allegations set out in the Action, whether based on statutory, regulatory, or common law (including any such claims based on federal or state law, including without limitation, the

5 1 Lanham Act and/or the California Civil Code, Business and Professions Code, and/or Code of Civil Procedure). The release does not extend to any claims or facts not alleged in the Action. THE NEXT STEP: The Settlement Hearing on the adequacy, reasonableness, and fairness of the class action settlement will be held on December, 01, at :00 a.m. in Department of the Los Angeles County Court House located at 00 S. Commonwealth Ave., Los Angeles, California. You are not required to attend the Settlement Hearing, although any Class Member is welcome to attend the hearing. HOW TO OBTAIN ADDITIONAL INFORMATION: This Notice is only a summary of the class action lawsuit and the associated class action settlement. For more information, you may inspect the Court files and the settlement agreement at the Los Angeles County Superior Court, located at 00 S. Commonwealth Ave., Los Angeles, California during regular court hours. You may also contact Class Counsel for more information: Kevin Shenkman, Mary R. Hughes and John Jones II, SHENKMAN & HUGHES, 0 Wight Road, Malibu, California 0 PLEASE DO NOT CALL OR WRITE TO THE COURT ABOUT THIS NOTICE