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Padan v. West Business Solutions, LLC

United States District Court, D. Nevada

November 16, 2017

TIFFANIE PADAN, et al., Plaintiffs,
v.
WEST BUSINESS SOLUTIONS, LLC, Defendant.

          REPORT AND RECOMMENDATION

          C. W. HOFFMAN, JR, UNITED STATES DISTRICT JUDGE.

         This matter comes before the Court on the Plaintiffs' Unopposed Motion for Approval of Proposed Settlement, Incentive Award, Attorneys' Fees and Litigation Expenses, and Settlement Administration Expenses (ECF No. 137) and the Parties' Joint Status Report Regarding Proposed Settlement Agreement (ECF No. 138).

         The Court having fully reviewed the Motion, the supporting Memorandum of Points and Authorities, the supporting Declarations of Kevin Stoops, Esq., Don Springmeyer, Esq., and David H. Grounds, Esq., and the Settlement Agreement (ECF No. 137-1), along with the Parties' Joint Status Report Regarding Proposed Settlement Agreement (ECF No. 138), and in recognition of its duty to make a determination as to the reasonableness of any proposed collective action settlement, HEREBY MAKES THE FOLLOWING FINDINGS:

1. The Court has examined and finds good grounds to approve this parties' settlement as a fair, reasonable, and adequate resolution of a bona fide dispute pursuant to the standards for approval of a FLSA collective action settlement under 29 U.S.C. § 216.
2. The Court has reviewed and approves the material terms of the Settlement Agreement, which are summarized below:

         a. Defendant West Business Solutions, LLC n/k/a Alorica Business Solutions, Inc. (“Alorica” or “Defendant”), will pay $700, 000 (the “Settlement Fund”). The Settlement Fund will be distributed as follows:

i. $397, 320.15 to the opt-in plaintiffs (“Plaintiffs”). This figure was arrived at after a detailed analysis of Alorica's time and pay records and represents a payment to each opt-in plaintiff of 3.5 minutes per shift worked (after the Plaintiffs' initial training period) based on the Plaintiffs' actual time and pay records (which amount has been liquidated to account for the opt-in plaintiff's viable FLSA and state law claims), during the time period of December 21, 2013, through August 7, 2015.[1] Additionally, $18, 120 of the $397, 320.15 will be used to compensate Plaintiffs who would only have estimated damages between December 21, 2012, and December 21, 2013 (to account for FLSA “third year” damages), $22, 170 will be used to compensate Plaintiffs whose time/pay records do not identify any viable monetary claim (each such Plaintiff will receive $10).[2] Finally, Plaintiffs who have a claim to monetary damages will receive a minimum payment of $20.[3] Any surplus funds for Plaintiffs payments that fall below $397, 320.15 will distributed among the Plaintiffs as follows: If the Class Payment exceeds the total of the individual payments due to the opt-in plaintiffs under Paragraph 3 of the Settlement Agreement, the difference (the “Surplus Funds”) shall be distributed on a pro-rata basis among the Plaintiffs who are entitled to payments greater than $20 under Paragraph 3 of the Settlement Agreement. For Plaintiffs entitled to a share of the Surplus Funds, the Surplus Funds shall be added to the amount due under Paragraph 3 of the Settlement Agreement and shall be paid in the same check, and in the same manner, as the payments under Paragraph 3 of the Settlement Agreement.
ii. A maximum amount of $28, 579.85 will be paid to Rust Consulting for settlement administration expenses.
iii. A maximum amount of $7, 500 will be paid to Named Plaintiff, Tiffanie Padan, as an incentive award.
iv. A maximum amount of $35, 000 will be paid to Plaintiffs' counsel for litigation expenses incurred in connection with this litigation.
v. $231, 600 will be paid to Plaintiffs' counsel for attorneys' fees.
vi. Should the Court disallow some portion of any of the above amounts (the amounts related to settlement administration expenses, Named Plaintiff incentive award, litigation expenses, and attorneys' fees), the amount that is disallowed shall be added to the $397, 320.15 amount payable to the opt-in plaintiffs and distributed to the opt-in plaintiffs on a pro-rata basis.
vii. Should the actual settlement administration expenses total an amount less than $28, 579.85, the surplus amount shall be added to the attorneys' fees amount paid to Plaintiffs' counsel.

         b. The Plaintiffs shall not be required to submit any claim form or ...


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