United States District Court, D. Nevada
FINAL APPROVAL ORDER
ROBERT C. JONES UNITED STATES DISTRICT COURT JUDGE
matter came before the Court for hearing on December 20,
2019, pursuant to Federal Rule of Civil Procedure 23 and the
Order Granting Preliminary Approval of Class Action
Settlement (ECF No. 335) (“Preliminary Approval
Order”). Plaintiffs seek final approval of the
Settlement Agreement and Release (the
“Agreement”) (see ECF No. 331-1), an
award of attorneys' fees and cost reimbursements to Class
Counsel and Other Plaintiffs' Counsel, and service awards
to each of the Plaintiffs. The Notice Program having been
administered as called for under the Settlement and required
by the Preliminary Approval Order, and the Court having
considered all papers filed and proceedings held, and good
cause appearing therefore, IT IS HEREBY ORDERED, ADJUDGED AND
Order incorporates and approves the Agreement and the
Settlement set forth therein. Any term not defined herein
shall have the meaning ascribed to it as set forth in the
Applying the Churchill factors, the Court finds that
the Settlement is fair, reasonable and adequate in all
A. The Plaintiffs do not have a strong case. For members of
the class that experienced fraud, they will have to prove
that the fraud was a result of the Zappos data breach. For
members that have not experienced fraud, they will have to
prove that the data breach placed them in imminent risk of
harm nearly a decade after the incident occurred. These are
B. The Plaintiffs' case is risky, complex, expensive, and
likely to proceed for many months if not years absent a
settlement. Since, the merits are not strong in this case,
there is a strong chance for failure. The case raises
numerous complex issues including standing, the value of
personal information, and liability for the negligent
handling of such information. The case has not proceeded far
into the discovery phase as it was dismissed under Rule 12,
so the case will likely proceed for years at great expense.
C. As this Court has previously noted, the class will
experience difficulty in maintaining its class status, since
some class members experienced fraud and others did not.
D. The most troubling aspect of the Settlement is the
Settlement amount, which is only a 10% coupon. However, a
value of $5, 031, 166 has been redeemed as of December 12,
2019 showing that the coupons have a value to the class.
Defendant's wide variety of items reinforces this
E. There has been over 160, 000 pages of discovery produced.
Therefore, both parties have sufficient information to make
informed decisions concerning settlement.
F. The case has not proceeded far into the discovery phase.
Nonetheless, the relatively early stage of the proceedings
does not weigh heavily against approval of the settlement,
becasue the case has been ongoing for seven years.
G. Counsel in this case has significant complex litigation
experience and recommends approval of the settlement.
H. As of December 12, 2019, 292, 000 members have redeemed
their coupon codes for over five million dollars in
discounts; only fifty-three members have filed objections and
177 have opted out.
Applying the In re Bluetooth factors, the Court
finds that the Settlement is the product of good faith,