Contract analysis

I. INTRODUCTION Defendant Aurelius Media Americas Inc. ("AMA" or "Defendant") respectfully joins Plaintiffs Marisol Fuentes, Derek Halloran, and Yesenia Padilla ("Plaintiffs" or "Named Plaintiffs") in seeking final approval of the class action settlement reached on September 15, 2023, following two full-day mediation sessions before the Honorable Patricia Okoro (Ret.) of Westpark Dispute Resolution Inc. The settlemen

II. PROCEDURAL HISTORY A. The Litigation On November 1, 2022, Plaintiff Marisol Fuentes filed a putative class action complaint against AMA in this Court, initiating Case No. 22STCV38214. AMA is a Delaware corporation qualified to do business in California, with its principal office located at 8500 Sunset Boulevard, Suite 1400, West Hollywood, California 90069. AMA is a wholly owned subsidiary of Aurelius Global Medi

III. LEGAL STANDARD FOR FINAL APPROVAL Under California law, a court asked to approve a class action settlement must determine that the settlement is "fair, adequate, and reasonable." (Dunk v. Ford Motor Co. (1996) 48 Cal.App.4th 1794, 1801.) The court's task is to "independently and objectively analyze the evidence and circumstances before it in order to determine whether the settlement is in the best interests of t

IV. ARGUMENT A. The Settlement Is Fair, Adequate, and Reasonable

1. The Settlement Was the Product of Arm's-Length, Non-Collusive Negotiations The settlement at issue was reached through two full-day mediation sessions, held on August 25 and September 8, 2023, before the Honorable Patricia Okoro (Ret.) of Westpark Dispute Resolution Inc. Judge Okoro is a retired Los Angeles Superior Court Judge who served on the bench for over 25 years and has extensive experience mediating comple

2. The Settlement Amount Is Within the Range of Reasonableness The $14,750,000 GSA represents a substantial recovery for the class in light of the competing damages estimates, the partial certification ruling, and the significant defenses available to AMA. Plaintiffs' damages expert, Dr. Howard Rennick of Pinnacle Economic Consulting Group LLC, opined in his report dated April 28, 2023, that aggregate class-wide dama

3. The Settlement Reflects a Reasonable Assessment of Litigation Risk The $14,750,000 GSA reflects each side's sober assessment of the risks and uncertainties that would attend continued litigation. Both sides faced substantial risks if the case were to proceed to trial. Risks to Plaintiffs. Although the Court certified the first meal period claim for class treatment, certification was denied for five of seven causes

4. The Stage of Proceedings and Extent of discovery Support Informed Settlement The settlement in this action was not reached in a vacuum. Rather, it was reached at an advanced stage of the litigation, after the parties had engaged in comprehensive discovery and obtained a detailed judicial assessment of the merits-related issues through the class certification process. Specifically, the settlement was reached after

5. The Views and Experience of Counsel Support Approval The experience and views of counsel on both sides of this litigation uniformly support approval of the settlement. Class counsel — Castellano Byrne & Salas LLP and Veltrano Employment Law Group PC — are experienced wage-and-hour class action practitioners who specialize in representing employees in the entertainment and hospitality industries. Lead class counsel

1. The Allocation Formula Is Reasonable The Net Settlement Fund of $8,251,525 is allocated to claiming class members on a pro rata basis using a formula that weights 60% to weeks worked during the class period (November 1, 2018 through October 31, 2023) and 40% to recorded overtime hours during the class period. The weeks-worked component of the allocation formula ensures that all class members receive compensation p

2. The Release Is Appropriate The Settlement Agreement provides for a release of all class and PAGA claims arising from the operative facts alleged in the consolidated complaint. Specifically, the release encompasses: • Meal period claims (both first and second meal periods) under California Labor Code sections 226.7 and 512; • Rest period claims under California Labor Code section 226.7; • Off-the-clock and overtime

1. Claims Rate Of the approximately 1,850 class members, 1,262 submitted valid claims, representing a claims rate of 68.2%. This claims rate is exceptionally high by the standards of class action settlements, where claims rates typically range from approximately 5% to 30% depending on the nature of the case and the claims process. (See, e.g., Federal Trade Commission, Consumers and Class Actions: A Retrospective and

2. Opt-Outs. Only 23 class members submitted timely and valid requests for exclusion from the settlement, representing 1.24% of the approximately 1,850-member class. This opt-out rate is far below the contractual threshold of 5% (approximately 93 individuals) that would have triggered AMA's right to void the settlement under Section 8.3 of the Settlement Agreement. AMA has elected not to exercise that right and has c

3. Objections. Only 4 objections were received, out of approximately 1,850 class members — an objection rate of approximately 0.22%. AMA and class counsel have addressed each objection in detail in the concurrently filed Response to Class Member Objections. A summary of the objections and responses is provided below. (a) Objection of Carlos Vega. Mr. Vega objects to the attorneys' fee percentage of 33.33% as excessiv

1. Attorneys' Fees — $4,916,175 (33.33% of GSA) Class counsel seeks an award of attorneys' fees in the amount of $4,916,175, representing 33.33% of the $14,750,000 GSA, under the percentage-of-fund method. AMA does not oppose the fee request. The California Supreme Court has endorsed the percentage-of-fund method as an appropriate method for calculating attorneys' fees in common fund class actions. (Laffitte v. Rober

2. Litigation Costs — $412,300 Class counsel seeks reimbursement of documented litigation costs in the amount of $412,300. These costs were incurred in the prosecution of this complex class action and include, among other categories, court filing fees, deposition transcript costs, expert witness fees and expenses (including fees for Dr. Rennick's initial report and deposition preparation), e-discovery processing and

3. Service Awards — $35,000 Total Class counsel seeks Court approval of service awards to the three Named Plaintiffs in the following amounts: • Marisol Fuentes: $15,000 • Derek Halloran: $10,000 • Yesenia Padilla: $10,000 The Named Plaintiffs participated actively in the prosecution of this action, including by sitting for lengthy depositions, providing declarations in support of class certification, responding to w