Contract analysis

I. INTRODUCTION Defendant Aurelius Media Americas Inc. ("AMA") and Plaintiffs Marisol Fuentes, Derek Halloran, and Yesenia Padilla ("Plaintiffs" or "Class Representatives") (collectively, the "Parties") respectfully submit this Memorandum of Points and Authorities in support of their Joint Motion for Preliminary Approval of Class Action Settlement. Through this motion, the Parties seek the Court's preliminary approva

II. STATEMENT OF FACTS A. Background of the Litigation AMA is a Delaware corporation qualified to do business in the State of 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 Media Group PLC ("AGMG"), a publicly traded, United Kingdom-headquartered media, entertainment, and e-commerce conglomerate

III. TERMS OF THE PROPOSED SETTLEMENT The material terms of the Settlement Agreement are summarized below. The complete Settlement Agreement is attached to the Declaration of Renata Vasquez as Exhibit 1 and is incorporated herein by reference. A. Gross Settlement Amount The Settlement Agreement provides for a non-reversionary Gross Settlement Amount of $14,750,000 (Fourteen Million Seven Hundred Fifty Thousand Dollar

I. Notice Plan The proposed notice plan is designed to reach every identifiable class member and to provide clear, comprehensive information about the settlement and class members' rights. The notice plan includes the following components: Individual Mail Notice. A notice packet will be mailed by first-class United States mail to each class member at his or her last known address. Class member addresses will be deriv

IV. LEGAL STANDARD FOR PRELIMINARY APPROVAL Under California law, judicial approval of a class action settlement is a two-step process. At the first step, the Court evaluates the proposed settlement to determine whether it is sufficiently fair, reasonable, and adequate to warrant sending notice to the class and scheduling a final approval hearing. If the Court grants preliminary approval, notice is disseminated to th

V. ARGUMENT A. The Settlement Is the Product of Serious, Informed, Arm's-Length Negotiations The proposed settlement is entitled to a strong presumption of fairness because it was reached through serious, informed, arm's-length negotiations between experienced counsel, facilitated by a highly qualified neutral mediator, and only after the completion of extensive discovery and a contested partial class certification r

1. The GSA Represents a Substantial Recovery in Light of the Risks The Gross Settlement Amount of $14,750,000 represents a substantial and meaningful recovery for the Settlement Class, particularly when evaluated against the backdrop of the competing damages analyses and the significant litigation risks confronting both sides. Measured against Plaintiffs' expert's aggregate damages opinion of $38.6 million, the GSA r

2. Significant Litigation Risks Warranted Settlement The settlement must be evaluated not only by reference to Plaintiffs' best possible recovery, but also in light of the substantial risks that both sides faced in continued litigation. Kullar, 168 Cal.App.4th at 130. Those risks were considerable. Merits Risk on the Certified Claims. While the Court's certification order found that common questions predominated with

3. Comparison to Other Settlements The settlement compares favorably to other California wage-and-hour class settlements of similar size and scope, involving comparable industries and employee populations. While each case is unique and direct comparisons should be drawn with caution, the GSA of $14,750,000 for a class of approximately 1,850 employees — yielding an estimated average payment of approximately $4,460 per