Dear Greg, Philippa, Jonathan, and Lorraine,
I am pleased to report that the final approval hearing in *Fuentes v. Aurelius Media Americas Inc.*, Case No. 22STCV38214 (Consolidated), was held this morning before the Honorable Raymond Escobedo in Department 34 of the Los Angeles Superior Court — Central District. The hearing lasted approximately 45 minutes.
**The Court granted final approval of the settlement from the bench.**
Below is a summary of the Court's findings, the funding timeline, and remaining next steps.
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**I. Court's On-the-Record Findings**
Judge Escobedo made the following findings on the record:
1. The settlement is "fair, adequate, and reasonable" in light of the litigation risks on both sides. 2. The settlement was the product of "arm's-length, informed negotiations by competent counsel, facilitated by an experienced mediator" — referencing the two full-day mediation sessions before Hon. Patricia Okoro (Ret.) of Westpark Dispute Resolution Inc. 3. The 68.2% claims rate (1,262 of 1,850 class members submitted valid claims) and the minimal number of opt-outs (23, representing 1.24% of the class) and objections (4) "strongly support the conclusion that the class supports the settlement." 4. The attorneys' fee award of 33.33% of the Gross Settlement Amount ($4,916,175) is "consistent with prevailing practice in California class action settlements of this nature." 5. All four objections were overruled.
These findings were very favorable and reflect the strength of the record we built during the approval process.
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**II. Formal Order Timeline**
The Court indicated it will enter the formal Final Approval Order and Judgment within seven (7) days — we anticipate entry by approximately February 9, 2024. I will circulate the entered order to the full team as soon as it is filed.
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**III. Funding Next Steps**
Under the terms of the settlement, AMA must fund the settlement within fourteen (14) days of entry of the Final Approval Order. Based on anticipated entry of February 9, the funding deadline is approximately **February 23, 2024**.
The funding breakdown is as follows:
| Source
Both amounts are to be wired to Meridian Settlement Services LLC's escrow account pursuant to the settlement administration agreement. Meridian (contact: Angela Truong) will distribute individual payments to class members within 30 days of funding.
Bernard Crawford will coordinate with Pemberton's claims department and Kestrel Risk Advisors (Samuel Okonkwo) to initiate the carrier's wire transfer process. As you know, Pemberton's contribution is conditioned on entry of the Final Approval Order with prejudice and a binding release on all class members — both conditions will be satisfied by the order.
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**IV. Settlement Financial Summary**
For ease of reference, the settlement allocation is as follows:
- Gross Settlement Amount: $14,750,000 - Attorneys' fees (class counsel — Castellano Byrne & Salas LLP): $4,916,175 - Litigation costs: $412,300 - Service awards: $35,000 total (Fuentes: $15,000; Halloran: $10,000; Padilla: $10,000) - Settlement administration (Meridian): $385,000 - PAGA payment: $750,000 (75% to LWDA = $562,500; 25% to aggrieved employees = $187,500) - **Net Settlement Fund: $8,251,525** - Estimated average individual payment: ~$4,460 per class member
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**V. Aldrich Executive Dispute — Fully Closed**
As a reminder, today's milestone relates to the class action only. The Aldrich executive dispute has also been resolved — the Aldrich Settlement Agreement was executed on January 19, 2024, and the Stipulation for Dismissal with Prejudice was filed on January 29, 2024 (Case No. 22STCV41087). That matter is fully closed. The Aldrich settlement ($2,350,000) is entirely self-funded by AMA, as Pemberton denied coverage for the executive dispute.
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**VI. Total Matter Resolution**
With today's ruling, the full *Fuentes*/Aldrich matter is effectively resolved:
- Combined resolution value: **$17,100,000** ($14,750,000 class + $2,350,000 Aldrich) - Total claimed exposure by plaintiffs: $42,750,000 ($38.6M class per Dr. Rennick's damages model + $4.15M Aldrich) - **Resolution at 40.0% of claimed exposure**
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**VII. Remaining Next Steps**
With the settlement approved, our team will turn its attention to completing the engagement closure, including:
- Post-settlement compliance recommendations (forthcoming memo) - Document retention recommendations (forthcoming memo) - Final billing summary and fee reconciliation
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I want to take a moment to congratulate the full team — Greg, Lorraine, Philippa, and Jonathan — for your cooperation and collaboration throughout this engagement. This was a complex matter with significant exposure, and the outcome reflects the collective effort that went into achieving a favorable resolution. It has been a privilege to work with each of you on this.
As always, Calderwood & Harkness remains available for any post-resolution matters. Please do not hesitate to reach out with any questions.
Best regards,
Renata Vasquez