SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF LOS ANGELES — CENTRAL DISTRICT
DECLARATION OF ANGELA TRUONG
I, Angela Truong, hereby declare as follows:
1. I am the Principal Contact at Meridian Settlement Services LLC ("Meridian"), a California limited liability company that provides settlement administration services in class action, collective action, and mass tort litigation throughout the United States. Meridian's principal office is located at 1600 E. Fourth Street, Suite 240, Santa Ana, California 92701. Meridian was appointed as the Claims Administrator in this action pursuant to the Preliminary Approval Order entered by the Court on October 18, 2023 (the "Preliminary Approval Order"). I have personal knowledge of the matters set forth in this declaration and am familiar with Meridian's business records maintained in the ordinary course of Meridian's settlement administration business. If called as a witness, I could and would competently testify to the matters stated herein.
2. Meridian Settlement Services LLC was retained to administer the class action settlement in this action. The settlement arises out of a Settlement Agreement and Release (the "Settlement Agreement") executed on September 15, 2023, between Plaintiffs Marisol Fuentes, Derek Halloran, and Yesenia Padilla, on behalf of themselves and the settlement class, and Defendant Aurelius Media Americas Inc. ("AMA"). The Settlement Agreement provides for a non-reversionary Gross Settlement Amount of Fourteen Million Seven Hundred Fifty Thousand Dollars ($14,750,000.00). The administration budget allocated to Meridian from the Gross Settlement Amount is Three Hundred Eighty-Five Thousand Dollars ($385,000.00). Meridian's duties under the Settlement Agreement and the Preliminary Approval Order include, but are not limited to: (a) preparing and distributing class notice in the manner approved by the Court; (b) establishing and maintaining a settlement website and toll-free telephone number; (c) processing claims submitted by class members; (d) processing opt-out requests and objections; (e) administering the settlement fund; and (f) calculating and distributing individual settlement payments to eligible class members following the Court's entry of a Final Approval Order.
3. The settlement class, as defined in the Preliminary Approval Order, consists of:
"All current and former non-exempt, hourly employees of Aurelius Media Americas Inc. who worked in the State of California at any time from November 1, 2018 through October 31, 2023, who were subject to AMA's automatic meal period deduction in the NovaPay Solutions TimeTrack Pro timekeeping system."
The estimated size of the settlement class is approximately 1,850 individuals. The class data necessary to identify these individuals and calculate their individual allocations was provided to Meridian by AMA and its payroll and timekeeping vendor, NovaPay Solutions Inc. The primary point of contact at NovaPay Solutions for this engagement was Marcus Yee, Director of Client Data Services. The class data provided included each class member's name, last known mailing address, Social Security number, dates of employment during the class period, total number of weeks worked during the class period, and total recorded overtime hours during the class period. Meridian received and has maintained this data in accordance with strict data-security protocols, including encryption at rest and in transit, consistent with Meridian's obligations under the Settlement Agreement and applicable law.
4. Meridian received the class list from AMA on October 25, 2023. The class list contained 1,850 individual names together with corresponding employment and contact data as described above. Upon receipt of the class list, Meridian performed its standard verification procedures to ensure the accuracy of mailing addresses. Specifically, Meridian processed all 1,850 addresses through the National Change of Address ("NCOA") database maintained by the United States Postal Service. The NCOA database identifies individuals who have filed change-of-address requests with the Postal Service within the prior forty-eight months and provides updated forwarding addresses where available. After completing NCOA processing, 1,843 class members had valid, deliverable mailing addresses confirmed through the NCOA system. The remaining seven (7) class members had addresses that could not be verified or updated through the NCOA database. For each of these seven individuals, Meridian performed supplemental skip-trace searches using a commercial locate database (Halcyon Data Systems) to obtain current mailing addresses. Meridian was successful in locating updated addresses for all seven (7) of these individuals. Accordingly, following completion of address verification procedures, Meridian had valid mailing addresses for all 1,850 class members identified on the class list.
5. Consistent with the Preliminary Approval Order, Meridian mailed class notice to all identified class members on November 3, 2023. A total of 1,843 individual notice packages were mailed via first-class United States mail on that date. Each notice package contained two forms of notice, as approved by the Court:
(a) A long-form class notice, consisting of a four-page, plain-language document printed on letter-sized paper. The long-form notice described, among other things: (i) the nature of the lawsuit and the claims asserted; (ii) the material terms of the proposed settlement, including the Gross Settlement Amount and the allocation formula; (iii) the estimated average payment to class members; (iv) the allocation of the Gross Settlement Amount among attorneys' fees, litigation costs, class representative service awards, settlement administration costs, and the PAGA payment; (v) the rights of class members to opt out of the settlement by submitting a written exclusion request; (vi) the rights of class members to object to the settlement by submitting a written objection; (vii) the procedures and deadlines for submitting claims, opt-out requests, and objections; (viii) the date, time, and location of the Final Approval Hearing; and (ix) contact information for Class Counsel. A true and correct copy of the long-form class notice, as mailed, is attached hereto as Exhibit 2.
(b) A summary/postcard notice, consisting of a double-sided postcard printed in both English and Spanish. The postcard notice provided a brief summary of the settlement, directed class members to the dedicated settlement website for full details, and referenced the long-form class notice enclosed in the same mailing. A true and correct copy of the summary/postcard notice, as mailed, is attached hereto as Exhibit 3.
All notices were mailed to the last known address of each class member, as verified or updated through the NCOA and skip-trace processes described in Paragraph 4 above. A declaration of the mailing service confirming mailing of the notices on November 3, 2023, together with a certificate of mailing, is attached hereto as Exhibit 1.
6. Of the 1,843 notices mailed on November 3, 2023, a total of seven (7) were returned by the United States Postal Service as undeliverable. Upon receipt of each returned notice, Meridian performed additional skip-trace research using the commercial locate database to obtain updated mailing addresses for the affected class members. Meridian was successful in obtaining updated addresses for all seven (7) individuals whose notices were returned. All seven (7) notices were re-mailed to the updated addresses within five (5) business days of Meridian's receipt of the returned mail. None of the re-mailed notices were returned as undeliverable a second time. Accordingly, the total number of class members who successfully received notice by mail is 1,843, representing 99.6% of the 1,850-member settlement class. The remaining seven (7) class members whose addresses were initially unverifiable through NCOA (as described in Paragraph 4) received their initial notices without incident, as the skip-trace addresses obtained prior to the initial mailing proved accurate.
7. In addition to the mailed notices, Meridian established and maintained a dedicated settlement website to provide class members with access to information about the settlement and a convenient means of submitting claims online. The settlement website was activated on November 3, 2023, the same date as the initial notice mailing, and has remained continuously accessible at all times since activation. The website contained the following information and features:
(a) The full text of the long-form class notice;
(b) A downloadable copy of the Settlement Agreement and Release;
(c) A downloadable copy of the Preliminary Approval Order;
(d) A Frequently Asked Questions ("FAQ") section addressing common inquiries about the settlement, the claims process, opt-out procedures, the allocation formula, and the tax treatment of settlement payments;
(e) An online claim submission portal, through which class members could submit their claims electronically by verifying their identity using a unique claim identification number printed on their mailed notice;
(f) Instructions for submitting a written opt-out request;
(g) Instructions for submitting a written objection to the settlement;
(h) Contact information for Class Counsel, specifically Castellano Byrne & Salas LLP, located at 11755 Wilshire Boulevard, Suite 900, Los Angeles, California 90025, and Veltrano Employment Law Group PC, located at 350 South Grand Avenue, Suite 2800, Los Angeles, California 90071; and
(i) Contact information for Meridian, including the toll-free telephone number and the dedicated settlement email address.
The settlement website address was prominently printed on both the long-form class notice and the postcard notice. As of January 15, 2024, the settlement website recorded a total of 2,847 unique visits. A screenshot of the settlement website homepage is attached hereto as Exhibit 4.
8. Meridian also established a dedicated toll-free telephone number for class members to call with questions about the settlement. The toll-free telephone line was activated on November 3, 2023, concurrent with the notice mailing and website activation. The telephone line provided pre-recorded information about the settlement in both English and Spanish, including a summary of the settlement terms, the claims deadline, and instructions for submitting a claim, opting out, or objecting. Callers also had the option of speaking with a live representative during Meridian's regular business hours (Monday through Friday, 8:00 a.m. to 5:00 p.m., Pacific Time). As of January 15, 2024, Meridian received a total of 312 calls on the dedicated toll-free line. The most common topics of inquiry included: (a) the estimated individual payment amount; (b) how the allocation formula works, specifically the weighting of sixty percent (60%) based on weeks worked during the class period and forty percent (40%) based on recorded overtime hours during the class period; (c) the deadline to submit a claim; (d) the process for opting out of the settlement; and (e) the tax treatment of settlement payments. Meridian's representatives responded to all inquiries in accordance with the terms of the Settlement Agreement and the Preliminary Approval Order, and where appropriate, directed callers to Class Counsel for legal questions beyond the scope of settlement administration.
9. The claims period opened on November 3, 2023, coinciding with the date of notice mailing. Class members were provided three methods for submitting their claims:
(a) Online: Through the online claim submission portal accessible on the settlement website, using a unique claim identification number assigned to each class member;
(b) Mail: By completing and returning the paper claim form included with the long-form class notice, mailed to Meridian at the address provided on the claim form; or
(c) Email: By scanning or photographing the completed claim form and transmitting it to a dedicated settlement email address monitored by Meridian.
The claims deadline, as set forth in the Preliminary Approval Order, was January 2, 2024, which was sixty (60) days after the date of notice mailing. The claims deadline was the same date as the deadline for opt-out requests and objections. Claims submitted by mail were considered timely if postmarked on or before January 2, 2024. Claims submitted online or by email were considered timely if received on or before 11:59 p.m., Pacific Time, on January 2, 2024.
As of the close of the claims period on January 2, 2024, Meridian received a total of 1,262 claims. This represents a claims rate of approximately 68.2% (1,262 ÷ 1,850). All 1,262 claims were reviewed by Meridian for validity. Each claim was verified to confirm that (i) it was submitted by an identifiable class member whose name appeared on the class list, (ii) it was submitted within the claims period, and (iii) it was not duplicative of another claim submitted by the same individual. Following this review, all 1,262 claims were determined to be valid. No claims were rejected as deficient, duplicative, or untimely.
The breakdown of claims by submission method is as follows:
• Online claim submission portal: 987 claims (78.2% of all claims submitted)
• Mail: 214 claims (17.0% of all claims submitted)
• Email: 61 claims (4.8% of all claims submitted)
The 68.2% claims rate is consistent with, and in fact exceeds, claims rates typically observed in wage-and-hour class action settlements of this nature, which generally range from approximately 20% to 50%. The robust claims rate in this case likely reflects the strength of the notice program, the accessibility of the online claims portal, and the meaningful relief offered to class members under the settlement.
10. Class members who wished to exclude themselves from the settlement class were required to submit a written opt-out request, postmarked or received by Meridian on or before January 2, 2024. Opt-out requests were required to include the class member's name, address, and a clear statement that the individual wished to be excluded from the settlement in Fuentes, et al. v. Aurelius Media Americas Inc., Case No. 22STCV38214.
As of the close of the exclusion period on January 2, 2024, Meridian received a total of 23 valid opt-out requests. This represents an opt-out rate of approximately 1.24% (23 ÷ 1,850). The 23 opt-outs are well below the five percent (5%) threshold of ninety-three (93) individuals set forth in Section 9.3 of the Settlement Agreement that would trigger AMA's unilateral right to void the settlement. Accordingly, AMA's right to void the settlement based on opt-outs has not been triggered.
Meridian reviewed each of the 23 opt-out requests to confirm compliance with the requirements of the Settlement Agreement and the Preliminary Approval Order. All 23 requests were determined to be valid. There is no apparent pattern among the individuals who opted out: the opt-outs came from multiple AMA facilities and show units across the State of California, and no single attorney or representative appears to be organizing or representing the group of individuals who opted out. The opt-out requests appear to reflect individual decisions by the respective class members.
A complete list of all 23 individuals who submitted valid opt-out requests has been provided to Class Counsel and Defense Counsel. That list has been filed with the Court under seal to protect the privacy interests of those individuals and is attached hereto as Exhibit 5.
11. Class members who wished to object to the settlement were required to submit a written objection, postmarked or received by Meridian on or before January 2, 2024. As of the close of the objection period, Meridian received a total of four (4) written objections. The substance of each objection is summarized below:
(a) Carlos Vega (former production assistant at AMA's Burbank facility): Mr. Vega objects to the attorneys' fee request of 33.33% of the Gross Settlement Amount as excessive. Mr. Vega argues that attorneys' fees should be limited to no more than 25% of the Gross Settlement Amount, and that the difference should be distributed to class members. Mr. Vega does not challenge the overall settlement amount, the allocation formula, or any other term of the Settlement Agreement.
(b) Rachel Kimura (current production coordinator at AMA's Culver City facility): Ms. Kimura objects to the allocation formula used to calculate individual settlement payments. Ms. Kimura contends that overtime hours should be weighted more heavily than sixty percent (60%) for weeks worked and forty percent (40%) for overtime hours, arguing that employees who worked more overtime hours worked longer shifts and were therefore more likely to have their meal periods automatically deducted in violation of California law. Ms. Kimura does not challenge the overall settlement amount, the attorneys' fees, or any other term of the Settlement Agreement.
(c) Samuel Torres (former segment coordinator at AMA's Hollywood facility): Mr. Torres objects that the total settlement amount of $14,750,000 is too low. Mr. Torres argues that the class should have received at least $25,000,000, based on what he characterizes as the severity and duration of AMA's alleged violations. Mr. Torres does not offer any specific calculations or legal analysis in support of his position.
(d) Dawn Prescott (former post-production assistant at AMA's Glendale facility; no relation to AMA Vice President Dwayne Prescott): Ms. Prescott objects to the scope of the release contained in the Settlement Agreement, specifically the release of claims related to rest period violations and off-the-clock work, which were not certified as class claims but are encompassed within the general release. Ms. Prescott argues that class members should receive separate compensation for these released claims.
True and correct copies of all four written objections have been provided to Class Counsel and Defense Counsel and are attached hereto as Exhibit 6. None of the four objectors has indicated an intent to appear at the Final Approval Hearing.
12. Pursuant to the terms of the Settlement Agreement, the Gross Settlement Amount of $14,750,000.00 is allocated as follows:
The Net Settlement Fund of $8,251,525.00 will be distributed to those class members who submitted valid and timely claims and who did not opt out of the settlement. The individual settlement payment for each eligible class member will be calculated according to the allocation formula set forth in the Settlement Agreement: sixty percent (60%) of each individual's share will be based on the number of weeks the individual worked during the class period relative to all other claimants, and forty percent (40%) will be based on the individual's recorded overtime hours during the class period relative to all other claimants. This formula is designed to reflect the relative harm to each class member, as employees who worked more weeks and more overtime hours during the class period were more likely to have experienced the automatic meal period deductions that are at the core of this litigation.
Based on the total class size of 1,850 individuals, the estimated average individual payment across the entire class would be approximately $4,460 per class member ($8,251,525.00 ÷ 1,850 ≈ $4,460). However, because 588 class members did not submit claims, the Net Settlement Fund will be distributed among the 1,239 class members who submitted valid claims and did not opt out (1,262 valid claims minus 23 opt-outs = 1,239 eligible claimants). Accordingly, the actual average payment to eligible claimants is expected to be higher than the $4,460 figure, as the same Net Settlement Fund will be distributed among a smaller pool of claimants. The precise individual payment amounts will vary based on each claimant's weeks worked and overtime hours during the class period.
Pursuant to the Settlement Agreement, the tax treatment of settlement payments will be as follows: fifty percent (50%) of each payment will be allocated as wages, subject to applicable payroll tax withholdings and reported on IRS Form W-2; thirty-three and one-third percent (33.33%) of each payment will be allocated as interest and penalties, reported on IRS Form 1099-MISC; and sixteen and sixty-seven hundredths percent (16.67%) of each payment will be allocated as non-wage damages (e.g., emotional distress), also reported on IRS Form 1099-MISC. Meridian will prepare and issue all required tax forms in connection with the distribution of settlement payments.
13. Per Section 10.5 of the Settlement Agreement, any settlement checks that remain uncashed one hundred eighty (180) days after the date of issuance will be voided by Meridian. Any residual funds resulting from uncashed checks will not revert to AMA but will instead be donated, as a cy pres distribution, to the Legal Aid Foundation of Los Angeles, which was designated as the cy pres recipient in the Settlement Agreement. The Legal Aid Foundation of Los Angeles is a nonprofit legal services organization that provides free legal assistance to low-income individuals in Los Angeles County, including in matters relating to employment law and workers' rights. Meridian will administer the cy pres distribution, if any, following the expiration of the 180-day check-cashing period.
14. Based on the foregoing, Meridian has performed all duties required of it under the Preliminary Approval Order dated October 18, 2023, including, without limitation:
(a) Timely mailing of class notices to all identified class members, completed on November 3, 2023, within the deadline established by the Court;
(b) Re-mailing of all returned notices after performing skip-trace research, within five (5) business days of receipt of each returned notice;
(c) Establishment and continuous maintenance of the dedicated settlement website, activated on November 3, 2023, and accessible at all times through the date of this declaration and continuing;
(d) Establishment and continuous maintenance of the dedicated toll-free telephone line, activated on November 3, 2023, providing recorded information in both English and Spanish and access to a live representative during business hours;
(e) Timely processing and review of all 1,262 claims submitted by class members;
(f) Timely processing and review of all 23 opt-out requests submitted by class members;
(g) Timely receipt, logging, and forwarding of all 4 written objections submitted by class members;
(h) Reporting of claims data, opt-out data, and objection data to Class Counsel and Defense Counsel on a regular basis throughout the notice and claims period; and
(i) Preparation of this declaration and the accompanying exhibits in support of the Joint Motion for Final Approval.
Meridian is fully prepared to calculate and distribute individual settlement payments to all eligible claimants within thirty (30) days of the later of (i) the Court's entry of a Final Approval Order and Judgment and (ii) Meridian's receipt of the settlement funds from AMA and its employment practices liability insurer, Pemberton Mutual Assurance Co. Meridian will also prepare and distribute all required tax forms in connection with the settlement payments.
A summary of claims data, aggregated by facility, weeks worked, and overtime hours, in anonymized form, is attached hereto as Exhibit 7.
15. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Executed on January 22, 2024, in Santa Ana, California.
________________________________________
Angela Truong Principal Contact Meridian Settlement Services LLC 1600 E. Fourth Street, Suite 240 Santa Ana, California 92701
INDEX OF EXHIBITS
MARISOL FUENTES, DEREK HALLORAN, and YESENIA PADILLA, individually and on behalf of all others similarly situated,
(Consolidated with 22STCV39501)
Plaintiffs,
Hon. Raymond Escobedo, Dept. 34
v.
DECLARATION OF ANGELA TRUONG
| AURELIUS MEDIA AMERICAS INC., a Delaware corporation; and DOES 1 through 50, inclusive, | IN SUPPORT OF PLAINTIFFS' AND DEFENDANT'S JOINT MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT |
| Defendants. | Date Filed: January 22, 2024 |
| Category | Amount |
| Attorneys' Fees (Class Counsel, 33.33% of GSA) | $4,916,175.00 |
| Litigation Costs (Class Counsel) | $412,300.00 |
Class Representative Service Awards
| — Marisol Fuentes | $15,000.00 |
| — Derek Halloran | $10,000.00 |
| — Yesenia Padilla | $10,000.00 |
| Subtotal — Service Awards | $35,000.00 |
| Settlement Administration Costs (Meridian) | $385,000.00 |
| PAGA Payment (Total) | $750,000.00 |
| — 75% to California Labor & Workforce Development Agency | $562,500.00 |
| — 25% to Aggrieved Employees | $187,500.00 |
| Net Settlement Fund | $8,251,525.00 |
| Exhibit | Description |
| 1 | Proof of Mailing (Declaration of Mailing Service / Certificate of Mailing dated November 3, 2023) |
| 2 | Sample Long-Form Class Notice (as mailed) |
| 3 | Sample Summary/Postcard Notice (as mailed) |
| 4 | Screenshot of Settlement Website |
| 5 | List of Opt-Out Individuals (FILED UNDER SEAL) |
| 6 | Copies of Four Written Objections |
| 7 | Claims Summary Report (Aggregate Data by Facility, Weeks Worked, and Overtime Hours — Anonymized) |