1017-00004 · Entities. Aurelius Global Media Group · Settlement Approval

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SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF LOS ANGELES — CENTRAL DISTRICT

Case No. 22STCV38214 (Consolidated with Case No. 22STCV39501)

Assigned to the Honorable Raymond Escobedo, Department 34

NOTICE OF PROPOSED CLASS ACTION SETTLEMENT

Marisol Fuentes, Derek Halloran, and Yesenia Padilla, individually and on behalf of all others similarly situated,

Plaintiffs,

Aurelius Media Americas Inc.,

Defendant.

Filed: September 22, 2023

A court authorized this notice. This is not a solicitation from a lawyer.

SECTION 1: WHY YOU ARE RECEIVING THIS NOTICE

You are receiving this notice because records maintained by Aurelius Media Americas Inc. ("AMA") and its payroll vendor, NovaPay Solutions Inc., indicate that you may be a member of a class of current and former non-exempt, hourly employees who are eligible to participate in a proposed settlement of a class action lawsuit. The lawsuit was brought against AMA in the Superior Court of the State of California, County of Los Angeles, and involves claims that AMA violated California wage-and-hour laws in connection with its automatic meal period deduction timekeeping practices.

The purpose of this notice is to inform you of the terms of the proposed settlement, to explain your legal rights and options under the settlement, and to advise you of an upcoming court hearing at which the Honorable Raymond Escobedo will consider whether to grant final approval of the settlement. This notice describes the lawsuit, the settlement terms, the benefits available to class members, and how to participate in, opt out of, or object to the settlement.

Your legal rights are affected whether you act or do not act. Please read this notice carefully.

The following table provides a summary of your options and the applicable deadlines. Each option is described in greater detail in the sections that follow.

SECTION 2: WHAT IS THIS CASE ABOUT?

On November 1, 2022, former AMA employee Marisol Fuentes filed a class action lawsuit against AMA in the Superior Court of the State of California, County of Los Angeles, bearing Case No. 22STCV38214. A related action was filed by Derek Halloran on November 18, 2022, bearing Case No. 22STCV39501. The two cases were consolidated by order of the Court on February 3, 2023, with Case No. 22STCV38214 designated as the lead case. Yesenia Padilla was subsequently added as a named plaintiff in the consolidated action.

The lawsuit alleges that AMA violated California wage-and-hour laws by, among other things:

• Failing to provide compliant meal periods to non-exempt, hourly employees in accordance with California Labor Code sections 512 and 226.7;

• Using an automatic meal period deduction in its timekeeping system—specifically, the NovaPay Solutions "TimeTrack Pro" platform—that automatically deducted thirty (30) minutes from employees' recorded hours for each shift of five or more hours worked, without providing a reliable mechanism for employees to report missed, late, shortened, or interrupted meal breaks;

• Failing to pay meal period premium wages (one additional hour of pay at the employee's regular rate of compensation) when employees did not receive timely, uninterrupted, and duty-free meal periods as required by law;

• Failing to provide accurate, itemized wage statements in violation of California Labor Code section 226, on the grounds that the wage statements did not accurately reflect total hours worked due to the automatic meal period deduction; and

• Engaging in unfair business practices in violation of California Business and Professions Code section 17200 et seq. (the "Unfair Competition Law" or "UCL"), based on the alleged wage-and-hour violations described above.

The lawsuit also included claims under the California Private Attorneys General Act ("PAGA"), California Labor Code sections 2698 through 2699.8, seeking civil penalties on behalf of aggrieved employees and the State of California for the alleged violations.

AMA denies all of the allegations in the lawsuit. AMA has maintained, and continues to maintain, that it complied with all applicable California wage-and-hour laws and regulations at all relevant times. AMA contends that it maintained lawful meal and rest break policies; that its TimeTrack Pro timekeeping system included mechanisms—including on-screen prompts, supervisor alerts, and a dedicated "missed meal" reporting function—for employees to report missed, shortened, or interrupted meal periods; that its payroll records were accurate; and that any alleged violations, to the extent they occurred, were isolated and did not affect the class as a whole. AMA further contends that the claims in the lawsuit are not suitable for class-wide treatment because they require individualized inquiries into each employee's specific circumstances. The settlement is a compromise and is not an admission of wrongdoing, liability, or fault by AMA.

On August 11, 2023, the Court (the Honorable Raymond Escobedo presiding) entered an order granting partial class certification. Specifically, the Court certified a class on the following claims: (1) the meal period automatic deduction claim under California Labor Code sections 512 and 226.7; (2) the derivative wage statement claim under California Labor Code section 226; and (3) the UCL claim under Business and Professions Code section 17200, to the extent it was predicated on the meal period auto-deduction theory. The Court denied class certification on several other claims asserted in the lawsuit, including claims for rest period violations, off-the-clock overtime, minimum wage violations, second meal period violations, and waiting time penalties under California Labor Code sections 201 through 203.

Prior to reaching the settlement, the parties engaged in extensive discovery over a period of approximately nine months. AMA produced approximately 147,832 documents, including payroll records, timekeeping data exports from the TimeTrack Pro system, employee handbooks and policy manuals, corporate communications regarding meal and rest break policies, and training materials. The parties conducted a total of eighteen (18) depositions, including depositions of the three named plaintiffs, AMA's corporate designees under Code of Civil Procedure section 2025.230, AMA's former and current human resources managers, shift supervisors, and payroll administrators. Both parties retained and exchanged reports from expert witnesses, including competing analyses by statisticians and damages experts regarding the frequency and scope of the alleged meal period violations and the resulting damages.

After completing this discovery, the parties participated in two full-day mediation sessions before the Honorable Patricia Okoro (Ret.) of Westpark Dispute Resolution Inc. The first mediation session took place on July 14, 2023, and the second on August 28, 2023. During these sessions, the parties engaged in extensive arms-length negotiations, including the exchange of detailed damages analyses and litigation risk assessments. At the conclusion of the second mediation session, the parties reached an agreement in principle on the material terms of the settlement, which were thereafter memorialized in a written Settlement Agreement and Release.

On October 18, 2023, the Court entered an order granting preliminary approval of the settlement, conditionally certifying the settlement class, approving the form and manner of class notice, and setting the Final Approval Hearing for February 2, 2024.

SECTION 3: WHO IS INCLUDED IN THE SETTLEMENT CLASS?

The settlement class is defined as follows:

Class Definition: All current and former non-exempt, hourly employees of Aurelius Media Americas Inc. who worked in the State of California at any time during the period from November 1, 2018 through October 31, 2023 (the "Class Period"), and who were subject to AMA's automatic meal period deduction in the NovaPay Solutions TimeTrack Pro timekeeping system.

Based on the payroll and timekeeping records produced by AMA and NovaPay Solutions Inc. during the course of this litigation, the settlement class includes approximately 1,850 individuals.

During the Class Period, AMA operated California production facilities and offices at the following locations: West Hollywood, Studio City, Sherman Oaks, Burbank, Hollywood, Santa Monica, and El Segundo. Employees who worked at any of these locations during the Class Period and who were classified as non-exempt, hourly employees subject to the TimeTrack Pro automatic meal period deduction are included in the settlement class.

If you received this notice by mail, AMA's records indicate that you may be a member of the settlement class. However, receipt of this notice does not guarantee that you are a class member. If you are unsure whether you are a class member, or if you believe you received this notice in error, you may contact the Claims Administrator, Meridian Settlement Services LLC, for assistance. The Claims Administrator's contact information is provided below in Section 11 of this notice.

SECTION 4: WHAT ARE THE SETTLEMENT TERMS?

4.1 Gross Settlement Amount

AMA has agreed to pay a total Gross Settlement Amount ("GSA") of Fourteen Million Seven Hundred Fifty Thousand Dollars ($14,750,000.00) to resolve all class claims and PAGA claims asserted in this lawsuit. The GSA is a non-reversionary settlement fund, meaning that the entire amount will be distributed and no portion of the fund will revert to AMA. AMA will fund the GSA within thirty (30) calendar days after the Effective Date of the settlement (as defined in the Settlement Agreement).

4.2 Deductions from the Gross Settlement Amount

Before the Net Settlement Fund is calculated and distributed to individual class members, the following amounts will be deducted from the Gross Settlement Amount, subject to Court approval:

Each of these deductions is described in further detail below and in other sections of this notice. All deductions are subject to Court approval. The Court may approve the requested amounts, reduce them, or deny them in whole or in part. If the Court reduces or denies any of these requested deductions, the difference will be added to the Net Settlement Fund and distributed to class members.

4.3 PAGA Payment

A total of $750,000.00 of the Gross Settlement Amount has been allocated to the resolution of PAGA civil penalty claims. Under the California Private Attorneys General Act, 75% of any PAGA civil penalty recovery ($562,500.00) is required to be paid to the California Labor and Workforce Development Agency ("LWDA"), and 25% ($187,500.00) is distributed to aggrieved employees. The 25% aggrieved employee share of the PAGA payment will be distributed to class members as part of their individual settlement payments, in accordance with the allocation formula described in Section 5 below.

4.4 Class Representative Service Awards

Class Counsel will ask the Court to approve the following service awards to the three named plaintiffs in recognition of their service to the class throughout the litigation, including their willingness to act as class representatives, participate in discovery, sit for depositions, attend mediations, and risk public disclosure of their employment and financial information:

Marisol Fuentes: $15,000.00

Derek Halloran: $10,000.00

Yesenia Padilla: $10,000.00

These service awards are in addition to any individual settlement payments the named plaintiffs will receive as class members. The service awards are subject to Court approval, and the Court may reduce or deny the requested amounts.

4.5 Net Settlement Fund

After all deductions described above in Section 4.2 are applied, the Net Settlement Fund (also referred to as the "Net Settlement Amount" or "NSF") available for distribution to participating class members is estimated to be Eight Million Two Hundred Fifty-One Thousand Five Hundred Twenty-Five Dollars ($8,251,525.00).

This amount may increase if the Court reduces or denies any of the requested deductions, or decrease if additional costs of settlement administration are incurred. In no event will the total amount distributed from the GSA exceed $14,750,000.00.

4.6 Estimated Average Individual Payment

Based on the anticipated Net Settlement Fund of $8,251,525.00 and the approximately 1,850 class members, the estimated average payment to each participating class member is approximately $4,460.00. However, individual payments will vary—some class members will receive more and some will receive less than this average—based on the allocation formula described in Section 5 below. The actual amount each class member receives depends on the number of weeks worked during the Class Period, the number of recorded overtime hours worked during the Class Period, the number of class members who opt out of the settlement, and the final amounts approved by the Court for deductions.

SECTION 5: HOW WILL SETTLEMENT PAYMENTS BE CALCULATED?

5.1 Allocation Formula

Individual settlement payments will be calculated using a weighted allocation formula that takes into account each class member's relative share of work performed during the Class Period. The formula is based on two factors:

• Sixty percent (60%) of each class member's payment will be based on the number of weeks worked by that class member during the Class Period (November 1, 2018 through October 31, 2023), relative to the total number of weeks worked by all participating class members during the Class Period.

• Forty percent (40%) of each class member's payment will be based on the number of recorded overtime hours worked by that class member during the Class Period, relative to the total number of recorded overtime hours worked by all participating class members during the Class Period.

As a result of this allocation formula, class members who worked more weeks during the Class Period and/or who worked more overtime hours during the Class Period will receive proportionally larger settlement payments. Conversely, class members who worked fewer weeks during the Class Period or who did not work overtime hours (or who worked relatively few overtime hours) will receive proportionally smaller settlement payments.

The overtime factor was included in the allocation formula because the evidence developed during discovery indicated that employees who worked longer shifts and overtime hours were more likely to have experienced missed or shortened meal periods, and were therefore disproportionately affected by AMA's automatic meal period deduction practice.

5.2 Data Source

The allocation of individual settlement payments will be calculated using payroll and timekeeping data maintained by AMA and its payroll vendor, NovaPay Solutions Inc. These records include work-week data, shift-level timekeeping data, and overtime hour records extracted from the NovaPay Solutions TimeTrack Pro system. The data has been produced and verified during the course of discovery in this litigation. The Claims Administrator, Meridian Settlement Services LLC, will use this data to calculate each class member's individual settlement payment.

If you believe that the payroll or timekeeping data on file with AMA or NovaPay Solutions may contain errors regarding your weeks worked or overtime hours, you may contact the Claims Administrator to request a review. The Claims Administrator's contact information is provided in Section 11 of this notice. Any disputes regarding the accuracy of the underlying data used in calculating individual payments will be resolved by the Claims Administrator, whose determination shall be final and binding absent manifest error.

5.3 Tax Treatment

Settlement payments will be allocated as follows for tax reporting purposes:

• Fifty percent (50%) of each class member's individual settlement payment will be characterized as wages for unpaid meal period premium wages and related compensation. This portion will be subject to applicable federal and state income tax withholdings, as well as employee-side payroll tax deductions (including FICA and applicable state payroll taxes). This portion of your payment will be reported on an IRS Form W-2.

• Thirty-three and one-third percent (33.33%) of each class member's individual settlement payment will be characterized as interest and penalties. This portion will not be subject to employer tax withholdings, but may constitute taxable income to you. This portion of your payment will be reported on an IRS Form 1099-MISC.

• Sixteen and sixty-seven one-hundredths percent (16.67%) of each class member's individual settlement payment will be characterized as non-wage damages (e.g., damages for inaccurate wage statements). This portion will not be subject to employer tax withholdings, but may constitute taxable income to you. This portion of your payment will also be reported on an IRS Form 1099-MISC.

Applicable federal and state income tax withholdings and payroll tax deductions will be deducted from the wage portion (50%) of each class member's individual settlement payment before the payment is issued. The net amount you receive will reflect these deductions.

You are strongly encouraged to consult your own tax advisor regarding the tax consequences of your settlement payment. Neither Class Counsel, Defense Counsel, the Claims Administrator, nor the Court can provide you with tax advice. The tax treatment of your settlement payment may depend on your individual circumstances, and you should not rely on this notice for tax guidance.

SECTION 6: WHAT CLAIMS ARE BEING RELEASED?

If you are a member of the settlement class and you do not opt out (exclude yourself) from the settlement, you will be bound by a release of claims (the "Release") set forth in the Settlement Agreement. The Release means that you will give up the right to sue AMA separately—whether individually, as a class action, as a representative PAGA action, or in any other capacity—for the claims covered by the settlement.

Specifically, the Release covers all claims, causes of action, demands, damages, penalties, debts, liabilities, and obligations of every kind and nature, whether known or unknown, suspected or unsuspected, that arise out of or relate to the facts, transactions, events, occurrences, acts, omissions, or failures to act that were alleged, or that reasonably could have been alleged, in the Consolidated Complaint in this lawsuit, including but not limited to the following:

• Claims for failure to provide lawful meal periods (first and second meal periods) under California Labor Code sections 512 and 226.7;

• Claims for failure to provide lawful rest periods under California Labor Code section 226.7;

• Claims for failure to pay wages for all hours worked, including off-the-clock work and overtime, under California Labor Code sections 510, 1194, and 1198;

• Claims for failure to pay minimum wages under California Labor Code sections 1194 and 1197;

• Claims for failure to furnish accurate, itemized wage statements under California Labor Code section 226;

• Claims for waiting time penalties for failure to timely pay all wages due upon termination or resignation under California Labor Code sections 201, 202, and 203;

• Claims for unfair, unlawful, or fraudulent business practices under California Business and Professions Code section 17200 et seq.;

• All PAGA representative claims for civil penalties under California Labor Code sections 2698 through 2699.8 arising from the facts alleged in the Consolidated Complaint; and

• Any and all other claims, whether statutory, regulatory, contractual, or based in common law, that were asserted or could have been asserted based on the factual allegations in the Consolidated Complaint, during the Class Period (November 1, 2018 through October 31, 2023).

Important: The Release includes claims that were not certified for class treatment by the Court—such as rest period claims, off-the-clock overtime claims, minimum wage claims, second meal period claims, and waiting time penalty claims. Although the Court denied class certification on these claims, they were factored into the overall settlement negotiation and the total Gross Settlement Amount reflects the value attributed to these claims in the parties' arms-length negotiations and mediation.

In connection with the Release, each participating class member (i.e., each class member who does not opt out) will waive the protections of California Civil Code section 1542, which provides:

"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."

By not opting out of the settlement, you will be deemed to have waived the protections of Section 1542 with respect to the released claims, meaning that the Release will cover claims that you do not currently know about or suspect to exist, to the extent those claims fall within the scope of the Release described above.

The Release does not cover claims that are unrelated to the wage-and-hour allegations in this lawsuit. For example, the Release does not cover claims for discrimination, harassment, retaliation, wrongful termination, breach of contract (unrelated to wages), personal injury, or any other claims that do not arise from or relate to the facts alleged in this lawsuit.

SECTION 7: HOW DO I RECEIVE A PAYMENT?

You do not need to file a claim form or take any other action to receive a settlement payment. If you are a member of the settlement class and you do not opt out (exclude yourself) from the settlement, you will automatically receive a settlement payment after the Court grants final approval of the settlement and the settlement becomes effective (the "Effective Date"). The Effective Date is defined in the Settlement Agreement as the date on which the Court's Final Approval Order becomes final and non-appealable, or, if any objections or appeals are filed, the date on which all such objections or appeals have been finally resolved.

Settlement payments will be mailed by the Claims Administrator, Meridian Settlement Services LLC, to the last known mailing address on file with the Claims Administrator. The address on file is generally derived from AMA's payroll records. If your mailing address has changed since you last worked for AMA, or if you believe the address on file may be incorrect, you should update your contact information with the Claims Administrator as soon as possible to ensure that you receive your settlement payment. You may update your address by contacting the Claims Administrator using the contact information provided in Section 11 of this notice.

Settlement checks will be valid for one hundred eighty (180) days from the date of issuance. If your settlement check is not cashed or deposited within 180 days of issuance, the check will be voided and the funds represented by that check will be donated to the Legal Aid Foundation of Los Angeles ("LAFLA") as a cy pres distribution, pursuant to the terms of the Settlement Agreement and the Court's order. LAFLA is a nonprofit legal services organization that provides free legal assistance to low-income residents of Los Angeles County. The cy pres recipient was selected by Class Counsel and approved by the Court as an organization whose mission is consistent with the interests of the class.

If your settlement check is lost, stolen, or damaged, you should contact the Claims Administrator promptly to request a replacement check. Replacement checks will only be issued during the 180-day check cashing period.

SECTION 8: WHAT ARE MY OPTIONS?

You have three options as a class member. Please read each option carefully before deciding which course of action is best for you.

Option A: Do Nothing — Stay in the Class

If you do nothing in response to this notice, you will remain a member of the settlement class. You will be bound by the Release of Claims described in Section 6 of this notice, meaning that you will give up the right to sue AMA separately for the claims covered by the Release. If the Court grants final approval of the settlement, you will automatically receive a settlement payment as described in Sections 5 and 7 of this notice, without the need to file a claim form or take any other action. The amount of your payment will be determined by the allocation formula described in Section 5.

Option B: Opt Out (Exclude Yourself from the Settlement)

If you do not want to be part of the settlement, do not want to receive a settlement payment, do not want to be bound by the Release of Claims, and want to retain the right to pursue your own individual claims against AMA for the wage-and-hour violations alleged in this lawsuit, you must submit a written request for exclusion (an "opt-out request") in accordance with the procedures described below.

Deadline to opt out: January 2, 2024

Your opt-out request must satisfy each of the following requirements:

1. The request must be in writing. Oral requests for exclusion, including requests made by telephone to the Claims Administrator, will not be accepted.

2. The request must include your full legal name, current mailing address, current telephone number, and the last four digits of your Social Security number.

3. The request must clearly and unambiguously state that you wish to be excluded from the settlement in Fuentes, Halloran, and Padilla v. Aurelius Media Americas Inc., Case No. 22STCV38214, Superior Court of the State of California, County of Los Angeles.

4. The request must be signed by you personally. Opt-out requests signed by an attorney, a family member, or any other person on your behalf will not be accepted, unless you are legally incapacitated and the request is signed by your duly appointed legal guardian or conservator with appropriate documentation.

5. The request must be mailed to the Claims Administrator at the address below and must be postmarked no later than January 2, 2024.

Meridian Settlement Services LLC

Attn: Fuentes v. AMA Settlement

1600 E. Fourth Street, Suite 240 Santa Ana, CA 92701

Opt-out requests that do not comply with these requirements, or that are postmarked after January 2, 2024, will not be honored, and you will remain a member of the settlement class.

If you opt out, you will NOT receive a settlement payment and you will NOT be bound by the Release of Claims. You will retain whatever individual claims you may have against AMA for the wage-and-hour violations alleged in this lawsuit, subject to applicable statutes of limitations, defenses, and other legal limitations. If you are considering opting out and filing your own lawsuit or claim against AMA, you should consult with an attorney of your own choosing as soon as possible, because your claims may be subject to time limitations.

If you opt out, you cannot also object to the settlement. Objections are available only to class members who remain in the class.

Option C: Object to the Settlement

If you are a member of the settlement class and you do not opt out, you have the right to object to any aspect of the settlement. You may tell the Court why you believe the settlement should not be approved, or why you disagree with any specific term of the settlement. For example, you may object to the total settlement amount, the allocation formula used to calculate individual payments, the requested attorneys' fees and costs, the requested class representative service awards, the scope of the Release, the selection of the cy pres recipient, or any other term or aspect of the settlement.

Deadline to object: January 2, 2024

Your objection must satisfy each of the following requirements:

1. The objection must be in writing.

2. The objection must include your full legal name, current mailing address, current telephone number, and the last four digits of your Social Security number.

3. The objection must state the specific reasons for your objection. Objections that do not state the basis or reasons for the objection may not be considered by the Court.

4. The objection must state whether you intend to appear at the Final Approval Hearing on February 2, 2024.

5. The objection must be signed by you personally.

6. The objection must be mailed to both the Claims Administrator (at the address listed above under Option B) and the Court, and must be postmarked no later than January 2, 2024:

Clerk of the Court Superior Court of the State of California County of Los Angeles — Central District 111 N. Hill Street Los Angeles, CA 90012 Re: Case No. 22STCV38214, Department 34

You may also, but are not required to, serve a copy of your objection on Class Counsel and Defense Counsel at the following addresses:

Class Counsel: Castellano Byrne & Salas LLP

Attn: Marco Castellano

11755 Wilshire Boulevard, Suite 900 Los Angeles, CA 90025

Defense Counsel: Calderwood & Harkness LLP

Attn: Renata Vasquez

777 South Flower Street, Suite 4200 Los Angeles, CA 90017

If you submit a timely objection, you will still remain a class member and you will still receive a settlement payment (assuming the Court grants final approval of the settlement). Submitting an objection does not exclude you from the settlement class. The only way to exclude yourself from the settlement is to submit a written opt-out request as described in Option B above.

If you submit a timely objection and indicate that you intend to appear at the Final Approval Hearing, you may ask the Court for permission to speak at the hearing. You may also retain your own attorney to appear on your behalf at the hearing at your own expense. However, you are not required to attend the hearing in order for your written objection to be considered by the Court.

SECTION 9: WHEN AND WHERE IS THE FINAL APPROVAL HEARING?

The Court will hold a Final Approval Hearing to determine whether the proposed settlement is fair, adequate, and reasonable to the class, and whether to grant final approval of the settlement. At the hearing, the Court will also consider whether to approve Class Counsel's request for attorneys' fees and litigation costs, the requested class representative service awards, and any other matters relating to the settlement. The Court will also consider any timely objections submitted by class members.

The Final Approval Hearing is scheduled as follows:

Date: February 2, 2024

Time: 8:30 a.m.

Location: Superior Court of the State of California County of Los Angeles — Central District 111 N. Hill Street Los Angeles, CA 90012 Department 34 (Honorable Raymond Escobedo)

You are not required to attend the Final Approval Hearing. Class Counsel—Castellano Byrne & Salas LLP and Veltrano Employment Law Group PC—will appear at the hearing and represent the interests of the settlement class. If you have not submitted an objection, there is no need for you to attend the hearing, and your settlement payment will not be affected by your absence.

However, you have the right to attend the hearing if you wish to do so. If you have filed a timely written objection, you may request the Court's permission to address the Court at the hearing. You may also retain your own attorney to appear at the hearing on your behalf at your own expense.

Please note: The date and time of the Final Approval Hearing are subject to change without further notice to class members. Any changes to the hearing date, time, or location will be posted on the settlement website. The settlement website address is provided in Section 11 of this notice. You are encouraged to check the settlement website periodically for updates.

The Court may also continue (postpone) or reschedule the Final Approval Hearing without further notice to class members, other than by posting on the settlement website. If you plan to attend the hearing, you should confirm the date, time, and location by checking the settlement website or contacting the Claims Administrator in advance.

SECTION 10: WHO ARE THE LAWYERS IN THIS CASE?

Class Counsel. The Court has appointed the following law firms as Class Counsel to represent the interests of the settlement class in this litigation:

Lead Class Counsel:

Castellano Byrne & Salas LLP Marco Castellano / Diane Salas 11755 Wilshire Boulevard, Suite 900 Los Angeles, CA 90025

PAGA Co-Counsel:

Veltrano Employment Law Group PC Sandra Higuera 350 South Grand Avenue, Suite 2800 Los Angeles, CA 90071

Class Counsel prosecuted this case on a contingency basis, meaning that they have not been paid for their work on this case to date and will only be compensated if the Court approves the settlement. Class Counsel will request attorneys' fees in the amount of 33.33% of the Gross Settlement Amount, or $4,916,175.00, and reimbursement of out-of-pocket litigation costs and expenses incurred in the prosecution of this case in an amount up to $412,300.00. These amounts are subject to Court approval, and the Court may award less than the amounts requested.

The requested attorneys' fees are intended to compensate Class Counsel for over two years of work on this case, including investigation of the claims, preparation and filing of the complaints, extensive discovery including the review of approximately 147,832 documents, 18 depositions, retention and consultation of expert witnesses, preparation of the class certification motion and related briefing, preparation for and attendance at two full-day mediation sessions, and all other work performed in connection with the litigation and settlement of this action. The requested litigation costs include filing fees, service of process costs, deposition transcript costs, expert witness fees, mediation fees, electronic discovery vendor costs, and other out-of-pocket expenses.

You do not need to hire your own attorney to participate in the settlement or to receive a settlement payment. Class Counsel represents all class members who do not opt out of the settlement, and there is no cost to you for Class Counsel's representation. However, if you wish, you may hire your own attorney at your own expense. Any attorney you hire on your own will not be entitled to any fees or costs from the settlement fund.

Defense Counsel. AMA is represented by the following law firm:

Calderwood & Harkness LLP Renata Vasquez 777 South Flower Street, Suite 4200 Los Angeles, CA 90017

SECTION 11: HOW CAN I GET MORE INFORMATION?

This notice provides a summary of the proposed settlement. The complete terms and conditions of the settlement are set forth in the Settlement Agreement and Release, which is the controlling document. In the event of any conflict between this notice and the Settlement Agreement, the Settlement Agreement controls.

For additional information about the settlement, including access to the full Settlement Agreement and other court filings, you may use any of the following resources:

1. Visit the Settlement Website:

www.FuentesvAMASettlement.com

The settlement website contains a copy of this notice, the Settlement Agreement, the Court's Preliminary Approval Order (entered October 18, 2023), answers to frequently asked questions, and other important documents and information relating to the settlement. The website will also be updated with any changes to the Final Approval Hearing date and other important developments.

2. Contact the Claims Administrator:

Meridian Settlement Services LLC

Attn: Fuentes v. AMA Settlement

1600 E. Fourth Street, Suite 240 Santa Ana, CA 92701

Toll-Free Telephone: 1-888-555-0147

Email: info@FuentesvAMASettlement.com

Contact: Angela Truong

The Claims Administrator can answer questions about the settlement process, help you update your mailing address, provide information about your estimated individual settlement payment, and assist with opt-out requests and objections. The Claims Administrator is available Monday through Friday, 8:00 a.m. to 5:00 p.m. Pacific Time, excluding federal and state holidays.

3. Contact Class Counsel:

Castellano Byrne & Salas LLP Telephone: (310) 555-0238

You may contact Class Counsel if you have questions about your legal rights, the terms of the settlement, or any other legal matter related to this case. Class Counsel can also provide guidance regarding whether to remain in the class, opt out, or object.

4. Review the Court File:

The Settlement Agreement, the Court's Preliminary Approval Order (entered October 18, 2023), and all related filings in this case are available for public review at the Clerk's Office of the Superior Court of the State of California, County of Los Angeles — Central District, located at:

111 N. Hill Street Los Angeles, CA 90012

The court file may be reviewed during regular business hours. You may also be able to access certain filings through the Los Angeles Superior Court's online case access system.

Please do not contact the Court or the Judge's chambers with questions about the settlement. The Court cannot provide legal advice or answer questions about the settlement terms, your eligibility, or your options. All questions should be directed to the Claims Administrator or Class Counsel at the contact information provided above.

SECTION 12: IMPORTANT DATES SUMMARY

The following table summarizes the key dates and deadlines related to the proposed settlement. Please make note of these dates and take any required action before the applicable deadline.

All deadlines are firm. Opt-out requests and objections that are not postmarked on or before the applicable deadline will not be considered. The Final Approval Hearing date is subject to change; please check the settlement website for updates.

DATED: September 22, 2023

BY ORDER OF THE COURT

Honorable Raymond Escobedo Superior Court of the State of California County of Los Angeles — Central District Department 34

This notice has been approved by the Superior Court of the State of California, County of Los Angeles. The Court has made no determination regarding the merits of the claims or defenses asserted in this case. This notice is not an expression of any opinion by the Court regarding the merits of any claim or defense, or regarding the fairness or adequacy of the proposed settlement. The Court has determined only that the proposed settlement and this notice meet the requirements for preliminary approval and class notification.

Your Option	What It Means	Deadline
Do Nothing	You will remain a member of the settlement class. If the settlement is approved, you will automatically receive a payment. You will give up the right to sue AMA separately for the claims covered by the settlement (as described in Section 6).	No action required.
Opt Out (Exclude Yourself)	You will not receive any payment from the settlement. You will retain the right to sue AMA separately for the claims you may have, subject to applicable statutes of limitations and other legal defenses.	Your written request for exclusion must be postmarked no later than January 2, 2024.
Object to the Settlement	You will remain in the settlement class and may receive a payment, but you can tell the Court why you believe the settlement should not be approved, or why any specific term of the settlement is unfair.	Your written objection must be postmarked no later than January 2, 2024.
Attend the Final Approval Hearing	You may appear at the hearing, either on your own or through an attorney retained at your own expense, and, if you have filed a timely objection, you may request the Court's permission to speak at the hearing.	February 2, 2024, at 8:30 a.m., Department 34, Superior Court, 111 N. Hill Street, Los Angeles, CA 90012.
Deduction	Amount
Class Counsel Attorneys' Fees (33.33% of GSA)	$4,916,175.00
Class Counsel Litigation Costs Reimbursement	$412,300.00
Settlement Administration Costs (Meridian Settlement Services LLC)	$385,000.00
PAGA Payment (Civil Penalties)	$750,000.00
Class Representative Service Awards (Total)	$35,000.00
Total Deductions	$6,498,475.00
Event	Date
Class Notice Mailed	November 3, 2023
Deadline to Opt Out (Exclude Yourself from the Settlement)	January 2, 2024 (postmark deadline)
Deadline to Object to the Settlement	January 2, 2024 (postmark deadline)
Final Approval Hearing	February 2, 2024, at 8:30 a.m., Department 34, Superior Court of California, County of Los Angeles, 111 N. Hill Street, Los Angeles, CA 90012

SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF LOS ANGELES — CENTRAL DISTRICT
Case No. 22STCV38214 (Consolidated with Case No. 22STCV39501)
Assigned to the Honorable Raymond Escobedo, Department 34
NOTICE OF PROPOSED CLASS ACTION SETTLEMENT
Marisol Fuentes, Derek Halloran, and Yesenia Padilla, individually and on behalf of all others similarly situated,
Plaintiffs,
v.
Aurelius Media Americas Inc.,
Defendant.
Filed: September 22, 2023
A court authorized this notice. This is not a solicitation from a lawyer.
SECTION 1: WHY YOU ARE RECEIVING THIS NOTICE
You are receiving this notice because records maintained by Aurelius Media Americas Inc. ("AMA") and its payroll vendor, NovaPay Solutions Inc., indicate that you may be a member of a class of current and former non-exempt, hourly employees who are eligible to participate in a proposed settlement of a class action lawsuit. The lawsuit was brought against AMA in the Superior Court of the State of California, County of Los Angeles, and involves claims that AMA violated California wage-and-hour laws in connection with its automatic meal period deduction timekeeping practices.
The purpose of this notice is to inform you of the terms of the proposed settlement, to explain your legal rights and options under the settlement, and to advise you of an upcoming court hearing at which the Honorable Raymond Escobedo will consider whether to grant final approval of the settlement. This notice describes the lawsuit, the settlement terms, the benefits available to class members, and how to participate in, opt out of, or object to the settlement.
Your legal rights are affected whether you act or do not act. Please read this notice carefully.
The following table provides a summary of your options and the applicable deadlines. Each option is described in greater detail in the sections that follow.
SECTION 2: WHAT IS THIS CASE ABOUT?
On November 1, 2022, former AMA employee Marisol Fuentes filed a class action lawsuit against AMA in the Superior Court of the State of California, County of Los Angeles, bearing Case No. 22STCV38214. A related action was filed by Derek Halloran on November 18, 2022, bearing Case No. 22STCV39501. The two cases were consolidated by order of the Court on February 3, 2023, with Case No. 22STCV38214 designated as the lead case. Yesenia Padilla was subsequently added as a named plaintiff in the consolidated action.
The lawsuit alleges that AMA violated California wage-and-hour laws by, among other things:
•  Failing to provide compliant meal periods to non-exempt, hourly employees in accordance with California Labor Code sections 512 and 226.7;
•  Using an automatic meal period deduction in its timekeeping system—specifically, the NovaPay Solutions "TimeTrack Pro" platform—that automatically deducted thirty (30) minutes from employees' recorded hours for each shift of five or more hours worked, without providing a reliable mechanism for employees to report missed, late, shortened, or interrupted meal breaks;
•  Failing to pay meal period premium wages (one additional hour of pay at the employee's regular rate of compensation) when employees did not receive timely, uninterrupted, and duty-free meal periods as required by law;
•  Failing to provide accurate, itemized wage statements in violation of California Labor Code section 226, on the grounds that the wage statements did not accurately reflect total hours worked due to the automatic meal period deduction; and
•  Engaging in unfair business practices in violation of California Business and Professions Code section 17200 et seq. (the "Unfair Competition Law" or "UCL"), based on the alleged wage-and-hour violations described above.
The lawsuit also included claims under the California Private Attorneys General Act ("PAGA"), California Labor Code sections 2698 through 2699.8, seeking civil penalties on behalf of aggrieved employees and the State of California for the alleged violations.
AMA denies all of the allegations in the lawsuit. AMA has maintained, and continues to maintain, that it complied with all applicable California wage-and-hour laws and regulations at all relevant times. AMA contends that it maintained lawful meal and rest break policies; that its TimeTrack Pro timekeeping system included mechanisms—including on-screen prompts, supervisor alerts, and a dedicated "missed meal" reporting function—for employees to report missed, shortened, or interrupted meal periods; that its payroll records were accurate; and that any alleged violations, to the extent they occurred, were isolated and did not affect the class as a whole. AMA further contends that the claims in the lawsuit are not suitable for class-wide treatment because they require individualized inquiries into each employee's specific circumstances. The settlement is a compromise and is not an admission of wrongdoing, liability, or fault by AMA.
On August 11, 2023, the Court (the Honorable Raymond Escobedo presiding) entered an order granting partial class certification. Specifically, the Court certified a class on the following claims: (1) the meal period automatic deduction claim under California Labor Code sections 512 and 226.7; (2) the derivative wage statement claim under California Labor Code section 226; and (3) the UCL claim under Business and Professions Code section 17200, to the extent it was predicated on the meal period auto-deduction theory. The Court denied class certification on several other claims asserted in the lawsuit, including claims for rest period violations, off-the-clock overtime, minimum wage violations, second meal period violations, and waiting time penalties under California Labor Code sections 201 through 203.
Prior to reaching the settlement, the parties engaged in extensive discovery over a period of approximately nine months. AMA produced approximately 147,832 documents, including payroll records, timekeeping data exports from the TimeTrack Pro system, employee handbooks and policy manuals, corporate communications regarding meal and rest break policies, and training materials. The parties conducted a total of eighteen (18) depositions, including depositions of the three named plaintiffs, AMA's corporate designees under Code of Civil Procedure section 2025.230, AMA's former and current human resources managers, shift supervisors, and payroll administrators. Both parties retained and exchanged reports from expert witnesses, including competing analyses by statisticians and damages experts regarding the frequency and scope of the alleged meal period violations and the resulting damages.
After completing this discovery, the parties participated in two full-day mediation sessions before the Honorable Patricia Okoro (Ret.) of Westpark Dispute Resolution Inc. The first mediation session took place on July 14, 2023, and the second on August 28, 2023. During these sessions, the parties engaged in extensive arms-length negotiations, including the exchange of detailed damages analyses and litigation risk assessments. At the conclusion of the second mediation session, the parties reached an agreement in principle on the material terms of the settlement, which were thereafter memorialized in a written Settlement Agreement and Release.
On October 18, 2023, the Court entered an order granting preliminary approval of the settlement, conditionally certifying the settlement class, approving the form and manner of class notice, and setting the Final Approval Hearing for February 2, 2024.
SECTION 3: WHO IS INCLUDED IN THE SETTLEMENT CLASS?
The settlement class is defined as follows:
Class Definition: All current and former non-exempt, hourly employees of Aurelius Media Americas Inc. who worked in the State of California at any time during the period from November 1, 2018 through October 31, 2023 (the "Class Period"), and who were subject to AMA's automatic meal period deduction in the NovaPay Solutions TimeTrack Pro timekeeping system.
Based on the payroll and timekeeping records produced by AMA and NovaPay Solutions Inc. during the course of this litigation, the settlement class includes approximately 1,850 individuals.
During the Class Period, AMA operated California production facilities and offices at the following locations: West Hollywood, Studio City, Sherman Oaks, Burbank, Hollywood, Santa Monica, and El Segundo. Employees who worked at any of these locations during the Class Period and who were classified as non-exempt, hourly employees subject to the TimeTrack Pro automatic meal period deduction are included in the settlement class.
If you received this notice by mail, AMA's records indicate that you may be a member of the settlement class. However, receipt of this notice does not guarantee that you are a class member. If you are unsure whether you are a class member, or if you believe you received this notice in error, you may contact the Claims Administrator, Meridian Settlement Services LLC, for assistance. The Claims Administrator's contact information is provided below in Section 11 of this notice.
SECTION 4: WHAT ARE THE SETTLEMENT TERMS?
4.1 Gross Settlement Amount
AMA has agreed to pay a total Gross Settlement Amount ("GSA") of Fourteen Million Seven Hundred Fifty Thousand Dollars ($14,750,000.00) to resolve all class claims and PAGA claims asserted in this lawsuit. The GSA is a non-reversionary settlement fund, meaning that the entire amount will be distributed and no portion of the fund will revert to AMA. AMA will fund the GSA within thirty (30) calendar days after the Effective Date of the settlement (as defined in the Settlement Agreement).
4.2 Deductions from the Gross Settlement Amount
Before the Net Settlement Fund is calculated and distributed to individual class members, the following amounts will be deducted from the Gross Settlement Amount, subject to Court approval:
Each of these deductions is described in further detail below and in other sections of this notice. All deductions are subject to Court approval. The Court may approve the requested amounts, reduce them, or deny them in whole or in part. If the Court reduces or denies any of these requested deductions, the difference will be added to the Net Settlement Fund and distributed to class members.
4.3 PAGA Payment
A total of $750,000.00 of the Gross Settlement Amount has been allocated to the resolution of PAGA civil penalty claims. Under the California Private Attorneys General Act, 75% of any PAGA civil penalty recovery ($562,500.00) is required to be paid to the California Labor and Workforce Development Agency ("LWDA"), and 25% ($187,500.00) is distributed to aggrieved employees. The 25% aggrieved employee share of the PAGA payment will be distributed to class members as part of their individual settlement payments, in accordance with the allocation formula described in Section 5 below.
4.4 Class Representative Service Awards
Class Counsel will ask the Court to approve the following service awards to the three named plaintiffs in recognition of their service to the class throughout the litigation, including their willingness to act as class representatives, participate in discovery, sit for depositions, attend mediations, and risk public disclosure of their employment and financial information:
Marisol Fuentes: $15,000.00
Derek Halloran: $10,000.00
Yesenia Padilla: $10,000.00
These service awards are in addition to any individual settlement payments the named plaintiffs will receive as class members. The service awards are subject to Court approval, and the Court may reduce or deny the requested amounts.
4.5 Net Settlement Fund
After all deductions described above in Section 4.2 are applied, the Net Settlement Fund (also referred to as the "Net Settlement Amount" or "NSF") available for distribution to participating class members is estimated to be Eight Million Two Hundred Fifty-One Thousand Five Hundred Twenty-Five Dollars ($8,251,525.00).
This amount may increase if the Court reduces or denies any of the requested deductions, or decrease if additional costs of settlement administration are incurred. In no event will the total amount distributed from the GSA exceed $14,750,000.00.
4.6 Estimated Average Individual Payment
Based on the anticipated Net Settlement Fund of $8,251,525.00 and the approximately 1,850 class members, the estimated average payment to each participating class member is approximately $4,460.00. However, individual payments will vary—some class members will receive more and some will receive less than this average—based on the allocation formula described in Section 5 below. The actual amount each class member receives depends on the number of weeks worked during the Class Period, the number of recorded overtime hours worked during the Class Period, the number of class members who opt out of the settlement, and the final amounts approved by the Court for deductions.
SECTION 5: HOW WILL SETTLEMENT PAYMENTS BE CALCULATED?
5.1 Allocation Formula
Individual settlement payments will be calculated using a weighted allocation formula that takes into account each class member's relative share of work performed during the Class Period. The formula is based on two factors:
•  Sixty percent (60%) of each class member's payment will be based on the number of weeks worked by that class member during the Class Period (November 1, 2018 through October 31, 2023), relative to the total number of weeks worked by all participating class members during the Class Period.
•  Forty percent (40%) of each class member's payment will be based on the number of recorded overtime hours worked by that class member during the Class Period, relative to the total number of recorded overtime hours worked by all participating class members during the Class Period.
As a result of this allocation formula, class members who worked more weeks during the Class Period and/or who worked more overtime hours during the Class Period will receive proportionally larger settlement payments. Conversely, class members who worked fewer weeks during the Class Period or who did not work overtime hours (or who worked relatively few overtime hours) will receive proportionally smaller settlement payments.
The overtime factor was included in the allocation formula because the evidence developed during discovery indicated that employees who worked longer shifts and overtime hours were more likely to have experienced missed or shortened meal periods, and were therefore disproportionately affected by AMA's automatic meal period deduction practice.
5.2 Data Source
The allocation of individual settlement payments will be calculated using payroll and timekeeping data maintained by AMA and its payroll vendor, NovaPay Solutions Inc. These records include work-week data, shift-level timekeeping data, and overtime hour records extracted from the NovaPay Solutions TimeTrack Pro system. The data has been produced and verified during the course of discovery in this litigation. The Claims Administrator, Meridian Settlement Services LLC, will use this data to calculate each class member's individual settlement payment.
If you believe that the payroll or timekeeping data on file with AMA or NovaPay Solutions may contain errors regarding your weeks worked or overtime hours, you may contact the Claims Administrator to request a review. The Claims Administrator's contact information is provided in Section 11 of this notice. Any disputes regarding the accuracy of the underlying data used in calculating individual payments will be resolved by the Claims Administrator, whose determination shall be final and binding absent manifest error.
5.3 Tax Treatment
Settlement payments will be allocated as follows for tax reporting purposes:
•  Fifty percent (50%) of each class member's individual settlement payment will be characterized as wages for unpaid meal period premium wages and related compensation. This portion will be subject to applicable federal and state income tax withholdings, as well as employee-side payroll tax deductions (including FICA and applicable state payroll taxes). This portion of your payment will be reported on an IRS Form W-2.
•  Thirty-three and one-third percent (33.33%) of each class member's individual settlement payment will be characterized as interest and penalties. This portion will not be subject to employer tax withholdings, but may constitute taxable income to you. This portion of your payment will be reported on an IRS Form 1099-MISC.
•  Sixteen and sixty-seven one-hundredths percent (16.67%) of each class member's individual settlement payment will be characterized as non-wage damages (e.g., damages for inaccurate wage statements). This portion will not be subject to employer tax withholdings, but may constitute taxable income to you. This portion of your payment will also be reported on an IRS Form 1099-MISC.
Applicable federal and state income tax withholdings and payroll tax deductions will be deducted from the wage portion (50%) of each class member's individual settlement payment before the payment is issued. The net amount you receive will reflect these deductions.
You are strongly encouraged to consult your own tax advisor regarding the tax consequences of your settlement payment. Neither Class Counsel, Defense Counsel, the Claims Administrator, nor the Court can provide you with tax advice. The tax treatment of your settlement payment may depend on your individual circumstances, and you should not rely on this notice for tax guidance.
SECTION 6: WHAT CLAIMS ARE BEING RELEASED?
If you are a member of the settlement class and you do not opt out (exclude yourself) from the settlement, you will be bound by a release of claims (the "Release") set forth in the Settlement Agreement. The Release means that you will give up the right to sue AMA separately—whether individually, as a class action, as a representative PAGA action, or in any other capacity—for the claims covered by the settlement.
Specifically, the Release covers all claims, causes of action, demands, damages, penalties, debts, liabilities, and obligations of every kind and nature, whether known or unknown, suspected or unsuspected, that arise out of or relate to the facts, transactions, events, occurrences, acts, omissions, or failures to act that were alleged, or that reasonably could have been alleged, in the Consolidated Complaint in this lawsuit, including but not limited to the following:
•  Claims for failure to provide lawful meal periods (first and second meal periods) under California Labor Code sections 512 and 226.7;
•  Claims for failure to provide lawful rest periods under California Labor Code section 226.7;
•  Claims for failure to pay wages for all hours worked, including off-the-clock work and overtime, under California Labor Code sections 510, 1194, and 1198;
•  Claims for failure to pay minimum wages under California Labor Code sections 1194 and 1197;
•  Claims for failure to furnish accurate, itemized wage statements under California Labor Code section 226;
•  Claims for waiting time penalties for failure to timely pay all wages due upon termination or resignation under California Labor Code sections 201, 202, and 203;
•  Claims for unfair, unlawful, or fraudulent business practices under California Business and Professions Code section 17200 et seq.;
•  All PAGA representative claims for civil penalties under California Labor Code sections 2698 through 2699.8 arising from the facts alleged in the Consolidated Complaint; and
•  Any and all other claims, whether statutory, regulatory, contractual, or based in common law, that were asserted or could have been asserted based on the factual allegations in the Consolidated Complaint, during the Class Period (November 1, 2018 through October 31, 2023).
Important: The Release includes claims that were not certified for class treatment by the Court—such as rest period claims, off-the-clock overtime claims, minimum wage claims, second meal period claims, and waiting time penalty claims. Although the Court denied class certification on these claims, they were factored into the overall settlement negotiation and the total Gross Settlement Amount reflects the value attributed to these claims in the parties' arms-length negotiations and mediation.
In connection with the Release, each participating class member (i.e., each class member who does not opt out) will waive the protections of California Civil Code section 1542, which provides:
"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."
By not opting out of the settlement, you will be deemed to have waived the protections of Section 1542 with respect to the released claims, meaning that the Release will cover claims that you do not currently know about or suspect to exist, to the extent those claims fall within the scope of the Release described above.
The Release does not cover claims that are unrelated to the wage-and-hour allegations in this lawsuit. For example, the Release does not cover claims for discrimination, harassment, retaliation, wrongful termination, breach of contract (unrelated to wages), personal injury, or any other claims that do not arise from or relate to the facts alleged in this lawsuit.
SECTION 7: HOW DO I RECEIVE A PAYMENT?
You do not need to file a claim form or take any other action to receive a settlement payment. If you are a member of the settlement class and you do not opt out (exclude yourself) from the settlement, you will automatically receive a settlement payment after the Court grants final approval of the settlement and the settlement becomes effective (the "Effective Date"). The Effective Date is defined in the Settlement Agreement as the date on which the Court's Final Approval Order becomes final and non-appealable, or, if any objections or appeals are filed, the date on which all such objections or appeals have been finally resolved.
Settlement payments will be mailed by the Claims Administrator, Meridian Settlement Services LLC, to the last known mailing address on file with the Claims Administrator. The address on file is generally derived from AMA's payroll records. If your mailing address has changed since you last worked for AMA, or if you believe the address on file may be incorrect, you should update your contact information with the Claims Administrator as soon as possible to ensure that you receive your settlement payment. You may update your address by contacting the Claims Administrator using the contact information provided in Section 11 of this notice.
Settlement checks will be valid for one hundred eighty (180) days from the date of issuance. If your settlement check is not cashed or deposited within 180 days of issuance, the check will be voided and the funds represented by that check will be donated to the Legal Aid Foundation of Los Angeles ("LAFLA") as a cy pres distribution, pursuant to the terms of the Settlement Agreement and the Court's order. LAFLA is a nonprofit legal services organization that provides free legal assistance to low-income residents of Los Angeles County. The cy pres recipient was selected by Class Counsel and approved by the Court as an organization whose mission is consistent with the interests of the class.
If your settlement check is lost, stolen, or damaged, you should contact the Claims Administrator promptly to request a replacement check. Replacement checks will only be issued during the 180-day check cashing period.
SECTION 8: WHAT ARE MY OPTIONS?
You have three options as a class member. Please read each option carefully before deciding which course of action is best for you.
Option A: Do Nothing — Stay in the Class
If you do nothing in response to this notice, you will remain a member of the settlement class. You will be bound by the Release of Claims described in Section 6 of this notice, meaning that you will give up the right to sue AMA separately for the claims covered by the Release. If the Court grants final approval of the settlement, you will automatically receive a settlement payment as described in Sections 5 and 7 of this notice, without the need to file a claim form or take any other action. The amount of your payment will be determined by the allocation formula described in Section 5.
Option B: Opt Out (Exclude Yourself from the Settlement)
If you do not want to be part of the settlement, do not want to receive a settlement payment, do not want to be bound by the Release of Claims, and want to retain the right to pursue your own individual claims against AMA for the wage-and-hour violations alleged in this lawsuit, you must submit a written request for exclusion (an "opt-out request") in accordance with the procedures described below.
Deadline to opt out: January 2, 2024
Your opt-out request must satisfy each of the following requirements:
1.  The request must be in writing. Oral requests for exclusion, including requests made by telephone to the Claims Administrator, will not be accepted.
2.  The request must include your full legal name, current mailing address, current telephone number, and the last four digits of your Social Security number.
3.  The request must clearly and unambiguously state that you wish to be excluded from the settlement in Fuentes, Halloran, and Padilla v. Aurelius Media Americas Inc., Case No. 22STCV38214, Superior Court of the State of California, County of Los Angeles.
4.  The request must be signed by you personally. Opt-out requests signed by an attorney, a family member, or any other person on your behalf will not be accepted, unless you are legally incapacitated and the request is signed by your duly appointed legal guardian or conservator with appropriate documentation.
5.  The request must be mailed to the Claims Administrator at the address below and must be postmarked no later than January 2, 2024.
Meridian Settlement Services LLC
Attn: Fuentes v. AMA Settlement
1600 E. Fourth Street, Suite 240 Santa Ana, CA 92701
Opt-out requests that do not comply with these requirements, or that are postmarked after January 2, 2024, will not be honored, and you will remain a member of the settlement class.
If you opt out, you will NOT receive a settlement payment and you will NOT be bound by the Release of Claims. You will retain whatever individual claims you may have against AMA for the wage-and-hour violations alleged in this lawsuit, subject to applicable statutes of limitations, defenses, and other legal limitations. If you are considering opting out and filing your own lawsuit or claim against AMA, you should consult with an attorney of your own choosing as soon as possible, because your claims may be subject to time limitations.
If you opt out, you cannot also object to the settlement. Objections are available only to class members who remain in the class.
Option C: Object to the Settlement
If you are a member of the settlement class and you do not opt out, you have the right to object to any aspect of the settlement. You may tell the Court why you believe the settlement should not be approved, or why you disagree with any specific term of the settlement. For example, you may object to the total settlement amount, the allocation formula used to calculate individual payments, the requested attorneys' fees and costs, the requested class representative service awards, the scope of the Release, the selection of the cy pres recipient, or any other term or aspect of the settlement.
Deadline to object: January 2, 2024
Your objection must satisfy each of the following requirements:
1.  The objection must be in writing.
2.  The objection must include your full legal name, current mailing address, current telephone number, and the last four digits of your Social Security number.
3.  The objection must state the specific reasons for your objection. Objections that do not state the basis or reasons for the objection may not be considered by the Court.
4.  The objection must state whether you intend to appear at the Final Approval Hearing on February 2, 2024.
5.  The objection must be signed by you personally.
6.  The objection must be mailed to both the Claims Administrator (at the address listed above under Option B) and the Court, and must be postmarked no later than January 2, 2024:
Clerk of the Court Superior Court of the State of California County of Los Angeles — Central District 111 N. Hill Street Los Angeles, CA 90012 Re: Case No. 22STCV38214, Department 34
You may also, but are not required to, serve a copy of your objection on Class Counsel and Defense Counsel at the following addresses:
Class Counsel: Castellano Byrne & Salas LLP
Attn: Marco Castellano
11755 Wilshire Boulevard, Suite 900 Los Angeles, CA 90025
Defense Counsel: Calderwood & Harkness LLP
Attn: Renata Vasquez
777 South Flower Street, Suite 4200 Los Angeles, CA 90017
If you submit a timely objection, you will still remain a class member and you will still receive a settlement payment (assuming the Court grants final approval of the settlement). Submitting an objection does not exclude you from the settlement class. The only way to exclude yourself from the settlement is to submit a written opt-out request as described in Option B above.
If you submit a timely objection and indicate that you intend to appear at the Final Approval Hearing, you may ask the Court for permission to speak at the hearing. You may also retain your own attorney to appear on your behalf at the hearing at your own expense. However, you are not required to attend the hearing in order for your written objection to be considered by the Court.
SECTION 9: WHEN AND WHERE IS THE FINAL APPROVAL HEARING?
The Court will hold a Final Approval Hearing to determine whether the proposed settlement is fair, adequate, and reasonable to the class, and whether to grant final approval of the settlement. At the hearing, the Court will also consider whether to approve Class Counsel's request for attorneys' fees and litigation costs, the requested class representative service awards, and any other matters relating to the settlement. The Court will also consider any timely objections submitted by class members.
The Final Approval Hearing is scheduled as follows:
Date: February 2, 2024
Time: 8:30 a.m.
Location: Superior Court of the State of California County of Los Angeles — Central District 111 N. Hill Street Los Angeles, CA 90012 Department 34 (Honorable Raymond Escobedo)
You are not required to attend the Final Approval Hearing. Class Counsel—Castellano Byrne & Salas LLP and Veltrano Employment Law Group PC—will appear at the hearing and represent the interests of the settlement class. If you have not submitted an objection, there is no need for you to attend the hearing, and your settlement payment will not be affected by your absence.
However, you have the right to attend the hearing if you wish to do so. If you have filed a timely written objection, you may request the Court's permission to address the Court at the hearing. You may also retain your own attorney to appear at the hearing on your behalf at your own expense.
Please note: The date and time of the Final Approval Hearing are subject to change without further notice to class members. Any changes to the hearing date, time, or location will be posted on the settlement website. The settlement website address is provided in Section 11 of this notice. You are encouraged to check the settlement website periodically for updates.
The Court may also continue (postpone) or reschedule the Final Approval Hearing without further notice to class members, other than by posting on the settlement website. If you plan to attend the hearing, you should confirm the date, time, and location by checking the settlement website or contacting the Claims Administrator in advance.
SECTION 10: WHO ARE THE LAWYERS IN THIS CASE?
Class Counsel.  The Court has appointed the following law firms as Class Counsel to represent the interests of the settlement class in this litigation:
Lead Class Counsel:
Castellano Byrne & Salas LLP Marco Castellano / Diane Salas 11755 Wilshire Boulevard, Suite 900 Los Angeles, CA 90025
PAGA Co-Counsel:
Veltrano Employment Law Group PC Sandra Higuera 350 South Grand Avenue, Suite 2800 Los Angeles, CA 90071
Class Counsel prosecuted this case on a contingency basis, meaning that they have not been paid for their work on this case to date and will only be compensated if the Court approves the settlement. Class Counsel will request attorneys' fees in the amount of 33.33% of the Gross Settlement Amount, or $4,916,175.00, and reimbursement of out-of-pocket litigation costs and expenses incurred in the prosecution of this case in an amount up to $412,300.00. These amounts are subject to Court approval, and the Court may award less than the amounts requested.
The requested attorneys' fees are intended to compensate Class Counsel for over two years of work on this case, including investigation of the claims, preparation and filing of the complaints, extensive discovery including the review of approximately 147,832 documents, 18 depositions, retention and consultation of expert witnesses, preparation of the class certification motion and related briefing, preparation for and attendance at two full-day mediation sessions, and all other work performed in connection with the litigation and settlement of this action. The requested litigation costs include filing fees, service of process costs, deposition transcript costs, expert witness fees, mediation fees, electronic discovery vendor costs, and other out-of-pocket expenses.
You do not need to hire your own attorney to participate in the settlement or to receive a settlement payment. Class Counsel represents all class members who do not opt out of the settlement, and there is no cost to you for Class Counsel's representation. However, if you wish, you may hire your own attorney at your own expense. Any attorney you hire on your own will not be entitled to any fees or costs from the settlement fund.
Defense Counsel.  AMA is represented by the following law firm:
Calderwood & Harkness LLP Renata Vasquez 777 South Flower Street, Suite 4200 Los Angeles, CA 90017
SECTION 11: HOW CAN I GET MORE INFORMATION?
This notice provides a summary of the proposed settlement. The complete terms and conditions of the settlement are set forth in the Settlement Agreement and Release, which is the controlling document. In the event of any conflict between this notice and the Settlement Agreement, the Settlement Agreement controls.
For additional information about the settlement, including access to the full Settlement Agreement and other court filings, you may use any of the following resources:
1.  Visit the Settlement Website:
www.FuentesvAMASettlement.com
The settlement website contains a copy of this notice, the Settlement Agreement, the Court's Preliminary Approval Order (entered October 18, 2023), answers to frequently asked questions, and other important documents and information relating to the settlement. The website will also be updated with any changes to the Final Approval Hearing date and other important developments.
2.  Contact the Claims Administrator:
Meridian Settlement Services LLC
Attn: Fuentes v. AMA Settlement
1600 E. Fourth Street, Suite 240 Santa Ana, CA 92701
Toll-Free Telephone: 1-888-555-0147
Email: info@FuentesvAMASettlement.com
Contact: Angela Truong
The Claims Administrator can answer questions about the settlement process, help you update your mailing address, provide information about your estimated individual settlement payment, and assist with opt-out requests and objections. The Claims Administrator is available Monday through Friday, 8:00 a.m. to 5:00 p.m. Pacific Time, excluding federal and state holidays.
3.  Contact Class Counsel:
Castellano Byrne & Salas LLP Telephone: (310) 555-0238
You may contact Class Counsel if you have questions about your legal rights, the terms of the settlement, or any other legal matter related to this case. Class Counsel can also provide guidance regarding whether to remain in the class, opt out, or object.
4.  Review the Court File:
The Settlement Agreement, the Court's Preliminary Approval Order (entered October 18, 2023), and all related filings in this case are available for public review at the Clerk's Office of the Superior Court of the State of California, County of Los Angeles — Central District, located at:
111 N. Hill Street Los Angeles, CA 90012
The court file may be reviewed during regular business hours. You may also be able to access certain filings through the Los Angeles Superior Court's online case access system.
Please do not contact the Court or the Judge's chambers with questions about the settlement. The Court cannot provide legal advice or answer questions about the settlement terms, your eligibility, or your options. All questions should be directed to the Claims Administrator or Class Counsel at the contact information provided above.
SECTION 12: IMPORTANT DATES SUMMARY
The following table summarizes the key dates and deadlines related to the proposed settlement. Please make note of these dates and take any required action before the applicable deadline.
All deadlines are firm. Opt-out requests and objections that are not postmarked on or before the applicable deadline will not be considered. The Final Approval Hearing date is subject to change; please check the settlement website for updates.
DATED: September 22, 2023
BY ORDER OF THE COURT
Honorable Raymond Escobedo Superior Court of the State of California County of Los Angeles — Central District Department 34
This notice has been approved by the Superior Court of the State of California, County of Los Angeles. The Court has made no determination regarding the merits of the claims or defenses asserted in this case. This notice is not an expression of any opinion by the Court regarding the merits of any claim or defense, or regarding the fairness or adequacy of the proposed settlement. The Court has determined only that the proposed settlement and this notice meet the requirements for preliminary approval and class notification.
Your Option | What It Means | Deadline
Do Nothing | You will remain a member of the settlement class. If the settlement is approved, you will automatically receive a payment. You will give up the right to sue AMA separately for the claims covered by the settlement (as described in Section 6). | No action required.
Opt Out (Exclude Yourself) | You will not receive any payment from the settlement. You will retain the right to sue AMA separately for the claims you may have, subject to applicable statutes of limitations and other legal defenses. | Your written request for exclusion must be postmarked no later than January 2, 2024.
Object to the Settlement | You will remain in the settlement class and may receive a payment, but you can tell the Court why you believe the settlement should not be approved, or why any specific term of the settlement is unfair. | Your written objection must be postmarked no later than January 2, 2024.
Attend the Final Approval Hearing | You may appear at the hearing, either on your own or through an attorney retained at your own expense, and, if you have filed a timely objection, you may request the Court's permission to speak at the hearing. | February 2, 2024, at 8:30 a.m., Department 34, Superior Court, 111 N. Hill Street, Los Angeles, CA 90012.
Deduction | Amount
Class Counsel Attorneys' Fees (33.33% of GSA) | $4,916,175.00
Class Counsel Litigation Costs Reimbursement | $412,300.00
Settlement Administration Costs (Meridian Settlement Services LLC) | $385,000.00
PAGA Payment (Civil Penalties) | $750,000.00
Class Representative Service Awards (Total) | $35,000.00
Total Deductions | $6,498,475.00
Event | Date
Class Notice Mailed | November 3, 2023
Deadline to Opt Out (Exclude Yourself from the Settlement) | January 2, 2024 (postmark deadline)
Deadline to Object to the Settlement | January 2, 2024 (postmark deadline)
Final Approval Hearing | February 2, 2024, at 8:30 a.m., Department 34, Superior Court of California, County of Los Angeles, 111 N. Hill Street, Los Angeles, CA 90012

SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF LOS ANGELES — CENTRAL DISTRICT

NOTICE OF PROPOSED CLASS ACTION SETTLEMENT

SECTION 1: WHY YOU ARE RECEIVING THIS NOTICE

SECTION 12: IMPORTANT DATES SUMMARY

BY ORDER OF THE COURT

Record

Parties

Dates

Amounts