EDDINGS v. HEALTH NET, INC. Case No. 10-CV-01744 JST (RZ).


United States District Court, C.D. California, Santa Ana Division.
June 27, 2013.
Health Net Pharmaceutical Services, Inc., Defendant, represented by Tina M Tran, Orrick Herrington and Sutcliffe, Mary K Dubose, Orrick Herrington & Sutcliffe LLP & Timothy J Long, Orrick Herrington and Sutcliffe LLP.



For the reasons set foprth in the Court's Order Granting (1) Plaintiff's Motion for Final Settlement Approval and (2) Plaintiff's Application for Attorneys Fees, Costs, and Enhancement Award, in accordance with Federal Rule of Civil Procedure Rule 23(e)(2) and for good cause appearing,


1. The Court has jurisdiction over the subject matter of the above-captioned matter, Shaunetta Eddings ("Plaintiff"), Defendants Health Net, Inc., Health Net of California, Inc.; Health Net Federal Services, LLC; Managed Health Network, Inc.; Health Net of the Northeast, Inc.; and Health Net Pharmaceutical Services, Inc. (collectively "Defendants") and all members of the Settlement Class. The Settlement Class consist of two classes of individuals: (1) "all current and former customer service representatives who worked for Defendants in Defendants' call centers nationwide at any time during the period from three years prior to filing Consent to Join the Action to July 2008" and (2) "all current and former employees who worked for Defendants in Defendants' California call centers at any time during the period from March 10, 2006, through July 18, 2008 who did not timely submit an opt-out form." (collectively "Settlement Class Members" or "Settlement Class")

2. The term "Settlement Agreement" shall refer to the Revised Class Action Settlement Agreement and Stipulation signed by the parties on December 20, 2012, and all terms herein shall have the same meaning as terms defined in the Settlement Agreement, unless specifically provided herein.

3. The Court grants final approval of the parties' Settlement Agreement.

4. The Court finds that the distribution by first-class mail of the Notice of Class Action Settlement to Settlement Class Members constituted the best notice practicable under the circumstances to all persons within the definition of the Settlement Class and fully met the requirements of due process under the United States Constitution and applicable state law. Based on evidence and other material submitted in conjunction with the Final Settlement Approval Hearing, the actual notice to the Settlement Class was adequate. These papers informed class members of the terms of the Settlement Agreement, their right to claim a share of the settlement proceeds, their right to object to the Settlement Agreement or to elect not to participate in the Settlement and pursue their own remedies, and their right to appear in person or by counsel at the Final Settlement Approval Hearing and be heard regarding approval of the Settlement. Adequate periods of time were provided by each of these procedures. Zero Settlement Class Members objected to the Settlement Agreement and only six — less than one-percent of the Settlement Class — opted-out of the Settlement.

5. The Court approves the settlement of the above-captioned action and each of the releases and other terms set forth in the Settlement Agreement, as fair, just, reasonable, and adequate as to the Settlement Class, Plaintiff, and Defendants (collectively "Settling Parties"). The Settling Parties and the Settlement Administrator are directed to perform in accordance with the terms set forth in the Settlement Agreement.

6. Plaintiff Shaunetta Eddings shall release and discharge Defendants and other Released Parties (as defined in the Settlement Agreement, ¶ 27) from any and all claims she now has or claims to have or at any time heretofore had or claimed to have arising out of or related to any act, omission, event, fact or other thing related to, or arising from her employment and/or severance of employment with Defendants which existed or occurred on the date of or prior to the Preliminary Approval Order.

7. Settlement Class Members shall release Defendants and Released Parties from wage and hour claims only as they relate to rounding of time and will not release all potential employment claims, as further described and defined within the Settlement Agreement. Class Members who have opted-out from the settlement will not release any claims against Defendants. California Settlement Class Members who became a part of the Class pursuant to the opt-out process under Rule 23, and never filed a Consent to Join or otherwise opted in to this action, will not release claims pursuant to the Fair Labor Standards Act.

8. Defendants shall pay $600,000 as the total settlement fund without admitting any liability and will deposit the money with the settlement administrator, Simpluris no later than twenty (20) days after the Effective Date of the Settlement Agreement (as defined in the Settlement Agreement, ¶¶ 14-16), which amount shall be referred to herein as the "settlement fund." Defendants will also pay the employer's portion of applicable payroll taxes. These are the only amounts Defendants are required to pay pursuant the terms of the Settlement Agreement and this Judgment.

9. Plaintiff's counsel shall receive an award of attorneys' fees of $150,000.00 from the settlement fund as is appropriate under Federal Rule of Civil Procedure Rule 23(h) and applicable law. Plaintiff's counsel shall also receive an amount of $130,174.43 out of the settlement fund as reimbursement for their costs and expenses incurred prosecuting this lawsuit. Additionally, $25,000.00 of the settlement fund is to be reserved for Simpluris, the Settlement Administrator in this lawsuit.

10. Plaintiff Shaunetta Eddings shall receive a $6,000.00 incentive award out of the settlement fund for her services in initiating, maintaining, and assisting counsel in this litigation.

11. Each Settlement Class Member who did not opt-out of the settlement shall receive a share of the settlement fund based on the time worked within the relevant time period, the employee's rate of pay, and various multipliers as defined in paragraph 45(d) of the Settlement Agreement. The Court finds that the plan of allocation set forth in the Settlement Agreement is fair and reasonable and that distribution of the settlement fund to Settlement Class Members shall be done in accordance with the terms outlined in the Notice of Class Action Settlement and Settlement Agreement.

12. Any funds remaining from the total settlement fund after payment of Plaintiff's counsel's fees and expenses and the distribution of the shares of the settlement fund to class members who did not opt-out of the settlement — including checks uncashed after 320 days, checks returned as undeliverable, and any unused portion of the $25,000 allocated to cover the Settlement Administrator's costs — shall be distributed in cy pres to the Legal Aid Society — Employment Law Center.

13. The Settlement Administrator is directed to make the foregoing payments to Plaintiff, Settlement Class Members who did not opt-out from the Settlement, Plaintiff's counsel, and the Settlement Administrator itself in accordance with the terms of the Final Approval Order and this Judgment. Defendants shall not be required to make any additional payments in connection with the Settlement Agreement, other than the payment of its share of payroll taxes as provided for in the Settlement Agreement.

14. This matter is hereby dismissed with prejudice in its entirety. The Court reserves and retains exclusive and continuing jurisdiction over the above captioned matter, the Plaintiff, the Settlement Class, and Defendants for the purposes of supervising the implementation, effectuation, enforcement, construction, administration, and interpretation of the Settlement Agreement and this Judgment.

15. This document shall constitute a judgment for purposes of Rule 58 of the Federal Rules of Civil Procedure.



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