Lauris et al v. Novartis AG et al

Filing 439

ORDER MODIFYING APPROVAL OF SETTLEMENT AND COMPROMISE OF MINORS CLAIMS. IT IS HEREBY ORDERED that: The November 6, 2018 order is modified and a GPI annuity with New York Life shall be purchased for the minor; Plaintiffs counsel shall file under seal proof that the monies were deposited into said GPI annuity within five days of the purchase of the GPI; and Except as described specifically herein, all other aspects of the November 6, 2018 order remain intact. Signed by Magistrate Judge Stanley A. Boone on 12/21/2018. (Hernandez, M)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE EASTERN DISTRICT OF CALIFORNIA

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Kristi Lauris, et al.,

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Case No. 1:16-cv-00393-SAB

Plaintiffs,

ORDER MODIFYING APPROVAL OF
SETTLEMENT AND COMPROMISE OF
MINOR’S CLAIMS

v.
Novartis AG, et al.,
Defendants.

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On November 6, 2018, an order issued granting Plaintiffs’ petition for approval of

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settlement and compromise of minor Plaintiff L.L.’s claims. (ECF No. 435.) In approving the

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petition, the Court ordered that Plaintiff L.L.’s settlement amount be deposited into a fixed

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annuity with New York Life as forth in the declaration of Richard M. Elias (filed as ECF No.

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429). Id.

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Subsequently, Plaintiffs’ counsel informed the Court of unforeseen difficulties in
purchasing the fixed term annuity due to concerns about tax penalties that apply to any

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withdrawals of income earned by the annuity taken prior to age fifty-nine and a half. As an
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alternative, Plaintiffs’ counsel has proposed that the settlement amount be deposited into a
guaranteed period income (“GPI”) annuity with a term of seven years. The GPI annuity
provides that the annuity amount plus interest will be paid to L.L. in equal payments over the

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course of seven years. Such payments are not subject to any tax penalties.

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The Court finds that the proposed GPI annuity is an appropriate investment for Plaintiff

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L.L. that will ensure that she will have the ability to pay for the reasonable expenses that she

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will incur during her college career, while preventing her from gaining immediate access to all

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of the settlement funds.

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Accordingly, IT IS HEREBY ORDERED that:

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1.

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The November 6, 2018 order is modified and a GPI annuity with New York Life
shall be purchased for the minor;

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2.

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Plaintiffs’ counsel shall file under seal proof that the monies were deposited into
said GPI annuity within five days of the purchase of the GPI; and

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3.

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Except as described specifically herein, all other aspects of the November 6,
2018 order remain intact.

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IT IS SO ORDERED.

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Dated:

December 21, 2018
UNITED STATES MAGISTRATE JUDGE

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