Campbell v. PriceWaterhouse Coopers, LLP
Filing
648
ORDER signed by District Judge Troy L. Nunley on 1/30/2015 GRANTING 642 Preliminary Approval of Class Action Settlement. (Donati, J)
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UNITED STATES DISTRICT COURT
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EASTERN DISTRICT OF CALIFORNIA
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JASON CAMPBELL and SARAH SOBEK,
individually, and on behalf of all other
similarly situated current and former
employees of PricewaterhouseCoopers, LLP,
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CASE NO. 2:06-CV-02376 TLN/AC
ORDER GRANTING
PRELIMINARY APPROVAL OF
CLASS ACTION SETTLEMENT
Plaintiffs,
v.
PRICEWATERHOUSECOOPERS LLP,
Defendant.
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This matter came for hearing on January 29, 2015, upon Plaintiffs’ Unopposed Motion for
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Preliminary Approval of Class Action Settlement on the terms set forth in the Settlement Agreement
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and Release. The purpose of the hearing was to determine, among other things, whether the proposed
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Settlement Agreement and Release was within the range of possible approval and whether to proceed
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with Notice to the Class of its terms and conditions, and the scheduling of a formal fairness hearing,
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also known as a final approval hearing. The Court having considered the Settlement Agreement and
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Release, all papers and proceedings held herein, having reviewed the record in this action, Campbell et
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al. v. PricewaterhouseCoopers LLP, Case No. 2:06-CV-02376 TLN/AC, (the “Action”), and good
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cause appearing, finds that:
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WHEREAS, this Action was commenced in the United States District Court, Eastern District of
ORDER GRANTING PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT
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California on October 27, 2006; and
WHEREAS, by Order dated March 25, 2008, the Court provisionally certified the class, which
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has been defined during the litigation as all persons employed by PricewaterhouseCoopers LLP
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(“PwC” or “Defendant”) in California who, at any time during the period of October 27, 2002 to July
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23, 2008 (a) worked as associates in the Attest Division of PwC’s Assurance Line of Service, (b) were
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not licensed as certified public accountants by the State of California for some or all of the period they
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worked in this position, and (c) were classified as exempt employees while working in this position;
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and
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WHEREAS, Kershaw Cutter & Ratinoff LLP was previously appointed as Class Counsel for
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the litigation class and Plaintiffs Jason Campbell and Sarah Sobek were previously appointed as Class
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Representatives; and
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WHEREAS, during the eight years the Action has been pending, the parties have engaged in
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fact and expert discovery, motion practice, litigation in this Court and in the Ninth Circuit, and were
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preparing for trial scheduled to commence on March 30, 2015; and
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WHEREAS, the Parties have engaged in Court-ordered mediation before Magistrate Judge
Kendall J. Newman, which process resulted in the Settlement Agreement and Release; and
WHEREAS, a resolution to this Action was reached following a mediator’s proposal by
Magistrate Judge Newman; and
WHEREAS, Plaintiffs believe that this case is meritorious and that class certification was and
continues to be appropriate; and
WHEREAS, Defendant denies any liability and wrongdoing of any kind associated with the
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claims alleged in this Action, and continues to deny that this Action is appropriate for class treatment
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for any purpose other than this Settlement; and
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WHEREAS, Defendant contends, among other things, that it has complied at all times with the
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California Labor Code, Fair Labor Standards Act, Industrial Welfare Commission Wage Order No. 4-
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2001, and the California Business and Professions Code §§ 17200, et seq. and specifically contends that
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classification of any Attest Associate as an exempt employee was and continues to be a correct
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classification under the California Labor Code and the Fair Labor Standards Act; and
ORDER GRANTING PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT
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WHEREAS, PwC is not reclassifying its Attest Associates as non-exempt as a condition of the
Settlement Agreement and Release, or otherwise; and
WHEREAS, Class Counsel has conducted a thorough investigation into the facts of this Action,
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is knowledgeable about and has done extensive research with respect to the applicable law and the
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defenses asserted by Defendant to the claims of the Class and has diligently litigated the Class
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Members’ claims against Defendant, and therefore Class Counsel has an appropriate basis to evaluate
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the value of this Settlement; and
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WHEREAS, based on its investigation of the facts of the Action, research, experience, and
familiarity with the record of the Action, Class Counsel is of the opinion that the Settlement with
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Defendant for the consideration and on the terms set forth in the Settlement Agreement and Release is
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fair, reasonable, and adequate and is in the best interest of the Class Members in light of all known
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facts and circumstances, including the uncertainty associated with litigation, the defenses asserted by
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Defendant, the governing law and numerous potential appellate issues; and
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WHEREAS, the Parties desire to compromise and fully settle their claims with finality and
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agree to the Settlement of this Action, and entered into the Settlement Agreement and Release on
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January 14, 2015, setting forth the terms of the Settlement in this Action,
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NOW, therefore, the Court grants Preliminary Approval of the Settlement, and
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IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:
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1.
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To the extent defined in the Settlement Agreement and Release and incorporated herein
by reference, the terms in this Order shall have the meanings set forth therein.
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The Court has jurisdiction over the subject matter of this Action, the Named Plaintiffs,
the Class, and PwC.
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The Court hereby grants Preliminary Approval of the terms and conditions contained in
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the Settlement Agreement and Release. The Court preliminarily finds that the terms of the Settlement
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Agreement and Release appear to be within the range of possible approval, pursuant to Federal Rule of
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Civil Procedure 23(e) and applicable law.
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4.
It appears to the Court on a preliminary basis that: (1) the Settlement Agreement and
Release is fair and reasonable to the Class Members when balanced against the possible outcome of
ORDER GRANTING PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT
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further litigation relating to class certification, liability and damages issues, and potential appeals; (2)
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significant discovery, investigation, research, and litigation have been conducted such that counsel for
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the Parties at this time are able to reasonably evaluate their respective positions; (3) Settlement at this
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time will avoid substantial costs, delay and risks that would be presented by the further prosecution of
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the litigation; and (4) the proposed Settlement Agreement and Release has been reached as the result of
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intensive, serious and non-collusive negotiations between the Parties. Accordingly, the Court
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preliminarily finds that the Settlement Agreement and Release was entered into in good faith.
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5.
The class, for purposes of the proposed Settlement only and with no other effect on this
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litigation or any other proceeding, including if the Settlement Agreement and Release ultimately is not
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approved or final judgment is not entered, is appropriate under Federal Rule of Civil Procedure 23 and
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related case law and is defined as follows:
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All individuals employed by Defendant in California: (a) who worked as an Associate
in the Attest Division of Defendant’s Assurance Line of Service at any time during the
period October 27, 2002 to July 23, 2008; (b) who were not licensed as certified public
accountants by the State of California for some or all of the time they worked in this
position during that period; (c) who were classified as exempt employees while
working in this position during that period; (d) who were sent a class notice on or
about July 23, 2008 notifying them that they are members of the certified class in this
Action; and (e) who did not validly or timely exclude themselves from the Action
following dissemination of the July 2008 class notice.
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6.
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Plaintiffs Jason Campbell and Sarah Sobek are hereby appointed as Class
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Representatives, and William A. Kershaw, Lyle W. Cook and Stuart C. Talley from the firm Kershaw,
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Cutter & Ratinoff LLP and James P. Ulwick and Jean E. Lewis, from the firm Kramon & Graham, P.A.
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are hereby appointed as Settlement Class Counsel.
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7.
The Court hereby authorizes the retention of Heffler Claims Group as Settlement
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Administrator for the purpose of implementing certain provisions of the Settlement Agreement and
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Release.
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8.
The Court hereby approves the Notice to Class Members of Proposed Settlement of
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Class Action and Notice to Class Members of Proposed Settlement of Class Action to Le/Kress Opt-In
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FLSA Attest Associate Plaintiffs, attached to the Settlement Agreement and Release as Exhibits A-D.
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The Court finds that the Notice Packet, along with the related notification procedure contemplated by
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the Settlement Agreement and Release, constitutes the best notice practicable under the circumstances
ORDER GRANTING PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT
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and is in full compliance with the applicable laws and the requirements of due process. The Court
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further finds that the Notice Packet appears to fully and accurately inform the Class Members of all
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material elements of the proposed Settlement Agreement and Release, of the Class Members’ right to
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be excluded from the Settlement, and of each Class Member’s right and opportunity to object to the
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Settlement. Under the terms of the Settlement Agreement and Release, the Notice Packet shall be
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mailed via first class mail to the last known address of each Class Member within the timeframe
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specified in the Settlement Agreement and Release.
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The Court hereby approves the proposed procedure for Class Member exclusion from
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the Settlement, which is to submit an Exclusion Letter to the Settlement Administrator no later than the
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Objection/Exclusion Deadline identified in the Notice Packet (or for re-mailed Notice Packets, no later
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than 30 days from the postmark of the re-mailed Notice Packet). Any Class Member who submits a
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valid and timely request for exclusion shall not be a Settlement Class Member and shall not be bound
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by the Settlement. Such Opt Outs shall be barred from participating in the Settlement, shall be barred
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from objecting to the Settlement and appearing or being heard before the Court at the Final Approval
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hearing, and shall receive no benefit from the Settlement.
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The Court further orders that each Class Member who does not properly and timely
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submit an Exclusion Letter shall be given a full opportunity to object to the proposed Settlement and
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request for attorneys’ fees, and to participate in the Final Approval hearing, which the Court sets to
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commence on May 7, 2015, at 1:30 p.m. in Courtroom 2 of the United States District Court, Eastern
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District of California. Any Class Member seeking to object to the proposed Settlement shall file such
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objection in writing with the Court and shall serve such objection on Class Counsel and Defendant’s
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Counsel no later than the Objection/Exclusion Deadline in the Notice Packet (or for re-mailed Notice
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Packets, no later than 30 days from the postmark of the re-mailed Notice Packet). In addition, any
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attorney who intends to represent a Class Member objecting to the Settlement must file a notice of
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appearance with the Court and serve counsel for all Parties no later than the Objection/Exclusion
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Deadline in the Notice Packet (or for re-mailed Notice Packets, no later than 30 days from the postmark
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of the re-mailed Notice Packet). Any Class Member who fails to properly and timely file and serve
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these materials shall be foreclosed from objecting to the proposed Settlement, unless otherwise ordered
ORDER GRANTING PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT
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by the Court.
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The Court further orders that Class Counsel shall file motions for approval of the Fee
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Award, Expense Award and the Class Representative Service Award, with the appropriate declarations
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and supporting evidence, by February 25, 2015, to be heard at the same time as the motion for Final
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Approval of the Settlement.
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The Court further orders that Class Counsel shall file a motion for Final Approval of the
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Settlement, with the appropriate declarations and supporting evidence, including a declaration setting
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forth the identity of any Class Members who request exclusion from the Settlement, by April 10, 2015.
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The Court further orders that, pending further order of this Court, all proceedings in this
Action except those contemplated herein and in the Settlement Agreement and Release are stayed.
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The Court further orders that to facilitate administration of this Settlement, all Class
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Members are hereby enjoined from filing or prosecuting any claims, cases, suits or administrative
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proceedings (including filing or pursuing claims with the California Division of Labor Standards
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Enforcement) regarding claims released by the Settlement unless and until such Class Members have
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submitted valid and timely Exclusion Letters with the Settlement Administrator.
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If the Court grants Final Approval of the Settlement and enters judgment, Settlement
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Class Members and their successors shall conclusively be deemed to have given a release, as set forth
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in the Settlement Agreement and Release and Notice Packet, against the Released Parties, and all
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Settlement Class Members and their successors shall be permanently enjoined and forever barred from
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asserting any claim covered by the Class Released Claims.
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If for any reason the Court does not execute and file a Final Approval Order and
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Judgment of Dismissal, the proposed Settlement subject to this Order and all evidence and proceedings
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had in connection with the Settlement shall be null and void.
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Upon entry of this Order, the Parties shall proceed toward a hearing on final approval,
consistent with the deadlines set forth in the Settlement Agreement and Release.
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The Court, on its own initiative or pursuant to stipulation or motion practice, may extend
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ORDER GRANTING PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT
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any of the deadlines set forth in this Order or adjourn or continue the final approval hearing without
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further notice to the Class.
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IT IS SO ORDERED.
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Dated: January 30, 2015
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Troy L. Nunley
United States District Judge
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ORDER GRANTING PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT
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