Campbell v. PriceWaterhouse Coopers, LLP

Filing 655

ORDER signed by District Judge Troy L. Nunley on 5/8/2015 GRANTING the 653 Motion for Final Approval of Class Action Settlement; APPROVING the Settlement Agreement and Release; APPROVING the payment of the Fee Award and the Expense Award in the amo unt of $2,000,000.00 to Class Counsel in attorneys' fees and in the amount of $910,822.83 for Class Counsel's actual out-of-pocket expenses, to be paid from, and not in addition to, the Gross Settlement Payment; APPROVING a Class Representative Service Award of $10,000.00 to each of the Class Representatives, Jason Campbell and Sarah Sobek, to be paid from, and not in addition to, the Gross Settlement Payment; APPROVING the payment of reasonable Administrative Costs to t he Settlement Administrator Heffler Claims Group in an amount not to exceed $40,000.00; ORDERING that the plaintiffs' share of the Administrative Costs be paid from, and not in addition to, the Gross Settlement Payment; ORDERING that the de fendant's share of the Administrative Costs be paid for by the defendant in addition to the Gross Settlement Payment only to the extent that Opt Out Funds do not cover such costs; DISMISSING this action with prejudice and without prevaili ng party costs; DIRECTING the entry of this Final Approval Order and Judgment of Dismissal; ORDERING that the Court retain exclusive and continuing jurisdiction over the action, the class representatives, the class and the defendant. CASE CLOSED. (Michel, G.)

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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,
Plaintiffs,

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v.

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ORDER GRANTING
FINAL APPROVAL OF CLASS
ACTION SETTLEMENT; APPROVING
AWARD OF ATTORNEYS’ FEES,
COSTS AND SERVICE AWARDS; AND
JUDGMENT OF DISMISSAL

PRICEWATERHOUSECOOPERS LLP,

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CASE NO. 2:06-CV-02376 TLN/AC

Defendant.

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This matter came for hearing on May 7, 2015, upon Plaintiffs’ Motion for Final Approval of the

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Proposed Settlement of this action on the terms set forth in the Settlement Agreement and Release filed

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January 14, 2014 (ECF No. 643-1) and the Addendum thereto filed February 6, 2015 (ECF No. 649-1).

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Due and adequate notice having been given to the Settlement Class Members and the Court having

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considered the Settlement Agreement and Release, all papers and proceedings held herein, and all oral

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and written comments and objections received regarding the proposed Settlement, and having reviewed

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the record in this action, Campbell et al. v. PricewaterhouseCoopers LLP, Case No. 2:06-CV-02376

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TLN/AC, (“the Action”), and good cause appearing, finds that:

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WHEREAS, this Action was commenced in the United States District Court, Eastern District of
California on October 27, 2006; and
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WHEREAS, by Order dated March 25, 2008, the Court provisionally certified the class, which
has been defined during the litigation as all persons employed by PricewaterhouseCoopers LLP
(“PwC” or “Defendant”) in California who, at any time during the period of October 27, 2002 to July
23, 2008, (a) worked as Associates in the Attest Division of PwC’s Assurance Line of Service, (b) were
not licensed as certified public accountants by the State of California for some or all of the period they
worked in this position, and (c) were classified as exempt employees while working in this position;
and
WHEREAS, Kershaw Cutter & Ratinoff LLP was previously appointed as Class Counsel for
the litigation class and Plaintiffs Jason Campbell and Sarah Sobek were previously appointed as Class
Representatives; and
WHEREAS, during the eight years the Action has been pending, the parties have engaged in
fact and expert discovery, motion practice, litigation in this Court and in the Ninth Circuit, and were
preparing for trial scheduled to commence on March 30, 2015; and
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
claims alleged in this Action, and continues to deny that this Action is appropriate for class treatment
for any purpose other than this Settlement; and
WHEREAS, Defendant contends, among other things, that it has complied at all times with the
California Labor Code, Fair Labor Standards Act, Industrial Welfare Commission Wage Order No. 42001, and the California Business and Professions Code §§ 17200, et seq. and specifically contends that
classification of any Attest Associate as an exempt employee was and continues to be a correct
classification under the California Labor Code and the Fair Labor Standards Act; and
WHEREAS, PwC is not reclassifying its Attest Associates as non-exempt as a condition of this
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CASE NO. 06-CV-02376 TLN/AC

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Settlement Agreement and Release, or otherwise; and
WHEREAS, Class Counsel has conducted a thorough investigation into the facts of this Action,
is knowledgeable about and has done extensive research with respect to the applicable law and the
defenses asserted by Defendant to the claims of the Class and has diligently litigated the Class
Members’ claims against Defendant, and therefore Class Counsel has an appropriate basis to evaluate
the value of this Settlement; and
WHEREAS, based on the foregoing data, Class Counsel is of the opinion that the Settlement
with Defendant for the consideration and on the terms set forth in this Settlement Agreement and
Release is fair, reasonable, and adequate and is in the best interest of the Class Members in light of all
known facts and circumstances, including the uncertainty associated with litigation, the defenses
asserted by Defendant, the governing law and numerous potential appellate issues; and
WHEREAS, the Parties desire to compromise and fully settle their claims with finality and
agree to the Settlement of this Action, and entered into the Settlement Agreement and Release on
January 14, 2015, setting forth the terms of the Settlement in this Action; and
WHEREAS, the Court granted Preliminary Approval of the Parties’ Settlement Agreement and
Release in this Action on January 30, 2015 (“Preliminary Approval Order”); and
WHEREAS, notice to the Class Members was sent in accordance with the Settlement
Agreement and Release and Preliminary Approval Order; and
WHEREAS, a fairness hearing on the proposed Settlement having been duly held and a
decision reached,
NOW, therefore, the Court grants Final Approval of the Settlement and dismisses this Action
with prejudice, and
IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:
1.

To the extent defined in the Settlement Agreement and Release and Addendum to

Settlement Agreement and Release (ECF Nos. 643-1 and 649-1), the terms in this Order shall have the
meanings set forth therein.
2.

The Court has jurisdiction over the subject matter of this Action, the Named Plaintiffs,

the Class, and PwC.
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CASE NO. 06-CV-02376 TLN/AC

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3.

The Court hereby grants the Motion for Final Approval of the Settlement and approves

the Settlement Agreement and Release as fair, reasonable, in the best interest of the Settlement Class
Members, and adequate in all respects to the Settlement Class Members pursuant to Rule 23 of the
Federal Rules of Civil Procedure, and orders the Parties to consummate the Settlement in accordance
with the terms of the Settlement Agreement and Release.
4.

As previously found in the Court’s Preliminary Approval Order, the Class, for

Settlement purposes only, satisfies the requirements for a Rule 23 settlement class, 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.
5.

In full compliance with Rule 23 of the Federal Rules of Civil Procedure and the

requirements of due process, on February 13, 2015, the Settlement Administrator mailed a Notice
Packet by first-class mail to 1,944 Class Members at the last known address as reflected in Defendant’s
business records. Further, one additional Class Member was subsequently identified, and a Notice
Packet was sent by first class mail to his address on February 25, 2015.
6.

The Court has determined that the Notice Packet given to the Class fully and accurately

informed all persons in the Class of all material elements of the proposed Settlement—including the
plan of distribution of the Gross Settlement Payment, the application for a Fee Award, the application
for an Expense Award, the application for the Class Representative Service Award, the procedure to
exclude themselves from the Settlement and become Opt Outs or to file an objection to the Settlement,
and the scope of the Class Released Claims—constituted the best notice practicable under the
circumstances, constituted valid, due and sufficient notice to all Class Members, and complied fully
with Rule 23 of the Federal Rules of Civil Procedure, the U.S. Constitution, and any other applicable
laws. The Settlement Administrator has filed with the Court a list identifying the 22 Class Members
who timely and properly excluded themselves from the Settlement.
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of the Settlement to (a) the Attorney General of the United States of America and (b) to the appropriate
state official (as that term is defined in 28 U.S.C. § 1715(a)(2)) of every state in which a Class Member
resides. As further required under 28 U.S.C. § 1715(d), more than 90 days have elapsed since the
service of such notices. Neither the Attorney General of the United States nor any appropriate state
official has served written objection to the Settlement or appeared at the hearing to object to the
Settlement.

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8.

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fair, reasonable, and adequate pursuant to Rule 23 of the Federal Rules of Civil Procedure.
9.

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Counsel’s actual out-of-pocket expenses, which shall be paid from, and not in addition to, the Gross
Settlement Payment.
10.

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to, the Gross Settlement Payment.
11.

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The Court approves the payment of reasonable Administrative Costs to the Settlement

Administrator Heffler Claims Group in an amount not to exceed $40,000. Plaintiffs’ share of the
Administrative Costs shall be paid from, and not in addition to, the Gross Settlement Payment.
Defendant’s share of the Administrative Costs shall be paid for by Defendant in addition to the Gross
Settlement Payment only to the extent that Opt Out Funds do not cover such costs. “Opt Out Funds”
means that portion of the Net Settlement Proceeds that would have been allocated to Opt Outs if they
had remained in the Action and participated in the Settlement.

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The Court approves a Class Representative Service Award of $10,000 to each of the

Class Representatives, Jason Campbell and Sarah Sobek, which shall be paid from, and not in addition

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The Court approves the payment of the Fee Award and the Expense Award in the

amount of $2,000,0000 to Class Counsel in attorneys’ fees and the amount of $910,822.83 for Class

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The plan of distribution as set forth in the Settlement Agreement and Release providing

for the distribution of the Gross Settlement Payment to Settlement Class Members is approved as being

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In full compliance with the requirements of 28 U.S.C. § 1715(b), PwC provided notice

12.

The Court hereby dismisses this Action with prejudice and without prevailing party

13.

Upon entry of this Final Approval Order and Judgment of Dismissal, and by operation

costs.

of this Final Approval Order and Judgment of Dismissal, the Class Released Claims of each Settlement
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Class Member against Defendant and against any and all of the Released Parties as defined in the
Settlement Agreement and Release, are fully, finally and forever released, relinquished and discharged
pursuant to the terms of the Settlement Agreement and Release. The “Class Released Claims” mean all
claims, whether under state or federal law, and whether asserted in this or any action (including
Le/Kress et al. v. PricewaterhouseCoopers LLP, United States District Court, Eastern District of
California, Case No. 2:08-cv-00965-TLN-AC) or unasserted, arising from classification of any Class
Member (including Le/Kress Opt-In FLSA Attest Associate Plaintiffs) as exempt from overtime while
working at PwC as an Attest Associate in California at any time from October 27, 2002 through the
date of Final Approval, including, but not limited to, claims (both legal and equitable) arising under the
California Labor Code, the California Business and Professions Code and the Fair Labor Standards Act.
The Class Released Claims cover work performed at any time from and after October 27, 2002 only to
the extent the Class Members continued to meet the requirements of class membership.
14.

Due and adequate notice of the proceedings having been provided to the Settlement

Class Members, and a full opportunity having been offered to them to participate in this hearing, it is
hereby determined that they are bound by this Final Approval Order and Judgment of Dismissal entered
herein, including without limitation, the Class Released Claims.
15.

The Final Approval Order and Judgment of Dismissal and the Settlement Agreement

and Release, and all papers related thereto, are not, and shall not be construed to be, an admission by
Defendant of any liability, claim or wrongdoing whatsoever, and shall not be offered as evidence of any
such liability, claim or wrongdoing in this Action or in any other proceeding.
16.

Without further order of the Court, the parties may jointly agree to reasonable

extensions of time to carry out any provisions of the Settlement Agreement and Release.
17.

In the event that the Settlement does not become effective in accordance with the terms

of the Settlement Agreement and Release, then this Final Approval Order and Judgment of Dismissal
shall be rendered null and void to the extent provided by and in accordance with the Settlement
Agreement and Release and shall be vacated, and in such event all orders entered and releases delivered
in connection herewith shall be null and void to the extent provided by and in accordance with the
Settlement Agreement and Release.
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18.

The Court finds that there is no just reason for delay of entry of this Final Approval

Order and Judgment of Dismissal and hereby directs its entry.
19.

Without affecting the finality of this Order, the Court shall retain exclusive and

continuing jurisdiction over the Action, the Class Representatives, the Class and Defendant for
purposes of supervising the consummation, administration, implementation, enforcement and
interpretation of the Settlement Agreement and Release and all other matters covered in this Order.
IT IS SO ORDERED, ADJUDGED AND DECREED.

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Dated: May 8, 2015
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Troy L. Nunley
United States District Judge

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CASE NO. 06-CV-02376 TLN/AC