Shelton et al v. Progressus Therapy, LLC et al

Filing 18

ORDER signed by District Judge Troy L. Nunley on 3/15/2018 GRANTING 16 Motion for Preliminary Approval of Class Action and PAGA Settlement. The Court ORDERS that Class Counsel shall file a motion for Final Approval of the Settlement, with the a ppropriate declarations and supporting evidence, including a declaration setting forth the identity of any Settlement Class Members who request exclusion from the Settlement or made any objections to it, by 6/6/2018. Final Approval Hearing set for 8/23/2018, at 02:00 PM, in Courtroom 2 (TLN), before District Judge Troy L. Nunley. The Court further ORDERS that, pending further order of this Court, all proceedings in this Lawsuit, except those contemplated herein and in the Settlement, are STAYED. (See Order for further details.) (York, M)

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UNITED STATES DISTRICT COURT

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EASTERN DISTRICT OF CALIFORNIA

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TERRI SHELTON, LAURA
THOMPSON, individually and on behalf
of all those similarly situated,

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Plaintiffs,
v.

No. 2:17-cv-00518-TLN-EFB

ORDER GRANTING PRELIMINARY
APPROVAL OF CLASS ACTION AND
PAGA SETTLEMENT

PROGRESSUS THERAPY, LLC, A
Delaware Limited Liability Company,
PROGRESSUS THERAPY, INC., A
Florida Corporation, PROGRESSUS, INC.,
A Delaware Corporation, INVO
HEALTHCARE Liability Company,
INVO HEALTHCARE, LLC, A Delaware
Limited Liability Company, THERAPY
STATION ASSOCIATES, LLC, A
California Limited Liability Company, and
DOES 1 through 200,
Defendants.

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Plaintiffs Terri Shelton's and Laura Thompson's ("Plaintiffs") Motion for Preliminary

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Approval of Class Action and PAGA Settlement ("Motion") was scheduled for hearing before

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this Court on February 8, 2018. The Court submitted the Motion, (ECF No. 17), and having

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considered the papers submitted in support of their Motion, the lack of opposition, and good

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cause appearing, HEREBY ORDERS THE FOLLOWING:
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The Court grants preliminary approval of the Class Action and PAGA settlement

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("Settlement") based upon the terms set forth in the Joint Stipulation of Class Action and PAGA

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Settlement ("Settlement Agreement")1 signed by the parties and their attorneys that was submitted

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with the Motion as Exhibit 1. The Court preliminarily finds that the terms of the Settlement and

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Settlement Agreement appear to be within the range of possible approval, pursuant to Federal

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Rule of Civil Procedure 23 and applicable law.

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2.

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The Court finds on a preliminary basis that:
(a) the Settlement amount is fair and reasonable to the Settlement Class Members

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when balanced against the probable outcome of further litigation relating to class

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certification, liability and damages issues, and potential appeals;

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(b) significant informal discovery, investigation, research, and litigation have been

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conducted such that counsel for the Parties at this time are able to reasonably evaluate

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their respective positions;

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(c) settlement at this time will avoid substantial costs, delays and risks that would

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be presented by the further prosecution of the litigation; and

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(d) the proposed Settlement has been reached as the result of intensive, serious,

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and non-collusive negotiations between the Parties. Accordingly, the Court preliminarily

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finds that the Settlement and Settlement Agreement were entered into in good faith.

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3.

A Final Fairness Hearing on the question of whether the proposed Settlement and

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Settlement Agreement, Class Counsel attorney's fees and costs, Settlement Administrator's fee,

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and the Class Representatives Enhancement Service Awards should be finally approved as fair,

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reasonable and adequate as to the members of the Class is hereby set in accordance with the

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Implementation Schedule set forth below.

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4.

The Court approves, as to form and content, the Notice of Class Action ("Notice")

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and Claim Form submitted with the Motion as Exhibits 2 and 3, respectively. The Court also

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approves the procedure for Class Members to participate in, to opt out of, and to object to, the

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Settlement as set forth in the Settlement and in the Notice.

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The terms used in this Order have the definitions set forth in the Settlement Agreement.

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The Court directs the mailing of the Notice and Claim Forms by first class mail to

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the Class Members in accordance with the Implementation Schedule set forth below. The Court

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finds the dates selected for the mailing and distribution of the Notice and the Claim Form, as set

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forth in the Implementation Schedule below, meet the requirements of due process and provide

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the best notice practicable under the circumstances and shall constitute due and sufficient notice

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to all persons entitled thereto.

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6.

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purposes:

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All current and former hourly non-exempt individuals employed by
Defendants within the State of California who provided
occupational therapy, speech-language pathology, physical therapy,
psychology and behavior, early intervention, special education,
audiology, and/or social work treatment and services who worked
during the period from October 28, 2012, through the date of
Preliminary Approval of this Motion.

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It is ordered that the following Class is confirmed certified for settlement

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The Court appoints Plaintiffs Terri Shelton and Laura Thompson as class

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representatives and the law firm of Gurnee Mason & Forestiere, LLP as Class Counsel for

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settlement purposes only.

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8.

The Court appoints CPT Group, Inc. as the Settlement Administrator and

preliminarily approves its reasonable Administration Costs estimated not to exceed $35,000.
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The Court further preliminarily approves Class Counsel's attorney's fees of up to

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$322,000 and costs not to exceed $6,185 subject to be finally determined and approved in a

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separate fee motion seeking such awards to be filed at least fourteen (14) days after Class Notice

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is mailed.

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10.

The Court further ORDERS that Class Counsel shall file a motion for Final

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Approval of the Settlement, with the appropriate declarations and supporting evidence, including

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a declaration setting forth the identity of any Settlement Class Members who request exclusion

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from the Settlement or made any objections to it, by June 6, 2018.

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The Court further ORDERS that each Settlement Class Member shall be given a

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full opportunity to object to the proposed Settlement, request for attorneys' fees and costs, and to

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participate at the Final Approval Hearing, which the Court sets to commence on August 23,
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2018, at 2:00 p.m. in Courtroom 2 of the United States District Court, Eastern District of

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California. Any Settlement Class Member seeking to object to the proposed Settlement may file

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such objection in writing with the Court and shall timely serve such objection on Class Counsel

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and Defendants' Counsel prior to the Response Deadline set forth in the Settlement Agreement

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period or may appear at the Final Approval Hearing to orally make the objection.

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12.

The Court ORDERS the following Implementation Schedule, subject to changes

based upon stipulation of the parties and order of the Court, adopted for further proceedings:
Deadline for Defendants to provide class
14 calendar days after Preliminary
list to Settlement Administrator.
Approval.
Deadline for Settlement Administrator to
14 calendar days after Defendants
mail Notice of Settlement and Claim Form provide the class list to Settlement
to Class Members.
Administrator (28 days after
Preliminary Approval).
Deadline for Plaintiffs to file motion for
14 calendar days after mailing the
approval of Class Counsel Award of
Notice of Settlement and Class Form to
attorney's fees and costs.
Class Members Administrator (42 days
after Preliminary Approval).
First reminder mailed to Class Members.
20 calendar days after class notice is
mailed (48 days after Preliminary
Approval).
Second reminder mailed to Class
40 calendar days after class notice is
Members.
mailed (68 days after Preliminary
Approval).
Last day for Class Members to file any
60 calendar days from date notice is
requests for exclusions, objections or
mailed (88 days after entry of
disputed claim amounts.
Preliminary Approval).
Deadline for the parties' replies to any
70 calendar days from date notice is
Class Member objections.
mailed (98 days after entry of
Preliminary Approval).
Deadline for Class Members to withdraw
10 business days before date of Final
their objections to the Settlement.
Approval Hearing.
Deadline for Plaintiffs to file motion for
28 business days before date of Final
Final Approval of class action settlement.
Approval Hearing.
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The Court further ORDERS that, pending further order of this Court, all

proceedings in this Lawsuit, except those contemplated herein and in the Settlement, are stayed.
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The Court further ORDERS that to facilitate administration of the Settlement

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pending final approval, this Court hereby enjoins Plaintiffs and all Class Members from filing or

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prosecuting any claims, suits or administrative proceedings regarding claims released by the

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Settlement, unless and until such Class Members have filed a valid Opt-Out Request with the

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Claims Administrator and the time for filing claims with the Claims Administrator has elapsed.

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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, the proposed Settlement subject to this Order and all evidence and proceedings had in

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connection with the Settlement shall be null and void.

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16.

The Court may, for good cause, extend or change any of the deadlines set forth in

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this Order or set new deadlines, 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: March 15, 2018

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Troy L. Nunley
United States District Judge

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