Williams et al v. Equitable Acceptance Corporation et al
Filing
178
ORDER GRANTING PRELIMINARY APPROVAL OF CLASS SETTLEMENT, PROVISIONALLY CERTIFYING A SETTLEMENT CLASS, DIRECTING NOTICE TO CLASS MEMBERS, APPOINTING CLASS ADMINISTRATOR, AND SETTING FAIRNESS HEARING granting 173 MOTION FOR PROVISIONAL CERTIFICA TION OF A SETTLEMENT CLASS AND PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT. NOW IT IS HEREBY ORDERED AS FOLLOWS: 1. Definitions. For the purposes of this Order, the Court adopts by reference the definitions set forth in the "Definitions&quo t; section of the Settlement Agreement. 2. Certification of the Class. The Court provisionally finds that this class meets the requirements set forth in Rules 23(b)(2) and 23(b)(3), as further set forth. 3. Preliminary Approval: The Court prelimi narily approves the proposed settlement as set forth in the Settlement Agreement as being sufficiently fair, reasonable, and adequate to the Class, and finds that it is the result of intensive, arms-length negotiations between experienced attorneys familiar with the legal and factual issues of this case. Specifically, the Court finds that: (a) The payment of a Settlement Amount of $1,000,000 is provisionally found to be fair, reasonable, and adequate, as further set forth. d) The anticipat ed payment to Class Counsel of attorneys' fees and expenses in the approximate amount of $162,500 is provisionally found to be fair and reasonable, considering the work performed by Class Counsel in litigating the Action and that at least 7 5% of the settlement fund will be distributed directly to Class Members; (e) Defendants are to contribute $500,000, the first half of the Settlement Amount, to the Class Settlement Account through the Class Administrator within ten (10) bus iness days of the Courts entry of this Order; (f) Defendants are to contribute $500,000, the second half of the Settlement Amount, to the Class Settlement Account through the Class Administrator no later than ten (10) business days preceding the Fairness Hearing; (g) Defendants are to contribute a sum equal to twice the gross amount of any payment made by a Class Member to EAC after February 12, 2021 that was not timely returned by EAC to the Class Member, and shall contribute this amount to the Class Settlement Account through the Class Administrator on the later of ten (10) days preceding Fairness Hearing or within ten (10) days of incurring the payment obligation; and (h) The Service Award payments of $3000 to each Named Pl aintiff to account for their roles in litigating the Action are provisionally found to be fair, reasonable and adequate, as further set forth in this order. b) The Objection, Exclusion, and Claim Submission Deadline shall be July 13, 2021 (twenty- one (21) days before the scheduled date of the Fairness Hearing), as further set forth. 9. Fairness Hearing: A Final Approval and Fairness Hearing will be held on August 3, 2021 at 11:30 a.m., at which time the Court will determine whether to grant final approval of the Settlement Agreement as fair, reasonable, adequate, and in the best interests of the Class, and whether to enter the Final Approval Order. The Fairness Hearing will be held virtually, via telephone conference, as further se t forth. (c) Papers in support of a motion for entry of the Final Approval Order and the petition for attorneys' fees shall be filed with the Court on or before July 2, 2021. Any responses to objections to the proposed Settlement Agreement o r the petition for attorney's fees, and any further papers in support of the motion for entry of the Final Approval Order or the petition for attorneys' fees, shall be filed with the Court on or before July 27, 2021, as further set forth in this Order. (Signed by Judge Naomi Reice Buchwald on 4/27/2021) (mml)
Case 1:18-cv-07537-NRB Document 178 Filed 04/27/21 Page 1 of 9
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
VANESSA WILLIAMS and KORY TURNER,
individually and on behalf of all persons similarly
situated,
Plaintiffs,
vs.
EQUITABLE ACCEPTANCE CORPORATION,
SLF CENTER, LLC, INTEGRA STUDENT
SOLUTIONS, LLC, JEFFREY D. HENN, and
TERESA HENN,
Defendants.
No. 18-CV-07537 (NRB)
ORDER GRANTING PRELIMINARY
APPROVAL OF CLASS
SETTLEMENT, PROVISIONALLY
CERTIFYING A SETTLEMENT
CLASS, DIRECTING NOTICE TO
CLASS MEMBERS, APPOINTING
CLASS ADMINISTRATOR, AND
SETTING FAIRNESS HEARING
NAOMI REICE BUCHWALD, United States District Judge:
This matter comes before the Court on the motion of Plaintiffs Vanessa Williams and
Kory Turner (together, “Named Plaintiffs”), on behalf of themselves and putative class members,
with the consent of Defendants Equitable Acceptance Corporation (“EAC”) and Jeffrey Henn
(collectively, “Defendants”), for preliminary approval of the Stipulation of Settlement as to All
Claims Against All Defendants, dated February 18, 2021 (the “Settlement Agreement”), and
related relief. The Court has reviewed the Settlement Agreement and the documents submitted
by the parties in support thereof, and good cause appearing,
NOW IT IS HEREBY ORDERED AS FOLLOWS:
1. Definitions. For the purposes of this Order, the Court adopts by reference the definitions set
forth in the “Definitions” section of the Settlement Agreement.
2. Certification of the Class. The Court provisionally finds that this class meets the
requirements set forth in Rules 23(b)(2) and 23(b)(3), and hereby:
Case 1:18-cv-07537-NRB Document 178 Filed 04/27/21 Page 2 of 9
(a) Provisionally certifies under both Fed. R. Civ. P. 23(b)(2) and 23(b)(3), for settlement
purposes only, pending a Fairness Hearing and further order of the Court, a class
consisting of “All individuals who obtained a Credit Plan from EAC to finance
student loan assistance services”;
(b) For the purposes of the proposed settlement, the Court approves Vanessa Williams
and Kory Turner as the Named Plaintiffs and class representatives; and
(c) For the purposes of the proposed settlement, appoints the New York Legal Assistance
Group and Quinn Emanuel Urquhart & Sullivan, LLP as Class Counsel pursuant to
Federal Rule of Civil Procedure 23(g).
3. Preliminary Approval: The Court preliminarily approves the proposed settlement as set forth
in the Settlement Agreement as being sufficiently fair, reasonable, and adequate to the Class,
and finds that it is the result of intensive, arms-length negotiations between experienced
attorneys familiar with the legal and factual issues of this case. Specifically, the Court finds
that:
(a)
The payment of a Settlement Amount of $1,000,000 is provisionally found
to be fair, reasonable, and adequate;
(b)
The non-monetary relief provided for in the Settlement Agreement, under
which EAC has ceased all collections on the Credit Plans, is prohibited
from selling and issuing Credit Plans in the future, will request that each
Credit Reporting Agency to which a Credit Plan was reported by EAC
delete the Credit Plan from the Class Member’s credit reporting file, and
will cooperate with Class Members in disputes with Dealers, is
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provisionally found to be fair, reasonable, and adequate, and provides
valuable relief to the Class;
(c)
The Allocation Plan submitted by Class Counsel provides for distribution
of the Settlement Amount in a manner that is fair, reasonable, and
adequate;
(d)
The anticipated payment to Class Counsel of attorneys’ fees and expenses
in the approximate amount of $162,500 is provisionally found to be fair
and reasonable, considering the work performed by Class Counsel in
litigating the Action and that at least 75% of the settlement fund will be
distributed directly to Class Members;
(e)
Defendants are to contribute $500,000, the first half of the Settlement
Amount, to the Class Settlement Account through the Class Administrator
within ten (10) business days of the Court’s entry of this Order;
(f)
Defendants are to contribute $500,000, the second half of the Settlement
Amount, to the Class Settlement Account through the Class Administrator
no later than ten (10) business days preceding the Fairness Hearing;
(g)
Defendants are to contribute a sum equal to twice the gross amount of any
payment made by a Class Member to EAC after February 12, 2021 that
was not timely returned by EAC to the Class Member, and shall contribute
this amount to the Class Settlement Account through the Class
Administrator on the later of ten (10) days preceding Fairness Hearing or
within ten (10) days of incurring the payment obligation; and
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(h)
The Service Award payments of $3000 to each Named Plaintiff to account
for their roles in litigating the Action are provisionally found to be fair,
reasonable and adequate.
4. Class Administrator: The Court appoints Atticus Administration, LLC to serve as the Class
Administrator, and approves the payment of all Administration Expenses from the Class
Settlement Account.
5. Class Notice: The Court approves the form and content of the Individual Notices:
(a)
The Court finds that the Individual Notices will fully and accurately
inform potential Class Members of all material elements of the proposed
settlement, the right to be excluded from the Class, and the right to object
to the settlement.
(b)
No later than sixty (60) days prior to the Objection, Exclusion, and Claim
Submission Deadline, the Class Administrator shall distribute the
Individual Notices to all potential Class Members. The Class
Administrator shall cause a website to be established and post a copy of
the Individual Notice on the website by no later than the date on which the
Individual Notices begin to be sent out.
(c)
The Court finds that the following plan to distribute notice provides the
best notice practicable under the circumstances, constitutes due and
sufficient notice to the Class, and complies with the requirements set forth
under Federal Rule of Civil Procedure 23 and any other applicable law.
The Court expressly authorizes the following methods of notice: the Class
Administrator will distribute the Individual Notice to all Class Members
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by email, linking to an electronic Claim Form (for Compensation Class
Members only); for each Compensation Class Member who has not
submitted a Claim Form, a reminder email will be sent no less than fortyfive (45) days before the Objection, Exclusion, and Claim Submission
Deadline; a text message reminder will then be sent to some or all
Compensation Class Members who have not submitted Claim Forms; and,
finally, a post card notice will be sent by first-class-mail not later than
twenty-one (21) days prior to the Objection, Exclusion, and Claim
Submission Deadline, to any Class Member for whom the email notice is
returned as undeliverable, as well as to any Compensation Class Member
who did not open either of the notice emails sent;
(d)
The Defendants will provide notice to the appropriate federal and state
officials as required by the Class Action Fairness Act;
(e)
Class Counsel and the Class Administrator may make any amendments to
or modifications to the Individual Notices and the Allocation Plan without
notice to or approval by the Court so long as such changes are not
materially inconsistent with this Order and do not materially limit the
rights of potential Class Members.
6. Objections to Settlement: A Class Member who wishes to object to the fairness,
reasonableness or adequacy of the proposed settlement may do so by filing an objection as
set forth below:
(a)
A Class Member who wishes to object must submit to the Class
Administrator a written statement of reasons, including any legal support
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or evidentiary support, for his or her objection, postmarked or
electronically submitted no later than the Objection, Exclusion, and Claim
Submission Deadline.
(b)
The Objection, Exclusion, and Claim Submission Deadline shall be July
13, 2021 (twenty-one (21) days before the scheduled date of the Fairness
Hearing.)
(c)
An objection must include the name, title, and docket number of the
Action, as well as the full name, address, telephone number, email address
if available, and signature (including electronic signature) of the Class
Member.
(d)
Objectors who intend to speak at the Fairness Hearing should advise the
Class Administrator in their written objection. If an Objector retains
counsel to appear on his or her behalf at the Fairness Hearing, such
counsel must file with the Court and serve on Defendants’ Counsel and
Class Counsel a notice of intention to appear, which must be received on
or before the Objection, Exclusion, and Claim Submission Deadline.
(e)
The Class Administrator shall promptly send a copy of each objection it
receives to Defendants’ Counsel and Class Counsel by email and in no
event later than ten (10) business days before the scheduled date of the
Fairness Hearing.
(f)
Any Class Member who does not submit a valid and timely objection shall
be deemed to have waived and forfeited any and all rights that he or she
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may have to object and shall be barred from making any objection to the
fairness, reasonableness or adequacy of the proposed settlement.
7. Requests for Exclusion: Any Class Member may seek to exclude himself or herself from the
Settlement Agreement. Any Class Member so excluded shall no longer be a member of the
Class, shall not be bound by the Settlement Agreement, and shall not be entitled to any of its
benefits.
(a)
A Class Member who wishes to be excluded from the Class must send to
the Class Administrator a request for exclusion postmarked or
electronically submitted no later than the Objection, Exclusion, and Claim
Submission Deadline.
(b)
A valid request for exclusion must be in writing, and must contain the
information described in ¶ 6(c).
(c)
The Class Administrator shall promptly send a copy of each request for
exclusion it receives to Defendants’ Counsel and Class Counsel by email
and in no event later than ten (10) business days before the scheduled date
of the Fairness Hearing.
(d)
Any Class Member who does not timely submit a valid request for
exclusion shall be deemed a Class Member and shall be bound by the
terms of the Settlement Agreement as well as the Final Approval Order.
8. Claim Submission: Any Class Member seeking a distribution from the Class Settlement
Account must send or electronically submit a Claim Form to the Class Administrator
postmarked no later than the Objection, Exclusion, and Claim Submission Deadline. Class
Counsel reserves the right to allow any Class Member who submit a Claim Form after the
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Objection, Exclusion, and Claim Submission Deadline to receive a distribution from the
Class Settlement Account.
9. Fairness Hearing: A Final Approval and Fairness Hearing will be held on August 3, 2021 at
11:30 a.m., at which time the Court will determine whether to grant final approval of the
Settlement Agreement as fair, reasonable, adequate, and in the best interests of the Class, and
whether to enter the Final Approval Order. The Fairness Hearing will be held virtually, via
telephone conference.
(a) Any Class Member who wishes to speak at the Fairness Hearing to object
to the Settlement must submit a written objection in accordance with ¶ 6.
Any Class Member who wishes to speak at the Fairness Hearing for any
other reason must notify the Class Administrator at least seven (7) days
before the Fairness Hearing with an explanation of what the Class
Member wishes to say. Such speakers will be permitted at the discretion of
the Court.
(b) Any Class Member may listen to the Fairness Hearing without signing up
in advance. The Court will make dial-in information for the Fairness
Hearing available via ECF no later than 24 hours before the Fairness
Hearing. Class Counsel will post this information on the settlement
website and provide it to the Class Administrator.
(c) Papers in support of a motion for entry of the Final Approval Order and
the petition for attorneys’ fees shall be filed with the Court on or before
July 2, 2021. Any responses to objections to the proposed Settlement
Agreement or the petition for attorney’s fees, and any further papers in
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support of the motion for entry of the Final Approval Order or the petition
for attorneys’ fees, shall be filed with the Court on or before July 27,
2021.
10. Termination: This Order shall terminate in the event that the Court denies the motion to
enter the Final Approval Order following the Fairness Hearing, or the Settlement Agreement
is rejected by the mandate of an appellate court. In such event, the Settlement Agreement
shall be null and void and shall have no force or effect, no Settling Party shall be bound by
any of its terms, all Settling Parties and Class Members shall be restored to their respective
positions existing immediately before the Execution Date, and any order entered by the Court
in accordance with the Settlement Agreement shall be treated as vacated.
SO ORDERED.
April 27, 2021
Dated: ___________________
New York, New York
NAOMI REICE BUCHWALD
UNITED STATES DISTRICT JUDGE
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