Naro v. Walgreen Co.

Summary

The United States District Court for the Northern District of California granted Plaintiffs’ unopposed motion for preliminary approval of a class action and PAGA representative action settlement involving alleged failure to reimburse employees for required replacement uniforms. The Court found that revisions to the named plaintiffs’ release, notice response period, and opportunity to object to attorney’s fees resolved deficiencies identified in an earlier settlement proposal. The Court approved the proposed notice and process and set deadlines for notice, objections, final approval, and the final approval hearing.

Holdings

1. Preliminary approval was appropriate because the revised settlement appeared to be the product of serious, informed, non-collusive negotiations and fell within the range of possible approval.
2. The revised general-release provision did not preclude preliminary approval because the revision changed the consideration language and resolved the potential conflict of interest at this stage.
3. The proposed notice process was adequate because the revised agreement provided class members 60 days after mailing of notice to opt out or object.
4. The revised settlement adequately protected class members' objection rights by allowing written objections to the motion for attorney's fees and costs before the final approval hearing.

Questions Presented

1. Whether the revised class action and PAGA representative action settlement was sufficiently fair, reasonable, adequate, and free from collusion to warrant preliminary approval under Federal Rule of Civil Procedure 23.
2. Whether the revised settlement resolved the deficiencies previously identified by the Court concerning the named plaintiffs' general release, the class-member response period, and objections to attorney-fee and cost requests.
3. Whether the proposed notice and notice process should be approved and the case stayed pending final approval proceedings.

Disposition

other