UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION. Plaintiffs, Defendants.

Transcription

1 2:06-cv GER-DAS Doc ## Filed 06/07/16 Pg 1 of 13 Pg ID UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION PAT CASON-MERENDA and JEFFREY A. SUHRE on behalf of themselves and others similarly situated, Plaintiffs, Case No Hon. Gerald E. Rosen v. VHS of MICHIGAN, INC., d.b.a. DETROIT MEDICAL CENTER, et al. Defendants. DECLARATION OF CHRIS PIKUS REGARDING PLAINTIFFS PLAINTIFFS' MOTION TO DISTRIBUTE SETTLEMENT FUNDS AND PAY AND REIMBURSE FINAL EXPENSES I, Chris Pikus, declare as follows: 1. I am a Senior Project Manager for Rust Consulting, Inc. ( Rust ), ("Rust"), the Court-appointed Class Administrator in Cason-Merenda et al. v. VHS of Michigan d.b.a Detroit Medical Center et al. My business address is 625 Marquette Avenue, Suite 880, Minneapolis, Minnesota My telephone number is (612) I have personal knowledge regarding the

2 2:06-cv GER-DAS Doc ## Filed 06/07/16 Pg 2 of 13 Pg ID actions taken by Rust with respect to the Settlements in this litigation. I am over twenty-one years of age and am authorized to make this declaration on behalf of Rust and myself. 2. Rust has extensive experience in class action matters, having provided services in class action settlements involving antitrust, securities fraud, property damage, employment discrimination, employment wage and hour, product liability, insurance and consumer cases. We have provided notification and/or claims administration services in more than 4,500 cases. Of these, more than 1,700 were Labor & Employment cases. 3. Rust was engaged by Settlement Class Counsel to provide Settlement Administration services in relation to the Cason-Merenda et al. v. VHS of Michigan d.b.a Detroit Medical Center et al. Settlements. The duties assigned to Rust following the Court s Court's January 27, 2016 Order Approving the Plan of Allocation included: a) printing and mailing Customized and Generic Claim Forms to potential Settlement Class Members; b) receiving and processing Claim Forms submitted by potential Settlement Class Members; c) answering questions from potential Settlement Class Members; d) mailing cure and final determination letters to potential Settlement Class Members; e) receiving and processing follow up documentation submitted by potential

3 2:06-cv GER-DAS Doc ## 975 Filed 06/07/16 Pg 3 of 13 Pg ID Settlement Class Members; and f) related tasks that Settlement Class Counsel and Rust mutually agreed upon. 4. Rust obtained a mailing address of Detroit Nurses Claims Administrator, c/o do Rust Consulting, Inc., P.O. Box 2244, Faribault, MN to receive Claim Forms and other communications regarding the Settlement. 5. Rust utilized the previously obtained telephone number for Counsel of (800) to field calls from potential Settlement Class Members who had questions or required assistance with the claims process. Additionally, potential Settlement Class Members who became aware of the Settlements and the claims process, and had not received a Claim Form, could request a Generic Claim Form by calling Rust s Rust's toll-free telephone number of (866) As of this date, Rust has received 928 telephone calls from potential Settlement Class Members. 6. On or about January 27, 2016, Rust received text for the Customized Claim Form, Generic Claim Form and Notice of Claim letter from Settlement Class Counsel. All Claim Forms were proof read and formatted by Rust and approved by Settlement Class Counsel. 7. Prior to the initial mail date, Rust prepared the Class List of

4 2:06-cv GER-DAS Doc ## Filed 06/07/16 Pg 4 of 13 Pg ID Settlement Class Members current names, last known addresses currently in the Class database and for customized Claimants, Relevant "Relevant Pay Pay" figures. The final mailing list (the "Class Class List") List ) containing 24,517 potential Settlement Class Members. 8. On February 16, 2016, Customized Claim Forms were mailed to 11,001 Settlement Class Members contained in the Class List via First Class mail whose Relevant Pay information is in the database compiled by Plaintiffs Plaintiffs' experts from the data produced by Defendants, and the form stated the total amount of their Relevant Pay according to Defendants Defendants' data. Also, on February 16, 2016, Generic Claim Forms were mailed to 2,586 potential Settlement Class Members contained in the Class List via First Class mail. The Generic Claim Form asked the potential Settlement Class Member to provide the amount of "Relevant Relevant Pay," Pay, if any, earned during the Class Period and documentation in support thereof. Both Claim Forms advised potential Settlement Class Members that the postmark deadline for all Claim Forms and any necessary backup documentation was April 16, Also on February 16, ,930 individuals who had previously had claims to prior settlements approved were mailed a Notice of Claim Letter informing them they do not need to submit a Claim Form as one is already on file from the previous claims process.

5 2:06-cv GER-DAS Doc ## Filed 06/07/16 Pg 5 of 13 Pg ID As of this date, 770 undeliverable Claim Forms were returned to Rust. Of the 770 undeliverable Claim Forms, Rust was able to perform address traces on 746 undeliverable Claim Forms. The address trace utilizes the potential Settlement Class Member's name, previous address and Social Security Number if available for locating a current address. Of the 746 traces performed, 217 updated addresses were obtained and Claim Forms were promptly r ed to those potential Settlement Class Members via First Class mail. Of the 217 updated addresses mailed to from traces, 27 were returned as undeliverable a second time. 10. As of this date, 116 Claim Forms were returned to Rust by the Post Office with forwarding addresses attached. Claim Forms were promptly r ed to those potential Settlement Class Members via First Class mail. 11. As of this date, Rust has received 189 r requests for the Claim Form from potential Settlement Class Members. Claim Forms were promptly r ed to those potential Settlement Class Members via First Class mail. 12. Rust is responsible for receipt of all Claim Forms for the Settlements. As of this date, Rust has received 4,695 total Claim Forms. Of the 4,695 Claim Forms received, 150 were duplicate Forms; therefore, the total

6 2:06-cv GER-DAS Doc ## Filed 06/07/16 Pg 6 of 13 Pg ID number of unique Claim Forms received to date is 4,545. Of the 4,695 Claim Forms, 4,641 were postmarked on or before April 16, 2015, the specified deadline for submission of Claims, and 54 were postmarked after the deadline. Settlement Class Counsel has advised that they intend to recommend that the Court agree to allow them to accept all Claim Forms received by May 6, Of the 51 forms postmarked after the deadline 40 were received by May 6, Of the 4,695 Claim Forms received, 34 potential Settlement Class Members submitted Claim Forms with incomplete information (missing Social Security Numbers or signatures) and were sent a letter that asked them to supply the missing information. Of the 34 potential Settlement Class Members who were sent letters, 22 responded to that letter correcting the deficiency and 12 remain deficient. Of the 4,695 Claim Forms received, 23 potential Settlement Class Members are deceased and a Beneficiary Declaration and Release has been sent to their Beneficiary. Of the 23 deceased potential Settlement Class Members, 23 Beneficiaries have returned the completed Beneficiary Declaration and Release. 13. Of the 4,695 Claim Forms received, 182 were Generic Claim Forms and Settlement Class Counsel reviewed these Claim Forms to determine if these individuals were in fact Settlement Class Members. Of the 182 Generic Forms received, Settlement Class Counsel determined 63 were in fact Settlement

7 2:06-cv GER-DAS Doc ## Filed 06/07/16 Pg 7 of 13 Pg ID Class Members, 89 were a duplicate record (i.e. the person was also sent a "Notice Notice of Claim" Claim letter because they had previously made a claim and would be automatically paid without submitting any additional information or someone who also returned a Custom Claim Form), and 30 were determined not to be a member of the Class. 14. Of the 4,695 Claim Forms received, 4,513 were Customized Claim Forms. Of the 4,513 Customized Claim Forms, 12 remain deficient, as explained in paragraph 13 above. Of the 4,513 Customized Claim Forms, 203 Claimants disputed their Relevant Pay amount. Of the 203 disputed Customized Claim Forms, Settlement Class Counsel accepted 61 of the disputes in full or in part and 142 were denied. 15. Prior to April 16, 2016, 66 self-identifying potential Settlement Class Members, who were not included in the Class List, have contacted Rust to participate in the claims process. Of the 66 self-identifying potential Settlement Class Members, Settlement Class Counsel determined 13 should be sent a Claim Form. Rust mailed 12 of these individuals a Custom Claim Form and one (1) individual was mailed a Generic Claim Form and given the opportunity to support their Claim with required documentation per Settlement Class Counsel s Counsel's request.

8 2:06-cv GER-DAS Doc ## Filed 06/07/16 Pg 8 of 13 Pg ID Attached as Exhibit A is the list of the 15,463 Claimants who submitted approved Claim Forms or received the Notice of Claim Letter and are eligible to receive a pro rata share of the Net Settlement Fund. Exhibit A includes the final Relevant Pay determination for these individuals and the percentage of the payout each would receive. This calculation includes the claims of the 40 persons who submitted claims postmarked after April 16 but received before May 6 who Class Counsel have informed Rust they will recommend be approved despite missing the claims deadline. The percentage would be multiplied by the Net Settlement Amount to determine the gross award amount for the valid Settlement Class Members. The gross award amounts would be allocated as 100% wages. The employer s employer's share of taxes on the 100% wage component will be deducted from the Gross Settlement Fund. 17. Attached hereto as Exhibit B is the list of 49 persons who returned Claims Forms who have been determined ineligible to receive any of the Net Settlement Fund because the Claimant: (1) held only an out-of-class job title or worked at an out-of-class facility during the Class Period; (2) worked only at a non-defendant hospital during the Class Period; (3) failed to provide adequate documentation (despite being given an opportunity to cure) and could not be verified as a Settlement Class Member through Defendants Defendants' payroll data; (4)

9 2:06-cv GER-DAS Doc ## Filed 06/07/16 Pg 9 of 13 Pg ID failed to sign the Claim Form (despite being given an opportunity to cure); or (5) failed to provide a Social Security Number (despite being given an opportunity to cure). The exhibit includes the Claimant s Claimant's claimed Relevant Pay amount and the reason for his or her proposed rejection. 18. Attached hereto as Exhibit C is the list of Claimants who were sent a Claim Form but did not return it to the Claims Administrator. 19. In summary, the Claims process to distribute the Net Settlement Fund to Settlement Class Members produced the following results: Claim Forms mailed 13,600 Customized Claim Forms mailed 11,013 Generic Claim Forms mailed 2,587 Notice of Claim Letters Mailed 10,931 Claims received: 4,695 Customized Claims Forms received: 4,513 Generic Claims Forms received: 182 Deficiency letters mailed: 23 Claims recommended for approval: 4,524 Customized Claims recommended for approval of challenge or 61 approval in part of challenge: Generic Claims recommended for approval: 63 Customized Claims recommended for rejection of challenge: 142 Generic Claims recommended for rejection: 30

10 2:06-cv GER-DAS Doc ## Filed 06/07/16 Pg 10 of of 13 Pg ID On December 10, 2015 Rust provided an invoice for the October 2015 Notice Mailing to Counsel for 19, Rust s Rust's estimate for fees was 87,370 not including the previously invoiced 19, The total cost and fees for the administration of the Settlements inclusive of the previous invoice of including fees incurred to date total $96,981.76, plus future costs for completion of the administration estimated to be $38,031.10, for a total of $135, Attached as Exhibit D is a summary of the total cost of administration. 21. This is an overview of the total costs and fees for the administration to date, which total $96, and include: Cost of mailing Notices in October 2015, for a total of $19, Cost of mailing Claim Forms in February 2016 for a total of $21, Database Development for a total of $ Follow up to the mailings (i.e. trace, trace r s, additional letter communications) for a total of $1, Telephone Support (from March 2016 through April 2016) for a total of $3, Claims Processing for a total of $18, Bank account fees $675 Project Management time for a total of $20, which includes: Review of Disputed Claim Forms Preparing reports for Disputed Claim Forms

11 2:06-cv GER-DAS Doc ## Filed 06/07/16 Pg 11 of 13 Pg ID Review of Generic Claim Forms Preparing reports for Generic Claim Forms Preparing weekly status reports Responding to Settlement Class Member inquiries and Settlement Class Counsel Requests. Technical Consulting for a total of $6,184.82, which includes: Data review and cleansing which includes: Business Analyst time Data Analyst time Quality Assurance time Expenses for a total of $4, which includes: Rental of PO Box Data storage charges 22. The total estimated future costs and fees for completion of the administration, which total $38,031.10, include: Telephone Support (estimated at 4 months and 800# charges) for a total of $8, Fund Distribution for a total of $17,818.10, which includes: Printing and mailing of Payments Postage Check Processing Monthly bank account fees Tax reporting for a total of $4,250.00, which includes: Annual fee for the Qualified Settlement Fund Individual Income Tax reporting Project Completion for a total of $7,575.00, which includes: Estimated remaining Project Management time Estimated remaining Technical Consulting time Estimate of other charges and out of pocket costs

12 2:06-cv GER-DAS Doc ## Filed 06/07/16 Pg 12 of 13 Pg ID I declare under penalty of perjury that the above is true and correct to the best of my knowledge and that this Declaration was executed this Wednesday June 1, 2016, at Minneapolis, MN. Chris Pikus

13 2:06-cv GER-DAS Doc ## Filed 06/07/16 Pg 13 of 13 Pg ID UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION PAT CASON-MERENDA and JEFFREY A. SUHRE on behalf of themselves and others similarly situated, Plaintiffs, v. VHS of MICHIGAN, INC., d.b.a. DETROIT MEDICAL CENTER, et al., Case No Hon. Gerald E. Rosen Magistrate: Donald A. Scheer Defendants. CERTIFICATE OF SERVICE I hereby certify that on June 7, 2016, I electronically filed the foregoing document with the Clerk of the Court using the ECF system which will send notification of such filing to the counsel of record for all parties for Civil Action No. 2:06-cv GER-DAS, and I hereby certify that there are no individuals entitled to notice who are non-ecf participants. /s/ Raymond J. Farrow Keller Rohrback L.L.P Third Avenue, Suite 3200 Seattle, WA Ph: rfarrow@kellerrohrback.com 1