NOTICE OF PROPOSED SETTLEMENT AND RIGHT TO OPT OUT

Transcription

1 NOTICE OF PROPOSED SETTLEMENT AND RIGHT TO OPT OUT Hegab v. Family Dollar Stores, Inc., No. 11-cv (CCC/JAD) A Federal Court authorized this Notice. This is not a solicitation from a lawyer. TO: PERSONS EMPLOYED BY FAMILY DOLLAR STORES AS SALARIED STORE MANAGERS IN NEW JERSEY BETWEEN MARCH 3, 2009 AND OCTOBER 3, PLEASE READ THIS NOTICE CAREFULLY. IF YOU WISH TO COMMENT IN FAVOR OF THE SETTLEMENT OR OBJECT TO THE SETTLEMENT, YOU MUST FOLLOW THE DIRECTIONS IN THIS NOTICE. YOU MAY BE ELIGIBLE TO RECEIVE A PAYMENT FROM THE SETTLEMENT OF THIS LAWSUIT. YOUR LEGAL RIGHTS MAY BE AFFECTED BY THIS LAWSUIT. IF YOU RECEIVED THIS NOTICE ON BEHALF OF A CLASS MEMBER WHO IS DECEASED, YOU SHOULD PROVIDE THE NOTICE TO THE AUTHORIZED LEGAL REPRESENTATIVE OF THAT CLASS MEMBER. A proposed settlement has been reached between the parties in this class action pending in the United States District Court for the District of New Jersey brought on behalf of all individuals described above (the Settlement Class ). The Court has preliminarily approved the settlement, which terms are set forth in the Settlement Agreement, which is available at You have received this Notice because the parties records show that you are a member of the Settlement Class. This Notice is intended to inform you of how you can comment in favor of the settlement or object to the settlement. even if you object to the settlement. There will be a hearing on the settlement ( Fairness Hearing ) at 11:00 a.m. on February 5, 2015, in Courtroom 5B of the Martin Luther King Federal Building and United States Courthouse, 50 Walnut Street, Newark, New Jersey. The Settlement Class members are individuals who worked as a salaried Family Dollar Store Manager in New Jersey between March 3, 2009 and October 3, What Is The Class Action About? The claims in this action involve a class of approximately 517 current and former New Jersey Family Dollar Store Managers who were paid a salary, worked more than 40 hours in a week, but did not receive overtime compensation. By entering into this settlement, Family Dollar denies any wrongdoing or liability. The settlement is an effort by both parties to avoid costly litigation. The Court has not decided who is right. What Are My Rights? You have the following choices: - 1 -

2 SUBMIT A CLAIM FORM January 6, 2015 DO NOTHING BUT STAY IN THE SETTLEMENT CLASS OPT OUT OF THE SETTLEMENT CLASS December 22, 2014 OBJECT AND GO TO A HEARING December 22, 2014 In order to receive a settlement payment, you must complete, sign, and return a Claim Form (enclosed with this Notice) in the enclosed postage pre-paid envelope by January 6, Even if you were paid a salary and told you were not eligible for overtime compensation, you can take part in the settlement. If your Claim Form is not postmarked by the deadline, you will not receive a payment and your claims will be released. By doing nothing, you will remain in the Settlement Class, but will not be entitled to receive a payment. You will be legally bound by all orders and judgments entered by the Court, and you will not be able to sue, or continue to sue, Family Dollar in any lawsuit relating during the time period covered by the settlement. You may opt out of the Settlement Class. If you opt out, you will claims you may have against Family Dollar, and you will not be bound by any orders or judgments of the Court. To opt out, you must send a letter to Family Dollar NJ Store Manager Settlement, c/o Rust Consulting, Inc., PO Box 2396, Faribault, MN , stating that you want to opt out of the Settlement Class. This letter must include your name, address, telephone number, and the last four digits of your Social Security Number. the Settlement Administrator at the address below and also state whether you intend to attend the Fairness Hearing. Your submission to the Settlement Administrator should be sent via delivery service, such as Federal Express or UPS. Family Dollar NJ Store Manager Settlement c/o Rust Consulting, Inc PO Box 2396 Faribault, MN You must also send a copy of your objections to: For the Settlement Class: For Family Dollar: Seth Lesser Joel M. Cohn Klafter, Olsen & Lesser, LLP Akin Gump Straus Hauer & Feld, LLP Two International Dr New Hampshire Ave. NW Rye Brook, NY Washington, DC The complete rules for objecting and appearing at the Fairness Hearing are contained in the Preliminary Approval Order

3 Do I Have A Lawyer In The Lawsuit? The Court has appointed attorneys for the Settlement Class ( Class Counsel ). You will not be charged by Class Counsel. Class Counsel will submit a motion to the Court seeking approval for an award of up to $345,000 for attorney s fees and up to $10,000 in out of pocket expenses incurred in litigating this action. Whatever amount is approved as legal fees and expenses will be deducted from the Gross Settlement Amount. Class Counsel have represented that the amount of attorney s fees sought is less than the amount awarded in the vast majority of similar lawsuits. Their motion for attorney s fees and out of pocket expenses will be posted at and submitted to the Court on or before January 21, If you want your own lawyer, you may hire one at your own expense. If you What Will I Receive From The Settlement? The Gross Settlement Amount will not exceed $1,150,000. This is the maximum amount that Family Dollar is obligated to pay under the settlement. This amount consists of: (i) up to $345,000 for attorney s fees; (ii) up to $10,000 for litigation costs; (iii) up to $7,500 for the named plaintiff; (iv) up to $37,900 for the Settlement Administrator; (v) the employer s share of payroll taxes; and (vi) the remainder to compensate Settlement Class members who make valid claims. The precise amount of your individual settlement payment cannot be determined at this time. Your share will be paid based on the total number of work weeks you worked more than 40 hours as a salaried New Jersey Store Manager during the time period covered by the settlement. Such weeks are referred to as Qualifying Work Weeks. Your portion of the amount to be paid to Settlement Class members will be calculated by taking the total number of your Qualifying Work Weeks and dividing by the total number of Qualifying Work Weeks for all members of the Settlement Class. What Do I Give Up As A Result Of The Settlement? As part of the settlement, and in consideration for your eligibility to receive a share of the from any liability for New Jersey Labor Law claims and any wage and hour-related claims to October 3, When Will The Court Decide Whether To Give Final Approval To The Settlement? The Court will hold a Fairness Hearing at 11:00 a.m., on February 5, 2015, in Courtroom 5B of the Martin Luther King Federal Building and United States Courthouse, 50 Walnut Street, Newark, New Jersey At that time, the Court will review the papers submitted by the parties and any objectors, and hear any properly noticed witnesses. The Court will decide will issue a written order of its decision

4 May I Attend The Fairness Hearing? Yes, any Settlement Class Member may attend the hearing. If you object to the settlement, you may submit your objections, as detailed above, along with any supporting documents, and declare your intent to appear at the Fairness Hearing, either personally or through an attorney. What Happens If The Court Does Not Give Final Approval? payments will be made under the settlement and this action will revert to its status immediately prior to the execution of the Settlement Agreement. If The Settlement Is Approved, When Will I Receive My Settlement Check? individual settlement amount, it will be distributed to you within 30 days after the settlement becomes effective. How Will My Settlement Amount Be Distributed To Me? If you are eligible for a settlement payment, the Settlement Administrator will send a check. Ninety percent of your settlement amount will be allocated to back pay and will be subject withholdings. You will receive an IRS Form W-2 for this payment from the settlement fund. The remaining 10 percent of your settlement amount will be for non-wages (interest) and will not be subject to any payroll or income tax withholding unless you are subject to backup received as a result of this settlement will be taxed as wages. Taxes will not be withheld by Family Dollar from the remaining portion. You will receive an IRS Form 1099 for this second amount. The employer s share of taxes will also be paid from the Gross Settlement Amount. Who Is Responsible For Paying The Taxes On My Settlement Amount? You are solely responsible for paying all taxes based on your receipt of a settlement payment. Neither your attorneys nor Family Dollar s attorneys can provide any advice about such How Can I Get A Copy Of The Settlement Agreement And The Court s Preliminary Approval Order? This Notice is a summary of your legal rights. You can visit www. familydollarstoresnewjerseysettlement.com to review a complete copy of the Settlement Agreement, the Court s Preliminary Approval Order, and this Notice. These documents and - 4 -

5 all other pleadings and records in this lawsuit may be examined at any time during regular States Courthouse, 50 Walnut Street, Newark, New Jersey. What If I Have Questions About This Notice Or My Individual Settlement Amount? You should contact the Settlement Administrator: Family Dollar NJ Store Manager Settlement, c/o Rust Consulting, Inc. 4480, PO Box 2396, Faribault, MN You may also contact Class Counsel at: Klafter, Olsen & Lesser, LLP Hepworth, Gershbaum & Roth, PLLC Two International Dr. 192 Lexington Avenue, Rye Brook, NY New York, New York (914) (212) You should not contact the Court if you have questions about the settlement or this Notice