CITRUS VALLEY HEALTH PARTNERS, INC. SETTLEMENT ADMINISTRATOR C/O RUST CONSULTING - 4790 P.O. BOX 2396 FARIBAULT, MN 55021-9096 IMPORTANT LEGAL MATERIALS *Barcode39* - <<SequenceNo>> <<Name1>> <<Name2>> <<Name3>> <<Name4>> <<Address1>> <<Address2>> <<City>> <<State>> <<Zip10>> <<CountryName>> NOTICE OF PROPOSED CLASS ACTION SETTLEMENT Sofia Lopez v. Citrus Valley Health Partners, Inc., Los Angeles Superior Court Case No. BC544139, and Mitzi Arias v. Citrus Valley Health Partners, Inc., Los Angeles Superior Court Case No. BC545110. THIS NOTICE MAY AFFECT YOUR LEGAL RIGHTS. PLEASE READ THIS NOTICE CAREFULLY. A court authorized this Notice. This is not a solicitation. This is not a lawsuit against you, and you are not being sued. However, your legal rights are affected whether you act or not. WHAT IS IN THIS NOTICE 1. Why should you read this Notice?... Page 1 2. What is the Lawsuit about?... Page 2 3. The Proposed Settlement... Page 2 4. What do I have to do in response to this Notice?... Page 4 5. How will my rights be affected?... Page 5 6. Who are the attorneys representing the Parties?... Page 7 7. How do I obtain additional information?... Page 7 1. Why should you read this notice? You have received this Notice because records indicate that you are a member of the Class defined below, and, therefore, may be eligible to receive a settlement payment under the proposed Settlement in the lawsuits entitled Sofia Lopez v. Citrus Valley Health Partners, Inc., Los Angeles Superior Court Case No. BC544139, and Mitzi Arias v. Citrus Valley Health Partners, Inc., Los Angeles Superior Court Case No. BC545110 (the Lawsuits ). Because your rights may be affected by the proposed Settlement whether you act or not, it is extremely important that you read this Notice carefully. On July 20, 2015, the Court ordered that this Notice be mailed to all Class Members regarding the proposed Settlement. This Notice is not an expression of any opinion by the Court as to the merits of any claims or defenses asserted by any party in the Lawsuits. This Notice is sent for the sole purpose of informing you of the pendency of the Lawsuits and the terms of the proposed Settlement so that you may make appropriate decisions. In the event that this Notice conflicts with the Settlement Agreement, the terms of the Settlement Agreement shall govern. - 1 -
The proposed Settlement will apply to all persons in the Class, which is comprised of: Non-exempt employees employed by Citrus Valley Health Partners ( CVHP ) in any of its facilities located in California during the period from April 29, 2010 through July 20, 2015 (the Class Period ) ( Employee Subclass ); and Non-exempt workers assigned by one or more staffing agencies to work at any CVHP facility in California at any time during the Class Period, as determined from information reasonably requested from, and provided by, staffing agencies ( Registry Subclass ). A hearing to finally approve the Settlement is scheduled for November 19, 2015 at 1:45 p.m., in Department 307 of the Los Angeles Superior Court located at 600 S. Commonwealth Avenue, Los Angeles, California, 90005, before the Honorable Amy D. Hogue (the Final Approval Hearing ). The Final Approval Hearing may be continued to another date without further notice. 2. What are the Lawsuits about? Plaintiffs Mitzi Arias and Sofia Lopez ( Plaintiffs ), individually and on behalf of all employees similarly situated, filed lawsuits against CVHP. Plaintiffs allege that CVHP failed to pay overtime, regular, and minimum wages, illegally rounded time entries, failed to provide meal and rest periods, failed to properly calculate meal and rest period premium payments, failed to properly calculate the regular rate for purposes of paying overtime wages, failed to timely provide final wages upon resignation or termination and failed to timely provide accurate itemized wage statements, in violation of the California Labor Code, the Industrial Welfare Commission s Wage Orders, and the Fair Labor Standards Act, California s Unfair Competition Law and California s Private Attorneys General Act. CVHP strongly denies these allegations and contends that it fully complied with the law. Despite their respective positions and arguments, the Parties recognize the risks of further litigation of the Lawsuits, which would be protracted and expensive for all Parties. Accordingly, the Parties have agreed to settle the Lawsuits, subject to Court approval, upon the terms set forth in the Stipulation and Settlement of Class Action Claims (the Stipulation or Settlement Agreement ). CVHP, by settling the Lawsuits, does not admit, concede or imply any fault, wrongdoing or liability whatsoever. 3. The proposed Settlement In exchange for the release of claims against it and final judgment in the Lawsuits, CVHP has agreed to pay Nine Million Nine Hundred and Seventy Five Thousand Dollars ($9,975,000) ( Gross Settlement Fund or GSF ). After attorneys fees and costs, Service Awards to Plaintiffs, a payment to the California Labor and Workforce Development Agency ( LDWA ), and settlement administration costs are deducted from the GSF, the remaining funds (the Net Settlement Amount ) will be distributed to Settlement Class Members who do not submit valid timely requests for exclusion from the Settlement, as further explained below: A. Class Counsel Attorney Fees and Costs. You do not need to pay any portion of either Plaintiffs or CVHP s attorneys fees and costs. Class Counsel will ask the Court to award attorney fees up to Three Million, Three Hundred and Twenty- Five Thousand Dollars ($3,325,000) or Thirty-Three and One-Third percent (33 1/3%) of the GSF and a Cost Award of up to Thirty Thousand Dollars ($30,000). B. Plaintiffs Service Awards. In addition, Class Counsel may ask the Court to authorize Service Awards of up to Twenty Thousand Dollars ($20,000) to each Plaintiff for serving as class representatives. Plaintiffs will also be entitled to receive their portion of the Settlement proceeds. C. Payment to the LDWA. Further, Seven Thousand and Five Hundred Dollars ($7,500), will be paid to the LDWA. D. Settlement Administration Costs. Finally, the Settlement Administrator will be paid no more than Forty Thousand Dollars ($40,000) for administering the proposed Settlement, which includes such tasks such as mailing and tracking this Notice, establishing and maintaining the Settlement Website, calculating Class Member individual settlement payments, mailing checks and tax forms, and reporting to the parties and the Court. E. Net Settlement Amount. The amounts described in Subparts A D above all will be paid from the GSF, and any amounts not approved by the Court will revert to the Net Settlement Amount for distribution to Class Members. Subject to Court approval, Class Members who do not submit valid timely requests for exclusion are eligible to receive money from the Net Settlement Amount as follows: i. Individual Settlement Payments to members of the Registry Subclass. Members of the Registry Subclass who do not timely request to be excluded from the Settlement will be entitled to receive a payment of One Hundred Dollars ($100). - 2 -
ii. Individual Settlement Payments to members of the Employee Subclass. The Settlement Administrator will determine the funds to be distributed to members of the Employee Subclass ( Net Settlement Amount Employee Subclass ) by deducting the total amount of payments to members of the Registry Subclass ( Net Settlement Amount Registry Subclass ) from the Net Settlement Amount. The Settlement Administrator will determine the portion of the Total Gross Wages paid to each member of the Employee Subclass during the Class Period ( Gross Wages Percentage Value ). Each member of the Employee Subclass who does not timely request to be excluded from the Settlement will receive an Individual Settlement Payment equal to their Gross Wages Percentage Value multiplied by the Net Settlement Amount Employee Subclass. According to CVHP s records, your Gross Wages during period from April 29, 2010 through July 20, 2015, is $<<gross wages>>. Your estimated Individual Settlement Payment is $<<estimated award>>, less all applicable taxes. This amount may increase or decrease depending on the Court s Orders and the number of Class Members who timely request exclusion from the Settlement. If you dispute your Gross Wages, then you must mail in your dispute and supporting documentation to the Settlement Administrator by October 17, 2015. If you fail to timely dispute your Gross Wages or timely submit supporting documentation, then your settlement payment will be based on CVHP s records of your Gross Earnings, which are presumed to be correct. 4. What do I have to do in response to this Notice? To participate in this Settlement and receive your share of the Net Settlement Fund, you do not need to take any action. Under the settlement, you will automatically receive an individual settlement payment unless you request to be excluded from the Settlement by following the opt-out procedure set forth below. You also have a right to object to the Settlement. The option you choose affects whether you receive settlement monies and whether you give up certain rights. The option you choose will in no way affect your employment with CVHP. Your options are listed below: A. Participate in the Settlement. To participate in this Settlement and receive your share of the Net Settlement Fund, you do not need to take any action. If the proposed Settlement is approved by the Court and you have not submitted a timely valid request for exclusion, you will be bound by the Settlement and will be barred from hereafter initiating or participating in any lawsuit or proceeding regarding any of the claims released in the Settlement. B. Object to the Settlement. If you wish to object to the proposed Settlement Agreement, Class Counsel s requested attorneys fees and costs, and/or Plaintiffs requested Service Award, then you must mail a written statement of objection ( Notice of Objection ) to the Settlement Administrator no later than October 17, 2015. To be valid, a Notice of Objection must: (1) contain the name, address, telephone number and the last four digits of the Social Security number of the person objecting; (2) contain a statement of objections; (3) contain a statement advising if the objecting Class Member plans to address the Court at the Final Approval Hearing, and any legal briefs, papers or memoranda that the objecting Class Member proposes to submit to the Court; and (4) be postmarked on or before October 17, 2015. The date of the postmark on the return mailing envelope shall be the exclusive means used to determine whether an objection was timely submitted. If you fail to make objections in the manner specified above then you will be deemed to have waived any objections and will be foreclosed from making any objection (whether by appeal or otherwise) to the Settlement. If you have submitted a valid and timely Notice of Objection, then you have the right to address the Court at the Final Approval Hearing scheduled for November 19, 2015, at 1:45 p.m., in Department 307 of the Los Angeles Superior Court located at 600 S. Commonwealth Avenue, Los Angeles, California, 90005. Class Members who object to the Settlement do not need to attend the Final Approval hearing in order for their objections to be considered by the Court. However, only members of the Class who have submitted valid and timely Notices of Objection will be entitled to be heard at the Final Approval Hearing, unless the Court orders otherwise. You have the right to retain your own attorney, at your own expense, to submit an objection or appear on your behalf at the Final Approval Hearing. - 3 -
You may both object to the Settlement and participate in it. Filing an objection will not exclude you from the Settlement. If you wish to be excluded from the Settlement, then you must follow the procedure below. C. Exclude yourself from the Settlement. If you wish to exclude yourself from this proposed Settlement, you must submit a written request to the Settlement Administrator to be excluded from the Class on or before October 17, 2015. To be valid, a request for exclusion must: (1) contain the name, address, telephone number and the last four digits of the Social Security number of the person requesting exclusion; (2) be returned by mail to the Settlement Administrator at the specified address; and (3) be postmarked on or before the October 17, 2015. The date of the postmark on the return mailing envelope shall be the exclusive means used to determine whether a request for exclusion has been timely submitted. Any Class Member who requests an exclusion from the Class will not be entitled to any recovery under the Settlement and will not be bound by the Settlement or have any right to object to or appeal the Settlement. Unless you timely request to be excluded from the Settlement, you will be bound by the judgment upon final approval of the Settlement, including the Release described in this Notice. 5. How will my rights be affected? If the proposed Settlement is approved by the Court, Plaintiffs and every member of the Settlement Class who does not timely opt out under the procedures set forth above will release CVHP and its past or present parents, subsidiaries and affiliated corporations, and their past or present officers, directors, employees, partners, members, shareholders and agents, and staffing agencies, and any other successors, assigns or legal representatives from the Released Claims, which include all claims, causes of action, rights and demands, known or unknown, asserted or unasserted, contingent or accrued, that Class Members may have or have had at any time in the past up to and including July 20, 2015, under state and federal law, including claims under the California Labor Code, California Wage Orders, California Unfair Competition Law, the Private Attorneys General Act of 2004 arising from or related to the claims that were actually litigated or could have been litigated in the Lawsuits, including claims under the California Labor Code and California Wage Orders arising from or related to CVHP s alleged failure to pay overtime, regular, and minimum wages, illegal time rounding, failure to provide meal and rest periods, failure to properly calculate meal and rest period premium payments, failure to properly calculate the regular rate for purposes of paying overtime wages, failure to timely provide final wages upon resignation or termination, failure to timely provide accurate wages itemized statements only as to the Released Claims, and related claims for violations of California s Unfair Competition Law only as to the Released Claims, violations of California s Private Attorneys General Act only as to the Released Claims, and violations of any other state or federal, statutory, constitutional, contractual or common law claims arising from, or which could have arisen from, the facts alleged in the Lawsuits only as to the Released Claims. The Released Claims include any claims as discussed herein that the Class Members do not know or suspect to exist in their favor at the time of the release that do arise, or could have arisen, out of the claims alleged in the Lawsuits, which, if known by them, might have affected their settlement with, and release of, the Released Parties or might have affected their decision not to object to this Settlement. With respect to members of the Registry Subclass, Released Claims are limited to claims arising from or related to work performed for CVHP. Additionally, any Class Member who timely cashes his or her settlement check (and, in so doing, becomes a FLSA Settlement Class Member) will be deemed to have opted into the Settlement for purposes of the Fair Labor Standards Act and, as to those FLSA Settlement Class Members, the Released Claims include any and all claims the FLSA Settlement Class Members may have under the Fair Labor Standards Act, 29 U.S.C. 201 et seq. only as to the Released Claims arising prior to the Effective Date. Only those Participating Class Members who timely cash their settlement check will be deemed to have opted into the Settlement for purposes of the Fair Labor Standards Act and thereby released and waived any of their claims under the Fair Labor Standards Act. - 4 -
6. Who are the attorneys representing the parties? Attorneys for Plaintiffs & the Classes are: Kevin T. Barnes, Esq. Barnes@kbarnes.com Gregg Lander, Esq. Lander@kbarnes.com LAW OFFICES OF KEVIN T. BARNES 5670 Wilshire Blvd., Suite 1460 Los Angeles, CA 90036-5664 Tel: (323) 549-9100 Fax: (323) 549-0101 Raymond P. Boucher, Esq. Ray@boucher.la; Shehnaz M. Bhujwala, Esq. Bhujwala@boucher.la Brandon K. Brouillette, Esq. Brouillette@boucher.la BOUCHER LLP 21600 Oxnard Street, Suite 600 Woodland Hills, CA 91367 Tel: (818) 340-5400 Fax: (818) 340-5401 Sahag Majarian II, Esq. SahagII@aol.com LAW OFFICES OF SAHAG MAJARIAN II 18250 Ventura Boulevard Tarzana, CA 91356-4229 Tel: (818) 609-0807 Fax: (818) 609-0892 Attorneys for CVHP are: Douglas R. Hart, Esq. DHart@sidley.com Max C. Fisher, Esq. MFisher@sidley.com Erica Parks, Esq. EParks@sidley.com SIDLEY AUSTIN LLP 555 West Fifth Street, Suite 4000 Los Angeles, CA 90013 Tel: (213) 896-6070 Fax: (213) 896-6600 7. How do I obtain additional information? This Notice only summarizes the class action lawsuits, the Settlement and related matters. For more information, you may inspect the relevant Court files on the Settlement Website at www.cvhpsettlements.com. You may also call Class Counsel Kevin T. Barnes (323-549-9100) or email him at barnes@kbarnes.com or Class Counsel Brandon Brouillette (818-340- 5400) or email him at brouillette@boucher.la. You may also contact the Settlement Administrator and ask about the Citrus Valley Health Partners, Inc. Settlement: Citrus Valley Health Partners, Inc. Settlement Administrator c/o Rust Consulting - 4790 P.O. Box 2396 Faribault, MN 55021-9096 1-800-433-5314 PLEASE DO NOT TELEPHONE THE COURT FOR INFORMATION ABOUT THIS SETTLEMENT. PLEASE DO NOT CONTACT CITRUS VALLEY S CORPORATE OFFICE, MANAGERS, OR ATTORNEYS FOR INFORMATION ABOUT THIS SETTLEMENT. Dated: <<Mail date>> - 5 -
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