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10 SUPERIOR COURT OF THE STATE OF CALIFORNIA
11 COUNTY OF SACRAMENTO
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13 ANDREA SPEARS, an individual, on behalf CASE NO.: 34-2017-00210560-CU-OE-GDS
of herself and on behalf of all persons [Consolidated with Case No.
14 similarly situated, 34-2017-00216685]
15 Plaintiff,
V. [PROPOSED] FINAL APPROVAL
16 ORDER AND JUDGMENT
HEALTH NET OF CALIFORNIA, INC., a
17 Califomia Corporation; and Does 1 through
50, inclusive.
18 Hearing Date: August 4, 2022
Defendants Hearing Time: 9:00 a.m.
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Judge: Hon. Christopher E. Kmeger
20 Dept.: 54
TOM AS R. ARANA, on behalf of himself, all
21 others similarly situated. Action Filed: April 5, 2017
Plaintiff, Trial Date: None Set
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V.
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HEALTH NET OF CALIFORNIA, INC., a
24 Califomia corporation; and DOES 1-50,
inclusive.
25 Defendant..
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FINAL APPROVAL ORDER AND JUDGMENT
I The motion of Plaintiffs Andrea Spears and Tomas Arana ("Plaintiffs") for an order finally
2 approving the Class Action Settlement Agreement ("Agreement") with Defendant Health Net of
3 Califomia, Inc. ("Defendant"), attorneys' fees and costs, service payments, and the expenses of the
4 Settlement Administrator duly came on for hearing on August 4, 2022 at 9:00 a.m. before the
5 Honorable Christopher E. Kmeger.
6 I.
7 FINDINGS
8 Based on the oral and written argimient and evidence presented in connection with the
9 motion, the Court makes the following findings:
10 1. All terms used herein shall have the same meaning as defined in the Agreement.
11 2. This Court has jurisdiction over the subject matter of this litigation pending before
12 the Califomia Superior Court for the County of Sacramento, and over all Parties to this litigation,
13 including the Class.
14 3. Based on a review of the papers submitted by Plaintiffs and a review of the
15 applicable law, the Court finds that the Gross Settlement Amount and the terms set forth in the
16 Agreement are fair, reasonable, and adequate.
17 4. The Court fiirther finds that the Settlement was the result of arm's length
18 negotiations conducted after Class Counsel had adequately investigated the claims and became
19 familiar with the strengths and weaknesses of those claims. In particular, the amount of the
20 Settlement, the significant risks relating to certification, liability, and damages issues, and the
21 assistance of an experienced mediator in the settlement process, among other factors, support the
22 Court's conclusion that the Settlement is fair, reasonable, and adequate.
23 Preliminary Approval of the Settlement
24 5. On March 10, 2022, the Court granted preliminary approval of the Settlement. At
25 this same time, the Court approved conditional certification of the Class for settlement purposes
26 only.
27 ///
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FINAL APPROVAL ORDER AND JUDGMENT
1 Notice to the Class
2 6. In compliance with the Preliminary Approval Order, the Class Notice was mailed
3 by first class mail to members of the Class at their last known addresses on or about April 7, 2022.
4 Mailing of the Class Notice to their last known addresses was the best notice option imder the
5 circumstances and was reasonably calculated to communicate actual notice of the litigation and
6 the proposed settlement to the Class. The Class Notice given to the Class Members fiilly and
7 accurately informed the Class Members of all material elements of the proposed Settlement and of
8 their opportunity to object to or comment thereon or to seek exclusion from the Settlement; was
9 valid, due, and sufficient notice to all Class Members; and complied fully with the laws of the
10 State of Califomia, the United States Constitution, due process and other applicable law. The
11 Class Notice fairly and adequately described the Settlement and provided Class Members adequate
12 instmctions and a variety of means to obtain additional information.
13 7. The deadline for opting out of the Class or submitting written objections to the
14 Settlement was May 23, 2022. There was an adequate interval between mailing of the Class
15 Notice and the response deadline to permit Class Members to choose what to do and act on their
16 decision. A full opportunity has been afforded to the Class Members to participate in this hearing,
17 and all Class Members and other persons wishing to be heard have been heard. Class Members
18 also have had a full and fair opportunity to exclude themselves from the proposed Settlement and
19 Class. Accordingly, the Court determines that all Class Members who did not timely and properly
20 submit a request for exclusion are bound by the Settlement and this Final Approval Order and
21 Judgment.
22 Fairness Of Settlement
23 8. The Agreement is entitled to a presumption of faimess. Dunk v. Ford Motor Co.
24 48 Cal.App.4th 1794, 1801 (1996).
25 a. The settlement was reached through arm's-length bargaining between the
26 parties during an all-day mediation before Tripper Ortman, a respected and experienced mediator
27 of wage and hour class actions. There has been no collusion between the parties in reaching the
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FINAL APPROVAL ORDER AND JUDGMENT
I proposed settlement.
2 b. Plaintiffs' investigation and discovery have been sufficient to allow the
3 Court and counsel to act intelligently.
4 c. Counsel for both parties are experienced in similar employment class action
5 litigation. All counsel recommended approval of the Agreement.
6 d. The percentage of objectors and requests for exclusion is small. Two (2)
7 objections were received. Zero requests for exclusion were received.
8 e. The participation rate was high. 5,266 Class Members will be mailed a
9 settlement payment, representing 100% of the overall Class.
10 9. The consideration to be given to the Class Members under the terms of the
11 Agreement is fair, reasonable and adequate considering the strengths and weaknesses of the claims
12 asserted in this action and is fair, reasonable and adequate compensation for the release of Class
13 Members' claims, given the uncertainties and significant risks of the litigation and the delays
14 which would ensue from continued prosecution of the action.
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10. The Agreement is approved as fair, adequate and reasonable and in the best
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interests of the Class Members.
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Attorneys' Fees and Costs
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11. An award of $1,666,666.00 for attomeys' fees and $140,000.00 for litigation costs
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and expenses, is reasonable, in light of the contingent nature of Class Counsel's fee, the hours
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worked by Class Counsel, and the results achieved by Class Counsel. The requested award has
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been supported by Class Counsel's lodestar and billing statement.
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Class Representative Service Payments
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12. The Agreement provides for a Class Representative Service Payment of not more
24 than $10,000 each to the Plaintiffs, subject to the Court's approval. The Court finds that a Class
25 Representative Service Payment in the amoimt of $10,000.00 each to the Plaintiffs is reasonable in
26 light of the risks and burdens undertaken by the Plaintiffs in the litigation, for their time and effort
27 in bringing and prosecuting this matter on behalf of the Class, and for their execution of a general
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FINAL APPROVAL ORDER AND JUDGMENT
I release.
2 Settlement Administration Expenses
3 13. The Settlement Administrator shall calculate and administer the payment to be
4 made to the Class Members, transmit payment for attorneys' fees and costs to Class Counsel,
5 transmit the Class Representative Service Payments to the Plaintiffs, disfribute the PAGA
6 Payment, issue any required tax reporting forms, calculate withholdings and perform the other
7 remaining duties set forth in the Agreement. The Settlement Administrator has documented
8 $50,000.00 in fees and expenses, and this amount is reasonable in light of the work performed by
9 the Settlement Administrator.
10 PAGA Payment
11 14. The Agreement provides for a PAGA Payment out of the Gross Settlement
12 Amount of $150,000, which shall be allocated $112,500 to the LWDA as the LWDA's 75% share
13 of the settlement of civil penalties paid pursuant to the PAGA and $37,500 to be distributed to the
14 Aggrieved Employees based on their respective weeks worked during the PAGA Period. The
15 Aggrieved Employees are all individuals who are or previously were employed by Defendant in
16 Califomia and who were classified as non-exempt employees at any time during the PAGA
17 Period, which is April 5, 2016 through June 8, 2021. The Court finds this PAGA Payment to be
18 reasonable. All Aggrieved Employees will be sent their share of the PAGA Payment and will be
19 subject to the release of the Released PAGA Claims as set forth below, whether or not they opt out
20 of the Settlement.
21 II.
22 ORDERS
23 Based on the foregoingfindings,and good cause appearing, IT IS HEREBY ORDERED:
24 1. The certification of the Class for the purposes of settlement is confirmed. The
25 Class is defined as follows:
26 All individuals who are or previously were employed by Defendant in Califomia
and who were classified as non-exempt employees at any time during the Class
27 Period and who did not previously opt out of the Class post-Class Certification
(April 5, 2013 through October 8, 2019).
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FINAL APPROVAL ORDER AND JUDGMENT
1 2. There were two objections to the Settlement, one from Royleen Herrin and one
2 from Maria Perez. The written objections were provided to the Court along with the Parties'
3 responses. The Court agrees that the objections do not provide a basis for denial of final approval
4 of the settlement and the objections are OVERRULED.
5 3. The Agreement is hereby finally approved as fair, reasonable, adequate, and in the
6 best interest of the Class.
7 4. Class Counsel are awarded attomeys' fees in the amount of $1,666,666.00 and costs
8 in the amount of $140,000.00. Class Counsel shall not seek or obtain any other compensation or
9 reimbursement from Defendant, Plaintiffs or members of the Class.
10 5. The payment of the Class Representative Service Payments in the amount of
11 $10,000.00 each to the Plaintiffs is approved.
12 6. The payment of $50,000.00 to the Settlement Administrator for their fees and
13 expenses is approved.
14 7. The PAGA Payment of $150,000 is approved and shall be allocated in accordance
15 with the Agreement.
16 8. The Agreement and this Settlement are not an admission by Defendant or the
17 Released Parties, nor is this Final Approval Order and Judgment a finding, of the validity of any
18 claims in the Action or of any wrongdoing by Defendant or the Released Parties or that this Action
19 is appropriate for class treatment (other than for settlement purposes). Neither this Final Approval
20 Order and Judgment, the Agreement, nor any document referred to herein, nor any action taken to
21 carry out the Agreement is, may be constmed as, or may be used as an admission by or against
22 Defendant or the Released Parties of any fault, wrongdoing or liability whatsoever. The entering
23 into or carrying out of the Agreement, and any negotiations or proceedings related thereto, shall
24 not in any event be constmed as, or deemed to be evidence of, an admission or concession with
25 regard to the denials or defenses by Defendant. Notwithstanding these restrictions. Defendant
26 may file in the Action or in any other proceeding this Final Approval Order and Judgment, the
27 Agreement, or any other papers and records on file in the Action as evidence of the Settlement to
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FINAL APPROVAL ORDER AND JUDGMENT
1 support a defense of res judicata, collateral estoppel, release, or other theory of claim or issue
2 preclusion or similar defense as to the Released Class Claims and/or the Released PAGA Claims.
3 9. Notice of entry of this Final Approval Order and Judgment shall be given to all
4 Parties by Class Counsel on behalf of Plaintiffs and all Class Members. The Final Approval Order
5 and Judgment shall be posted on the Settlement Administrator's website as set forth in the Class
6 Notice to the Class. It shall not be necessary to send notice of entry of this Final Approval Order
7 and Judgment to individual Class Members.
8 10. If the Agreement does not become final and effective in accordance with the terms
9 of the Agreement, then this Final Approval Order and Judgment, and all orders entered in
10 connection herewith, shall be rendered null and void and shall be vacated, and the Parties shall
11 revert to their respective positions as of before entering into the Agreement, and expressly reserve
12 their respective rights regarding the prosecution and defense of this Action, including all available
13 defenses and affirmative defenses, and arguments that any claim in the Action could not be
14 certified as a class action and/or managed as a representative action.
15 IT IS HEREBY ORDERED, ADJUDICATED AND DECREED THAT:
16 1. Except as set forth in the Agreement and this Final Approval Order and Judgment,
17 Plaintiffs, and all members of the Class, shall take nothing in the Action.
18 2. Pursuant to Califomia Code of Civil Procedure section 664.6, the Court shall retain
19 jurisdiction to constme, interpret, implement and enforce the Agreement, to hear and resolve any
20 contested challenge to a claim for settlement benefits, and to supervise and adjudicate any dispute
21 arising from or in connection with the distribution of settlement benefits.
22 3. The Parties are authorized, without further approval from the Court, to agree to and
23 to adopt such amendments, modifications and expansions of the Agreement and all exhibits
24 attached thereto which are consistent with this Final Approval Order and Judgment and do not
25 limit therightsof the Class Members.
26 4. Each party shall bear its own attorneys' fees and costs, except as otherwise
27 provided in the Agreement and in this Final Approval Order and Judgment.
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FINAL APPROVAL ORDER AND JUDGMENT
1 5. Upon entry of the Judgment, each Class Member who has not validly opted out has
2 released the "Released Class Claims" against the Defendant as set forth in the Agreement. The
3 "Released Class Claims" are all class claims which were pled or could have been pled based on
4 the factual allegations contained in the operative complaint or any amendments thereto which
5 occurred during the Class Period, and expressly excluding all other claims, including all claims
6 alleged in Carranza v. Health Net of California, Inc. (Los Angeles Superior Court, Case No.
7 20STCV14774) {''Carranza Action") and Alvarez v. Health Net of California, Inc. (Sacramento
8 Superior Court, Case No. 34-2020-00289192) {''Alvarez Action"), claims for vested benefits,
9 wrongful termination, unemployment insurance, disability, social security, and workers'
10 compensation, and class claims outside of the Class Period. The Released Class Claims include
11 any claims, demands, lawsuits, administrative actions, arbifrations, and participation to any extent
12 in any pending or fiature class, collective, or representative actions, or other action of any kind
13 based on the Released Class Claims. The Released Class Claims include known and unknown
14 claims as described in this paragraph.
15 6. Upon entry of the Judgment, Defendant and the Released Parties shall receive a
16 release from the State of Califomia of all PAGA claims which were pled or which could have
17 been pled based on the factual allegations contained in the operative complaint or any amendments
18 thereto and PAGA letters sent by Plaintiffs that occurred during the PAGA Period and excluding
19 all PAGA claims outside of the PAGA Period and all PAGA claims alleged in the Carranza
20 Action and the Alvarez Action ("Released PAGA Claims"). The release of the Released PAGA
21 Claims shall be effective as to all Aggrieved Employees, regardless of whether an Aggrieved
22 Employee submitted a request for an exclusion from the Class post-Class Certification or post-
23 Settlement. The Released PAGA Claims include knovra and unknown claims as described in this
24 paragraph.
25 7. Upon entry of the Judgment, Plaintiffs generally release and discharge the Released
26 Parties from any and all known and unknown claims,fransactionsor occurrences between them
27 that occurred through the date of the Agreement ("Plaintiffs' Released Claims") as set forth fully
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FINAL APPROVAL ORDER AND JUDGMENT
1 in the Agreement.
2 8. Class Members who failed to present disputes or objections in the manner provided
3 in the Court's order granting preliminary approval of the Settlement shall be deemed to have
4 waived any right to dispute their Settlement Share and/or object to or appeal the Settlement,
5 respectively.
6 L E T JUDGMENT BE FORTHWITH ENTERED ACCORDINGLY. IT IS SO ORDERED.
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8 Dated:
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HON. CHRISTOPHER E. KRUEGER
10 JUDGE, SUPERIOR COURT OF CALIFORNIA
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FINAL APPROVAL ORDER AND JUDGMENT
1 PROOF OF SERVICE
2' 1 am a citizen of the United States and am employed in the County of Los Angeles, State of
Califomia. I am over the age of 18 and not a party to the within action. My business address is
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9665 Wilshire Boulevard, Suite 430 Beveriy Hills, CA 90212.
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On August 3, 2022,1 served the foregoing documents described as:
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[PROPOSED] FINAL APPROVAL ORDER AND JUDGMENT
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in this action by transmitting a true copy thereof addressed as follows:
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8 Keith A. Jacoby Norman Blumenthal
kiacoby@.l ittler.com nomi@bamlawca.com
9 Nathaniel H. Jenkins Victoria B. Rivapalacio
nienkins@littler.com victoria@bamlawca.com
10 Barbara Blackbum AJ Bhowmik
bblackburn@,littler.com AJ@,bamlaw^ca.com
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Sophia Masada deblouw^bamlawca.com
12 smasada@littler.com victoria@bamlawca.com
LITTLER MENDELSON, P.C. chaiiotte@bamlawca.com
13 2049 Century Park East, 5"" Floor BLUMENTHAL, NORDREHAUG, &
Los Angeles, CA 90067 BHOWMIK
14 Attorneys for Defendant HEALTH NET, 2255 Calle Clara
15 INC. La Jolla, CA 92037
Attorneys for Plaintiff ANDREA
16 SPEARS
17 [X] BY E-MAIL OR ELECTRONIC TRANSMISSION
18 Based on a court order or an agreement of the parties to accept service by electronic
transmission, I electronically served the document(s) to the persons at the electronic service
19 addresses listed above.
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[X] STATE
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I declare under penalty of perjury under the laws of the State of Califomia that the above is
22 true and correct.
23 Executed on August 3, 2022, at Beverly Hills, Califomia.
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Eric Sams
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PROOF OF SERVICE