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EnNDORSED
1 BLUMENTHAL NORDREHAUG BHOWMIK
DE BLOUW LLP 2022,AHD
HAR 10 PM h 15
2 Kyle R. Nordrehaug (State Bar #205975) MOTION DE?T.53/54
SUPERIOR COURT
2255 Calle Clara OF CALIFORNIA
3 La Jolla, CA 92037 S^CRAMENTO COUNTY
4 Telephone: (858)551-1223
Facsimile: (858) 551-1232
5 Email: Kyle(a),bamlawca.com
Website: www.bamlawca.com
6
7 SETAREH LAW GROUP
Shaun Setareh (SBN 204514)
8 shaun@setarehlaw.com
9665 Wilshire Blvd., Suite 430
9 Beverly Hills, Califomia 90212
Telephone: (310) 888-7771
10 Fax: (310) 888-0109
11 Attorneys for Plaintiffs
12 SUPERIOR COURT OF THE STATE OF CALIFORNIA
13 COUNTY OF SACRAMENTO
14 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.
15 similarly situated. 34-2017-00216685]
16 Plaintiff,
v. {PROPOSED] PRELIMINARY
17 APPROVAL ORDER
18 HEALTH NET OF CALIFORNIA, INC., a
Califomia Corporation; and Does 1 through
Hearing Date: March 10, 2022
19 50, inclusive. Hearing Time: 9:00 a.m.
20 Defendants
Judge: Hon. Christopher E. Kraeger
Dept.: 54
21
TOMAS R. ARANA, on behalf of himself, all Action Filed: April 5,2017
22 others similarly situated. Trial Date: None Set
Plaintiff,
23
24
HEALTH NET OF CALIFORNIA, INC., a
25 California corporation; and DOES 1-50,
inclusive.
26 Defendant.
27
PRELIMINARY APPROVAL ORDER
1 This matter, having come before the Honorable Christopher E. Kmeger of the Superior
2 Court of the State of Califomia, in and for the County Sacramento, on March 10, 2022, for the
3 motion by Plaintiffs Andrea Spears and Tomas Arana ("Plaintiffs") for preliminary approval of the
4 class settlement with Defendant Health Net of Califomia, Inc. ("Defendant"). The Court, having
5 considered the briefs, argument of counsel and all matters presented to the Court and good cause
6 appearing, hereby GRANTS Plaintiffs' Motion for Preliminary Approval of Class Action
7 Settlement.
8
9 IT IS HEREBY ORDERED:
10 1. The Court preliminarily approves the Class Action Settlement Agreement
11 ("Agreement") attached as Exhibit #1 to the Declaration of Kyle Nordrehaug in Support of
12 Plaintiffs' Motion for Preliminary Approval of Class Action Settlement. This is based on the
13 Court's detennination that the Settlement set forth in the Agreement is within the range of possible
14 final approval, pursuant to the provisions of Section 382 of the Califomia Code of Civil Procedure
15 and California Rules of Court, rule 3.769.
16 2. This Order incorporates by reference the definitions in the Agreement, and all
17 terms defmed therein shall have the same meaning in this Order as set forth in the Agreement.
18 3. It appears to the Court on a preliminary basis that the Gross Settlement Amount
19 and terms are fair, adequate and reasonable as to all potential Class Members when balanced
20 against the probable outcome of further litigation and the significant risks relating to
21 decertification, liability and damages issues. It further appears that investigation and research
22 have been conducted such that counsel for the Parties are able to reasonably evaluate their
23 respective positions. It further appears to the Court that settlement at this time will avoid
24 substantial additional costs by all Parties, as well as avoid the delay and risks that would be
25 presented by the further prosecution of the Action. It further appears that the Settlement has been
26 reached as the result of serious and non-collusive, arms-length negotiations. The Court therefore
27 preliminarily finds that the Settlement is fair, adequate, and reasonable when balanced against the
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PRELIMINARY APPROVAL ORDER
1 probable outcome of fiirther litigation and the significant risks relating to certification, liability,
2 and damages issues.
3 4. The Agreement specifies for an attorneys' fees award not to exceed one-third of the
4 Gross Settlement Amount, an award of litigation expenses incurred, not to exceed $140,000, and
5 proposed Class Representative Service Payments to the Plaintiffs in an amount not to exceed
6 $ 10,000 each. The Court will not approve the amount of attomeys' fees and costs, nor the amount
7 of any service award, until the Final Approval Hearing.
8 5. On October 8, 2019, the Court granted class certification in the Action in part. The
9 Court recognizes that Plaintiffs and Defendant stipulate and agree to certification of a broader
10 class for settlement purposes only. This stipulation will nol be deemed admissible in this or any
11 other proceeding should this Settlement not become final. For settlement purposes only, the Court
12 conditionally certifies the following Class: "all individuals who are or previously were employed
13 by Defendant in Califomia and who were classified as non-exempt employees at any time during
14 the Class Period and who did not previously opt out of the Class post-Class Certification." The
15 Class Period is from April 5, 2013 through October 8, 2019.
16 6. The Court concludes that, for settlement purposes only, the Class meets the
17 requirements for certification under section 382 of the Califomia Code of Civil Procedure in that:
18 (a) the Class is ascertainable and so numerous that joinder of all members of the Class is
19 impracticable; (b) common questions of law and fact predominate for the purpose of settlement,
20 and there is a well-defined community of interest amongst the members of the Class with respect
21 to the subject matter of the settlement; (c) the claims of the Plaintiffs are typical of the claims of
22 the members of the Class; (d) the Plaintiffs can fairly and adequately protect the interests of the
23 members of the Class; (e) a class action is superior to other available methods for the efficient
24 resolution of this controversy; and (f) counsel for the Class is qualified to act as counsel for the
25 Class and the Plaintiffs are adequate representatives of the Class.
26 7. The Court provisionally appoints Plaintiffs as the representatives of the Class. The
27 Court provisionally appoints Norman B. Blumenthal, Kyle R. Nordrehaug, and Aparajit Bhowmik
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PRELIMINARY APPROVAL ORDER
of Blumenthal Nordrehaug Bhowmik De Blouw LLP and Shaun Setareh, William M. Pao, and
2 Nolan Dilts of Setareh Law Group as Class Counsel for the Class.
3 8. The Court hereby approves, as to form and content, the Notice of Proposed
4 Settlement of Class Action and Hearing Date for Final Court Approval ("Class Notice") attached
5 to the Agreement as Exhibit A. The Court finds that the Class Notice appears to fully and
6 accurately inform the Class of all material elements of the proposed Settlement, of the Class
7 Members' right to be excluded from the Class by submitting a written opt-out request (to the
8 extent they were not previously sent notice of the class action and the opportunity to opt-out), and
9 of each member's right and opportunity to object to the Settlement. The Court further finds that
10 the distribution of the Class Notice substantially in the manner and form set forth in the
11 Agreement and this Order meets the requirements of due process, is the best notice practicable
12 under the circumstances, and shall constitute due and sufficient notice to all persons entitled
13 thereto. The Court orders the mailing of the Class Notice by first class mail, pursuant to the terms
14 set forth in the Agreement.
15 9. The Court hereby appoints ILYM Group as Settlement Administrator. No later
16 than fourteen (14) calendar days after preliminary approval of the Settlement by the Court,
17 Defendant shall provide to the Settlement Administrator an electronic spreadsheet with the Class
18 Data. The Settlement Administrator will perform address updates and verifications as necessary
19 prior to the mailing of the Class Notice. Using best efforts to mail it as soon as possible, and in no
20 event later than 14 days after receiving the Class Data, the Settlement Administrator will mail the
21 Class Notice Packets to all Class Members via first-class U.S. Mail.
22 10. The Court hereby preliminarily approves the proposed procedure for exclusion
23 from the Settlement. Any Class Member who was not previously sent notice of the class action in
24 January 2020 may individually choose to opt out of and be excluded from the Class as provided in
25 the Class Notice by following the instructions for requesting exclusion from the Class that are set
26 forth in the Class Notice. All requests for exclusion must be postmarked by no later than forty-
27 five (45) calendar days after the date ofthe mailing of the Class Notice and received by the
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PRELIMINARY APPROVAL ORDER
1 Settlement Administrator. If the Class Notice Packet is re-mailed, the response date for requests
2 for exclusion will be extended an additional 15 days. Any such person who chooses to opt out of
3 and be excluded from the Class will not be entitled to any recovery under the Settlement and will
4 not be bound by the Settlement or have any right to object, appeal or comment thereon. Class
5 Members who have not requested exclusion shall be bound by all determinations of the Court, the
6 Agreement and the Judgment. A request for exclusion may only opt out that particular individual,
7 and any attempt to effect an opt out of a group, class, or subclass of individuals is not pennitted
8 and will be deemed invalid. Subject to the Court's final approval of the Settlement, the Aggrieved
9 Employees that worked during the PAGA Period will be paid their allocation of the PAGA
10 Payment and will remain bound by the release of the Released PAGA Claims in the Agreement
11 regardless of their request for exclusion.
12 11. Any Class Member who has not opted out may dispute their Settlement Share as
13 provided in the Notice. Class Members will have forty-five (45) calendar days from the date of
14 the mailing of the Class Notices to submit their disputes to the Settlement Administrator in
15 accordance with the instructions in the Class Notice. If the Class Notice Packet is re-mailed, the
16 response date for disputes will be extended an additional 15 days.
17 12. Any Class Member who has not opted out may appear at the final approval hearing
18 and may object or express the Member's views regarding the Settlement, and may present
19 evidence and file briefs or other papers that may be proper and relevant to the issues to be heard
20 and determined by the Court as provided in the Notice. Class Members will have forty-five (45)
21 calendar days from the date of the mailing of the Class Notices to submit their written objections
22 to the Settlerrient Administrator in accordance with the instructions in the Class Notice. If the
23 Class Notice Packet is re-mailed, the response date for written objections will be extended an
24 additional 15 days. Altematively, Class Members may appear at the Final Approval Hearing to
25 make an oral objection.
26 13. A Final Approval Hearing shall be held before this Court on ^si \ j l ^
27 _ at 9:00 a.m. in Department 54 at the Sacramento County Superior Court to
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PRELIMINARY APPROVAL ORDER
1 determine all necessary matters conceming the Settlement, including: whether the proposed
2 settlement of the Action on the terms and conditions provided for in the Agreement is fair,
3 adequate and reasonable and should be finally approved by the Court; whether the Final Approval
4 Order and Judgment should be entered herein; whether the plan of allocation contained in the
5 Agreement should be approved as fair, adequate and reasonable to the Class Members; and to
6 finally approve attorneys' fees and costs, the service award, and the expenses of the Settlement
7 Administrator. Both the motion for final approval and the motion for attomeys' fees, costs and
8 service award shall be heard at the Final Approval Hearing and the motions shall be'filed with the
9 Court and served on all counsel no later than sixteen (16) court days before the hearing.
10 14. Neither the Settlement nor any exhibit, document, or instmment delivered
11 thereunder shall be construed as a concession or admission by Defendant or the Released Parties
12 in any way that the claims asserted have any merit or that this Action was properly brought as a
13 class or representative action, and shall not be used as evidence of, or used against Defendant or
14 the Released Parties as, an admission or indication in any way, including with respect to any claim
15 of any liability, wrongdoing, fault or omission by Defendant or with respect to the truth of any
16 allegation asserted by any person. Whether or not the Settlement is finally approved, neither the
17 Settlement, nor any exhibit, document, statement, proceeding or conduct related to the Settlement,
18 nor any reports or accounts thereof, shall in any event be constmed as, offered or admitted in
19 evidence as, received as or deemed to be evidence for any purpose adverse to the Defendant or the
20 Released Parties, including, but not limited to, evidence of a presumption, concession, indication
21 or admission by Defendant or the Released Parties of any liability, fault, wrongdoing, omission,
22 concession or damage.
23 15. In the event the Settlement does not become effective in accordance with the terms
24 ofthe Agreement, or the Settlement is not finally approved, or is tenninated, canceled or fails to
25 become effective for any reason, this Order shall be rendered null and void and shall be vacated,
26 and the Parties shall revert to their respective positions as of before entering into the Agreement,
27 and expressly reserve their respective rights regarding the prosecution and defense of this Action,
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PRELIMINARY APPROVAL ORDER
1 including all available defenses and affirmative defenses, and arguments that any claim in the
2 Action could not be certified as a class action and/or managed as a representative action. In such
3 an event, the Court's orders regarding the Settlement, including this Order, shall not be used or
4 referred to in litigation for any purpose. Nothing in this paragraph is intended to alter the terms of
5 the Agreement with respect to the effect of the Agreement if it is not approved.
6 16. The Court reserves the right to adjoum or continue the date of the final approval
7 hearing and all dates provided for in the Agreement without further notice to Class Members, and
8 retains jurisdiction to consider all further applications arising out of or connected with the
9 proposed Settlement.
10 17. The Action is stayed and all trial and related pre-trial dates are vacated, subject to
11 further orders of the Court at the Final Approval Hearing.
12 IT IS SO ORDERED.
13
14 Dated:
DHE^TICR
CHRISTOHER-E. KRUEGER
15 , SUPERIOR COURT OF CALIFORNIA
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PRELIMINARY APPROVAL ORDER
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