Settlement Agreement Is Entered Into by Plaintiffs on Behalf of Themselves and 3 the Class Members, and Defendant Reckitt Benckiser, LLC
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Case 3:17-cv-03529-VC Document 221-2 Filed 05/12/21 Page 2 of 141 1 BLOOD HURST & O’REARDON, LLP TIMOTHY G. BLOOD (149343) 2 THOMAS J. O’REARDON II (247952) 501 West Broadway, Suite 1490 3 San Diego, CA 92101 Tel: 619/338-1100 4 619/338-1101 (fax) [email protected] 5 [email protected] 6 Class Counsel 7 [Additional Counsel Appear on Signature Page] 8 UNITED STATES DISTRICT COURT 9 NORTHERN DISTRICT OF CALIFORNIA – SAN FRANCISCO DIVISION 10 GORDON NOBORU YAMAGATA and Case No. 3:17-cv-03529-VC STAMATIS F. PELARDIS, individually and 11 on behalf of all others similarly situated, STIPULATION OF SETTLEMENT 12 Plaintiffs, LLP CLASS ACTION , 13 v. 14 RECKITT BENCKISER LLC, District Judge Vince Chhabria EARDON Courtroom 4, 17th Floor 15 Defendant. O’ R Complaint Filed: June 19, 2017 & 16 Trial Date: N/A URST 17 H 18 LOOD LOOD B 19 20 21 22 23 24 25 26 27 28 Case No. 3:17-cv-03529-VC 00177902 STIPULATION OF SETTLEMENT Case 3:17-cv-03529-VC Document 221-2 Filed 05/12/21 Page 3 of 141 1 TABLE OF EXHIBITS 2 Document Exhibit Number 3 Preliminary Approval Order ................................................................................................. 1 4 Final Approval Order ............................................................................................................ 2 5 Final Judgment ..................................................................................................................... 3 6 Class Notice Program ............................................................................................................ 4 7 Long-form Class Notice ........................................................................................................ 5 8 Email Notice .......................................................................................................................... 6 9 Amazon Email Notice ........................................................................................................... 7 10 Postcard Notice ..................................................................................................................... 8 11 Internet Banner Advertisements ............................................................................................ 9 12 LLP , Claim Form ........................................................................................................................... 10 13 Request for Exclusion Form .................................................................................................. 11 14 EARDON 15 O’ R & 16 URST 17 H 18 LOOD LOOD B 19 20 21 22 23 24 25 26 27 28 1 Case No. 3:17-cv-03529-VC 00177902 STIPULATION OF SETTLEMENT Case 3:17-cv-03529-VC Document 221-2 Filed 05/12/21 Page 4 of 141 1 I. RECITALS 2 1. This Settlement Agreement is entered into by Plaintiffs on behalf of themselves and 3 the Class Members, and Defendant Reckitt Benckiser, LLC. Capitalized terms used herein are 4 defined in Section II of this Settlement Agreement or indicated in parentheses. 5 2. Subject to Court approval, the Parties stipulate and agree that, in consideration for 6 the promises and covenants set forth in the Settlement Agreement and upon entry by the Court of a 7 Final Judgment and Order Approving Settlement and the occurrence of the Effective Date, the 8 Action shall be settled and compromised upon the terms and conditions contained herein. 9 3. WHEREAS, on June 19, 2017, plaintiffs Yamagata and Pelardis filed a class action 10 complaint against Reckitt Benckiser in the United States District Court for the Northern District of 11 California captioned Yamagata v. Reckitt Benckiser, LLC, Case No. 3:17-cv-03529-VC, on behalf 12 of themselves and all other consumers who purchased Reckitt Benckiser Move Free Advanced LLP , 13 products in California and New York; and 14 4. WHEREAS, on June 5, 2019, the Court granted plaintiffs’ motion for class EARDON 15 certification of consumers who purchased Move Free Advanced in California and New York O’ R & 16 between May 28, 2015 and the date dissemination of notice to the class begins; and URST 17 5. WHEREAS, on March 30, 2020, the Court denied Defendant’s motion for summary H 18 judgment; and LOOD LOOD B 19 6. WHEREAS, on October 22, 2018, a related class action was filed by plaintiff 20 Maureen Carrigan against Reckitt Benckiser in the United States District Court for the Northern 21 District of Illinois captioned Carrigan v. Reckitt Benckiser, LLC, Case No. 1:18-cv-07073, on behalf 22 of herself and all other consumers who purchased Reckitt Benckiser’s Move Free Advanced 23 products in Illinois, and on October 27, 2020, the Northern District of Illinois granted certification 24 of a class of consumers who purchased Move Free Advanced in Illinois between May 28, 2015 and 25 the date notice is disseminated, and appointed Timothy G. Blood and Thomas J. O’Reardon II as 26 class counsel; 27 7. WHEREAS, on September 22, 2020, a related class action complaint was served by 28 undersigned Class Counsel as counsel for plaintiffs Lori Coletti, Ann-Marie Maher, Carol Marshall, 2 Case No. 3:17-cv-03529-VC 00177902 STIPULATION OF SETTLEMENT Case 3:17-cv-03529-VC Document 221-2 Filed 05/12/21 Page 5 of 141 1 Deborah A. Rawls, Oneita Steele, and Maxine Tishman captioned Coletti v. Reckitt Benckiser, LLC 2 for filing in the District of Vermont, on behalf of plaintiffs and all other consumers who purchased 3 Reckitt Benckiser Move Free Advanced products in the United States, or in the alternative, Florida, 4 New Jersey, North Carolina, Texas, Washington and Vermont between May 28, 2015 and the date 5 notice is disseminated, which claims were tolled pursuant to agreement of the Parties; and 6 8. WHEREAS, on March 2, 2021, Plaintiffs filed a Second Amended Class Action 7 Complaint in the Northern District of California alleging a nationwide class and including 8 Yamagata, Pelardis, Carrigan, Coletti, Maher, Marshall, Rawls, Steele, and Tishman as named 9 plaintiffs; and 10 9. WHEREAS, the Parties have engaged in substantial litigation and discovery, 11 including expert discovery and were about to file pretrial motions in advance of a March 22, 2021 12 trial in this Court. In the course of litigation and in preparation for trial: (i) Plaintiffs’ Counsel LLP , 13 reviewed over 303,000 pages of hard-copy and electronic documents produced by Reckitt 14 Benckiser; (ii) over 7,500 pages of documents obtained as the result of subpoenas Plaintiffs’ Counsel EARDON 15 served on third party retailers of Move Free Advanced, Defendant’s ingredient supplier, and O’ R & 16 scientists and researchers who conducted studies on Move Free Advanced; (iii) Plaintiffs’ Counsel URST 17 submitted 9 expert declarations in connection with class certification, summary judgment and H 18 motions to exclude testimony, and 11 expert reports pursuant to Federal Rule of Civil Procedure 26 LOOD LOOD B 19 from seven experts on issues relating to advertising and marketing, scientific evidence on the 20 inefficacy of Move Free Advanced, and damages; (iv) Defendant’s Counsel submitted 10 expert 21 reports and declarations pursuant to Federal Rule of Civil Procedure 26 from eight experts on the 22 above issues; (v) the Parties collectively deposed 30 witnesses (25 by Plaintiffs and 5 by Defendant); 23 and (vi) the Parties have engaged in extensive motion practice, including class certification and 24 summary judgment; and 25 10. WHEREAS, the Parties participated in seven formal and numerous informal 26 mediation and settlement negotiation sessions, including before the Honorable Wayne R. Anderson 27 (Ret.) on May 2, 2018, with the Hon. Jacqueline Corley on May 22, 2019, and with Robert A. Meyer, 28 Esq. on August 25, 2020, September 1, 2020, September 4, 2020, September 16, 2020, and January 3 Case No. 3:17-cv-03529-VC 00177902 STIPULATION OF SETTLEMENT Case 3:17-cv-03529-VC Document 221-2 Filed 05/12/21 Page 6 of 141 1 5, 2021. Throughout the course of mediation efforts, the Parties were simultaneously engaging in 2 the discovery and litigation efforts described above; and 3 11. WHEREAS, Class Counsel have determined that a settlement of the Action on the 4 terms reflected in this Settlement Agreement is fair, reasonable, adequate, and in the best interests 5 of Plaintiffs and the Settlement Class; and 6 12. WHEREAS, Reckitt Benckiser, to avoid costs, disruption and distraction of further 7 litigation, and without admitting the truth of any allegations made in or related to the Action, or any 8 liability with respect thereto, has concluded that it is desirable that the claims against it be settled 9 and dismissed on the terms in this Settlement Agreement; 10 13. NOW, THEREFORE, this Settlement Agreement is entered into by and among the 11 Parties, by and through their respective counsel and representatives, and the Parties agree that: (1) 12 upon the Effective Date, the Action and all Released Claims shall be fully, finally, and forever LLP , 13 settled and compromised as between Plaintiffs and the Settlement Class on the one hand, and Reckitt 14 Benckiser on the other hand; and (2) upon final approval of the Settlement Agreement, the Final EARDON 15 Judgment and Order Approving Settlement, shall be entered dismissing the Action with prejudice O’ R & 16 and releasing all Released Claims against the Released Parties. URST 17 II. DEFINITIONS H 18 As used in this Settlement Agreement and the attached exhibits the following terms shall LOOD LOOD B 19 have the meanings set forth below, unless this Settlement Agreement specifically provides 20 otherwise: 21 1. “Action”