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Exhibit a -Term Sheet

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Exhibit a -Term Sheet Case 3:17-cv-04344-JD Document 364-7 Filed 08/05/20 Page 1 of 256 EXHIBIT 7 Case 3:17-cv-04344-JD Document 364-7 Filed 08/05/20 Page 2 of 256 1 2 3 4 5 UNITED STATES DISTRICT COURT 6 NORTHERN DISTRICT OF CALIFORNIA 7 SAN FRANCISCO DIVISION 8 MICHAEL MCDONALD,et al., Case No. 3:17-cv-04344-JD 9 Plaintiffs, CLASS ACTION SETTLEMENT AGREEMENT AND RELEASE 10 v. 1 1 KILOO A/S, et al., 12 Defendants. l 3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CLASS ACTION SETTLEMENT AGREEMENT AND RELEASE - IRONSOURCE 2 016141.1 CASE NO. 3:17-CV-04344-JD Case 3:17-cv-04344-JD Document 364-7 Filed 08/05/20 Page 3 of 256 1 This CLASS ACTION SETTLEMENT AGREEMENT AND RELEASE ("Settlement 2 Agreement") is entered into by and between Plaintiffs Michael McDonald, Tamara Draut, and 3 Dominique Murillo, on behalf of themselves, and as parents and guardians of their children, 4 P.G.M., P.S.M., P.R.M., H.D.-F., M.M., G.M., and E.M., and on behalf of all others similarly 5 situated (collectively, "Plaintiffs"), and Defendant ironSource USA Inc., ironSource Ltd., 6 ironSource Mobile Ltd., and all of their subsidiaries (collectively "ironSource" or "Defendant") 7 (collectively, with Plaintiffs, the "Parties"). This Settlement Agreement is conditioned upon and 8 subject to approval of the Court as required by Rule 23 of the Federal Rules of Civil Procedure. 9 Class Counsel (as defined below) and the Parties hereby stipulate and agree that, in consideration 10 of the promises and covenants set forth in this Settlement Agreement, the Lawsuit (as defined 11 below), and all Released Claims (as defined below) shall be finally and fully settled, 12 compromised, and released, on the following terms and conditions: 13 RECITALS 14 1. WHEREAS, on July 31, 2017, Plaintiffs filed a Class Action Complaint in the 15 United States District Court for the Northern District of California, styled McDonald, et al. v. 16 Kiloo APS, et al, No. 3:17-cv-04344-JD (N.D. Cal.) (the "Lawsuit"); 17 2. WHEREAS, the Court related the Lawsuit to two other class actions filed in the 1~ United States District Court for the Northern District of California, styled Rushing v. Viacom, 19 Iizc., et al., No. 3:17-cv-04492-JD (N.D. Cal.) and Rushing, et al. v. The Walt Disney Company, et f►~Il al., No. 3:17-cv-04419-JD (N.D. Cal.) (together with the Lawsuit, the "Related Lawsuits"). See 21 Dkt. 60 (8/29/17 Related Case Order); 22 3. WHEREAS, on June 4, 2018, Plaintiffs filed an Amended Class Action Complaint 23 in the Lawsuit (see Dkts. 173 & 268) (the "Amended Complaint"); 24 4. WHEREAS, the Amended Complaint alleges that ironSource, along with other 25 named defendants, collects or transmits Personal Data (as defined below) from children in 26 violation of (i) the common law claim of intrusion upon seclusion; (ii) the right to privacy under 27 California Constitution Article 1, Section l; and (iii) New York General Business Law § 349. 28 CLASS ACTION SETTLEMENT - L - AGREEMENT AND RELEASE -1RONSOURCE CASE NO. 3:17-CV-04344-JD Case 3:17-cv-04344-JD Document 364-7 Filed 08/05/20 Page 4 of 256 1 5. WHEREAS,on May 22, 2019, the Court denied Defendants' 12(b)(6) motions to 2 dismiss, but granted Defendant Sybo ApS's ("Sybo") motion to dismiss the New York General 3 Business Law § 349 claim against Sybo on personal jurisdiction grounds with leave to amend (see 4 ~ Dkt.270); 5 6. WHEREAS,Defendant has denied and continues to deny all material allegations 6 ~ and any and all wrongdoing alleged in the Amended Complaint and is settling solely to avoid the 7 expense of continuing litigation; 8 7. WHEREAS,the Parties desire to resolve all claims that are asserted or could have 9 ~ been asserted in the Lawsuit relating to the allegations made against ironSource; 10 8. WHEREAS,the Parties and their respective counsel participated in extensive 11 mediated negotiations from February to April 2020, beginning with afull-day, in-person 12 mediation on February 4, 2020, in San Francisco, California, with the Hon. Jay Gandhi (Ret.) and 13 Lexi Myer of JAMS which ultimately resulted in the Parties reaching an agreement in principle 14 on Apri12, 2020, to settle the Lawsuit on the terms and conditions embodied in this Settlement 15 Agreement; 16 9. WHEREAS,Plaintiffs have conducted extensive discovery relating to the Lawsuit, 17 have thoroughly analyzed the factual and legal issues in the Lawsuit, have engaged in motion 18 practice, and believe that the proposed settlement embodied in this Settlement Agreement is fair, 19 reasonable, and adequate, and in the best interests of the putative Settlement Class (as defined 20 below) and that this Settlement Agreement should be approved by the Court under Rule 23(e) of 21 the Federal Rules of Civil Procedure; 22 10. WHEREAS,Defendant is entering into this Settlement Agreement solely to avoid 23 the further burden and expense of continued litigation of the Lawsuit, and believes that the 24 proposed settlement embodied in this Settlement Agreement is fair, reasonable, and adequate, and 25 that this Settlement Agreement should be approved by the Court under Rule 23(e) of the Federal 26 Rules of Civil Procedure; 27 28 CLASS ACTION SETTLEMENT - 2 - AGREEMENT AND RELEASE - IRONSOURCE CASE NO. 3:17-CV-04344-JD Case 3:17-cv-04344-JD Document 364-7 Filed 08/05/20 Page 5 of 256 1 11. WHEREAS,the Settlement Agreement resolves the Lawsuit in its entirety as to 2 ironSource, without any admission of liability or wrongdoing of any kind whatsoever, and the 3 Parties intend this Settlement Agreement to bind the Parties; 4 12. WHEREAS,the Parties believe that this Settlement Agreement can and should be 5 approved to avoid the time, expense, and uncertainty of protracted litigation; and in the event that 6 this Settlement Agreement does not receive final and binding approval from the Court or is 7 terminated according to its terms, Plaintiffs expressly reserve the right to file for class 8 certification and to try their case to judgment, while Defendant expressly reserves all of its rights, 9 including the right to challenge class certification; and 10 13. WHEREAS,the Court has suspended all litigation activity pending the filing of a 11 settlement approval motion. See Dkt. 358 (4/7/20 Order). 12 NOW THEREFORE,IT IS STIPTJLATED AND AGREED,subject to approval by the 13 Court, by and among the Parties, as follows: 14 1. DEFINITIONS. In addition to the terms defined herein, and as used in this Settlement 15 ~ Agreement, the following terms shall be defined as follows: 16 1.1 "Class Counsel" means the law firms of Lieff Cabraser Heimann &Bernstein, 17 ~ LLP and Carney Bates &Pulliam, PLLC. 18 1.2 "Class Representatives" means Plaintiffs Michael McDonald, Tamara Draut, and 19 Dominique Murillo. 20 1.3 "Court" means the United States District Court for the Northern District of 21 California. 22 1.4 "Effective Date" means either:(a) the date of the Final Approval Order, if no 23 objections are timely filed;(b) the expiration date of the time for filing notice of any appeal from 24 the Final Approval Order by the Court if any timely objections are filed but no appeal is filed; or 25 (c)if an appeal is filed, the latest of(i) the date of final affirmance of the Final Approval Order, 26 (ii) the expiration of the time for a petition for a writ of certiorari to review the Final Approval 27 Order if affirmed and, if the certiorari is granted, the date of final affirmance of the Final 28 Approval Order following review pursuant to that grant; or (iii) the date of final dismissal of any CLASS ACTION SETTLEMENT - 3 - AGREEMENT AND RELEASE - IRONSOURCE CASE NO. 3:17-CV-04344-JD Case 3:17-cv-04344-JD Document 364-7 Filed 08/05/20 Page 6 of 256 1 appeal from the Final Approval Order or the final dismissal of any proceeding on certiorari to 2 review the Final Approval Order that has the effect of confirming the Final Approval Order. The 3 occurrence of the Effective Date does not require that Class Counsel's request for an award of 4 reasonable attorneys' fees and expenses be Final. 5 1.5 "Final" means, with respect to any judicial ruling or order, that:(1) if no appeal, 6 motion for reconsideration, reargument and/or rehearing, or petition for a writ of certiorari has 7 been filed, the time has expired to file such an appeal, motion, and/or petition; or(2) if an appeal, 8 motion for reconsideration, reargument and/or rehearing, or petition for a writ of certiorari has 9 been filed, the judicial ruling or order has been affirmed with no further right of review, or such 10 appeal, motion, and/or petition has been denied or dismissed with no further right of review. 11 1.6 "Final Approval Order" means an order granting final approval of the settlement 12 embodied in this Settlement Agreement with respect to the relief to the class (including Class 13 Representative service awards, and expressly exempting attorneys' fees and expenses) and 14 dismissing with prejudice all Released Claims (as defined below) against ironSource in the 15 Lawsuit, which the Parties will request be entered as a separate judgment pursuant to Federal 16 Rule of Civil Procedure 54(b), including if entered in a consolidated order including other named 17 defendants in the Lawsuit or the Related Lawsuits.
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