1 Xavier Becerra Attorney General of California 2 Kathleen Foote Senior Assistant Attorney General 3 Michael Jorgenson Supervising Deputy Attorney General 4 Cheryl Lee Johnson (SBN 66321) Esther La (SBN 160706) 5 Emilio Varanini (SBN 163952) Deputy Attorneys General 6 455 Golden Gate Avenue, Suite 11000 San Francisco, CA 94102-7004 7 Tel 415.510.3541 / Fax 415.703.5480 E-mail: [email protected] 8 Attorneys for Plaintiff, People of the State of California 9 Richard L. Grossman (SBN 112841) 10 Philip L. Pillsbury Jr. (SBN 072261) Pillsbury & Coleman, LLP 11 600 Montgomery Street, 31st Floor San Francisco, CA 94111 12 Tel 415.433.8000 / Fax 415.433.4816 Email: [email protected] 13 Lead Counsel for Plaintiff UFCW & Employers Benefit Trust and the Class (Additional Counsel not listed) 14 15 SUPERIOR COURT OF THE STATE OF CALIFORNIA 16 COUNTY OF SAN FRANCISCO 17 UFCW & Employers Benefit Trust, on behalf Case No. CGC 14-538451 of itself and all others similarly situated Consolidated with 18 Case No. CGC-18-565398 Plaintiffs, 19 vs. NOTICE OF MOTION AND MOTION FOR 20 PRELIMINARY APPROVAL OF Sutter Health, et al., SETTLEMENT; MEMORANDUM OF 21 POINTS AND AUTHORITIES Defendants. (REDACTED) 22 Date: February 25, 2020 23 People of the State of California, ex. rel. Time: 10:00 a.m. Xavier Becerra, Dept.: 304 24 Hon. Anne-Christine Massullo Plaintiff, 25 Action Filed: April 7, 2014 vs. 26 PUBLIC – REDACTS MATERIAL FROM Sutter Health, CONDITIONALLY SEALED RECORD 27 Defendant. 28 Farella Braun + Martel LLP 235 Montgomery Street, 17th Floor San Francisco, California 94104 (415) 954-4400 MOT. FOR PRELIMINARY APPROVAL OF SETTLEMENT; MPA - Case No. CGC 14-538451 1 TABLE OF CONTENTS Page 2 NOTICE OF MOTION AND MOTION ...........................................................................................7 3 INTRODUCTION ..............................................................................................................................8 4 BACKGROUND ................................................................................................................................9 5 A. Procedural History ......................................................................................................9 6 B. Settlement Negotiations ...........................................................................................11 7 C. The Settlement Agreement and Proposed Final Judgment ......................................11 8 D. Proposed Plans of Notice, Allocation, and Distribution ..........................................16 9 LEGAL STANDARD ......................................................................................................................19 10 ARGUMENT ...................................................................................................................................21 11 I. THE SETTLEMENT IS THE PRODUCT OF SERIOUS, INFORMED, 12 NONCOLLUSIVE NEGOTIATIONS. ...............................................................................21 13 II. THE SETTLEMENT IS INDISPUTABLY WITHIN THE RANGE OF POSSIBLE APPROVAL. ........................................................................................................................23 14 A. Plaintiffs’ All-Cash Monetary Recovery Is Substantial. ..........................................23 15 B. The Injunctive Relief Also Warrants Preliminary Approval. ..................................24 16 C. The Costs, Risks, and Length of Trial and Appeal Favor Preliminary 17 Approval. ..................................................................................................................25 18 III. THE COURT SHOULD APPROVE PLAINTIFFS’ PROPOSED PLAN OF NOTICE AND CLAIM FORM. ..........................................................................................28 19 A. Plaintiffs’ Proposed Form and Plan of Notice Adequately Apprise Class 20 Members of the Settlement Terms and the Available Options. ...............................28 21 B. The Proposed Plan of Allocation Fairly Distributes the Settlement Fund. ..............31 22 C. The Proposed Plan of Distribution Provides a Fair Opportunity to Submit Claims and Informs Class Members of the Consequences of Not Doing So. ..........32 23 CONCLUSION ................................................................................................................................33 24 25 26 27 28 Farella Braun + Martel LLP 235 Montgomery Street, 17th Floor San Francisco, California 94104 2 (415) 954-4400 MPA ISO MOT. FOR PRELIMINARY APPROVAL OF SETTLEMENT - Case No. CGC 14-538451 1 TABLE OF AUTHORITIES 2 Page(s) 3 FEDERAL CASES 4 In re Am. Bank Note Holographics, Inc., 5 127 F. Supp. 2d 418 (S.D.N.Y. 2001) ........................................................................................27 6 In re Baby Prods. Antitrust Litig., 708 F.3d 163 (3rd Cir. 2013) ......................................................................................................24 7 In re Bluetooth Headset Prod. Liab. Litig., 8 654 F.3d 935 (9th Cir. 2011) ......................................................................................................22 9 Bui v. Sprint Corp., 2016 WL 727163 (E.D. Cal. Feb. 24, 2016) ..............................................................................29 10 11 California v. eBay, Inc., 2014 WL 4273888 (N.D. Cal. Aug. 29, 2014) ...........................................................................22 12 Carnegie v. Household Int’l, Inc., 13 445 F. Supp. 2d 1032 (N.D. Ill. 2006) .......................................................................................23 14 In re: Cathode Ray Tube (CRT) Antitrust Litig., 2015 WL 9266493 (N.D. Cal. Dec. 17, 2015) .....................................................................31, 32 15 16 Chun-Hoon v. McKee Foods Corp., 716 F. Supp. 2d 848 (N.D. Cal. 2010) .......................................................................................22 17 In re: CRT Antitrust Litig., 18 2016 WL 3648478 (N.D. Cal. July 7, 2016) ..............................................................................24 19 Cty. of Suffolk v. Long Island Lighting Co., 907 F.2d 1295 (2d Cir. 1990) .....................................................................................................23 20 In re Currency Conversion Fee Antitrust Litig., 21 2006 WL 3247396 (S.D.N.Y. Nov. 8, 2006) .............................................................................24 22 Denney v. Deutsche Bank AG, 23 443 F.3d 253 (2d Cir. 2006) .......................................................................................................30 24 Detroit v. Grinnell Corp., 495 F.2d 448 (2d Cir. 1974) .......................................................................................................23 25 Glass v. UBS Fin. Servs., Inc., 26 2007 WL 221862 (N.D. Cal. Jan. 26, 2007), aff’d, 331 Fed. Appx. 452 (9th Cir. 27 2009) ...........................................................................................................................................24 28 Farella Braun + Martel LLP 235 Montgomery Street, 17th Floor San Francisco, California 94104 3 (415) 954-4400 MPA ISO MOT. FOR PRELIMINARY APPROVAL OF SETTLEMENT - Case No. CGC 14-538451 1 Hamdan v. Rumsfeld, 548 U.S. 557 (2006) ...................................................................................................................30 2 In re Ikon Office Solutions, Inc., 3 194 F.R.D. 166 (E.D. Pa. 2000) .................................................................................................27 4 Jaffe v. Morgan Stanley & Co., Inc., 5 2008 WL 346417 (N.D. Cal., Feb. 7, 2008) ...............................................................................32 6 Klein v. O’Neal, Inc., 705 F. Supp. 2d 632 (N.D. Tex. 2010) .......................................................................................31 7 In re Lorazepam Antitrust Litig., 8 205 F.R.D. 369 (D.D.C. 2002) .............................................................................................22, 23 9 Low v. Trump Univ., LLC, 10 246 F. Supp. 3d 1295 (S.D. Cal. 2017) ..........................................................................20, 22, 24 11 Low v. Trump Univ., LLC, 881 F.3d 1111 (9th Cir. 2018) ....................................................................................................... 12 Montoya v. PNC Bank, N.A., 13 2016 WL 1529902 (S.D. Fla. Apr. 13, 2016) .............................................................................25 14 In Re: N.C.A.A. Athletic Grant-In-Aid Cap Antitrust Litig., 15 2017 WL 6040065 (N.D. Cal. Dec. 6, 2017), aff’d, 768 F. App’x 651 (9th Cir. 2019) ...........................................................................................................................................24 16 In re Omnivision Techs., Inc., 17 559 F. Supp. 2d 1036 (N.D. Cal. 2008) ...............................................................................24, 32 18 In re Optical Disk Drive Prods. Antitrust Litig., 2016 WL 7364803 (N.D. Cal. Dec. 19, 2016) ...........................................................................33 19 In re Payment Card Interchange Fee & Merch. Disc. Antitrust Litig., 20 330 F.R.D. 11 (E.D.N.Y. 2019) ...........................................................................................25, 26 21 Rieckborn v. Velti PLC, 22 2015 WL 468329 (N.D. Cal. Feb. 3, 2015) ................................................................................31 23 Rodriguez v. West Publ’g Corp., 563 F.3d 948 (9th Cir. 2009) ................................................................................................23,