Case 2:13-cv-20000-RDP Document 2610-2 Filed 10/30/20 Page 2 of 103 IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION IN RE: BLUE CROSS BLUE SHIELD : ANTITRUST LITIGATION : Master File No. 2:13-cv-20000-RDP MDL 2406 : : : : This document relates to : Subscriber Track cases SETTLEMENT AGREEMENT Case 2:13-cv-20000-RDP Document 2610-2 Filed 10/30/20 Page 3 of 103 TABLE OF CONTENTS PREAMBLE .................................................................................................................................. 1 A. DEFINITIONS .................................................................................................................. 3 1. Definitions .............................................................................................................. 3 B. APPROVAL OF SETTLEMENT AGREEMENT AND DISMISSAL OF CLAIMS........................................................................................................................... 21 2. Reasonable Best Efforts ...................................................................................... 21 3. Preliminary Approval Motion ........................................................................... 21 4. Preliminary Approval and Preliminary Fairness Hearing ............................. 21 5. Notice Motion ...................................................................................................... 22 6. Final Approval Motion ....................................................................................... 23 7. Review of Filings and Other Settlement-Related Documents ......................... 24 8. Finality of Agreement ......................................................................................... 24 9. No Admission of Wrongdoing or Liability by Settling Defendants ................ 26 C. CLASS INJUNCTIVE RELIEF .................................................................................... 27 10. National Best Efforts........................................................................................... 27 11. Local Best Efforts ................................................................................................ 27 12. Self-Funded Account Vendors ........................................................................... 27 13. Service Areas ....................................................................................................... 28 14. National Accounts ............................................................................................... 29 15. Second Blue Bid................................................................................................... 29 16. Additional Brand-Protection Mechanisms ....................................................... 30 17. Acquisitions ......................................................................................................... 32 18. Most Favored Nations Clauses .......................................................................... 32 19. Implementation of Class Injunctive Relief ....................................................... 33 20. Monitoring and Reporting ................................................................................. 33 21. Monitoring Fees and Expenses .......................................................................... 35 D. SETTLEMENT AMOUNT ............................................................................................ 36 22. Settlement Amount ............................................................................................. 36 23. Payment Timing .................................................................................................. 36 24. Failure to Fund .................................................................................................... 36 25. Tax Benefits and Consequences ......................................................................... 37 26. Escrow Account ................................................................................................... 38 27. Distribution of Net Settlement Fund to Classes ............................................... 40 28. Attorneys’ Fees and Expenses and Service Awards ........................................ 41 29. Distributions of the Settlement Fund ................................................................ 43 30. Balance Remaining in Settlement Fund ............................................................ 43 31. Amounts Paid Not a Penalty .............................................................................. 44 E. RELEASE, DISCHARGE, AND COVENANT NOT TO SUE .................................. 44 32. Released Claims and Covenant Not to Sue ....................................................... 44 33. California Civil Code .......................................................................................... 45 34. All Claims Satisfied by Settlement Fund .......................................................... 46 i Case 2:13-cv-20000-RDP Document 2610-2 Filed 10/30/20 Page 4 of 103 35. Enforcement of Release ...................................................................................... 46 F. ADMINISTRATION OF SETTLEMENT ................................................................... 46 36. Claims and Release ............................................................................................. 46 37. Claims Administrator ......................................................................................... 46 38. Written Exclusion for Opt-Outs from Damages Classes................................. 47 39. Failure to Properly Exclude ............................................................................... 47 40. Identification of Opt-Outs .................................................................................. 47 41. Settling Defendants’ Right to Rescind .............................................................. 48 G. STAY OF PROCEEDINGS ........................................................................................... 48 42. Stay ....................................................................................................................... 48 H. RESCISSION IF AGREEMENT IS NOT APPROVED OR FINAL JUDGMENT NOT ENTERED ...................................................................................... 48 43. Rescission ............................................................................................................. 48 44. Return of Settlement Funds ............................................................................... 49 45. Resumption of Litigation .................................................................................... 49 I. MISCELLANEOUS ....................................................................................................... 49 46. Confidentiality; Third-Party Communications ............................................... 49 47. California Health and Safety Code ................................................................... 51 48. Communications with Class Members.............................................................. 51 49. Binding Effect ...................................................................................................... 51 50. Notice .................................................................................................................... 51 51. Integrated and Final Agreement ....................................................................... 55 52. CAFA ................................................................................................................... 55 53. Future Rules ........................................................................................................ 56 54. Headers ................................................................................................................ 56 55. No Party Is the Drafter ....................................................................................... 56 56. Choice of Law ...................................................................................................... 56 57. Consent to Jurisdiction ....................................................................................... 56 58. Non-Disparagement ............................................................................................ 57 59. Voluntary Settlement and Agreement; Advice of Counsel ............................. 57 60. Authorization to Enter Agreement.................................................................... 57 61. Non-Assignment .................................................................................................. 57 62. Inconsistency with the Settlement Agreement ................................................. 58 63. Privilege ............................................................................................................... 58 64. Execution in Counterparts ................................................................................. 58 Appendix A .................................................................................................................................. 64 Appendix B .................................................................................................................................. 66 Appendix C .................................................................................................................................. 68 Appendix D .................................................................................................................................