Common use of Settlement Terms and Procedures Clause in Contracts

Settlement Terms and Procedures. 2.1. Solely for purposes of avoiding the expense and inconvenience of further litigation, Defendants do not oppose the certification of the Class for purposes of settlement of the Form Claim only. 2.2. After execution of this Agreement, counsel for Plaintiff shall file a motion asking the Court to enter the Preliminary Approval Order. 2.3. Within ten days after the filing of the Motion for Preliminary Approval including this proposed Settlement Agreement, Defendants shall send notice to governmental agencies to the extent required by 28 U.S.C. § 1715, and shall file a certificate of such service with the Court, such notifications to be completed by Defendants at their own expense. 2.4. At least ten (10) days prior to a scheduled Final Approval Hearing, Class Counsel shall file a motion requesting the Court to grant final approval of the settlement, and for entry of the Final Approval Order. 2.5. Defendants acknowledge that they have implemented changes to their business practices as a result of the Lawsuit, specifically the engagement of a new vendor to replace ▇▇▇▇▇▇▇▇ and the use of new forms to comply with section 1681b(b)(2) of the FCRA, as of December 14, 2014. 2.6. Defendants agree to pay a total settlement amount of one million, eighteen thousand three hundred seventy five dollars ($1,018,375.00), comprising the payments in paragraph 2.6(b) below, in addition to paying the Settlement Administration Amount. (a) Within fourteen business days after entry of the Preliminary Approval Order, Defendants and/or their insurer shall pay the sum of five hundred eighty three thousand, three hundred seventy five dollars ($583,375.00) to the Settlement Administrator to create the Settlement Fund. (b) The following payments shall be made by Defendants and/or their insurer within five (5) business days of the Effective Date: (i) the sum of five hundred eighty three thousand three hundred seventy five dollars ($583,375.00) to the Settlement Administrator from which the Settlement Administrator will pay the sum of three hundred twenty-five dollars ($325.00) to each Class Member; (ii) the sum of ten thousand dollars ($10,000.00) as an individual settlement and service award to the Class Representative, subject to the approval of the Court, upon motion filed not later than ten (10) days prior to the Final Approval Hearing; and, (iii) the Plaintiff’s reasonable attorneys’ fees and expenses, in an amount not in excess of four hundred, twenty-five thousand dollars ($425,000.00), subject to the approval of the Court, upon motion filed not later than ten (10) days prior to the Final Approval Hearing. (c) Payment to each Class Member shall be in the form of a check in the amount of $325.00 issued by the Settlement Administrator, and made payable to “[Name of Class Member]” and mailed out within fifteen (15) days after the Effective Date. (d) Each check issued to Class Members pursuant to this Agreement shall be void if not negotiated within one (1) year after its date of issue, and shall contain a legend to such effect. Checks that are not negotiated within one (1) year) after their date of issue shall not be reissued and shall expire. (e) The final Settlement Administration Amount, representing the total fees, costs and expenses of notice and settlement administration services in connection with this settlement, shall be determined by the Settlement Administrator, no later than one (1) year after the date of issue of checks mailed to each Class Member as set forth above. The final Settlement Administration Amount shall be paid by Defendants subject to reasonable review by Defendants, with prompt notice to Plaintiff. (f) The amount represented by checks issued to Class Members that are not negotiated within one (1) year after their date of issue shall be used to reimburse Defendants for their payment of the Settlement Administration Amount. (g) To the extent the amount of uncashed or returned checks exceeds that which was paid by Defendants for the Settlement Administration Amount, such excess amount shall be used to create a cy pres fund. The cy pres fund is proposed to be distributed, with the approval of the Court, to two proposed entities.2 (h) When the funds are ready to be sent, the Settlement Administrator shall notify Class Counsel and Defense Counsel fourteen (14) days in advance of forwarding the funds payable to the cy pres recipient(s). The funds will be payable within thirty (30) days after the expiration of the one (1) year period following issuance of the checks.