IN THE UNITED STATES DISTRICT COURT FOR ... - Cleveland.com

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c) Whether the Store Managers perform duties and responsibilities establishing their exempt status under the FLSA; d) Whether the actions of Defendants at relevant times were taken in good faith; and e) Whether the Court should exercise supplemental jurisdiction of the state law claims pleaded. 7. Settlement negotiations in these cases spanned four months and consumed many hours. The negotiations began in late December and continued through January and February, and several written proposals were exchanged in that period. The U.S. Department of Labor assisted the parties during these negotiations. 8. The Parties reached an agreement in principle on March 4, 2010. The proposed Settlement eliminates the time, cost, and uncertainty of further litigation. In addition, given the financial condition of Inkstop and the current bankruptcy proceedings, the proposed Settlement is likely to be the only avenue for the former employees of Inkstop to timely recover any amount. 9. The proposed Settlement will cover the Named Plaintiffs and the 237 Existing Opt-In Plaintiffs, as well as all other eligible employees (“Other Eligible Settlement Participants”) who elect to participate in the Settlement by signing and returning the Consent and Release Form. The total settlement amount of $660,000 (“Total Eligible Amount”), after deductions approved by the Court, will be divided into Individual Payments. Ninety percent of the Total Eligible Amount will be allocated to the payment of unpaid wages after September 13, 2009. The Individual Payments to the respective participants in this category consist of their recoverable unpaid wages under the FLSA as calculated by the U.S. Department of Labor less the allocation to InkStop Store Managers, subject to a cap of $4,920.50. Ten percent of the Total Eligible Amount will be allocated to persons who worked for InkStop as Store Managers after January 7, 2008. The Individual Payment in this category will be a per capita payment in the 4
amount $166.72. Participants who fall within both groups are eligible for Individual Payments in each of the two categories. The proposed deductions include attorneys’ fees in the amount of 16.66% of the Total Eligible Amount, as well as reimbursements of litigation expenses in the amount of $6,500 and Service Awards of $2,500 each to the Named Plaintiffs for their service in the Lawsuits. In addition, in<strong>com</strong>e taxes and other withholdings will be deducted from each Individual Payment in accordance with law. 10. To be eligible for Individual Payments, the Named Plaintiffs, Existing Opt-In Plaintiffs, and Other Eligible Settlement Participants must sign and return the Consent and Release Form by the Early Deadline or the Final Deadline. The Notice and attached Consent and Release Form will be mailed to the Existing Opt-In Plaintiffs and the Other Eligible Settlement Participants. The Early Deadline is the later of twenty-one days after the date of mailing of the Notice or the date signed Consent and Release Forms have been received from the Named Plaintiffs and at least ninety percent of the Existing Opt-In Plaintiffs or fifty percent of the Existing Opt-In Plaintiffs and Other Eligible Settlement Participants <strong>com</strong>bined. The Final Deadline is ninety days after the date of mailing of the Notice, but may be extended for an additional thirty days. 11. The Settlement Agreement provides that, in consideration of the Total Eligible Amount and these Individual Payments, the claims of the Named Plaintiffs and all Existing Opt- In Plaintiffs are to be dismissed with prejudice, as will the claims of all Other Eligible Settlement Participants who elect to participate in the Settlement by signing and returning the Consent and Release Form. In addition, participants’ claims in the InkStop bankruptcy will be withdrawn. 12. The Court finds that the proposed Settlement is fair and reasonable and satisfies the standard for approval under § 16(b) of the FLSA, 29 U.S.C. § 216(b). The Court finds that the Settlement Agreement resolves a bona fide dispute under the FLSA, and resulted from arms- 5
Page 1 and 2:
MELANIE WARREN and CAROL LASKOSKI,
Page 3 and 4: MICHAEL SHAUGHNESSY (“Directors
Page 5 and 6: C. The term “Other Eligible Settl
Page 7 and 8: Participants who returned signed Co
Page 9 and 10: fees to Plaintiffs’ Counsel in an
Page 11 and 12: (2) Sixty days after the date of th
Page 13 and 14: (c) Participants who fall within bo
Page 15 and 16: similarly situated employees exists
Page 17 and 18: 12. Governing Law. This Agreement i
Page 23 and 24: LIST OF EXISTING OPT-IN PLAINTIFFS
Page 25 and 26: LIST OF EXISTING OPT-IN PLAINTIFFS
Page 27 and 28: LIST OF OTHER ELIGIBLE SETTLEMENT P
Page 35 and 36: LIST OF INKSTOP STORE MANAGERS NUMB
Page 41 and 42: SCHEDULE OF INDIVIDUAL PAYMENTS (Af
Page 51 and 52: IN THE UNITED STATES DISTRICT COURT
Page 53: 3. The Named Plaintiffs in the Laws
Page 57 and 58: 16. The Court approves the payment
Page 59 and 60: NOTICE OF SETTLEMENT OF INKSTOP LAW
Page 61 and 62: CONSENT TO OPT INTO LAWSUIT, RELEAS
Page 63 and 64: 1. The Court previously granted the
Page 65 and 66: jbristol@crklaw.com THOMAS A. DOWNI
Page 67 and 68: 1. The Court previously granted the
Page 69: tdownie@crklaw.com COHEN ROSENTHAL
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