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  1. Why did I receive the notice?
  2. What is this lawsuit about?
  3. What is the proposed settlement?
  4. What can I do now?
  5. When will the court decide whether to approve the proposed settlement?
  6. Who represents the settlement class?
  7. How do I obtain more information?

The Court ordered us to send the Notice because you may be a member of the Settlement Class. The Notice explains the nature of the lawsuit and the settlement terms and informs you of your legal rights and obligations.



Plaintiff Kimberly Murphy filed her lawsuit on July 5, 2011, and a First Amended Complaint on October 12, 2011. The First Amended Complaint included the following claims: First Cause of Action for failure to pay wages (IWC Wage Order 7 and California Labor Code); Second Cause of Action for failure to provide accurate itemized statements of hours worked (Labor Code §§ 226 and 1174(d)); Fifth Cause of Action for unfair competition; and Sixth Cause of Action for recovery of civil penalties under the Private Attorneys General Act ("PAGA"). On November 15, 2011, CVS filed its Answer to the First Amended Complaint.

CVS denies the allegations of Plaintiff’s complaints and continues to assert that it has properly paid employees for all hours worked.

On June 21, 2013, the Court certified a class for the First, Second, Fifth and Sixth Causes of Action on behalf of "all nonexempt employees in CVS stores in California since July 5, 2007, who have been, are or will be subjected to security inspections and/or labeling of their personal property.” On August 14, 2015, the Court granted CVS’s motion to decertify the class as to the First, Second, Fifth and Sixth Causes of Action. CVS then filed a motion to strike all allegations relating to Plaintiff’s PAGA claim in November 2015, which the Court denied on January 21, 2016.

The Parties are concurrently filing a stipulation requesting leave to file a Second Amended Complaint to add to this action the two named plaintiffs and remaining claims from the Ortiz action. Elizabeth Ortiz and Gail Miller filed the Ortiz action in Alameda Superior Court in September 2012. They filed their First Amended Complaint on October 17, 2012, asserting eleven causes of action, several of which overlapped with the plaintiffs’ security check-related claims in the Murphy action. The Ortiz action was then removed to federal court and is now pending before Magistrate Judge Elizabeth LaPorte.

On April 22, 2016, the Parties attended a mediation before Mark Rudy of Rudy, Exelrod, Zieff & Lowe, LLP, a highly regarded mediator who is very familiar with wage-and-hour class actions like these actions. After the conclusion of the session, Mr. Rudy made a mediator’s proposal to settle the cases, which was accepted by the Parties on May 19, 2016. This settlement is intended to resolve the class claims in both the Murphy and the Ortiz lawsuits.


Who is included in the Settlement: You are included in the Settlement if you worked at CVS retail store as an hourly (nonexempt) employee in California at any time between July 5, 2007 and October 3, 2016. It is estimated that there are more than 78,000 members of the Settling Class.

When is the Class Period: July 5, 2007 to October 3, 2016.

Attorney’s Fees, Costs, Class Representative Service Awards, and the Costs of Administration: Class Counsel will seek approval from the Court for attorneys’ fees in an amount up to $3,825,000, which is 30% of the Gross Settlement Value in addition to costs incurred in this action of up to $200,000.00. Thus, the Class Counsel’s fees, costs, and expenses (including all expenses incurred by Plaintiffs in the prosecution of this action) shall be paid from the Gross Settlement Value in an amount up to, but not more than, $4,025,000. If approved by the Court, these amounts will be deducted from the Gross Settlement Value pursuant to the Settlement prior to arriving at the Net Settlement Value. The costs of administering the Settlement, which cannot exceed $250,000, will also be deducted from the Gross Settlement Value pursuant to the Settlement prior to arriving at the Net Settlement Value. Class Counsel will also apply to the Court for an additional award for the three (3) Named Plaintiffs, in an amount not to exceed $5,000 each, which will also be deducted from the Gross Settlement Value pursuant to the Settlement prior to arriving at the Net Settlement Value.


YOU HAVE FOUR OPTIONS:

1. Return a completed Claim Form.

To receive a share of the Settlement Fund, you must complete, verify, and return a signed Claim Form postmarked on or before January 23, 2017. If your Claim Form is approved, you will be mailed a check for your share of the Settlement Fund.

2. Do nothing.

If you do nothing, and the Settlement receives final approval from the Court, you will not receive a payment, but your claims covered by the Settlement will be extinguished and you will forfeit your right to bring or participate in a similar action against CVS.

3. Exclude yourself from the Settlement Class and the proposed Settlement.

You will not be affected by the Settlement if you elect not to participate by timely submitting a Request for Exclusion with the Claims Administrator in writing so that it is received by the Claims Administrator with a postmark no later than January 6, 2017. You will not receive a payment but all your claims will be preserved, even if the Settlement receives final approval from the Court

4. Object to the proposed Settlement in writing.

If you are dissatisfied with any of the terms of the Settlement, you may object to the Settlement. Any objection to the Settlement must be in writing and must explain, in clear and concise terms, the basis for your objection. In addition, in order to be considered, your objection must be mailed to the Claims Administrator via first class mail and actually received with a postmark no later than January 6, 2017.


The Court will hold a final approval hearing, located at 111 N. Hill Street, Los Angeles, California, 90012 on February 14, 2017 at 8:30 a.m., to determine whether the Settlement should be finally approved as fair, reasonable, and adequate. The Court will also be asked to approve Class Counsel’s request for costs and attorneys’ fees, the special payment made to the Class Representatives, and the fees and costs of the Claims Administrator. The hearing may be postponed without further notice to the Class. It is not necessary for you to appear at this hearing.


The attorneys for the settling class (“Class Counsel” or “Plaintiff’s Counsel”) are:

Randy Renick
Cornelia Dai
Hadsell Stormer & Renick LLP
128 N. Fair Oaks Avenue
Pasadena, California 91103

Robert Newman
Robert D. Newman, Attorney at Law
3701 Wilshire Boulevard, Suite 208
Los Angeles, California 90010

Randall B. Aiman-Smith
Aiman-Smith & Marcy
7677 Oakport Street, Suite 1150
Oakland, CA 94621


For the precise terms and conditions of the Settlement, you are referred to the detailed Joint Stipulation of Class Action Settlement and Release between Plaintiffs and Defendants, which will be on file with the Court and available through the Claims Administrator. The pleadings and other records in this litigation may be examined at any time during regular business hours at the courthouse, located at 111 N. Hill Street, Los Angeles, California, 90012, or you may contact the Claims Administrator at 800-556-4071.

You may request a copy of the Settlement Agreement from the Claims Administrator.

PLEASE DO NOT TELEPHONE THE COURT, DEFENDANT’S COUNSEL, OR DEFENDANT FOR INFORMATION REGARDING THIS SETTLEMENT OR THE CLAIM PROCESS. QUESTIONS SHOULD BE DIRECTED TO THE CLAIMS ADMINISTRATOR.