Forsyth v. HP Inc.

District Court, N.D. California·Decided March 29, 2024·No. 5:16-cv-04775·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 SAN JOSE DIVISION 7 8 DONNA J. FORSYTH, et al., Case No. 16-cv-04775-EJD

9 Plaintiffs, ORDER GRANTING (1) FINAL APPROVAL OF CLASS ACTION AND 10 v. COLLECTIVE ACTION SETTLEMENT AND (2) PLAINTIFFS' 11 HP INC., et al., MOTION FOR ATTORNEY'S FEES AND COSTS, AND SERVICE AWARDS 12 Defendants. FOR NAMED PLAINTIFFS

13 Re: ECF Nos. 534, 537 14 15 On December 19, 2023, Plaintiffs Arun Vatturi and Kevin Alviso (“California Class 16 Representatives”), along with Donna Forsyth (now deceased, through her representative Chris 17 Forsyth), Dan Weiland and Shafiq Rahman (together “Named Plaintiffs” or “Plaintiffs”) filed their 18 Motion for Attorneys’ Fees, Costs, and Service Awards for the Named Plaintiffs (“Motion for 19 Attorneys’ Fees, Costs, and Service Awards”). 20 On February 22, 2024, Plaintiffs brought an Unopposed Motion for Final Approval of 21 Class Action and Collective Action Settlement (“Motion for Final Approval”). 22 On March 28, 2024, this Court held a fairness hearing to consider final approval of the 23 proposed Settlement. 24 Having considered the motions, papers submitted in support of the motions, argument of 25 counsel, and applicable law, the Court now enters this Order Granting (1) Plaintiffs’ Motion for 26 Final Approval and (2) Plaintiffs’ Motion for Attorneys’ Fees, Costs and Service Awards, and 27 FINDS and ORDERS as follows: 1 I. NATURE OF THE ACTION 2 Plaintiffs allege that HP Inc. (previously named Hewlett-Packard Company) (“HP Inc.”) 3 and Hewlett-Packard Enterprise Company (“HPE”) (collectively, “Defendants”), violated the Age 4 Discrimination in Employment Act (“ADEA”), 29 U.S.C. §§ 621, et seq., and California’s Fair 5 Employment and Housing Act, Cal. Gov’t Code § 12900, et seq. (“FEHA”), Unfair Competition 6 Law, Cal. Bus. & Prof. Code §17200, et seq. (“UCL”), and common law, by terminating older 7 employees and replacing them with younger employees in workforce reductions. 8 Defendants have denied and continue to deny they have engaged in any unlawful conduct 9 or violated the ADEA or any California law, or are liable or owe damages to anyone with respect 10 to the facts or causes of action alleged. 11 II. THE SETTLEMENT AGREEMENT1 12 A. The ADEA Plaintiffs and California Settlement Classes 13 There are 146 ADEA Plaintiffs in this case.2 There are 242 members of the California 14 Settlement Classes defined below who did not timely exclude themselves from the Settlement 15 following notice (“Participating California Class Members”), 32 of whom also opted into to one of 16 the ADEA collectives and are ADEA Plaintiffs. Thus, in total, there are now 356 unique 17 individuals eligible to share in the proceeds of the Settlement. 18 The “California Settlement Classes” are defined as follows (see SA § 1.7): 19 1. The HP Co./HP Inc. California Class: 20 All individuals who had their employment terminated by HP Inc. (including when HP Inc. 21

22 1 Declaration of Jennie Lee Anderson in Support of Plaintiffs’ Unopposed Motion for Preliminary 23 Approval of Class and Collective Action Settlement (“Anderson Prelim. App. Decl.”) (ECF No. 526-1-2), Exhibit A (Collective and Class Action Settlement Agreement (“SA”, “Settlement” or 24 “Settlement Agreement”)).

25 2 On April 13, 2021, this Court granted Plaintiffs’ Motion for Preliminary Certification pursuant to the standards set forth under the Fair Labor Standards Act (“FLSA”) and permitted notice to be 26 sent to individuals who were putative members of two separate putative ADEA collectives, so that those individuals might determine whether to opt into this litigation as party plaintiffs. After 27 notice was disseminated, 146 individuals opted into the lawsuit as party plaintiffs (the “ADEA Plaintiffs”). 1 was named Hewlett-Packard Company) in California pursuant to a WFR Plan between August 18, 2 2012, and February 15, 2022, and who were 40 years or older at the time of such termination. As 3 provided in the operative Fourth Amended Complaint [Dkt. No. 389] (“FAC”), excluded from the 4 HP Co./HP Inc. California Class are: (a) individuals who signed a Waiver and General Release 5 Agreement (as defined in the FAC, n.1); and (b) individuals who signed an Agreement to Arbitrate 6 Claims (as defined in the FAC, n.2).3 In addition, any individuals who previously signed 7 agreements that waived and released the claims asserted in this action are excluded from the HP 8 Co./HP Inc. California Class. 9 2. The HPE California Class: 10 All individuals who had their employment terminated by Hewlett Packard Enterprise 11 Company in California pursuant to a WFR Plan between November 1, 2015, and February 15, 12 2022, and who were 40 years or older at the time of such termination. As provided in the operative 13 FAC [Dkt. No. 389], excluded from the HPE California Class are: (a) individuals who signed a 14 Waiver and General Release Agreement (as defined in the FAC, n.1); and (b) individuals who 15 signed an Agreement to Arbitrate Claims (as defined in the FAC, n.2). In addition, any individuals 16 who previously signed agreements that waived and released the claims asserted in this action are 17 excluded from the HPE California Class. 18 B. The Proposed Common Fund and Allocation Plan 19 The proposed Settlement involves a Maximum Gross Settlement Amount of $18,000,000. 20 The Maximum Gross Settlement Amount is inclusive of: (1) all individual settlement payments to 21 Participating California Class Members and ADEA Plaintiffs; (2) Class Counsel’s attorneys’ fees; 22 (3) litigation costs and expenses incurred by Class Counsel up to $200,000, including the costs of 23 a third-party settlement administrator; and (4) and proposed service awards of up to $10,000 each 24 for the five Named Plaintiffs. The proposed allocation of these four categories is as follows: 25 26

27 3 See also SA § 1.7 n.1 (exclusion of individuals who disclaimed in a legal proceeding any interest in participating or intent to participate in this action). Maximum Gross Settlement Amount: $18,000,000.00 1

2 Less Class Counsel’s Attorneys’ Fees (25%): Up to $ 4,500,000.00

3 Less Cost and Expenses Advanced by Class Counsel Including Settlement Administration Costs: Up to $200,000.00 4 5 Less Service Awards to the 5 Named Plaintiffs ($10,000 each): $50,000.00 6 Adjusted Settlement Amount: $13,250,000.00 7 Under the proposed allocation methodology, the Revised Gross Settlement Amount would 8 be further divided between the ADEA Collective Action Plaintiffs and California Class Members 9 as follows: 10 ADEA Collective Action Plaintiffs: $7,905,044.17 11 12 Participating California Class Members: $5,344,955.83 13 C. The Proposed Allocation Methodology 14 The proposed allocation methodology takes into consideration the following factors: (1) 15 each individual’s salary at termination; (2) the number of years each individual was employed by a 16 Defendant before termination; and (3) the damages (specifically, lost earnings) potentially 17 recoverable by the ADEA Plaintiffs if the case went to trial, after considering their post- 18 termination earnings and duty to mitigate damages. See SA § 3.3. 19 To the degree there are uncashed checks equal to or exceeding a total of $25,000, a second 20 pro rata distribution will be made to all ADEA Plaintiffs and Participating California Class 21 Members.

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