Ramirez v. Trans Union, LLC

District Court, N.D. California·Decided July 19, 2022·No. 3:12-cv-00632·Unknown

Opinion

SERGIO L. RAMIREZ, Case No. 12-cv-00632-JSC

Plaintiff, ORDER RE: PLAINTIFF’S MOTION v. FOR PRELIMINARY APPROVAL

TRANS UNION, LLC, Re: Dkt. Nos. 404, 415 Defendant.

Plaintiff Sergio Ramirez filed this class action alleging that Defendant Trans Union violated the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq., through its OFAC Name Screen Alert. The OFAC Name Screen Alert or OFAC Alert is a service Trans Union provides to its customers which identifies persons whose names match individuals (known as Specially Designated Nationals or SDNs) on the United States government’s list of terrorists, drug traffickers, and others with whom Americans are prohibited from doing business. After a jury returned a verdict in Plaintiff’s favor, Trans Union appealed and the Ninth Circuit Court of Appeals affirmed the verdict except for the amount of punitive damages. The Supreme Court subsequently reversed the Ninth Circuit’s finding that all class members had Article III standing and remanded the action to this Court. Following remand, the parties’ participated in a mediation and reached a class-wide settlement. Plaintiff now moves for preliminary approval of the class action settlement. (Dkt. No. 404.) Having considered Plaintiff’s motion, his supplemental submission in response to the Court’s order, and the relevant legal authority, the Court concludes that oral argument is unnecessary, see Civ. L.R. 7-1(b), VACATES the July 28, 2022 hearing, and GRANTS the motion for preliminary approval. Sergio Ramirez brought this action on behalf of himself and a putative class alleging that over a six-month period in 2011 Trans Union violated three FCRA requirements: (1) that credit reporting agencies establish “reasonable procedures” to ensure the “maximum possible accuracy” of information provided about consumers under 15 U.S.C. § 1681e(b); (2) that credit reporting agencies “clearly and accurately” disclose “all information in the consumers file at the time of [a] request” under § 1681g(a), and (3) that credit reporting agencies provide a statement of consumer rights with each such disclosure under § 1681g(c). In July 2014, the Court certified a Rule 23(b)(3) class of “all natural persons in the United States and its Territories to whom Trans Union sent a letter similar in form to the March 1, 2011 letter Trans Union sent to Plaintiff regarding ‘OFAC (Office of Foreign Assets Control) Database’ from January 1, 2011 - July 26, 2011.” (Dkt. No. 140.) Before trial, the parties stipulated that the class contained 8,185 individuals, 1,853 of whom had their credit reports requested by a third- party creditor during the class period. (Dkt. No. 289.) Following a weeklong trial, the jury reached a verdict in favor of Plaintiff and the class and awarded over $60 million in statutory and punitive damages. (Dkt. Nos. 305, 306.) Trans Union appealed and the Ninth Circuit Court of Appeals affirmed the jury’s verdict, except as to punitive damages which it reduced to $3,936.88 per class member (from $6,353.08 per class member). Ramirez v. TransUnion LLC, 951 F.3d 1008, 1031 (9th Cir. 2020). The Supreme Court then granted Trans Union’s petition for certiorari and reversed in part. In particular, the Supreme Court held that “the 6,332 class members whose credit reports were not provided to third-party businesses did not suffer a concrete harm and thus do not have standing as to the reasonable- procedures claim” and that none of the class members had standing to pursue the disclosure claims because they had not “suffered a concrete harm.” TransUnion LLC v. Ramirez, 141 S. Ct. 2190, 2214 (2021). The Ninth Circuit remanded the case to this Court for further proceedings consistent with the Supreme Court’s decision. Ramirez v. Trans Union LLC, 9 F.4th 1201 (9th Cir. 2021). On remand, the parties agreed to participate in mediation and with the assistance of the A. The Class The Settlement Class is composed the two categories of individuals: (1) the 1,853 class members Trans Union identified in its pre-trial stipulation as individuals for whom Trans Union had delivered a credit report containing OFAC data to a third-party, and (2) class members from the remaining group of 6,332 individuals not identified in the stipulation who submit a claim demonstrating publication of OFAC data to a third-party during the class period. (Dkt. No. 404-1, The Settlement Agreement at §§ 1(jj)-(mm)). B. The Payment Terms The Settlement Agreement requires Trans Union to establish a Settlement Fund of $9,000,000. (Id. at § 3(a).) An initial deposit of $30,000.00 will be paid to the Settlement Administrator within 15 business days following the entry of the preliminary approval order, and the balance of $8,970,000.00 will be paid to the Settlement Administrator following Final Approval. (Id. § 3(a)(ii).) From the Settlement Fund, the parties have agreed that payments will be made as set forth below: • Class Counsel may request an award of attorneys’ fees and costs not to exceed $4.5 million and an individual settlement and service award for Mr. Ramirez of $75,000. (Id. at § 8.) • The costs of notice and settlement administration, which are estimated at $70,000. (Id. at § 3(b)(iv); Dkt. No. 404 at 25.) • Each Settlement Class member shall be entitled to a pro rata share of all the funds remaining in the Settlement Fund after payments of the above amounts. (Dkt. No. 404-1 at § 9(a).) If these amounts are approved by the Court, counsel estimates that based on a 5% claim rate for those Settlement Class Members required to submit a claim, Settlement Class Members would receive approximately $2,000 each. (Dkt. No. 404 at 24.) C. Scope of Release will release any and all claims for actual, statutory, and punitive damages under the FCRA as set forth in 15 U.S.C. §§ 1681e(b), 1681g(a)(1), and 1681g(a)(3), and for actual, statutory, and punitive damages and injunctive relief under the CCRAA as set forth in Cal. Civ. Code §§ 1785.10, 1785.14(b), and 1785.31. (Dkt. No. 404-1 at § 10(a).) Mr. Ramirez will provide a general release of any and all claims known and unknown that would have been asserted or which may arise in the future. (Id. at § 10(b).) In addition, Mr. Ramirez and Settlement Class Members waive “any and all rights” under California Civil Code § 1542 which excludes from release those claims which are unknown at the time of the release. (Id. § 10(c).) D. Notice After a competitive bidding process, Plaintiff selected Continental DataLogix, LLC as the Settlement Administrator. (Id. at § 1(ii); Dkt. No. 415-1, Soumilas Decl. at ¶ 22.) The team at Continental DataLogix is the same team that previously provided Court-approved litigation notice in this action. (Dkt. No. 415-1 at ¶ 26.) Within 5 days of this Order, Trans Union will provide the Settlement Administrator with updated mailing address information for all 8,185 individuals identified in the parties’ pre-trial stipulation. (Dkt. No. 404-1 at § 4(c).) The Settlement Administrator shall review and update these addresses through the National Change of Addresses Database. (Id.) Within 30 days of entry of the Preliminary Approval Order, the Settlement Administrator will mail and email notice to each of these individuals. (Id. at § 4(d), (f).) The Settlement Administrator will use Accurint, a batch service offered by LexisNexis “to identify an email address for each Se

Free access — add to your briefcase to read the full text and ask questions with AI

Ramirez v. Trans Union, LLC, (N.D. Cal. 2022).

Ramirez v. Trans Union, LLC (Ramirez v. Trans Union, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

In Re Bluetooth Headset Products Liability
654 F.3d 935 (Ninth Circuit, 2011)
Powers v. Eichen
229 F.3d 1249 (Ninth Circuit, 2000)
Martin Gonzalez, Sr. v. City of Maywood
729 F.3d 1196 (Ninth Circuit, 2013)
Rodriguez v. West Publishing Corp.
563 F.3d 948 (Ninth Circuit, 2009)
Camacho v. Bridgeport Financial, Inc.
523 F.3d 973 (Ninth Circuit, 2008)
Sergio Ramirez v. Transunion LLC
951 F.3d 1008 (Ninth Circuit, 2020)
TransUnion LLC v. Ramirez
594 U.S. 413 (Supreme Court, 2021)
Acosta v. Trans Union, LLC
243 F.R.D. 377 (C.D. California, 2007)
Ontiveros v. Zamora
303 F.R.D. 356 (E.D. California, 2014)