Syed v. M-I, LLC

District Court, E.D. California·Decided August 6, 2019·No. 1:14-cv-00742·Unknown

Opinion

----oo0oo---- SARMAD SYED, an individual on No. 1:14-cv-00742 WBS BAM behalf of himself and all others similarly situated, Plaintiffs MEMORANDUM AND ORDER RE: FINAL APPROVAL OF CLASS v. SETTLEMENT AND PLAINTIFF’S PETITION FOR ATTORNEYS’ FEES M-I LLC, a Delaware Limited AND COSTS Liability Company, et al., Defendants. ----oo0oo---- Plaintiff Sarmad Syed brought this putative class action lawsuit against M-I, LLC (“M-I”) and other parties alleging M-I violated federal credit reporting laws while conducting pre-employment background checks. The parties have reached a settlement which would resolve plaintiff’s claims against defendant M-I. (See Dion- Kindem Decl. in Supp. of Mot. for Preliminary Approval Ex. 1, Joint Stipulation of Class Action Settlement and Release (“Settlement Agreement”) (Docket No. 127-2).) Plaintiff now moves for final approval of the settlement pursuant to Federal Rule of Civil Procedure 23(e). (Docket No. 136.) Plaintiff’s also move for attorneys’ fees and costs. (Docket No. 135.) I. Factual and Procedural Background Plaintiff applied for a job with M-I on July 20, 2011. (First Amended Complaint (“FAC”) ¶ 14.) During the application process, plaintiff filled out and signed a one-page form entitled “Pre-Employment Disclosure and Release.” (Id.) That form included the following language:

I understand that the information obtained will be used as one basis for employment or denial of employment. I hereby discharge, release, and indemnify prospective employer [defendant M-I LLC], PreCheck, Inc., their agents, servants, and employees, and all parties that rely on this release and/or the information obtained with this release from any and all liability and claims arising by reason of the use of this release and dissemination of information that is false and untrue if obtained by a third party without verification. It is expressly understood that the information obtained through the use of this release will not be verified by PreCheck, Inc. (Id.) Plaintiff alleges that M-I violated Section 1681(b)(2) of the Fair Credit Reporting Act by procuring or causing to be procured a consumer report for employment purposes via a disclosure form that contained not only language authorizing the procurement of a consumer report, but also an indemnity clause and release. (Id. ¶ 17.) Plaintiff alleges that as a result, class members could recover statutory damages between $100 and $1,000 as well as punitive damages under 15 U.S.C. § 1681n(a). (Id. ¶ 31.) In October 2018, the parties reached a settlement. (See Docket No. 122.) Their Settlement Agreement provides for a gross settlement amount of $556,000. (Settlement Agreement ¶ 34.) The Settlement Agreement specifies that the defendants agree not to oppose a motion by class counsel for attorney’s fees (up to $300,000) and attorney’s costs (up to $10,000) from this gross settlement amount. (Id. ¶¶ 37-38.) Notably, the Settlement Agreement provides that any portion of the requested attorneys’ fees or costs not awarded will revert to the defendant. (Id.) The Settlement Agreement also provides for the deduction of settlement administration costs from the gross settlement amount (id. ¶ 36) and for a class representative service award of up to $5,000 (id. ¶ 35). In its order granting preliminary approval of a class and class settlement, the court provisionally certified the following class:

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Syed v. M-I, LLC, (E.D. Cal. 2019).

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