Tanner v. Plavan Commercial Fueling, Inc.

• Court: District Court, S.D. California
• Decided: February 18, 2025
• Docket: 3:24-cv-01341
• Status: Unknown

Opinion

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7 UNITED STATES DISTRICT COURT 8 SOUTHERN DISTRICT OF CALIFORNIA 9 Case No. 3:24-cv-1341-BTM-JLB 10 TRACY TANNER, on behalf of himself and ORDER GRANTING PLAINTIFF’S 11 all others similarly situated, UNOPPOSED MOTION FOR 12 PRELIMINARY APPROVAL OF Plaintiff, CLASS ACTION SETTLEMENT AND 13 TO DIRECT NOTICE OF PROPOSED 14 v. SETTLEMENT TO THE CLASS

15 PLAVAN COMMERCIAL FUELING, INC., 16 [ECF No. 20] Defendant. 17

18 19 20 21 22 23 24 25 26 27 1 Before the Court is Plaintiffs’ Unopposed Motion for Preliminary Approval and to 2 Direct Notice of Proposed Settlement to the Settlement Class (ECF No. 20). The terms of the 3 proposed settlement (the “Proposed Settlement”) are set forth in a Settlement Agreement with 4 accompanying exhibits attached as Exhibit A to Plaintiffs’ motion (the “Settlement 5 Agreement”).1 Having fully considered the issue, the Court hereby GRANTS the motion and 6 orders as follows: 7 1. Class Certification for Settlement Purposes Only. The Settlement Agreement 8 provides for: (i) a Settlement Class consisting of individuals to whom Defendant Plavan 9 Commercial Fueling, Inc. d/b/a P-Fleet (“Plavan”) sent notice of the Ransomware Attack that 10 Plavan announced in June 2024, defined as follows: 11 Settlement Class: All individual U.S. residents to whom Plavan sent written 12 notification of the February 23, 2024, Ransomware Incident. 13 14 Excluded from the Settlement Class are: (1) the Judge and Magistrate Judge presiding over 15 the Lawsuits, any members of the Judges’ respective staffs, and any person within the third 16 degree of relationship to either of the Judges or the Judges’ spouses, or the spouse of such a 17 person; (2) officers, directors, members and shareholders of Defendant; (3) persons who 18 timely and validly request exclusion from and/or opt-out of the Settlement Class and the 19 successors and assigns of any such excluded persons; and (4) any person found by a court of 20 competent jurisdiction to be guilty under criminal law of initiating, causing, aiding or abetting 21 the criminal activity or occurrence of the Ransomware Incident or who pleads nolo contendere 22 to any such charge. Defendant represents that the Settlement Class contains approximately 23 2,948 individuals. 24 Pursuant to Federal Rules of Civil Procedure 23(e)(1), the Court finds that giving notice 25 is justified. The Court finds that it will likely be able to approve the Proposed Settlement as 26 fair, reasonable, and adequate. The Court also finds that it will likely be able to certify the 27 Settlement Class for purposes of judgment on the Proposed Settlement because it meets all of 1

2 the requirements of Rule 23(a) and the requirements of Rule 23(b)(3). Specifically, the Court 3 finds for settlement purposes that: a) the Settlement Class is so numerous that joinder of all 4 Settlement Class Members would be impracticable; b) there are issues of law and fact that are 5 common to the Settlement Class; c) the claims of the Representative Plaintiff are typical of 6 and arise from the same operative facts and seek similar relief as the claims of the Settlement 7 Class Members; d) the Representative Plaintiff will fairly and adequately protect the interests 8 of the Settlement Class as the Representative Plaintiff has no interests antagonistic to or in 9 conflict with the Settlement Class and has retained experienced and competent counsel to 10 prosecute this matter on behalf of the Settlement Class; e) questions of law or fact common to 11 Settlement Class Members predominate over any questions affecting only individual 12 members; and f) a class action and class settlement is superior to other methods available for 13 a fair and efficient resolution of this controversy. 14 The Court further finds that, at the preliminary approval stage, the Proposed Settlement 15 satisfies the criteria set forth in Rule 23(e) and Staton v. Boeing Co., 327 F.3d 938 (9th Cir. 16 2003)). Specifically, the Court finds for settlement purposes that: the Proposed Settlement (i) 17 appears to be the result of serious, informed, and non-collusive negotiations, (ii) has no 18 obvious deficiencies, (iii) does not improperly grant preferential treatment to class 19 representatives or segments of the class, and (iv) falls within the range of possible approval. 20 2. Class Representative and Class Counsel. The Court finds for settlement 21 purposes only that the Representative Plaintiff will likely satisfy the requirements of Rule 22 23(e)(2)(A) and be appointed as the Class Representative. Additionally, the Court finds that 23 Proposed Class Counsel, Patrick A. Barthle II of Morgan & Morgan and Ryan D. Maxey of 24 Maxey Law Firm, P.A., will likely satisfy the requirements of Rule 23(e)(2)(A) and for 25 settlement purposes are appointed as Class Counsel pursuant to Rule 23(g)(1). 26 3. Preliminary Settlement Approval. Upon preliminary review, the Court finds 27 the Proposed Settlement is fair, reasonable, and adequate to warrant providing notice of the making this determination, the Court has considered the benefits to the Settlement Class, the 1

2 specific risks faced by the Settlement Class in prevailing on Plaintiff’s claims, the stage of the 3 proceedings at which the Proposed Settlement was reached, the effectiveness of the proposed 4 method for distributing relief to the Settlement Class, the proposed manner of allocating 5 benefits to Settlement Class Members, and all of the other factors required by Rule 23. 6 4. Jurisdiction. The Court has subject matter jurisdiction pursuant to 28 U.S.C. 7 § 1332(d)(2), and personal jurisdiction over the Parties before it. Additionally, venue is proper 8 in this District pursuant to 28 U.S.C. § 1391(b)(1). 9 5. Final Approval Hearing. A Final Approval Hearing shall be held on July 21, 10 2025, at 3:30 p.m. at the United States District Court, Southern District of California, 333 11 West Broadway, San Diego, CA 92101, Courtroom 15B, to determine, among other things, 12 whether: (a) this matter should be finally certified as a class action for settlement purposes 13 pursuant to Fed. R. Civ. P. 23(a) and (b)(3); (b) the Proposed Settlement should be approved 14 as fair, reasonable and adequate, and finally approved pursuant to Fed. R. Civ. P. 23(e); (c) 15 this action should be dismissed with prejudice pursuant to the terms of the Settlement 16 Agreement; (d) Settlement Class Members should be bound by the releases set forth in the 17 Settlement Agreement; (e) the application of Class Counsel for an award of attorneys’ fees, 18 costs, and expenses should be approved pursuant to Fed. R. Civ. P. 23(h); and (e) the 19 application of the Class Representative for a service award should be approved. 20 6. Claims Administrator. The Court appoints Simpluris, Inc. as the Claims 21 Administrator, with responsibility for class notice and claims administration. The Claims 22 Administrator is directed to perform all tasks the Settlement Agreement reasonably requires 23 in effectuating the Notice, Notice Program, and Claims Administration. The Claims 24 Administrator’s fees will be paid out of the Settlement Fund pursuant to the Settlement 25 Agreement. 26 7. Notice. The proposed method for providing notice set forth in the Settlement 27 Agreement and the Claim Form and Class Notice attached to the Settlement Agreement as the short form must include: 1) all of the addresses to which all objections must be mailed, 1 including that of the Clerk of the U.S. District Court for the Southern District of California, 2 333 W. Broadway, San Diego, California 92101; and 2) a statement that all requests to be 3 excluded from the Settlement must be submitted through the settlement website or mailed to 4 Request for Exclusion Mailing Addresses, providing said address. Additionally, the long form 5 should not state that an objection must include an objector’s address and telephone number. 6 Non-material modifications to these Exhibits may be made with approval by the Parties but 7 8 without further order of the Court. 9 8. Findings Concerning Notice. The Court finds that the proposed form, content, 10 and method of giving notice to the Settlement Class as described in the Settlement Agreement 11 and exhibits: (a) will constitute the best practicable notice to the Settlement Class; (b) are 12 reasonably calculated, under the circumstances, to apprise Settlement Class Members of the 13 pendency of the action, the terms of the Proposed Settlement, and their rights under the 14 Proposed Settlement, including but not limited to their rights to object to or exclude 15 themselves from the Proposed Settlement and other rights under the terms of the Settlement 16 Agreement; (c) are reasonable and constitute due, adequate, and sufficient notice to all 17 Settlement Class Members and other persons entitled to receive notice; and (d) meet all 18 applicable requirements of law, including Federal Rule of Civil Procedure 23(c) and (e), and 19 the Due Process Clause of the United States Constitution. The Court further finds that the 20 Notice is written in plain language, uses simple terminology, and is designed to be readily 21 understandable by class members. 22 The Claims Administrator is directed to carry out the Notice Program in conformance 23 with the Settlement Agreement. 24 Exclusion from Class. Any Settlement Class Member who wishes to be excluded from 25 the Settlement Class must mail a written request for exclusion to the Claims Administrator at 26 the address and in the manner and within the time provided in the Notice. Such requests for 27 exclusion must meet the opt-out deadline established by this Order and stated in the Notice. Settlement shall, upon entry of the Final Approval Order and Judgment, be bound by all the 1 terms and provisions of the Settlement Agreement, whether or not such Settlement Class 2 Member objected to the Proposed Settlement and whether or not such Settlement Class 3 Member received consideration under the Settlement Agreement. 4 A request for exclusion must be in writing and: (a) state that the Settlement Class 5 Member wishes to be excluded from the Settlement Class in this Lawsuit; (b) include the 6 name, address, and phone number of the Settlement Class Member seeking exclusion; and 7 (c) must be signed by the Settlement Class Member. 8 9 A request for exclusion that does not include the foregoing information, or that is sent 10 to an address other than the one designated in the Notice, or that is not postmarked by the Opt- 11 Out Date shall be invalid and the Settlement Class Member serving such a request shall, if the 12 Final Approval Order and Judgment is entered, be considered a Settlement Class Member and 13 shall be bound by any judgment entered herein with respect to the Settlement Class. 14 The Claims Administrator shall forward a list of all requests for exclusion to Class 15 Counsel and to Plavan’s Counsel within 7 days of the Opt-Out Date. 16 If the Final Approval Order and Judgment is entered, any Settlement Class Member 17 who has not submitted a timely, valid written request for exclusion from the Settlement Class 18 shall be bound by all subsequent proceedings, orders, and judgments in this action, including 19 but not limited to the Release set forth in the Final Approval Order and Judgment. Settlement 20 Class Members who submit valid and timely requests for exclusion shall not be entitled to 21 receive any benefits from the Proposed Settlement. 22 Upon entry of the Final Approval Order and Judgment all members of the Settlement 23 Class who have not personally, validly, and timely requested to be excluded from the 24 Settlement Class will be enjoined from proceeding against the Released Persons under the 25 Settlement Agreement with respect to the Release Claims. 26 9. Objections and Appearances. Any Settlement Class Member who does not 27 elect to be excluded from the Settlement Class may object to the Proposed Settlement, Class Representative Plaintiff; provided, however, that no Settlement Class Member shall be heard 1 or entitled to contest such matters, unless the objection is: (a) electronically filed by the 2 Objection Date; or (b) mailed first-class postage prepaid to the Clerk of Court, at the address 3 listed in the Notice, and postmarked by no later than the Objection Date, as specified in the 4 Notice. For the objection to be considered by the Court, the objection must be in writing and 5 include: 6 7 (a) the name and caption of this Litigation: Tanner v. Plavan Commercial Fueling, Inc. d/b/a P-Fleet, No. 24-CV-01341 (S.D. Cal.); 8 (b) the objector’s full name and e-mail address (if any); 9 (c) information identifying the objector as a Settlement Class Member, including 10 proof that the objector is a member of the Settlement Class; 11 (d) a written statement of all grounds for the objection, accompanied by any legal 12 support for the objection that the objector believes is applicable; (e) the identity of all counsel representing the objector, if any, in connection with the 13 objection; 14 (f) a statement confirming whether the objector and/or the objector’s counsel will 15 appear and/or testify at the Final Fairness Hearing; 16 (g) a statement identifying all class action settlements objected to by the objector in the previous 5 years; and 17 (h) the objector’s signature or the signature of the objector’s duly authorized attorney 18 or other duly authorized representative, if any. 19 The Parties will have the same right to seek discovery from any objecting Settlement 20 Class Member as they would if the objector was a party in the Litigation, including the right 21 to take the objector’s deposition. Such discovery will be conducted on an expedited basis, and 22 the objecting Settlement Class Member is required to respond to any written discovery within 23 fourteen (14) days and must appear for deposition within fourteen (14) days after a deposition 24 is noticed. Any Settlement Class Member who fails to comply with the provisions in this Order 25 and/or fails to timely file and serve an objection in writing in accordance with this Order and 26 the Settlement Agreement will waive and forfeit any and all rights they may have to object, 27 will have their objection stricken from the record. Any such Settlement Class Member also but not limited to the Release set forth in the Final Approval Order and Judgment if entered. 1 10. Claims Process. The Settlement Agreement contemplates the establishment of a 2 claims process. As set forth in the Settlement Agreement, within thirty (30) days of 3 preliminary settlement approval, Defendant will fund a non-reversionary cash settlement fund 4 in the amount of $300,000.00 for the benefit of Settlement Class Members (the “Settlement 5 Fund”). The Settlement Fund will be used to pay for: (1) reimbursement for Ordinary Out-of- 6 Pocket Losses; (2) reimbursement for Extraordinary Losses and Attested Time; (3) Residual 7 Cash Payments; (4) Credit Monitoring Services; (5) notice and administration costs; (6) any 8 9 service award payment approved by the Court; and (7) any attorneys’ fees and expenses 10 awarded by the Court. The Court preliminarily approves this process and directs the Claims 11 Administrator to make the Claim Forms or its substantial equivalent available to Settlement 12 Class Members in the manner specified in the Notice. 13 The Claims Administrator will be responsible for effectuating the claims process. 14 Settlement Class Members who qualify for and wish to submit a Claim Form shall do 15 so in accordance with the requirement and procedures specified in the Notice and the Claim 16 Form. If the Final Approval Order and Judgment is entered, all Settlement Class Members 17 who qualify for any benefit under the Proposed Settlement but fail to submit a claim in 18 accordance with the requirements and procedures specified in the Notice and the Claim Form 19 shall be forever barred from receiving any such benefit, but will in all other respects be subject 20 to and bound by the provisions in the Final Approval Order and Judgment, including the 21 release. 22 11. Termination of Settlement. This Order, the Settlement Agreement, the 23 Proposed Settlement, and all related proceedings shall become null and void, shall have no 24 further force or effect, and shall be without prejudice to the rights of the Parties, all of whom 25 shall be restored to their respective positions existing immediately before the Settlement 26 Agreement was signed, if: (a) the Proposed Settlement is not finally approved by the Court; 27 (b) the Settlement Agreement and the Proposed Settlement are terminated in accordance with such event, the Proposed Settlement and Settlement Agreement shall become null and void 1 and be of no further force and effect, and neither the Settlement Agreement nor the Court’s 2 orders, including this Order, relating to the Proposed Settlement shall be used or referred to 3 for any purpose whatsoever, including but not limited to arguments that the requirements of 4 Fed. R. Civ. P. 23(a) and (b)(3) are or ever were satisfied for purposes of this litigation. The 5 Litigation shall thereupon revert forthwith to its respective procedural and substantive status 6 prior to the date of execution of the Settlement Agreement and shall proceed as if the 7 Settlement Agreement and all other related orders and papers had not been executed. 8 9 12. Use of Order. This Order shall be of no force or effect if the Final Approval 10 Order and Judgment is not entered or there is no Effective Date. Neither this Order nor the 11 Settlement Agreement nor any other settlement-related document nor anything contained 12 herein or therein or contemplated hereby or thereby nor any proceedings undertaken in 13 accordance with the terms set forth in the Settlement Agreement or herein or in any other 14 settlement-related document, shall constitute, be construed or used as an admission, 15 concession, or declaration by or against Plavan of any fault, wrongdoing, breach, or liability 16 for any claim that has been or could have been asserted against it or as to any liability by it as 17 to any matter set forth in this Order, or as to the propriety of class certification for any purposes 18 other than for purposes of the current Proposed Settlement. Nor shall this Order be construed 19 or used as an admission, concession, or declaration by or against any Representative Plaintiff 20 or any other Settlement Class Member that his or her claims lack merit or that the relief 21 requested is inappropriate, improper, or unavailable, or as a waiver by any Party of any defense 22 or claims they may have in this Litigation or in any other lawsuit. 23 13. Continuance of Hearing. The Court reserves the right to adjourn or continue the 24 Final Fairness Hearing and related deadlines without further written notice to the Settlement 25 Class. If the Court alters any of those dates or times, the revised dates and times shall be posted 26 on the website maintained by the Claims Administrator. The Court may approve the Proposed 27 Settlement, with such modifications as may be agreed upon by the Parties, if appropriate, 14. Schedule and Deadlines. The Court orders the following schedule of dates fo || the specified actions/further proceedings: ACTION TIME AFTER PRELIMINARY APPROVAL

Defendants provide notice of the Within 10 days after entry of this proposed settlement to relevant state Order and federal officials pursuant to 28 U.S.C. § 1715, if such notice has not already been provided Defendant Provides Class Member | Within 14 days after entry of this List Order Class Notice Date 30 days after entry of this Order

Completion of Notice Program 60 days after entry of this Order

Motion for Attorneys’ Fees, 30 days prior to the Objection Expenses, and Service Awards to RP Deadline Exclusion / Opt-Out Deadline 60 days from the Class Notice Date

Objection Deadline 60 days from the Class Notice Date

Deadline to Submit Claims 90 days after the Class Notice Date

Final Approval Brief and Response | At least 14 days prior to the Final to Objections Due Approval Hearing

Final Approval Hearing July 21, 2025 at 3:30 p.m.

SO ORDERED. February 18, 2025 □□ Honorable Barry Ted Moskov United States District Judge