Tanner v. Plavan Commercial Fueling, Inc.

District Court, S.D. California·Decided August 4, 2025·No. 3:24-cv-01341·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 TRACY TANNER, on behalf of himself Case No.: 3:24-cv-1341-BTM-JLB and all others similarly situated, 12 ORDER GRANTING MOTIONS Plaintiff, 13 FOR 1) FINAL APPROVAL OF vs. CLASS ACTION SETTLEMENT 14 AND 2) SERVICE AWARD,

15 ATTORNEY’S FEES, AND PLAVAN COMMERCIAL FUELING, LITIGATION COSTS 16 INC, 17 Defendant. [ECF NOS. 22, 23]

21 22 23 24 The Court previously granted a motion for preliminary approval of the parties’ Class 25 Action Settlement in this matter on February 21, 2025. (ECF No. 21). Plaintiff has now 26 filed an unopposed Motion for Final Approval of Class Action Settlement and a Motion 27 for Service Award, Attorney’s Fees, and Litigation Costs. (ECF Nos. 22 & 23). The Court 28 held a final approval hearing on July 21, 2025. (ECF No. 26.) 1 Having considered the motion briefing, the terms of the Settlement Agreement, the 2 lack of any objections, the arguments of counsel, and the other materials on file in this 3 action, the Court GRANTS both motions. (ECF Nos. 22 & 23). 4 I. BACKGROUND 5 A. Procedural History 6 In February 2024, Defendant Plavan Commercial Fueling, Inc. (“Plavan” or 7 “Defendant”) experienced a Ransomware Incident, which may have impacted the names 8 and Social Security numbers of Plavan’s current and former customers. (See generally 9 ECF No. 1.) Plavan announced the Ransomware Incident in June 2024, and Plaintiff filed 10 a Class Action Complaint in this Court on July 30, 2024. (Id.) 11 Plaintiff filed a Notice of Settlement on October 14, 2024, which stated that Plaintiff 12 and Defendant had reached an agreement to resolve all pending claims against Defendant 13 on a class-wide basis. (ECF No. 14.) Plaintiff filed a motion for preliminary approval of 14 the class settlement on December 16, 2024, which the Court granted on February 18, 2025. 15 (ECF Nos. 20, 21). 16 In its Preliminary Approval Order, the Court conditionally certified the Settlement 17 Class as “[a]ll individual U.S. residents to whom Plavan sent written notification of the 18 February 23, 2024, Ransomware Incident.” (ECF No. 21 at 1–2.) The Court provisionally 19 appointed Patrick A. Barthle II of Morgan & Morgan and Ryan D. Maxey of Maxey Law 20 Firm, P.A. as Class Counsel, Tracy Tanner as Class Representative, and Simpluris, Inc. as 21 Class Administrator. (Id. at 2, 3.) 22 B. Terms of the Settlement Agreement 23 Under the Settlement Agreement, Plavan agreed to establish a non-reversionary 24 common fund of $300,000 for “class benefits, notice and administration costs, service 25 award payments approved by the Court, and attorneys’ fees and expenses award by the 26 27 1 All capitalized terms herein have the same definitions as set forth in the Settlement 28 1 Court.” (ECF No. 23, at 3; ECF No. 20-1, ¶¶ 2.1–2.7.) In exchange, the class members 2 will release Plavan from all claims related to the Ransomware Incident. (ECF No. 20-1, 3 ¶¶ 1.22, 1.23, 6.) 4 II. FINAL APPROVAL OF SETTLEMENT 5 A. Legal Standard 6 A court may approve a proposed class action settlement only “after a hearing and 7 only on finding that it is fair, reasonable, and adequate” and that it meets the requirements 8 for class certification. Fed. R. Civ. P. 23(e)(2). In reviewing the proposed settlement, a 9 court need not address whether the settlement is ideal or the best outcome, but only whether 10 the settlement is fair, free of collusion, and consistent with plaintiff’s fiduciary obligations 11 to the class. See Hanlon v. Chrysler Corp., 150 F.3d 1011, 1027 (9th Cir. 1998). The 12 Ninth Circuit has identified the following factors relevant to assessing a settlement 13 proposal: (1) the strength of the plaintiff’s case; (2) the risk, expense, complexity, and 14 likely duration of further litigation; (3) the risk of maintaining class action status 15 throughout the trial; (4) the amount offered in settlement; (5) the extent of discovery 16 completed and the stage of the proceeding; (6) the experience and views of counsel; (7) the 17 presence of a government participant; and (8) the reaction of class members to the proposed 18 settlement. Id. at 1026; see also Churchill Vill., L.L.C. v. Gen. Elec., 361 F.3d 566, 575 19 (9th Cir. 2004). 20 Settlements that occur before formal class certification also “require a higher 21 standard of fairness.” In re Mego Fin. Corp. Sec. Litig., 213 F.3d 454, 458 (9th Cir. 2000). 22 In reviewing such settlements, in addition to considering the above factors, a court also 23 must ensure that “the settlement is not the product of collusion among the negotiating 24 parties.” In re Bluetooth Headset Prods. Liab. Litig., 654 F.3d 935, 946–47 (9th Cir. 2011). 25 B. Analysis 26 1. The Settlement Class Meets the Prerequisites for Certification 27 The Court concluded that the class certification requirements were satisfied when it 28 granted preliminary approval of the class action settlement. (ECF No. 21, at 1–2.) The 1 Court is not aware of any new facts which would alter that conclusion. However, the Court 2 briefly reviews the Rule 23 requirements again. 3 The class size—which includes “all individual U.S. residents to whom Plavan sent 4 written notification of the February 23, 2024, Ransomware Incident,” and which Plavan 5 represents comprises approximately 2,948 individuals (ECF No. 23, at 3)—satisfies 6 Rule 23(a)(1). 7 Rule 23(a)(2) requires that “there are questions of fact or law common to the class,” 8 although all questions of fact and law need not be in common. Hanlon, 150 F.3d at 1019. 9 The main legal questions in this action are common to all class members, and thus 10 Rule 23(a)(2) is satisfied. 11 Rule 23(a)(3) requires that “the claims or defenses of the representative parties are 12 typical of the claims or defenses of the class.” The Class Representative’s claims are 13 typical of those of the class, as they advance the same claims and legal theories as those of 14 the rest of the class. Rule 23(a)(3) is thus satisfied. 15 With respect to Rule 23(a)(4), the Court finds that the Class Representative and Class 16 Counsel have fairly and adequately represented the interests of the Class. No conflicts of 17 interest appear between Class Representative and the members of the Settlement Class. 18 Class Counsel have demonstrated that they are skilled in this area of the law and are 19 therefore adequate to represent the Settlement Class as well. Rule 23(a)(4) is therefore 20 satisfied. 21 The Settlement Class further satisfies Rule 23(b)(3) in that common issues 22 predominate and “a class action is superior to other available methods for fairly and 23 efficiently adjudicating” the claims here. 24 With respect to Rule 23(b)(3), the “predominance inquiry tests whether proposed 25 classes are sufficiently cohesive to warrant adjudication by representation.” Amchem 26 Prods., Inc. v. Windsor, 521 U.S. 591, 623 (1997). The main common question in this case 27 which would be subject to common proof is whether Plavan failed to properly secure and 28 safeguard the Settlement Class’s personal identifiable information. That question 1 predominates in the case. Moreover, given this commonality, and the number of potential 2 class members, the Court concludes that a class action is a superior mechanism for 3 adjudicating the claims at issue.

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Tanner v. Plavan Commercial Fueling, Inc., (S.D. Cal. 2025).

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