Terry v. Wasatch Advantage Group, LLC

District Court, E.D. California·Decided February 5, 2025·No. 2:15-cv-00799·Unknown

Opinion

United States of America ex rel. No. 2:15-cv-00799-KJM-SCR Denika Terry, et al., B Plaintiffs, v: Wasatch Advantage Group, LLC et al., Defendants. As explained in this order, the court grants the unopposed motions for final approval of the class action settlement and for attorneys’ fees and costs. I. BACKGROUND The court has discussed plaintiffs’ allegations, the procedural history of this case and the parties’ settlement agreement in its previous orders; it incorporates those discussions in this order without repeating them. See, e.g., Order (July 30, 2018) at 2-5, ECF No. 92; Order (Nov. 23, 2022) at 2-6, ECF No. 278; Order (Oct. 25, 2024) at 1-4, ECF No. 562. By way of brief summary, the members of the plaintiff classes are tenants who received assistance through the federally subsidized Section 8 Housing Choice Voucher Program. Order (Nov. 23, 2022) at 1. They alleged defendants violated federal and California law by charging rent beyond what the

voucher program allowed. See id. Plaintiffs also asserted claims as relators on behalf of the United States under the False Claims Act (FCA). See id. at 1, 5–6. This court certified two classes: an injunction class under Rule 23(b)(2) and a damages class under Rule 23(b)(3). See generally Order (July 30, 2018); Order (Jan. 25, 2022), ECF No. 226. After extensive pretrial litigation, which included motions to dismiss, to amend the pleadings, seeking and opposing discovery, and summary judgment, among others, the court scheduled a trial on several claims against Wasatch Property Management to begin in July 2024. See Order (Oct. 25, 2024) at 2 & nn.1–5. The parties also attended private mediation. See, e.g., Notice, ECF No. 472. They reached an agreement and filed a notice of settlement two days before the first day of trial. See Notice of Settlement, ECF No. 541. The settlement agreement offers both injunctive and monetary relief to the tenant classes. First, defendants agreed to take measures designed to ensure members of the injunction class are no longer required to pay the charges at the foundation of plaintiffs’ legal claims. See Settlement Agreement at 7–9,1 Rifkin Decl. Ex. A, ECF No. 563-2; Final Approval Mem. at 4–5, ECF No. 563-1. Defendants gave notice that they had implemented these measures in September and October 2024. See Notices of Implementation, ECF Nos. 555, 561. Second, defendants agreed to pay $5 million into a fund for reimbursing the charges tenants paid between May 2011 and November 2022, plus interest. See Settlement Agreement at 4, 10, 19–20. No class member would receive less than $100. See id. at 19. Class members will not need to file or verify any claims to obtain these payments. See Bellows Decl. ¶ 43, ECF No. 544-2. The parties also have agreed to retain a consultant to answer questions from class members about whether their settlement payments will make them ineligible for a government benefits program, with the costs of the consultation paid from the settlement fund. See id. ¶ 47. If any settlement funds go unpaid, they will not revert to defendants, but rather will be paid to cy pres legal aid organizations that serve tenants in Section 8 housing programs. See Settlement

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