Pandemic Darlings The pandemic economy, in original documents
Home Court filings Brooks v. Thomson Reuters Corporation Statement JOINT STATEMENT REGARDING POST-DISTRIBUTION ACCOUNTING by… — Brooks v. Thomso…

Court filing

Statement JOINT STATEMENT REGARDING POST-DISTRIBUTION ACCOUNTING by… — Brooks v. Thomson Reuters Corporation (Dkt. 288)

No. 3:21-cv-01418-EMC · Doc. 288 · Docket on CourtListener

Full text

           Case 3:21-cv-01418-EMC           Document 288     Filed 10/28/25   Page 1 of 11



     Andre M. Mura (SBN 298541)                         Geoffrey A. Graber (SBN 211547)
 1
     Ezekiel S. Wald (SBN 341490)                       Karina G. Puttieva (SBN 317702)
 2   GIBBS MURA LLP                                     COHEN MILSTEIN SELLERS & TOLL
     1111 Broadway, Suite 2100                          PLLC
 3   Oakland, CA 94607                                  1100 New York Ave. NW, Suite 800
     Telephone: (510) 350-9700                          Washington, DC 20005
 4
     Facsimile: (510) 350-9701                          Telephone: (202) 408-4600
 5   amm@classlawgroup.com                              Facsimile: (202) 408-4699
     zsw@classlawgroup.com                              ggraber@cohenmilstein.com
 6                                                      kputtieva@cohenmilstein.com
 7

 8

 9
10

11   Attorneys for Plaintiffs and the Certified Class
12

13

14

15                           UNITED STATES DISTRICT COURT FOR THE
                               NORTHERN DISTRICT OF CALIFORNIA
16
                                   SAN FRANCISCO DIVISION
17
     CAT BROOKS and RASHEED SHABAZZ,                    Case No. 3:21-cv-01418-EMC-KAW
18   individually and on behalf of all others
     similarly situated,                                JOINT STATEMENT REGARDING
19
                                                        POST-DISTRIBUTION
20                                  Plaintiffs,         ACCOUNTING
            v.
21                                                      Judge: Hon. Edward M. Chen
22   THOMSON REUTERS CORPORATION,

23                                Defendant.
24

25

26

27

28
                                              1
                 JOINT STATEMENT REGARDING POST-DISTRIBUTION ACCOUNTING
                               Case No. 3:21-cv-01418-EMC-KAW
           Case 3:21-cv-01418-EMC       Document 288      Filed 10/28/25    Page 2 of 11




 1          Pursuant to Civil Local Rule 16-10(d) and the Northern District of California Class

 2   Action Settlement Guidelines, 1 the parties submit the following statement regarding post-

 3   distribution accounting.

 4          A Declaration from Angeion Group, the Settlement Administrator in this case, setting

 5   out the information requested in the Northern District of California’s post-distribution

 6   accounting guidelines 2 is attached to this statement as Exhibit 1. The parties submit this

 7   statement to provide additional information to the Court regarding the distribution of

 8   settlement funds.

 9                                 Distribution of Settlement Funds

10          This Court granted Plaintiffs’ Motion for Final Approval of Class Action Settlement, ECF

11   No. 280, on February 21, 2025. Distribution of the Settlement to the class proceeded as follows.

12   The Court-appointed Settlement Administrator, Angeion Group, mailed checks to class

13   members who elected to receive physical checks on April 15, 2025, and sent out digital

14   payments to class members who elected to receive digital payments on April 22, 2025. ECF No.

15   286 at 2.

16          A small percentage of class members elected to receive digital payments, but had issues

17   receiving those payments (for example, they inputted old account numbers in their claim form).

18   Id. Angeion worked with those class members to get an updated payment method selected by

19   June 19, 2025. Id. Angeion sent out the “second chance” digital payments to class members who

20 provided updated payment information and chose to receive digital payments through PayPal

21 or Venmo on June 30, 2025. Id. On July 3, 2025, Angeion reissued “second chance” paper checks

22 to class members who selected paper checks on their original claim forms, but had that check

23 returned (such as for an invalid address) or did not cash the checks within the initial 30-day

24
     1 Available at https://cand.uscourts.gov/attorneys/attorney-practice-resources (last visited
25
     October 14, 2025).
26   2 Available at https://cand.uscourts.gov/sites/default/files/wp-

     content/uploads/forms/civil-forms/CAND Post Settlement Distribution Form 2024-03-
27
     12.a.pdf (last visited October 14, 2025).
28
                                              2
                 JOINT STATEMENT REGARDING POST-DISTRIBUTION ACCOUNTING
                               Case No. 3:21-cv-01418-EMC-KAW
          Case 3:21-cv-01418-EMC         Document 288       Filed 10/28/25    Page 3 of 11




 1   void period, and, upon follow-up from Angeion, the class member chose to receive a second

 2   paper check or did not select any new digital method for the second chance payment. Id.

 3          Of those “second chance” class members, a small percentage experienced a second

 4   payment failure. Angeion issued those class members paper checks in early September, which

 5   were valid until early October. See id. Accordingly, Angeion has now completed distribution to

 6   class members pursuant to the Court-approved settlement distribution plan. The final

 7   distribution figures are further described in the attached post-distribution accounting

 8   declaration from Angeion. Shaffer Decl., ¶¶ 1-6. In sum, $19,407,606.24 was successfully

 9   claimed by class members. Id. at ¶ 5. That yields a 99.28% success rate for distribution of the net

10 settlement amount.

11          While the distribution to class members was highly successful, $136,739.59 remains

12 unclaimed in the settlement fund. Id. Based on Angeion’s professional experience, additional

13 distributions directly to class members are not feasible, given the low amount of the remainder

14 relative to the 124,336 second-distribution claimants, 3 and the expense of additional

15   distribution to those class members. Id. at ¶ 6. Pursuant to the settlement agreement, ECF No.

16 282 at Section X.1., the parties thus submit a proposed cy pres recipient for the $136,739.59

17 residual settlement fund.

18          The parties here propose that the $136,739.59 remainder be distributed to Consumer

19 Reports as the cy pres recipient. Consumer Reports has submitted a letter to the parties

20 regarding its suitability as a cy pres recipient, which is attached to this Joint Statement for the

21 Court’s consideration as Exhibit 2. Consumer Reports meets the standard as an appropriate

22 “next best distribution” to direct distribution to class members here. See Cy Pres Letter from

23 Consumer Reports [CR Letter], Exhibit 2; In re VNGR Beverage, LLC Litig., No. 24-CV-03229-

24 HSG, 2025 WL 1489714, at *6 (N.D. Cal. May 23, 2025) (discussing standard for approval of cy

25 pres recipient for unclaimed remainder funds in a class action); see also Dennis v. Kellogg Co., 697

26
     3 125,241 total validated claimants, less the 905 claimants who have not yet cashed their
27
     checks. Shaffer Decl., ¶ 6.
28
                                             3
                JOINT STATEMENT REGARDING POST-DISTRIBUTION ACCOUNTING
                              Case No. 3:21-cv-01418-EMC-KAW
          Case 3:21-cv-01418-EMC          Document 288        Filed 10/28/25     Page 4 of 11




 1   F.3d 858, 865 (9th Cir. 2012) (same). In order to qualify as an appropriate cy pres recipient, there

 2   must be a “driving nexus between the plaintiff class and the cy pres beneficiaries.” Dennis, 697

 3   F.3d at 865.

 4          Consumer Reports is a nonprofit organization with a long history of working to protect

 5   consumers in the marketplace. CR Letter. Consumer Reports’ advocacy on behalf of consumers

 6   includes a robust practice of protecting consumer privacy. Id. Consumer Reports was an

 7 advocate supporting the passage of the California Consumer Privacy Act (CCPA), and actively

 8 works on behalf of consumers to monitor organizations’ CCPA compliance. Id. Consumer

 9 Reports participates in FCC and FTC notice-and-comment rulemakings, and works to empower
10 consumers through journalism, mobilization, and consumer-facing tools that assist consumers

11 to exercise better control of their personal data in the marketplace. Id. For example, Consumer

12   Reports developed Permission Slip, a free mobile application to enable users to assert their

13   digital rights by sending hundreds of companies legally enforceable requests to stop selling or

14   to delete their personal data. Id. And Consumer Reports coordinates Global Privacy Control, a

15   browser application consumers in California can use to better control the collection and use of

16   data about them as they browse the internet. Id.

17          Consumer Reports has been approved by courts as a cy pres recipient in several other

18   class action lawsuits, including cases with related subject matter as this litigation. Id.; see also In

19   re Google LLC Street View, 611 F.Supp.3d 872, 896 (N.D. Cal. Mar. 18, 2020) (approving settlement

20   with cy pres distribution to Consumer Reports, among other organizations, in case regarding

21   Google’s alleged interception and storage of class member communications); In re Google Inc.

22   St. View Elec. Commc'ns Litig., 21 F.4th 1102, 1109, 1122 (9th Cir. 2021) (affirming settlement

23   approval); Cottle v. Plaid Inc., Case No. 4:20-cv-03056-DMR, ECF Nos. 153, 184 (N.D. Cal. July

24   20, 2022) (approving settlement with cy pres remainder to Consumer Reports in case regarding

25   alleged corporate use and sale of consumer personal information without consumers’ consent);

26   Cortes v. Nat’l Credit Adjusters, L.L.C., No. 216CV00823MCEEFB, 2022 WL 16725056, at *1 (E.D.

27   Cal. Oct. 6, 2022) (affirming distribution of residual class settlement funds to Consumer Reports

28   as appropriate recipient based on Consumer Reports work “to protect consumers against
                                                 4
               JOINT STATEMENT REGARDING POST-DISTRIBUTION ACCOUNTING
                                  Case No. 3:21-cv-01418-EMC-KAW
          Case 3:21-cv-01418-EMC        Document 288       Filed 10/28/25    Page 5 of 11




 1   invasions of their privacy and peace”); Thomas H. Krakauer v. Dish Network LLC, Case No. 1:14-

 2   cv-00333-CCE-JEP, ECF No. 682 (M.D.N.C. Mar. 29, 2024) (Consumer Reports awarded

 3 remainder cy pres distributions in class settlement regarding consumer privacy violations).

 4         Consumer Reports has confirmed its independence from the Court, the parties, or the

 5   attorneys who have litigated this case, and has no conflicts that might impede its approval as a

 6   cy pres recipient here. CR Letter. Because Consumer Reports qualifies as an appropriate “next

 7   best distribution” in this case regarding consumers’ right to control their personal information,

 8   the parties request that the Court approve the settlement administrator to distribute the

 9   residual settlement funds ($136,739.59) to Consumer Reports.

10          Distributions to Class Members Who Selected Prepaid Virtual Payment Cards

11         Of the 125,241 total validated claims, 25,055 (20.01%) selected payment through a virtual

12   prepaid card option. Shaffer Decl. at ¶ 5. When these class members selected their payment

13   option, they were provided information about the details of the prepaid Mastercard, including

14   the card terms and conditions. Id. at ¶ 22. Those class members received their digital prepaid

15 card on April 22, 2025. ECF No. 286 at 2.

16         Shortly after these payments were distributed to class members, on April 24, 2025, a

17 lawsuit was filed in the Eastern District of Pennsylvania, alleging that Angeion (along with

18 other settlement administrators) steered class members to accept settlement funds through
19 prepaid Mastercards because they had undisclosed agreements with the servicers of the

20 prepaid Mastercards that resulted in the companies receiving undisclosed revenues when class

21 members selected the prepaid card option. Baker v. Angeion Group LLC, No. 2:25-cv-02079, ECF

22 No. 1 (E.D. Pa., Apr. 24, 2025). Angeion contests any allegations of wrongdoing. Class Counsel

23 was unaware of any financial relationship between Angeion and the prepaid card servicer prior

24 to the filing of this lawsuit.

25         In this case, class members were not steered towards prepaid cards as a default or sole

26 option. In fact, there was no “default” payment option for class members, who were able to

27 select freely between ACH payments, physical checks, PayPal, Venmo, Zelle, or the prepaid

28 card option. See Shaffer Decl. at ¶ 5. Ultimately, 67.9% of class members selected Venmo, Zelle,
                                                  5
              JOINT STATEMENT REGARDING POST-DISTRIBUTION ACCOUNTING
                                   Case No. 3:21-cv-01418-EMC-KAW
          Case 3:21-cv-01418-EMC          Document 288       Filed 10/28/25     Page 6 of 11




 1   or PayPal, 20.01% selected prepaid cards, and the remainder, 12.09%, selected ACH or physical

 2 check. Id.

 3          According to Angeion, the prepaid Mastercard sent to Class Members in this litigation

 4 is serviced by Blackhawk Engagement Solutions. Id. at ¶10. Angeion has a contract with

 5 Blackhawk that sets forth general terms for engagements in which Angeion subcontracts with

 6 Blackhawk to provide a pre-paid digital payment card option. The revenue from Blackhawk

 7 received by Angeion does not result in any increased cost to the settlement account, does not

 8 depend on the extent to which class members in this case use or do not use their cards, and

 9   does not reduce the funds available to be distributed to Class Members in this case. Id. at ¶¶

10   20-21. Angeion has not shared its agreements with Blackhawk either with Class Counsel or with

11   counsel in other cases. See Cabrera v. Google LLC, No. 5:11-CV-01263-EJD, 2025 WL 2494429, at

12   *4-5 (N.D. Cal. Aug. 29, 2025); In re: Facebook, Inc. Consumer Privacy User Profile Litig., No. 3:18-

13   md-02843-VC, ECF No. 1238 at 3 (N.D. Cal. Aug. 14, 2025). However, Angeion has shared these

14   agreements with these courts in camera, and in both cases, the pre-paid cards were approved to

15   remain in both settlements and Angeion remained settlement administrator. Cabrera, 2025 WL

16   2494429, at *4-5; In re: Facebook, Inc. Consumer Privacy, ECF No. 1241 (N.D. Cal. Aug. 27, 2025).

17          The parties have taken the following steps to provide this information again to class

18   members who chose the prepaid card option. First, they updated the settlement website in this

19   case to ensure that class members had access to this information as well. See Cabrera, 2025 WL

20   2494429, at *5 (granting final approval to class settlement with Angeion as administrator after

21   in camera review of Angeion’s contractual agreement with prepaid card servicer, but ordering

22   a similar disclosure to be placed on the settlement website); Shaffer Decl. ¶ 22. Second, they

23   updated the settlement website to include additional information about the fees that class

24   members may be charged in connection with the prepaid Mastercard option in this litigation.

25   Those fees, which were also disclosed to class members when they selected their payment

26   option, include an inactivity fee (of $0.95 per month) that begins after 12 months without any

27   transactions on the card. See id. at ¶¶ 14, 22. If class members do not want to use the prepaid

28   card directly, they have the option to transfer the funds left on the card to their bank account
                                                   6
                 JOINT STATEMENT REGARDING POST-DISTRIBUTION ACCOUNTING
                                   Case No. 3:21-cv-01418-EMC-KAW
          Case 3:21-cv-01418-EMC        Document 288       Filed 10/28/25    Page 7 of 11




 1   and there are no fees for such transfers. Id. at ¶ 7. Accordingly, there is already a built-in

 2 mechanism for any class member who selected the prepaid card to redirect their payment to

 3 their bank account through no additional cost. Id. Inactivity service fees charged against the

 4 balance on a dormant pre-paid digital payment card will be restored and added back to the

 5 value of the card if Blackhawk determines through a periodic review of account activity that

 6 the Class Member re-engages through a use of value on the card following a service fee

 7 assessment, which is done automatically by Blackhawk. Id. at ¶¶ 7, 17. All of this information

 8 is available to class members on the settlement website as of October 7, and again was shared

 9 at the outset in the card terms and conditions provided to class members when they submitted
10 their payment selection. Id. at ¶¶ 22.

11         No class members here have yet to incur inactivity fees, which would not begin to accrue

12 until, at the earliest, April 2026. See id. at ¶ 7. At 11 months of inactivity (a month prior to the

13 first inactivity fee), class members will receive an email from the card servicer reminding them

14 that they have an unused balance on the prepaid card, and notifying them that if they do not

15 begin to use the card, they will accrue inactivity fees. Id. Angeion does not have insight into the

16 percentage of class members who have already used their prepaid cards, as once the card is

17 successfully redeemed by the class member and the payment has been distributed out of the

18 settlement fund, Angeion no longer has any view into how the class members use (or whether
19 they use) the funds they received. See id. at ¶¶ 20-21. Contact information for Blackhawk, the

20 card servicer, was also made available to class members when they selected their payment

21 option, and was added to the settlement website in this case. Id. at ¶ 22.

22         At this stage, class members have successfully received 99.28% of the net settlement fund

23 that this Court approved in its Final Approval Order. With a small remainder distribution to

24 Consumer Reports, all funds will be successfully distributed consistent with the best interests

25 of the class.

26         If the Court would like an employee from Angeion to attend the post-distribution

27 accounting hearing to be held over Zoom on November 4, Angeion will be happy to attend.

28 The parties ask that, should the Court seek to have an Angeion attendee at the status conference,
                                                  7
              JOINT STATEMENT REGARDING POST-DISTRIBUTION ACCOUNTING
                                  Case No. 3:21-cv-01418-EMC-KAW
          Case 3:21-cv-01418-EMC         Document 288       Filed 10/28/25      Page 8 of 11




 1   it inform class counsel in the notice of the hearing or by email prior to the hearing.

 2

 3
     DATED: October 28, 2025                       GIBBS MURA LLP
 4

 5                                                 Respectfully submitted,

 6
                                                   /s/ Andre M. Mura
 7

 8
                                                   Andre M. Mura (SBN 298541)
 9                                                 Ezekiel S. Wald (SBN 341490)
                                                   GIBBS MURA LLP
10                                                 1111 Broadway, Suite 2100
11                                                 Oakland, California 94607
                                                   (510) 350-9700
12                                                 amm@classlawgroup.com
                                                   zsw@classlawgroup.com
13

14                                                 Geoffrey A. Graber (SBN 211547)
                                                   Karina G. Puttieva (SBN 317702)
15                                                 COHEN MILSTEIN SELLERS & TOLL PLLC
                                                   1100 New York Ave. NW, Suite 800
16
                                                   Washington, DC 20005
17                                                 Telephone: (202) 408-4600
                                                   Facsimile: (202) 408-4699
18                                                 ggraber@cohenmilstein.com
19                                                 kputtieva@cohenmilstein.com

20
                                                   Attorneys for Plaintiffs and the Certified Class
21

22

23

24

25

26

27

28
                                             8
                JOINT STATEMENT REGARDING POST-DISTRIBUTION ACCOUNTING
                              Case No. 3:21-cv-01418-EMC-KAW
         Case 3:21-cv-01418-EMC   Document 288   Filed 10/28/25        Page 9 of 11




 1   DATED: October 28, 2025              PERKINS COIE LLP

 2
                                          By: /s/ Susan D. Fahringer
 3

 4                                            Susan D. Fahringer (SBN 21567)
                                              Nicola C. Menaldo (pro hac vice)
 5                                            Anna M. Thompson (pro hac vice)
                                              1201 Third Avenue, Suite 4900
 6
                                              Seattle, WA 98101-3099
 7                                            Telephone: (206) 359-8000
                                              Facsimile: (206) 359-9000
 8                                            SFahringer@perkinscoie.com
 9                                            NMenaldo@perkinscoie.com
                                              AnnaThompson@perkinscoie.com
10
                                              Hayden M. Schottlaender (pro hac vice)
11
                                              PERKINS COIE LLP
12                                            500 N. Akard Street, Suite 3300
                                              Dallas, Texas 75201-3347
13                                            Telephone: (214) 965-7700
                                              Facsimile: (214) 965-7799
14
                                              HSchottlaender@perkinscoie.com
15
                                              Gabriella Gallego (SBN 324226)
16                                            PERKINS COIE LLP
17                                            3150 Porter Drive
                                              Palo Alto, CA 94304-1212
18                                            Telephone: (650) 838-4300
                                              Facsimile: (650) 838-4350
19
                                              GGallego@perkinscoie.com
20
                                              Attorneys for Defendant
21                                            Thomson Reuters Corporation
22

23

24

25

26

27

28
                                           9
              JOINT STATEMENT REGARDING POST-DISTRIBUTION ACCOUNTING
                            Case No. 3:21-cv-01418-EMC-KAW
         Case 3:21-cv-01418-EMC        Document 288       Filed 10/28/25    Page 10 of 11




 1                                       [PROPOSED] ORDER

 2         The parties’ request for cy pres distribution of residual settlement funds is GRANTED.

 3   Consumer Reports, a nationwide non-profit organization with a robust history of consumer

 4   privacy advocacy in California, has a driving nexus to the privacy claims asserted on behalf of

 5   Californians in this action. Dennis, 697 F.3d at 865. Consumer Reports qualifies as the “next

 6   best recipient” for the small remainder of the settlement fund here, which cannot feasibly be

 7   distributed directly to class members. See id. Accordingly, the Court approves Consumer

 8   Reports as the cy pres recipient of the residual settlement funds. The Settlement Administrator

 9   is directed to distribute the residual settlement funds to Consumer Reports within 90 days of

10   this Order.

11

12    DATED: ___________________                     __________________________
                                                     The Hon. Edward M. Chen
13                                                   United States District Judge
14

15

16

17

18
19

20

21

22

23

24

25

26

27

28
                                                10
                   JOINT STATEMENT REGARDING POST-DISTRIBUTION ACCOUNTING
                                 Case No. 3:21-cv-01418-EMC-KAW
         Case 3:21-cv-01418-EMC         Document 288       Filed 10/28/25     Page 11 of 11




 1                                           ATTESTATION

 2         Pursuant to Civil Local Rule 5-1(i)(3), I attest that concurrence in the filing of this

 3   document has been obtained from the other signatory.

 4

 5                                                          /s/ Andre M. Mura

 6

 7

 8

 9
10

11

12

13

14

15

16

17

18
19

20

21

22

23

24

25

26

27

28
                                            11
               JOINT STATEMENT REGARDING POST-DISTRIBUTION ACCOUNTING
                             Case No. 3:21-cv-01418-EMC-KAW


File and source

File
gov.uscourts.cand.374304.288.0.pdf
Size
215,461 bytes
SHA-256
6f697ec181c42afaf99944363e8b73abdf2faeeef7bf3a786a541983c5efc797
Our copy
gov.uscourts.cand.374304.288.0.pdf
Original
PACER (login required)
Back to top