9 8 ADRIANA C. SANCHEZ 10 Attorneys for Plaintiff, 7 ...

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PLAINTIFF ADRIANA SANCHEZ’S NOTICE OF LODGING JOINT STIPULATION OF CLASS ACTION

SETTLEMENT AND RELEASE

Shaun Setareh (SBN 204514) [email protected] Thomas Segal (SBN 222791) [email protected] SETAREH LAW GROUP 315 S. Beverly Drive, Suite 315 Beverly Hills, California 90212 Telephone: (310) 888-7771 Facsimile: (310) 888-0109 Attorneys for Plaintiff, ADRIANA C. SANCHEZ

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES, CENTRAL CIVIL WEST ADRIANA SANCHEZ, on behalf of herself and all others similarly situated, Plaintiff, vs. OSTERKAMP TRANSPORTATION GROUP, a California corporation; DEDICATED FLEET SYSTEMS, INC., a California corporation; FRONTIER TRANSPORTATION, INC., a California corporation, OSTERKAMP TRUCKING, INC., a California Corporation; and DOES 1-100, inclusive,

Defendants.

Case No. BC661121 PLAINTIFF ADRIANA SANCHEZ’S NOTICE OF LODGING JOINT STIPULATION OF CLASS ACTION SETTLEMENT AND RELEASE Action Filed: May 16, 2017 Trial Date: Not Set

E-Served: Apr 23 2020 11:31AM PDT Via Case Anywhere

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1

PLAINTIFF ADRIANA SANCHEZ’S NOTICE OF LODGING JOINT STIPULATION OF CLASS ACTION SETTLEMENT AND RELEASE

TO ALL PARTIES AND THEIR ATTORNEYS OF RECORD HEREIN:

Please take notice that attached as Exhibit “A” is Joint Stipulation of Class

Action Settlement and Release.

Date: April 23, 2020 SETAREH LAW GROUP

By: /s/ Shaun Setareh SHAUN SETAREH THOMASSEGAL Attorneys for Plaintiff ADRIANA C. SANCHEZ

EXHIBIT “A”

DocuSign Envelope ID: D4F2C612-CEEE-4BA2-95F9-BFFCB1C5D2EE

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1 STIPULATION OF CLASS ACTION SETTLEMENT

CASE NO. BC661121

Shaun Setareh (SBN 204514) [email protected] Thomas Segal (SBN 222791) [email protected] Farrah Grant (SBN 293898) [email protected] SETAREH LAW GROUP 315 South Beverly Drive, Suite 315 Beverly Hills, California 90212 Telephone (310) 888-7771 Facsimile (310) 888-0109 Attorneys for Plaintiff ADRIANA C. SANCHEZ Yass McNeil, Esq. (SBN 162401) [email protected] Babak Sotoodeh, Esq. (SBN 116254) LAW OFFICES OF SOTOODEH & ASSOCIATES 5 Hutton Centre Dr., Suite 860 Santa Ana, CA 92707 Telephone (714) 662-2664 Facsimile: (714) 838-0585 Attorney for Defendants, OSTERKAMP TRANSPORTATION GROUP, DEDICATED FLEET SYSTEMS, INC., FRONTIER TRANSPORTATION, INC., and OSTERKAMP TRUCKING, INC.

SUPERIOR COURT OF THE STATE OF CALIFORNIA

COUNTY OF LOS ANGELES, CENTRAL CIVIL WEST

ADRIANA SANCHEZ, on behalf of herself and all others similarly situated, Plaintiff, vs. OSTERKAMP TRANSPORTATION GROUP, a California corporation; DEDICATED FLEET SYSTEMS, INC., a California corporation; FRONTIER TRANSPORTATION, INC., a California corporation, OSTERKAMP TRUCKING, INC., a California Corporation; and DOES 1-100, inclusive,

Defendants.

Case No. BC661121 JOINT STIPULATION OF CLASS ACTION SETTLEMENT AND RELEASE

Complaint Filed: May 16, 2017 Trial Date: None Set


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CASE NO. BC661121

This Joint Stipulation of Class Action Settlement and Release (“Stipulation of Settlement”

or “Agreement”) is made and entered into by and between (a) Plaintiff Adriana Sanchez

(“Plaintiff,” or “Class Representative”), individually and as Class Representatives on behalf of the

Class (defined below), and counsel for Plaintiff, Shaun Setareh, Thomas Segal, and Farrah of

Setareh Law Group, on the one hand; and (b) Defendants Osterkamp Transportation Group,

Dedicated Fleet Systems, Inc., Frontier Transportation, Inc., and Osterkamp Trucking, Inc.

(“Defendants”), on the other hand. Subject to the approval of the Court, it is hereby stipulated and

agreed by and among the Class Representatives (defined below), individually and on behalf of the

Class (defined below) and Defendants, by and through Defendant’s Counsel of record, that this

Action (defined below) and the Released Claims (defined below) shall be finally and fully

compromised, settled and released on the following terms and conditions:

I.

DEFINITIONS

As used in this Stipulation of Settlement, the following terms have the meanings specified

below:

1. “Action” means the case entitled " Adriana Sanchez, on behalf of herself and all

others similarly situated, Plaintiff, v. Osterkamp Transportation Group, a California

corporation; Dedicated Fleet Systems, Inc., a California corporation; Frontier

Transportation, Inc., a California corporation, Osterkamp Trucking, Inc., a

California Corporation; and DOES 1-100, inclusive, Defendants," Case No.

BC661121, pending before the Superior Court of the State of California for the

County of Los Angeles, and the Complaint Filed on May 16, 2017.

2. “Administrator” means Simpluris, Inc., who shall perform the customary duties of

a Claims Administrator including, but not limited to, the duties enumerated in this

Agreement.

3. “Class” means the class, to be certified for settlement purposes only, of all present,

former and prospective applicants for employment in the United States who applied


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CASE NO. BC661121

for a job with Defendants at any time during the period beginning five years prior

to the filing of this action, May 16, 2012 and to the date of entry of the Court's order

granting preliminary approval of the settlement reflected in this Agreement.

4. “Class Counsel” means the Setareh Law Group, which shall seek formal

appointment as Class Counsel in the Motion for Preliminary Approval.

5. “Class Member(s)” means an individual or individuals who fall(s) within the

definition of the Class.

6. “Class Period” means time period beginning on May 16, 2012 and continuing to the

date of entry of the Court's order granting preliminary approval of the settlement

reflected in this Agreement.

7. “Class Representative” or “Plaintiff” means Plaintiff Adriana Sanchez.

8. “Court” means the Los Angeles County, California Superior Court presiding over

this Action.

9. “Defendants” means Defendants Osterkamp Transportation Group, Dedicated Fleet

Systems, Inc. Frontier Transportation, Inc. and Osterkamp Trucking, Inc.

10. “Effective Date” means the first court day immediately following the last of the

following occurrences: (I) this Agreement has been executed by the Class

Representatives, individually and on behalf of the Class, Class Counsel, Defendants

and counsel for Defendants; (ii) the Court has entered an order granting preliminary

approval of the settlement set forth in this Agreement in accordance with its terms;

(iii) Notice has been sent to the Class Members (defined herein) and, among other

things, providing them with notice of this class action settlement and giving them

an opportunity to object to the terms of the settlement or to opt out of the settlement;

(iv) the Court has held a formal fairness hearing and granted final approval of the

settlement set forth in this Agreement and certified the Class for settlement purposes

only; (v) the Court has entered an order granting final approval of the settlement

reflected in this Agreement; (vi) the Court has entered a final Judgment in


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CASE NO. BC661121

accordance with this Agreement (but with the Court retaining jurisdiction for

purposes of enforcing this Agreement); and (vii) the occurrence of the “Effective

Date of Judgment,” which shall be deemed to be the last to occur of the following:

a. Ten (10) court days after the date and time to appeal or to seek permission

to appeal or to seek other judicial review of the Court's order and the

Judgment finally approving the settlement reflected in this Agreement has

expired with no appeal or other judicial review having been filed or sought;

or

b. If an appeal or other judicial review has been filed, taken or sought, ten (10)

court days after the date on which the order granting final approval and the

Judgment is affirmed by an appellate court (without any alteration of the

Maximum Settlement Amount or any material alteration of any of the other

terms of this Joint Stipulation including, but not limited to, the scope of the

Released Claims and Released Persons) with no possibility of subsequent

appeal or other judicial review therefrom, or ten (10) court days after the

date the appeal(s) or other judicial review therefrom are finally dismissed

with no possibility of a subsequent appeal or other further judicial review.

11. “Final Approval” means the date when all of the following have occurred: (1) the

Court has conducted a Final Fairness and Approval Hearing and has entered an order

granting final approval of the settlement reflected in this Agreement; and (2) the

Court has entered a Judgment in accordance with the terms of this Agreement but

retaining continuing jurisdiction limited to enforcing the settlement reflected in this

Joint Stipulation.

12. “Final Approval Order” means the Court’s order granting final approval of this

Agreement.

13. “Final Fairness and Approval Hearing” means the hearing at, or as a result of which,

the Court enters the Final Approval Order.


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CASE NO. BC661121

14. “Judgment” means the judgment to be rendered in accordance with the terms of this

Agreement and entered by the Court (with the Court retaining continuing

jurisdiction to enforce the settlement reflected in this Agreement).

15. “Operative Complaint” means the Complaint filed by Plaintiff in the Action.

16. “Osterkamp Released Parties” means Defendants and their past or present directors,

officers, employees, partners, principals, agents, corporate parents, subsidiaries and

affiliates (including all corporations, limited liability corporations, or any other

business organizations associated with such corporate parents, subsidiaries and

affiliates), professional employer organizations (including, without limitation,

Western Freight Systems, Inc.), payroll administrators (including, without

limitations, ADP), underwriters, issuers, insurers, coinsurcrs, reinsurers, controlling

shareholders, any entity in which the Person has a controlling interest, advisors,

personal or legal representatives, clients, predecessors, successors, parents,

subsidiaries, joint ventures, assigns, spouses, heirs, associates, related or affiliated

entities. (corporations, limited liability corporation, or any other business

organization), any members of his/her/its immediate families, or any trust of which

any Person is the settlor, or which is for the benefit of any Person and/or member(s)

of his or her family.

17. “Plaintiff” means Plaintiff Adriana Sanchez.

18. “Parties” means Plaintiff and Defendants, collectively.

19. “Person” means an individual, corporation, partnership, limited partnership,

association, joint stock company, estate, legal representative, trust, unincorporated

association, government or any political subdivision or agency thereof, and any

business or legal entity and the spouses, heirs, predecessors, successors,

representatives or assignees of any of them. “Request for Exclusion” means a

written notification stating that a person wishes to be excluded from the Settlement

Class. The notification must contain: (a) the name, address, and telephone number


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CASE NO. BC661121

of the person requesting exclusion; (b) the last four digits of the person’s Social

Security Number; (c) the name of this Action; (d) a clear statement that the person

is requesting exclusion form the Settlement Class and does not want to participate

in the Settlement; and (e) the signature of the person requesting to be excluded.

20. “Response Deadline” means the deadline by which Class Members must postmark

to the Settlement Administrator valid Requests for Exclusion, or file and serve

objections to the Settlement. The Response Deadline will be thirty (45) calendar

days from the mailing of the Notice of Settlement and Release of Claims by the

Settlement Administrator (defined below), unless the 45 day falls on a Saturday,

Sunday or Federal holiday, in which case the Response Deadline will be extended

to the next day on which the U.S. Postal Service is open.

21. “Settlement Administrator” means the third-party class action settlement claims

administrator, or any other third-party class action settlement claims administrator

agreed to by the Parties and approved by the Court. The Settlement Administrator

shall mail the Court-approved Notices to all Class Members, shall receive and

process Requests for Exclusion, and shall calculate and send the Settlement Cash

Payments (defined below) to the Settlement Class. The Parties each represent that

they do not have any financial interest in the Settlement Administrator or otherwise

have a relationship with the Settlement Administrator that could create a conflict of

interest. All reasonable costs and expenses incurred by the Settlement

Administrator will be paid out of the Settlement Fund.

22. “Settlement Cash Payment” means all payments to the Settlement Class that is

structured as follows: each Settlement Class Participant shall receive a pro rata share

of the Net Settlement Proceeds, which will be calculated by dividing the number of

Settlement Class Participants into the Net Settlement Amount.

23. “Settlement Class” or “Settlement Class Participant” means all Class Members who

did not timely opt-out of the settlement by submitting a proper Request for


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CASE NO. BC661121

Exclusion.

24. “Settlement Effective Date” means the earliest of the following events: (1) in the

event there are written objections to the Stipulation of Settlement filed prior to the

Final Fairness Hearing which are denied or withdrawn, the date on which the time

for filing any appeal, writ, or other appellate proceeding, including those by Class

Counsel regarding the apportionment of attorneys’ fees and costs, opposing the

Court’s final order approving the Stipulation of Settlement has elapsed without any

appeal, writ, or other appellate proceeding having been filed; (2) in the event there

are written objections filed prior to the Final Fairness Hearing which are not denied

or withdrawn and any appeal, writ, or other appellate proceedings, including those

by Class Counsel regarding the apportionment of attorneys’ fees and costs, opposing

the Court’s final order approving the Stipulation of Settlement has been filed, the

date on which any appeal, writ, or other appellate proceedings opposing the Court’s

final order approving the Stipulation of Settlement has been finally and conclusively

dismissed with no right to pursue further remedies or relief; (3) if there are no written

objections to the Stipulation of Settlement filed or all written objections have been

withdrawn prior to the close of the Final Approval hearing, but Class Counsel

appeals or seeks review of the Court’s order as to Class Counsel’s attorneys’ fees

and/or costs, the date on which any appeal, writ, or other appellate proceedings

opposing the Court’s final order approving the Stipulation of Settlement has been

finally and conclusively dismissed with no right to pursue further remedies or relief;

or (4) if there are no written objections to the Stipulation of Settlement filed or all

written objections have been withdrawn prior to the close of the Final Approval

hearing, the Court’s entry of the Final Approval Order and fifteen (15) calendar days

have passed since the Court has entered a final Order and Judgment certifying the

Settlement Class, entering judgment of the Action, and approving the Stipulation of

Settlement. Within fifteen (15) calendar days of the Settlement Effective Date,


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CASE NO. BC661121

Osterkamp will tender to the Settlement Administrator all required payments under

the settlement agreement: the settlement payments to qualifying class members;

attorneys’ fees and costs; settlement claims administration fees; and the

enhancement payment to Plaintiff.

25. “Settlement Fund” means a fund consisting of Five Hundred Thousand Dollars and

Zero Cents ($500,000.00) to be paid by Defendants, inclusive of: (i) Court-approved

attorneys’ fees and costs; (ii) the Court-approved Enhancement Payment; (iii) all

settlement administration fees and costs; and (iv) payments to be made on a pro rata

basis via check to the Settlement Class via the Settlement Cash Payment.

26. “Valid Claimant” means each Class Member who (a) has not opted out of this class

action settlement.

II.

RECITALS AND BACKGROUND

1. On May 16, 2017, Plaintiff filed this putative class action on behalf of herself and

all other employees, and prospective applicants for employment similarly situated entitled Adriana

Sanchez v. Osterkamp Transportation Group, et al., Case No. BC661121, in the Los Angeles

County Superior Court. The Complaint asserts Four causes of action under the Fair Credit

Reporting Act (“FCRA”), the California Consumer Credit Reporting Agencies Act (“CCRAA”)

and the California Investigative Consumer Reporting Agencies Act (“ICRAA”) for alleged: (1)

violation of 15 U.S.C. §1681b(b)(2)(A), (2) Violation of 15 U.S.C. §§1681g(c), (3) Violation of

California Civil Code §1786 et. seq., (4) Violation of California Civil Code §1785 et seq. Plaintiff's

claims were asserted in her individual capacities and on behalf of a class of former and prospective

applicants for employment in the United States who applied for a job with Defendants at any time

during the period beginning five years prior to the filing of this action, May 16, 2012 to present.

2. Among other things set forth in the Operative Complaint, Plaintiff alleges that

Defendants’ background check disclosure forms include “extraneous information” in violation of

these statutes listed above; Defendants failed to give proper summary of rights in violation of


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CASE NO. BC661121

FCRA; Defendants failed to make proper disclosures in violation of ICRAA; Defendants failed to

make proper disclosures in violation of CRAA; Defendants willfully failed to comply with the

FCRA, ICRAA and/or the CRAA requirements.

3. On September 19, 2017, Defendants filed their Answers to the Operative Complaint

denying Plaintiff’s allegations and claims, and asserting various defenses and affirmative defenses.

Defendants deny any liability or wrongdoing of any kind associated with the claims alleged in the

Action, and the claims that could have been alleged in the Action, and further deny that the Action

is appropriate for class treatment for any purpose other than this settlement. Defendants contend

that they have complied at all times with the FCRA, CCRAA, and ICRAA. Defendants have

concluded, however, that further litigation of the Action would be protracted and expensive.

4. Following informal and formal discovery and mediation with Mediator Mariam

Zadeh on February 20, 2019, the Parties reached a preliminary settlement on a class-wide basis, the

terms of which are set forth in this Agreement.

5. The entry of final judgment in this Action shall resolve this entire Action and all

claims alleged in the Action in accordance with this Agreement.

III.

NO ADMISSION

1. The Parties expressly acknowledge and agree that neither the fact of, nor any

provision contained in this Agreement, nor the implementing documents or actions taken under

them, nor Defendants’ willingness to enter into this Agreement, nor the content or fact of any

negotiations, communications, and discussions associated with the settlement shall constitute or be

construed as an admission by or against Defendants or any of the Osterkamp Released Parties of

the validity of any claim or fact alleged in this Action, or any infirmity of any defenses asserted by

Defendants in this Action, nor of any other fault, wrongdoing, violation of the law, or liability

whatsoever.

//

//


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CASE NO. BC661121

IV.

PARTIES’ RECOGNITION OF THE BENEFITS OF SETTLEMENT

1. The mutual costs, risks, and hazards of continuing to prosecute and defend the

Action have led the Parties to resolve the matter by way of settlement.

2. The Parties have conducted significant investigation of the facts and law during the

prosecution of this Action, including without limitation, formal discovery, informal document

productions and review of class data. Class Counsel has conducted a study and investigation of the

law and facts relating to the claims that were asserted and that could have been asserted, as well as

a study and investigation of the scope and identity of the Settlement Class, and has concluded,

taking into account the benefits of this settlement, as outlined below, and the risks and delays of

further litigation, as well as having evaluated the strengths and weaknesses of Plaintiff’s claims and

Defendants’ defenses, that this settlement is fair, reasonable, and adequate, and in the best interests

of the Plaintiff and all members of the Class and Subclasses affected by it.

3. Defendants have denied and continue to deny each of the claims and contentions

Plaintiff alleged in the Action. Neither this Agreement, nor any document referred to or

contemplated in this Agreement, nor any action taken to carry out this Agreement, is or may be

construed or used in the Action or in any other action, litigation, or proceeding as an admission,

concession, or indication by or against Defendants of any fault, wrongdoing, or liability.

4. Defendants deny they have engaged in any wrongdoing; do not admit or concede

any actual or potential fault, wrongdoing, or liability in connection with any facts or claims that

have been or could have been alleged against it in the Action; deny that the claims asserted by

Plaintiff are suitable for class treatment other than for settlement purposes; and deny that they have

any liability whatsoever. Defendants also have denied and continue to deny, inter alia, the

allegations that the Potential Class Members have suffered damage; that Defendants engaged in

any unlawful, unfair, or fraudulent business practices; that Defendants engaged in any wrongful

conduct as alleged in the Action; or that the Potential Class Members were harmed by the conduct

alleged in the Action. Neither this Agreement, nor any document referred to or contemplated


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CASE NO. BC661121

herein, nor any action taken to carry out this Agreement, is, may be construed as, or may be used

as an admission, concession, or indication by or against Defendants of any fault, wrongdoing, or

liability whatsoever.

5. The Parties have concluded that any further prosecution and/or defense of this

litigation would be protracted and expensive for all Parties. Substantial amounts of time, energy,

and resources of the Parties have been and, unless this Stipulation of Settlement is made, will

continue to be used for the litigation of the Claims asserted by Potential Class Members and

defenses thereto. The Parties have also taken into account the risks of further litigation in reaching

its decision to enter into this Settlement. The Parties, have, therefore, agreed to settle in the manner

and upon the terms set forth in this Agreement to put to rest the Claims as set forth in the Action

with respect to the Potential Class Members.

6. In light of the above recitals, the Parties understand and agree that the claims

asserted here shall be settled, compromised, and released, subject to the approval of the Court upon

and subject to the following terms and conditions.

V.

TERMS AND CONDITIONS OF THE SETTLEMENT

The financial terms of settlement are as follows:

1. Maximum Settlement Amount: The Parties agree to settle this Action for a

Maximum Settlement Amount of Five Hundred Thousand Dollar ($500,000.00) (“the Maximum

Settlement Amount”) which is the maximum amount of consideration to be provided and paid by

Defendants pursuant to this Agreement. The Maximum Settlement Amount includes all settlement

payments to Class Members, the attorneys' fees of Class Counsel, Class Counsel’s costs and

expenses (which includes, without limitation, all such fees and costs incurred to date, as well as such

fees and costs to be incurred in documenting the settlement, securing Court approval of the

settlement, and obtaining a dismissal of the Action), the Enhancement Payment (defined below) to

the Class Representative, as approved by the Court, and all costs of administration, including,

without limitation, settlement administration fees and expenses.


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CASE NO. BC661121

The payment set forth in Paragraph V.(1)(a) shall constitute the entire consideration

provided under this Agreement and that the Class Members will not seek any further compensation

for any other claim, damage, costs or attorneys’ fees in connection with the matters encompassed in

this Agreement, or in connection with their employment or application for employment with

Defendants.

2. Net Settlement Proceeds: the Maximum Settlement Amount less the amounts

approved and awarded by the Court for: attorneys' fees and documented litigation costs and expenses

incurred or advanced by Class Counsel, the Enhancement Payment to the Class Representative, and

the costs of administering the settlement.

3. Attorneys’ Fees and Costs: Plaintiff may apply to the Court for an award of

attorneys’ fees and costs. The attorneys’ fees agreed upon by the Parties and approved by the Court

for Class Counsel’s litigation and resolution of the Action, include all costs incurred and to be

incurred by Class Counsel in the Action, including, but not limited to, costs associated with

documenting the Agreement, securing the Court’s approval of the Agreement, obtaining entry of

the Judgment terminating the Action, and expenses for any experts. Class Counsel may request

attorneys’ fees not to exceed One Hundred Sixty Six Thousand, Six Hundred Sixty-Six Dollars and

Sixty Six Cents ($166,666.66) and litigation costs and expenses not to exceed Twenty Five

Thousand Dollars ($25,000.00). Should the Court approve a lesser amount, the un-awarded amount

shall be paid to Class Members who have not submitted a valid and timely Request for Exclusion

Form in an amount proportionate to the value of their Individual Payment Amounts. An IRS Form

1099 will be issued to Class Counsel with respect to its award of attorneys' fees. Defendants agree

not to oppose Class Counsel’s request for fees and reimbursement of costs to the extent consistent

with the above.

4. Settlement Administration Costs: The fees and other charges of the Settlement

Administrator, Simpluris Inc., to administer the Settlement shall not exceed Twenty Thousand

Dollars ($20,000.00) and will be paid from the Maximum Settlement Amount. Simpluris estimates

that it will cost $16,000 to administer the settlement if postcard notice is mailed out. Simpluris


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CASE NO. BC661121

estimates that it will cost $20,000 to administer the settlement if the long form notice is sent out

rather than postcard notice. Should the Court approve a lesser amount, the un-awarded amount shall

be paid to Class Members who have not submitted a valid and timely Request for Exclusion Form

in an amount proportionate to the value of their Individual Payment Amounts. All disputes relating

to the Administrator's ability and need to perform its duties shall be referred to the Court, if

necessary, which shall have continuing jurisdiction over the terms and conditions of this Stipulation

of Settlement until all payments and obligations contemplated by this Stipulation of Settlement

have been fully carried out. The Administrator may be contacted c/o Simpluris, Inc., 3194-C Airport

Loop Drive, Costa Mesa, 92626; Attention: Daniela Rojas; Electronic Mail: [email protected];

Telephone: (800) 779-2104.

5. Monetary Benefits to Settlement Class. In exchange for the releases and waivers

of claims described below, Defendants will instruct the Settlement Administrator to establish the

Settlement Fund for the purpose of sending the Settlement Cash Payment.

6. Enhancement Payment to Plaintiff. The amount awarded to the Class

Representative as a service payment and in consideration of her general release of all claims against

Defendants will be set by the Court in its discretion, not to exceed Five Thousand Dollars

($5,000.00). This amount will be deducted from the Maximum Settlement Amount. Should the

Court approve a lesser amount, the un-awarded amount shall be paid to Class Members who have

not submitted a valid and timely Request for Exclusion Form in an amount proportionate to the value

of their Individual Payment Amounts. Defendants shall have no other payment obligations owed to

Plaintiff for any amount, individually or collectively, directly or indirectly, however denominated

or for whatever purpose allegedly incurred other than an amount she may recover as a member of

the Settlement Class. While Plaintiff may appeal a decision by the Court to award less than

$5,000.00, this will not be grounds for abrogating the Agreement. Defendants agree to not dispute

or otherwise object to the Enhancement Payment if Plaintiff requests Five Thousand Dollars

($5,000.00) or less.

7. Settlement Administration Costs. The Settlement Administrator shall be paid a


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fee not to exceed Fifteen Thousand Dollars ($15,000.00) to administer the settlement process,

pursuant to a mutually-acceptable contract. In the event the Court requires a Notice of Final

Judgment (or similar notice), the costs associated with any such notice(s) shall be deemed as part of

the Settlement Administrator’s fee. Defendants agree to pay the Settlement Administrator’s fee

from the Settlement Fund. Under no circumstances will the claims administration fees cause the

Maximum Settlement Amount to exceed Five Hundred Thousand Dollars and Zero Cents

($500,000.00).

8. Un-cashed Settlement Checks. Any checks issued by the Settlement

Administrator on behalf of Defendants to Settlement Class will be negotiable for 180 calendar days.

Those funds represented by Settlement Cash Payment checks returned as undeliverable and those

settlement checks remaining un-cashed for more than 180 calendar days after issuance will be

distributed to the Inner City Law Center or another nonprofit organization to be approved by the

Court. In compliance with Cal. Code of Civil Procedure Section 384, the judgment will be re-opened

following final distribution, and Defendants will provide the payment of accrued interest on the

unclaimed amount due to uncashed settlement checks to the cy pres Inner City Law Center.

9. Taxes. The Parties agree that the payments to Settlement Class are not wages, and

that each Settlement Class Participant will be solely responsible for correctly characterizing this

payment for tax purposes and for paying any taxes owed on this payment, and the Settlement

Administrator will issue to each Settlement Class Participant an IRS Form 1099 for this payment.

The Parties also agree that the approved Class Representative Enhancement Payment for Plaintiff is

not wages, and Plaintiff will be solely responsible for correctly characterizing this payment for tax

purposes and for paying any taxes owed on this payment, and Defendants will issue to Plaintiff an

IRS Form 1099 for this payment. Defendants make no representation as to the taxability of the

amounts paid to Settlement Class Participants. Settlement Class Participants agree to pay federal or

state taxes, if any, which are required by law to be paid by Settlement Class Participants with respect

to this settlement.

10. Payments to Settlement Class Participants. All payments to Settlement Class


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Participants will be mailed by the Settlement Administrator by check and delivered by first-class

U.S. mail, postmarked within thirty (30) calendar days of the Settlement Effective Date. The

Settlement Administrator will include with each check an itemized IRS Form 1099. All checks will

expire 180 calendar days after they are issued and will state this on their face. If any such payment

is returned by the U.S. Postal Service as undeliverable, or is uncashed or not negotiated before it

expires, neither Defendants nor Class Counsel shall have any further obligations to Plaintiff or any

Settlement Class Participant, except that: (a) for any check returned by the U.S. Postal Service with

a forwarding address before the check’s expiration date, the Settlement Administrator will mail the

check to the forwarding address; and (b) if, prior to the check cashing deadline, Plaintiff or any

Settlement Class Participant contacts the Settlement Administrator to request a replacement check,

the Settlement Administrator will comply with that request by cancelling the initial check and

issuing a replacement check. The residue from uncashed checks will be distributed to the Inner City

Law Center or another nonprofit organization to be approved by the Court.

Defendants shall fully discharge its obligations to those Settlement Class Members who are

Valid Claimants through the Administrator's mailing of a check representing the Settlement

Payments, regardless of whether such checks are actually received and/or negotiated by the

Settlement Class Members who are Valid Claimants. Any settlement funds remaining as a result of

a check that is not negotiated within one hundred eighty (180) days of mailing to a Settlement Class

Member who is a Valid Claimant shall be donated to the Inner City Law Center. For purposes of

determining whether Defendants have met their obligations under this Agreement, Defendants will

be deemed to have paid the Settlement Payment to a Valid Claimant upon the Administrator's

mailing of the check to the Valid Claimant, regardless of whether such Settlement Class Member

subsequently negotiates the check.

11. Certification by Settlement Administrator. Upon completion of administration

of the distributions, the Settlement Administrator shall provide written certification of such

completion to the Court and counsel for all Parties.

12. Release of Claims. Upon Defendants fully funding the Settlement, and except as


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to such rights or claims as may be created by this Stipulation of Settlement, and subject to

Defendants’ deposit of its financial obligations under this Agreement with the Administrator, the

Class Representative and every Settlement Class Member shall be deemed to have fully and finally,

and forever waived, released, acquitted, relinquished, and discharged Defendants and Osterkamp

Released Parties from the claims asserted in the operative complaint, and those claims that could

have been asserted based on facts alleged in the operative complaint, arising during the Class Period,

any claims that in any way relate to the facts and circumstances alleged in the Action, including

alleged violation of any provision of the Fair Credit Reporting Act, 15 U.S.C. section 1681, et seq.,

the California Consumer Credit Reporting Agencies Act, California Civil Code section 1785, et seq.,

the California Investigative Consumer Reporting Agencies Act, California Civil Code section 1786,

et seq., California Business and Professions Code section 17200, et seq., or any comparable

provision of federal, state or local law in any way relating to or arising out of the procurement of,

use of, disclosure of intent to procure, or authorization to procure or use a consumer report,

investigative consumer report, credit check, background check, criminal history report, reference

check, or similar report that could have been asserted based on the facts alleged in the pleadings

(hereinafter collectively referred to as “Released Claims”). It is expressly intended and understood

by the Parties that this Agreement is to be construed as a complete settlement, accord, and

satisfaction of the Class Member’s Released Claims.

13. Plaintiff’s and Class Members’ Release and Waiver of Claims. In addition to

the Released Claims released by Plaintiff and the Settlement Class as set forth herein, upon the

Settlement Effective Date, and except as to such rights or claims as may be created by this

Agreement, Plaintiff will be deemed to have released and forever discharged Defendants and the

Osterkamp Released Parties, to the fullest extent permitted by law, of and from any and all

grievances, charges, complaints, claims, penalties, damages, actions, causes of action, suits,

demands, rights to recover under any liabilities, obligations, promises, agreements, controversies,

debts, rights or expenses incurred (including attorneys’ fees and/or costs), of any nature whatsoever,

known or unknown, suspected or unsuspected, asserted and unasserted, fixed or contingent, from


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the beginning of time to Execution Date, excepting solely those wage and hour claims which are

pled based on the factual allegations in the matter of Adriana Sanchez v. Osterkamp Transportation

Group, et al. in Los Angeles Superior Court, Case No. BC680253 (“Plaintiff’s Released Claims”).

Plaintiff expressly waives and relinquishes all rights and benefits afforded under any law designated

to prevent the waiver of unknown claims, such as California Civil Code section 1542, and does so

understanding and acknowledging the significance and consequences of such specific code section.

Section 1542 provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

Thus, notwithstanding the provisions of section 1542, or any other law designed to prevent the

waiver of unknown claims, and for the purpose of implementing a full and complete release and

discharge of all claims against all Released Parties, Plaintiff expressly acknowledges that this

Agreement is intended to include in its effect, without limitation, all of the Plaintiff’s Released

Claims that the Plaintiff does not know or suspect to exist in her favor against the Released Parties,

or any of them, at the time of execution hereof, and that this Agreement extinguishes any such

claims, excepting solely those wage and hour claims which are pled or could have been pled based

on the factual allegations in the matter of Adriana Sanchez v. Osterkamp Transportation Group, et

al. in Los Angeles Superior Court, Case No. BC680253.

VI.

NOTICE, OPT-OUT, OBJECTIONS, AND SETTLEMENT APPROVAL

1. Notice to Class Members. Within twenty-one (21) calendar days of preliminary

approval of this Settlement by the Court, Defendants shall provide to the Settlement Administrator

an electronic file, which will list for each Class Member: (1) the Class Member’s name; and (2) last

known address. This electronic file shall be based on Defendants’ payroll and other business

records and in a format reasonably acceptable to the Settlement Administrator. Defendants agree


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to consult with the Settlement Administrator prior to the production date to ensure that the format

will be acceptable to the Settlement Administrator.

a. Postcard Notice. In the event that the Court approves of the use of postcard Notice, as

soon as practicable but in no event more than forty-five (45) calendar days after the

Court has issued an order preliminary approving the settlement, the Settlement

Administrator shall mail the Court-approved postcard Notice to all Class Members, via

first-class U.S. Mail. The Notice shall be mailed in English to each Class Member’s

last known mailing address using the U.S. Postal Service’s database of verifiable

mailing addresses (the CASS database) and the National Change-of-Address database.

The postcard Notice will include an indication it is a “Court Approved Settlement

Notice authorized by the Court” and may also include a bar code. In the event that the

Court approves of the use of postcard Notice, the Notice attached as Exhibit 1 will be

posted on the Settlement website. The postcard notice will direct Class members to the

Settlement website for the full Notice.

b. Longform Notice. In the event that the Court approves of the use of longform notice

rather than postcard Notice, as soon as practicable but in no event more than forty-five

(45) calendar days after the Court has issued an order preliminary approving the

settlement, the Settlement Administrator shall mail the Court-approved longform Notice

to all Class Members, via first-class U.S. Mail. The Notice shall be mailed in English

to each Class Member’s last known mailing address using the U.S. Postal Service’s

database of verifiable mailing addresses (the CASS database) and the National Change-

of-Address database. The longform Notice will include an indication it is a “Court

Approved Settlement Notice authorized by the Court” and may also include a bar code.

2. Settlement Website. In the event that the Court approves of the use of postcard

Notice, the Settlement Administrator will set up a website for the Settlement which has a copy of

the long form Notice.

3. Notices Returned as Undeliverable. In the event a Notice Packet is returned to the


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Administrator as undeliverable, with a forwarding address, within five (5) calendar days of

receiving the returned Notice Packet, the Administrator shall forward the returned Notice Packet to

the Class Member at the forwarded address. If the Notice Packet is returned because of an incorrect

address within ten (10) calendar days of receiving the returned Notice Packet, the Administrator

shall search for a more current address for the Class Member using the United States Postal

Service's records, skip trace and such other records reasonably available. If new address

information is obtained by the Administrator within ten (10) calendar days, the Administrator shall

re-mail the Notice Packet to the addressee via first class regular mail. Those Class Members who

receive a re-mailed Notice, whether by skip-trace or by request, will have between the later of: (a)

an additional ten (10) calendar days from re-mailing; or (b) the Response Deadline to postmark a

Request for Exclusion or objection. In the event the procedures in this Paragraph are followed and

the intended recipient of a Notice still does not receive the Notice, the intended recipient shall be a

Settlement Class Member and will be bound by all terms of the Settlement and any Final Judgment

entered by the Court if the Settlement is approved by the Court, but he or she will not receive a

Settlement Award.

4. Right to Opt Out. All Class Members will have the right to be excluded (or “opt

out”) of the Settlement Class by Submitting a valid and timely Request for Exclusion. On or before

the Response Deadline, each Class Member who elects to opt out of the settlement must send, by

first-class U.S. Mail, a written notice containing: (a) the name, address, telephone number of the

person requesting exclusion; (b) the last four digits of the person’s Social Security Number; (c) the

name of this Action; (d) a clear statement that the person is requesting exclusion from the

Settlement Class and does not want to participate in the Settlement; and (e) sign the notice of

exclusion. Any Class Member who does not properly and timely (as measured by the postmark on

that individual’s written notice) submit a Request for Exclusion shall remain a member of the

Settlement Class and shall be bound by any orders of the Court about the terms of the Agreement

or the Settlement Class, and shall be deemed to have waived and released all Defendants and

Osterkamp Released Parties of all Released Claims as of the Effective Date. Any Class Member


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who submits a valid and timely Request for Exclusion is, upon receipt, no longer a member of the

Settlement Class, is not entitled to participate in the settlement, and is barred from objecting to or

appealing the settlement. In no event, shall Class Members who purport to opt-out of the settlement

as a group, aggregate, collective, or class involving more than one Class Member be considered a

successful opt-out. Class Members who fail to submit a valid and timely request for exclusion on

or before the Response Deadline shall be Settlement Class Members and shall be bound by all terms

of the Settlement and any Final Judgment entered in this Class Action if the Agreement is approved

by the Court. The Settlement Administrator shall provide counsel for the Parties a complete list of

all Class Members who have timely requested exclusion from the Settlement in a weekly report up

through the Effective Date. At no time shall any of the Parties or their counsel seek to solicit or

otherwise encourage Class Members to submit requests for exclusion from the Settlement. If the

Parties disagree over the validity or timeliness of any Request for Exclusion Form, any such

disagreement shall be lodged with the Court and the Court shall resolve any such disagreement at

the Final Fairness and Approval Hearing.

5. Objections. The Notice shall state that each Class Member (who has not submitted

a Request for Exclusion Form and thus has not opted out of the Settlement) who wishes to object

to the Stipulation of Settlement/ Agreement may do so in the manner and subject to the time

limitations set forth in the Stipulation of Settlement. Any Class Member who wishes to object to

this Stipulation of Settlement shall mail a timely written statement of objection to the settlement

administrator no later than the Response Deadline. The Notice of Objection must state: (a) the case

name and number; (b) the legal and/or factual bases for and an explanation of the objections; (c)

the name, address, telephone number, and e-mail address of the Class Member making the

objection; and (d) a statement of whether the Class Member intends to appear at the Final Approval

Hearing, either with or without counsel. In addition, any objection must be personally signed by

the Class Member. Any Class Member who fails to make objections in the manner specified above

shall be deemed to have waived any objections and shall be foreclosed from making any objections,

whether by appeal or otherwise, to the settlement. Class Members may appear at the final approval


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hearing to object without providing advance notice. At no time shall any of the Parties or their

counsel seek to solicit or otherwise encourage Potential Class Members to submit written objections

to the Settlement or appeal from the Order and Final Judgment. Class Counsel shall not represent

any Potential Class Members with respect to any such objection.

6. Defective Submissions. If a Class Member’s Request for Exclusion is defective as

to the requirements listed herein, the Class Member will be given an opportunity to cure the

defect(s). The Settlement Administrator will mail the Class Member a cure letter within three (3)

business days of receiving the defective submission to advise the Class Member that his or her

submission is defective and that the defect must be cured to render the Request for Exclusion valid.

The Class Member will have until the later of (a) the Response Deadline; or (b) fifteen (15) calendar

days from the date of the cure letter, whichever date is later, to postmark or fax a revised Request

for Exclusion. If a Class Member responds to a Cure Letter by filing a defective Request for

Exclusion, then the Settlement Administrator will have no further obligation to give notice of a

need to cure. If the revised Request for Exclusion is not postmarked or received by fax within that

period, it will be deemed untimely. If the Class Member fails to cure the defective Request for

Exclusion, the defective Request for Exclusion will be deemed improper and the Class Member

will be a member of the Settlement Class and be bound by the terms of the settlement and this

Agreement.

7. Defendants Option. If a combined total of more than five percent (5%) of the Class

Members submit opt out forms, then Defendants shall have the option (at its sole discretion) to void

this Agreement. If Defendants voids this Agreement, the Agreement shall have no force or effect,

and no party shall be bound by its terms; Defendants will have no obligation to make any payments

under this Agreement, except for any fees incurred by the Settlement Administrator; any agreement

to certify the Settlement Class will be deemed null and void, the parties will return to status quo

ante, and the parties will jointly request that the Action proceed.

8. Preliminary Settlement Approval. As soon as practicable after the Parties execute

this Agreement, the Parties will present this Agreement to the Court for preliminary settlement


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approval and will request by unopposed motion that the Court enter an order preliminary approving

the settlement.

9. Final Fairness Hearing and Final Approval Order and Judgment. The Parties

will petition the Court to hold a final fairness hearing and to enter and order finally approving the

settlement and entering final judgment. The Parties agree to cooperate to work to schedule a

fairness hearing so it shall be held as soon as practicable. At the Final Fairness and Approval

Hearing, the Parties will request that the Court, among other things:

a. Grant final certification of the Class for settlement purposes only as set forth

herein;

b. Enter Judgment in accordance with this Stipulation of Settlement but retaining

jurisdiction to enforce the terms of this Agreement;

c. Approve the class action settlement as set forth in this Stipulation of Settlement

as final, fair, reasonable, adequate, and binding on all Class Members who have

not timely submitted a Request for Exclusion Form;

d. Approve the payment of reasonable attorneys' fees, expenses and costs for Class

Counsel;

e. Approve the Enhancement Payments to the Class Representatives;

f. Order the Administrator to process and pay all Settlement Class Members who

are Valid Claimants from the Net Settlement Amount pursuant to this

Stipulation of Settlement in accordance with the terms set forth herein; and

g. Order the release of all Settlement Class Members' claims pursuant to this

Stipulation of Settlement in accordance with the terms set forth herein.

10. Settlement Not Approved. If the Court, the Court of Appeal, or the California

Supreme Court either disapproves or sets aside the Parties’ settlement or this Agreement or any

material part of either for any reason, or refuses to enter or give effect to the Final Approval Order

and Judgment, or holds that any terms of the settlement or this Agreement or any of the attached

exhibits should be modified in any material way, then the Parties may either jointly agree to accept


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the settlement or this Agreement as judicially modified or, if they do not agree, either Party may

appeal that ruling to the extent possible. If an appeal is filed and if the settlement, this Agreement,

or the Final Approval Order and Judgment or its equivalent in all material respects are not in effect

after the termination of all proceedings arising out of that appeal, then unless the Parties jointly

agree otherwise, this Agreement shall become null and void. If this Agreement is deemed void by

the Parties, the Agreement shall have no force or effect, and no party shall be bound by its terms;

Defendants will have no obligation to make any payments under this Agreement; both parties will

pay Settlement Administrator; any agreement to certify the Settlement Class will be deemed null

and void; the parties will return to status quo ante; and the parties will jointly request that the Action

proceed. The Parties and any funds to be awarded under this Settlement shall be returned to their

respective statuses as of the date and time immediately prior to the execution of this Agreement,

and the Parties shall proceed in all respects as if this Agreement had not been executed, except that

any fees already incurred by the Settlement Administrator shall be paid evenly between Defendants

and Plaintiff, or solely by the party who unilaterally decides to terminate the Settlement. In the

event an appeal is filed from the Court’s Final Judgment, or any other appellate review is sought

prior to the Effective Date, administration of the Settlement shall be stayed pending final resolution

of the appeal or other appellate review, but any fees incurred by the Settlement Administrator prior

to it being notified of the filing of an appeal from the Court's Final Judgment, or any other appellate

review, shall be paid to the Settlement Administrator by Defendants and Plaintiff (split 50/50)

within thirty (30) calendar days of said notification.

11. Class Certification for Settlement Purposes Only. The Parties’ settlement and

this Agreement are contingent upon the Court’s certifying a class for settlement purposes only

based upon the class definition set forth in this Agreement, and if the Court does not so certify a

class, this Agreement will have no effect and will be null and void. Class certification will in all

instances be based on Defendants’ waiver of certification arguments, but only for the purposes of

settlement, that may exist to defeat class certification and shall not be construed as an admission

by Defendants as to the suitability of class treatment. Specifically, Defendants denies that a class


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may be properly certified other than for purposes of this settlement and Agreement and reserves its

rights to continue to contest any class-certification motion, and nothing in this Agreement shall be

construed as an admission by Defendants or any of the Osterkamp Released Parties that this Action

or any similar case is amenable to class certification. Additionally, the Parties agree that if, for any

reason, the settlement is not approved, the settlement class shall be decertified, and that certification

nor denial of certification shall not be used by any person, a Party, or the Court as a basis for

certifying or denying certification of any class for litigation purposes. Defendants expressly reserve

its right to oppose class certification should this Settlement not become final and effective.

//

//

VII.

COMMUNICATIONS WITH CLASS MEMBERS

1. Communications with Class Members. The Parties agree that Class Counsel may

communicate directly with Class Members regarding the Settlement Agreement and that, at Class

Counsel’s request, the Settlement Administrator shall provide to Class Counsel for review the same

materials that the Settlement Administrator has reviewed to determine membership in the Class.

To protect the security of such information, any such materials shall be reviewed subject to security

procedures agreed upon by Defendants. The Parties also agree that Defendants may communicate

with its customers, employees, or prospective employees, including Class Members, in the ordinary

course of business, and that Defendants may respond to questions regarding the Settlement

Agreement.

2. No Public Comment. Plaintiff and Class Counsel agree they will not issue any press

releases or initiate any contact with the press, have any communication with the press about the

fact, amount, or terms of the Settlement, pass any information relating to the Settlement on their

website or have any communications with the media, other than to direct the media to the public

records of the Action on file with the Court or to respond with statements which have been

previously agreed upon in writing by the parties. In addition, Plaintiff and Class Counsel agree that


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they will not engage in any advertising or distribute any marketing materials relating to the

Settlement of this case. Any communication about the Settlement to Potential Class Members prior

to the Court approved mailing will be limited to a statement that a settlement has been reached and

the details will be communicated in a forthcoming Court-approved notice. Class Counsel shall not

be restricted from answering questions from or providing documents to Potential Class Members

who contact them for legal advice. Class Counsel will take reasonable steps to ensure Plaintiff is

aware of, and will adhere to, the restriction against any media comment on the Settlement and its

terms.

//

//

VIII.

MISCELLANEOUS TERMS AND CONDITIONS

1. Dispute Resolution. Except as otherwise set forth herein, all disputes concerning the

interpretation, calculation or payment of settlement claims, or other disputes regarding compliance

with this Agreement shall be resolved as follows:

a. If Plaintiff or Class Counsel, on behalf of Plaintiff or any Potential Class Member,

or Defendants at any time believes that the other Party has breached or acted

contrary to the Agreement, that party shall notify the other party in writing of the

alleged violation.

b. Upon receiving notice of the alleged violation or dispute, the responding party shall

have ten (10) calendar days to correct the alleged violation and/or respond to the

initiating party with the reasons why the party disputes all or part of the allegation.

c. If the response does not address the alleged violation to the initiating party’s

satisfaction, the parties shall negotiate in good faith for up to ten (10) calendar days

to resolve their differences.

d. If Class Counsel and Defendants are unable to resolve their differences after twenty

(20) calendar days, either party may file an appropriate motion for enforcement with


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the Court. The briefing of such motion should be in letter brief form and shall not

exceed five (5) single-spaced pages (excluding exhibits).

e. Reasonable attorney’s fees and costs for work done in resolving a dispute under this

Section may be recovered by any party that prevails under the standards set forth

within the meaning of applicable law.

3. No Effect on Employee Benefit Plans. The payment of any amount to any

Settlement Class Participant or to Plaintiff as provided for in this Agreement is not, and shall not

be deemed to constitute, an addition to, modification of, or a change in any previously credited

hours of service, compensation and/or wages under any employee benefit plan, employment policy

(PTO, vacations, holiday pay, etc.) or stock option plan of, or sponsored by, Defendants or its

present or former parent corporations or affiliates. Any such payment shall not form the basis for

additional contributions to, additional benefits under, or any other additional entitlements under

any employee benefit plan, employment policy or stock option plan of, or sponsored by, Defendants

or its present or former parent corporations or affiliates. Defendants and Osterkamp Released

Parties retain the right to modify and/or amend the language of their employee benefit plans,

employment policies, and stock option plans, and to make clear that any amounts paid as a result

of this Agreement are not compensation or wages, or payments for “hours worked,” as defined by

the applicable plans and policies, and that no additional contributions or benefits are required by

reason of this Settlement. Further, any Settlement Awards or Incentive Award hereunder shall not

be considered “compensation” in any year for purposes of determining eligibility for, or benefit

accrual within, an employee pension benefit plan or employee welfare benefit plan sponsored by

Defendants.

4. Authorization to Enter Into Settlement Agreement. Counsel for all Parties

warrant and represent they are expressly authorized by the Parties whom they represent to negotiate

this Agreement and to take all appropriate action required or permitted to be taken by such Parties

pursuant to this Agreement to effectuate its terms and to execute any other documents required to

effectuate the terms of this Agreement. The Parties and their counsel will cooperate with each other


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and use their best efforts to effect the implementation of the Settlement. In the event the Parties

are unable to reach agreement on the form or content of any document needed to implement the

Settlement, or on any supplemental provisions that may become necessary to effectuate the terms

of this Settlement, the Parties may seek the assistance of the Court to resolve such disagreement.

The signatories below represent that they are fully authorized to enter into this Agreement and to

bind the Parties and the Class Members.

5. Agreement Not Evidence. Neither this Agreement nor any related documents,

negotiations, statements, or court proceedings may be construed as, received as, used as, or deemed

to be evidence or an admission or concession of any liability or wrongdoing whatsoever on the part

of any person or entity, including but not limited to Defendants, or as a waiver by Defendants of

any applicable defense to the merits of the claims asserted or to Plaintiff’s ability to maintain this

Action as a class action, except that this Agreement is admissible at hearings necessary to obtain

and implement Court approval of the Parties’ settlement or in hearings to enforce the terms of this

Agreement or any related order of the Court.

6. No Waiver. A Party’s failure to exercise any rights under this Agreement shall not

constitute waiver of that Party’s right to exercise those rights later, except as expressly provided in

this Agreement. No delay by any Party in exercising any power or right under this Agreement will

operate as a waiver of that power or right, nor will any single or partial exercise of any power or

right under this Agreement preclude other or further exercises of that or any other power or right,

except as expressly provided. The waiver by one Party of any breach of this Agreement will not

be deemed to be a waiver of any prior or subsequent breach.

7. Best Reasonable Efforts and Mutual Full Cooperation. The Parties agree to fully

cooperate with one another to accomplish the terms of this Agreement, including but not limited

to, executing such documents and taking such other actions as may be reasonably necessary to

implement the terms of this settlement. The Parties to this Agreement will use their best reasonable

efforts, including all efforts contemplated by this Agreement and any other efforts that may become

necessary or ordered by the Court, or otherwise, to effectuate this Agreement and the terms set forth


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in it and to ensure that checks are mailed to Settlement Class Participants in a timely fashion. As

soon as practicable after execution of this Agreement, Class Counsel will, with the assistance and

cooperation of Defendants and its counsel, take all necessary steps to secure the Court’s final

approval of the Parties’ settlement and this Agreement.

8. Publicity. The Parties agree that they shall not make any public disclosure of the

settlement, this Stipulation of Settlement and its terms, or the negotiations leading to this Stipulation

of Settlement until after the Court enters an order granting Preliminary Approval of the settlement.

The Parties further agree that before and after the Court has entered an order granting Preliminary

Approval of the settlement, the Parties shall not issue any press release to the media for the purposes

of publicizing the settlement. The Parties and their counsel agree that they will not initiate any

contact with the press, respond to any press inquiry or have any communication with the press

about this case and/or the fact, amount or terms of the settlement. In addition, the Parties and their

counsel agree that they will not engage in any advertising or distribute any marketing materials

relating to the settlement of this case, including but not limited to any positions on any websites

maintained by Class Counsel. Nothing in this paragraph shall be construed to prohibit Class

Counsel from communicating with Class Members about this settlement.

9. Entire Agreement. This Agreement and any attached Exhibits constitute the full

and entire agreement among the Parties with regard to the subject matter and supersedes all prior

representations, agreements, promises, or warranties, written, oral, or otherwise. No Party shall be

liable or bound to any other Party for any prior representation, agreement, promise, or warranty,

oral or otherwise, except for those that are expressly set forth in or attached to this Agreement.

Defendants shall not be required as part of the Agreement to modify or eliminate any of its

personnel, compensation, or payroll practices, or adopt any new personnel, compensation, or

payroll practices.

10. Modification. This Agreement may not be changed, altered, modified or amended

except in a writing signed by the Parties. This Agreement may not be discharged except by

performance in accordance with its terms or by a writing signed by the Parties.


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11. Binding. This Agreement will be binding upon and will inure to the benefit of the

Parties and their respective heirs, trustees, executors, administrators, successors, and assigns.

12. No Prior Assignments. The Parties represent, covenant, and warrant that they have

not directly or indirectly, assigned, transferred, encumbered, or purported to assign, transfer, or

encumber to any person or entity any portion of any liability, claim, demand, action, cause of action,

or that are rights released or discharged in this settlement except as set forth in this Agreement.

13. Construction. The Parties agree that the terms and conditions of this Agreement

are the result of lengthy, arms-length negotiations between the Parties and that this Agreement will

not be construed in favor of or against any Party by reason of the extent to which any Party or the

Party’s counsel participated in the drafting of this Agreement.

14. Agreement That This Settlement is Fair, Adequate and Reasonable. The Parties

believe this Agreement is a fair, adequate, and reasonable settlement of this Class Action and have

arrived at this Agreement after extensive arms-length negotiations, taking into account all relevant

factors, present, and potential.

15. Interim Stay of Proceedings. The Parties agree to hold all proceedings in the

Action, except such proceedings necessary to implement and complete the Agreement, in abeyance

pending the Settlement Hearing to be conducted by the Court.

16. Notices. Unless otherwise specifically provided in this Agreement, should any

notices, demands or other communications be required after entry of the Court’s Final Approval

Order and Judgment, they will be in writing and will be deemed to have been duly given as of the

third business day after mailing by U.S. registered or certified mail, return receipt requested,

addressed as follows:

If to Plaintiff: If to Defendants: Shaun Setareh, Esq. Yass McNeil, Esq. Thomas Segal, Esq. Law Offices of Sotoodeh & Associates Setareh Law Group 5 Hutton Centre Drive, Suite 860 315 South Beverly Drive, Suite 315 Santa Ana, CA 92707 Beverly Hills, CA 90212 Telephone: 714.662.2664 Telephone: 310.888.7771 Facsimile: 310.888.0109


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Any communication made in connection with this Agreement shall be deemed to have been served

when sent by overnight delivery or registered or certified first-class U.S. mail, postage prepaid, or

when delivered in person at the addresses designed above.

17. Construction of Captions, Exhibits and Interpretations. Paragraph titles,

captions, or headings in this Agreement are inserted as a matter of convenience and for reference

and in no way define, limit, extend, or describe the scope of this Agreement or any provision in it.

The terms of this Agreement include the terms set forth in any attached Exhibits, which are

incorporated by this reference as though fully set forth herein. Any Exhibits to this Agreement are

an integral part of the Agreement. Each term of this Agreement is contractual and is not merely a

recital.

18. Class Signatories. The Parties agree that because the Class Members are so

numerous, it is impossible and impracticable to have each Class Member execute this Agreement.

Therefore, the Notice will advise all Class Members of the binding nature of the release and will

have the same force and effect as if this Agreement were executed by each Class Member.

19. Counterparts. This Agreement may be executed in counterparts, and when each

Party has signed and delivered at least one such counterpart, each counterpart will be deemed an

original, and, when taken together with other signed counterparts, will constitute one Agreement,

which will be binding upon and effective as to all Parties, subject to the Court’s approval.

20. California Law. All questions with respect to the construction of this Agreement

and Exhibits hereto and the rights and liabilities of the Parties will be governed by the laws of the

State of California applicable to agreements to be wholly performed within the State of California.

21. Jurisdiction of the Court. The Court shall retain jurisdiction with respect to the

interpretation, implementation, and enforcement of the terms of this Agreement and all orders and

judgments entered in connection therewith, and the parties and their counsel hereto submit to the

jurisdiction of the Court for purposes of interpreting, implementing and enforcing the Agreement

embodied in this Agreement and all orders and judgments entered in connection therewith.

22. Enforcement Actions. In the event that one or more of the Parties institutes any


EXHIBIT “1”


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SUPERIOR COURT OF THE STATE OF CALIFORNIA

COUNTY OF LOS ANGELES, CENTRAL CIVIL WEST

ADRIANA SANCHEZ, on behalf of herself and all others similarly situated, Plaintiff, vs. OSTERKAMP TRANSPORTATION GROUP, a California corporation; DEDICATED FLEET SYSTEMS, INC., a California corporation; FRONTIER TRANSPORTATION, INC., a California corporation, OSTERKAMP TRUCKING, INC., a California Corporation; and DOES 1-100, inclusive,

Defendants.

Case No. BC661121 NOTICE OF CLASS ACTION SETTLEMENT

TO: ALL CLASS MEMBERS RE: SETTLEMENT OF CLAIMS RELATED TO BACKGROUND CHECKS PROCURED

FOR EMPLOYMENT PURPOSES

PLEASE READ THIS NOTICE CAREFULLY. IT MAY AFFECT YOUR LEGAL RIGHTS.

This Notice of Class Action Settlement (“Notice”) is to inform you that Adriana Sanchez (“Plaintiff”) and Osterkamp Transportation Group, Dedicated Fleet Systems, Inc. Frontier Transportation, Inc. and Osterkamp Trucking, Inc. ( “Defendants”), (Plaintiff and Defendants are collectively referred to as “the Parties”) have agreed to settle a potential class action lawsuit in which Plaintiff alleges that Defendants violated the Fair Credit Reporting Act (“FCRA”) and related California statutes. On [insert date], Los Angeles Superior Court Judge Kenneth Freeman granted preliminary approval of the proposed Settlement and ordered the Parties to notify all Class Members of the proposed Settlement. You have been provided this Notice because Defendants’s records indicate that you are a Settlement Class Member. If you are a member of the Class, this Notice contains important information about your legal rights. This Notice explains the lawsuit; the proposed Settlement; the benefits that are available from the proposed Settlement; and the procedures to receive a settlement payment, object to the proposed Settlement, or exclude yourself altogether from the proposed Settlement.

1. Why Did I Receive This Notice?


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2. What Is This Lawsuit About?

Plaintiff filed this putative class action lawsuit against Defendants in the Los Angeles Superior Court on May 16, 2017. The case name is Sanchez v. Osterkamp Transportation Group, et al., and the case number is BC661121 (“the Action”). Plaintiff filed the Action on behalf of herself and a putative class consisting of all persons who (1) received Defendants’s background check disclosure form from May 16, 2012 through the date of preliminary approval; and (2) had a consumer report, investigative consumer report, consumer credit report, or other background check prepared on them, procured by Defendants. The Action alleges that Defendants provided disclosure forms that did not strictly comply with the disclosure and authorization requirements of the FCRA (15 U.S.C. 1681, et seq.), the California Investigative Consumer Reporting Agencies Act (“ICRAA”) (Cal. Civ. Code § 1786, et seq.), and the California Consumer Credit Reporting Agencies Act (“CCRAA”) (Cal. Civ. Code § 1785.1, et seq.).

Defendants dispute Plaintiff’s allegations and claims and denies all liability or wrongdoing to Plaintiff and the Settlement Class. No court has found Defendants violated the law in any way or the Plaintiff or the Settlement Members could recover any amount in the Action. Although the Court has authorized notice to be given of the proposed Settlement, this Notice does not express the opinion of the Court on the merits of Plaintiff’s claims or Defendants’s defenses and affirmative defenses.

3. Why Is This Lawsuit Being Settled?

The Court did not decide this Action in favor of Plaintiff or Defendants. Class Counsel investigated the facts and applicable law regarding Plaintiff’s claims and Defendants’s defenses and affirmative defenses. Following mediation on February 20, 2019, the parties engaged in further arm’s length negotiations and reached a preliminary agreement. The Parties subsequently reached a final Settlement Agreement that was submitted to the Court for initial review and authorization to provide this Notice of Settlement to the Settlement Class.

The Class Representative and Class Counsel believe the Parties’ proposed Settlement is fair, reasonable, and adequate, and is in the best interests of the Settlement Class. Both sides wish to settle this case to avoid the uncertainty and expense of further litigation. Defendants are not admitting any liability or fault by entering into the Settlement.

4. How Do I Know If I Am Part Of The Settlement Class?

“Class” means the class, to be certified for settlement purposes only, of all present, former and prospective applicants for employment in the United States who applied for a job with Defendants at any time during the period beginning five years prior to the filing of this action, May 16, 2012 and to _____[the date of entry of the Court's order granting preliminary approval of the settlement].

If you were sent this Notice, it is because Defendants’ records indicate that you are a Settlement Class Member. In all cases, the question of Settlement Class membership will be determined based on Defendants’ records. If you are not certain whether you are a Settlement Class Member, you may contact the Settlement Administrator to find out. The Settlement Administrator’s contact information is provided below in Question No. 11.


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5. What Benefits Does The Proposed Settlement Provide?

You are entitled to receive a settlement check if you are a Settlement Class Member. All Settlement Class Members who do not “opt-out” of the Settlement are entitled to receive a pro rata share of the $500,000 Gross Settlement Fund (which also includes sums for claims administration estimated not to exceed $20,000, Class Counsel’s court-approved attorneys’ fees not to exceed 166,666.66 and costs not to exceed $25,000.00, and a court-approved class representative payment not to exceed $5,000) paid by Defendants to settle the Action.

The amount of the settlement check will depend on the number of Class Members who do not “opt-out” of the proposed Settlement.

Each Settlement Class Participant shall receive a pro rata share of the Net Settlement Fund, which will be calculated by dividing the number of Settlement Class Participants into the Net Settlement Amount.

The payments to Settlement Class Participants are not wages. Each Settlement Class Participant will be solely responsible for correctly characterizing this payment for tax purposes and for paying any taxes owed on this payment, and the Settlement Administrator will issue to each Settlement Class Participant an IRS Form 1099 for this payment.

6. What Do I Need To Do To Collect A Settlement Payment? You do not need to do anything. Each Class Member will receive a share of the Net Settlement Fund unless they exclude themselves from the class by timely submitting an “opt-out” notice as set forth below in Question No. 9. If you do not exclude yourself from the settlement and do not object to the settlement, then you are not required to take any action. You may simply wait until the Court grants final approval of the settlement at the Final Fariness and Approval Hearing described below in Question No. 14, and you will be mailed your settlement check thereafter. Checks sent to Participang Class Members that are not cashed within 180 calendar days will be distributed to the Inner City Law Center as a cy pres benificiary.

7. What Will I Give Up To Get The Settlement Benefits? Upon Defendants fully funding the Settlement, and except as to such rights or claims as may be created by this Stipulation of Settlement, and subject to Defendants’ deposit of its financial obligations under this Agreement with the Administrator, the Class Representative and every Settlement Class Member shall be deemed to have fully and finally, and forever waived, released, acquitted, relinquished, and discharged Defendants and Osterkamp Released Parties from the claims asserted in the operative complaint, and those claims that could have been asserted based on facts alleged in the operative complaint, arising during the Class Period, any claims that in any way relate to the facts and circumstances alleged in the Action, including alleged violation of any provision of the Fair Credit Reporting Act, 15 U.S.C. section 1681, et seq., the California Consumer Credit Reporting Agencies Act, California Civil Code section 1785, et seq., the California Investigative Consumer Reporting Agencies Act, California Civil Code section 1786, et seq., California Business and Professions Code section 17200, et seq., or any comparable provision of federal, state or local law in any way relating to or arising out of the procurement of, use of, disclosure of intent to procure, or authorization to procure or use a consumer report, investigative consumer report, credit check, background check, criminal history report, reference check, or similar report that could have been asserted based on the facts alleged in the


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pleadings (hereinafter collectively referred to as “Released Claims”). It is expressly intended and understood by the Parties that this Agreement is to be construed as a complete settlement, accord, and satisfaction of the Class Member’s Released Claims. “Osterkamp Released Parties” means Defendants and their past or present directors, officers, employees, partners, principals, agents, corporate parents, subsidiaries and affiliates (including all corporations, limited liability corporations, or any other business organizations associated with such corporate parents, subsidiaries and affiliates), professional employer organizations (including, without limitation, Western Freight Systems, Inc.), payroll administrators (including, without limitations, ADP), underwriters, issuers, insurers, coinsurcrs, reinsurers, controlling shareholders, any entity in which the Person has a controlling interest, advisors, personal or legal representatives, clients, predecessors, successors, parents, subsidiaries, joint ventures, assigns, spouses, heirs, associates, related or affiliated entities. (corporations, limited liability corporation, or any other business organization), any members of his/her/its immediate families, or any trust of which any Person is the settlor, or which is for the benefit of any Person and/or member(s) of his or her family.

8. How Can I Object To The Settlement?

You may object to any aspect of the proposed Settlement by mailing a written objection. Your written objection must include: (1) the case name and number (Sanchez v. Osterkamp Transportation Group et al., Case No. BC661121); (2) a detailed statement of the basis for each of your objections, including the facts, evidence, and legal authorities supporting each of your objections; (3) your name, address, telephone number, and e-mail address; and (4) a statement of whether you intend to appear at the Final Fairness and Approval Hearing described in Question No. 14, either with or without counsel. You must also personally sign your objection.

You must mail by first class United States mail any objection by [insert response date], addressed to:

Sanchez v. Osterkamp Transportation Group et al. c/o SIMPLURIS Inc. P.O. Box 26170 Santa Ana, CA 92799 888-369-3780

The Court will hear from all class members who attend the final approval hearing and ask to speak, regardless of whether they have complied with written objection procedures.

9. How Do I Opt-Out of The Settlement?

You may “opt-out” and be excluded altogether from the Settlement. If you choose to be excluded from the Settlement, you will not receive any settlement payment or distribution, and you will not be bound by any judgment or other final disposition of the Action. You will retain any potential claims against Defendants that you might have with respect to the FCRA or comparable state law provisions.

To opt-out of the Settlement, you must send a written Request for Exclusion by first class United States mail, postmarked on or before [insert Response Date], addressed to:

Sanchez v. Osterkamp Transportation Group et al. c/o SIMPLURIS Inc.


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P.O. Box 26170 Santa Ana, CA 92799 888-369-3780

The Request for Exclusion must contain (1) your name, address, and telephone number; (2) the last four digits of your Social Security Number; (3) the name of this Action (Sanchez v. Osterkamp Transportation Group et al.., Case No. BC661121); (4) a clear statement that you are requesting exclusion from the Settlement and do not want to participate in the Settlement; and (5) your signature.

10. What Is The Difference Between Objecting And Opting Out?

Objecting is simply telling the Court and the Parties that you do not like something about the settlement. You can only object if you remain in the class. On the other hand, excluding yourself, or “opting out,” is telling the Court that you do not want to be a part of the class. If you exclude yourself, you have no basis to object because the case no longer affects you.

11. Who Are The Attorneys And The Settlement Administrator In This Case?

Attorney for Plaintiff and Class Counsel Attorneys for Defendants Shaun Setareh, Esq. Thomas Segal, Esq. SETAREH LAW GROUP 315 South Beverly Drive, Suite 315 Beverly Hills, CA 90212 Telephone: (310) 888-7771 The Settlement Administrator Sanchez v. Osterkamp Transportation Group et al. c/o SIMPLURIS Inc. P.O. Box 26170 Santa Ana, CA 92799 888-369-3780

Yass McNeil Sotoodeh & Associates 5 Hutton Drive, Suite 860 Santa Ana, CA 92707 Telephone: (714) 662-2664

12. Do I Have A Lawyer Representing Me In This Case?

Yes. The Court has appointed Setareh Law Group as Class Counsel to represent the interests of you and the other Settlement Class Members. You may hire your own attorney to advise you, but if you do, you will be responsible for paying that attorney’s fees.

13. How Will Class Counsel Be Paid?

Class Counsel, who is litigating this case on a pure contingency basis, intends to apply to the Court for an award of attorneys’ fees in a total amount not to exceed 33.33% of the gross Settlement Fund of $500,000 (i.e., $166,666.66) and an award reimbursing Class Counsel for out-of-pocket litigation costs in a total amount not to exceed $25,000. Class Counsel will seek an enhancement payment for the Class Representative, Plaintiff Adriana Sanchez, in the amount of $5,000. All payments to Class Counsel and Plaintiff will be paid out of the gross Settlement Fund.


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14. Where and When Will the Court Decide Whether to Approve the Settlement?

There will be a Final Fairness and Approval Hearing (“Hearing”) to consider approval of the proposed Settlement on [insert hearing date] at [insert time] in Department 14 at the Los Angeles Superior Court, Spring Street Courthouse, located at 312 North Spring Street, Los Angeles, CA 90012. The purpose of the Hearing is to determine whether the terms and conditions of the proposed Settlement are fair, reasonable, and adequate. Please note that the Hearing may be continued or postponed to a later date without further notice.

You do not need to appear at the Hearing. Class Counsel will represent you at the Hearing, unless you choose to enter an appearance in person or through your own attorney. If you filed and served a valid, timely objection, the Court will consider your objection without you needing to appear in court.

The Court will hear from all class members who attend the final approval hearing and ask to speak, regardless of whether they have complied with written objection procedures.

15. How Do I Get More Information About the Settlement?

This Notice is only a summary of the proposed Settlement. For a more detailed statement of the matters involved in the Action or the proposed Settlement, including the proposed Settlement Agreement itself, you may refer to the papers filed in this Action during regular business hours at the Clerk of the Court, Los Angeles Superior Court, Spring Street Courthouse, located at 312 North Spring Street, Los Angeles, CA 90012. The case file is Sanchez v. Osterkamp Transportation Group, et al., and the case number is BC661121. You may also contact the Settlement Administrator.

AS REQUIRED UNDER THE LAW, DEFENDANTS WILL NOT RETALIATE AGAINST YOU FOR ANY REASON RELATED TO THE SETTLEMENT

THIS NOTICE IS APPROVED BY THE LOS ANGELES SUPERIOR COURT. PLEASE DO NOT CONTACT THE CLERK OF THE COURT REGARDING THIS NOTICE.


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