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New Post as of July 29: Settlement Delayed Part 6: Checks Are Here!
Last Updated June 22, 2011 12:05am PST
Last Updated June 22, 2011 6:00 pm PST
Last Updated June 29, 2011 8:51 pm PST (Author added a countdown clock)
Dear Readers,
We have the latest update of the Settlement Claims as of June 20, 2011.
Finally, after six grueling months of waiting for our individual settlement checks to be released, due to various reasons and delays, there we see a bright light at the end of the tunnel.
I would like to take opportunity to dispel rumors that have been circulating and percolating the blogosphere about the date for the distribution of individual checks to tens of thousands of eligible claimants. Many of us have been advised from other groups, from individuals, from our friends, or even from Rust Consulting associates that individual settlement checks will be distributed this June.
That is incorrect. Distribution of individual checks will likely be on July 22, 2011, according to Court order. Here, I added countdown clock (based on PST
US and Canada) for everybody's convenience, until the date when you and I should be expecting a settlement check:
Based on the latest stipulations by the Court, here's the final words from Magistrate Judge Joseph Spero in his Court decision as ordered dated June 20, 2011:
"WHEREAS settlement class members are guaranteed at least $12,599,452.37 of the settlement amount; WHEREAS individual settlement awards will likely be distributed by July 22, 2011;"
That statement alone should clarify the expected date for the distribution of individual checks. But if you look closely how the statement was being worded, you would observe that the court's statement seemed not a rock solid assertion as far as the actual date of distribution is concerned.
Note the phrase from the statement above,
"...awards will likely be distributed..." (italics and emphasis mine). A more assertive statement would have been,
"...awards will be distributed..." Did you spot the difference?
Now, when you call Rust Consulting, what you hear is nothing but uncertain distribution dates. Their associates would say end of June. Others say first week of July. Truth of the matter is, they have not sent any checks yet.
I think it is more realistic to believe and rely on the court's statement about the distribution date and let us stick our hopes to that date... for now. After all, it is the court that controls this settlement. Rust Consulting simply follows a court order. Rust has no legal power to distribute checks outside of an order.
Furthermore, the following are important part of the court order which details the costs, fees, and administrative charges of the settlement. Here's the exact words from Judge Joseph Spero:
"WHEREAS the amount of the settlement fund remaining after deductions for Court-approved attorneys’ fees and costs, service awards, settlement administrator’s charges and costs, and PAGA penalties is $12,995,851.28, as detailed below:"
TOTAL SETTLEMENT AMOUNT: $27,000,000.00
Attorneys’ Fees Awarded -$11,307,449.62
Costs to Schneider Wallace Cottrell Brayton Konecky LLP -$ 1,598,589.41
Costs to Grady Schneider LLP -$ 217,323.64
Costs to Goldstein Demchak Baller Borgen & Dardarian -$ 24,000.00
Costs to Bailey Pinney & Associates LLC -$ 107,427.39
Amount Reserved for Future Attorneys’ Fees -$ 144,375.57
Twenty $5,000 Service Awards -$ 100,000.00
One $2,500 Service Award -$ 2,500.00
Two $1,000 Service Awards -$ 2,000.00
One $500 Service Award -$ 500.00
Amount Allocated to PAGA -$ 100,000.00
Settlement Administration Costs for Rust Consulting, Inc. -$ 399,983.09
TOTAL REMAINING $12,995,851.28
From the allocation of settlement above, more than half of the settlement money went to fees and cost alone. There is also a fee being allocated to
PAGA (Private Attorney General Act of 2004) amounting to $100,000.00 which has never mentioned previously.
As far as the settlement tax that will be deducted allegedly from the settlement money, the court didn't mention in its stipulation. But I will not be surprised when a deduction will be excised at a later period. I hope it won't.
Another thing that should concern everybody: Remember when you received a letter from Rust Consulting last November 2010 about the
Official Court Notice of Settlement where the expected amount you will likely to receive for the settlement was mentioned in that notice? Well, don't be surprised when there will be significant changes in respect to the amount you would receive from the mail. To be honest, I expect some confusion the moment you get your own individual check when comparing it with the original notice. I can almost guarantee that. We are talking about more than 30,000 former and active RGIS employees here hungry for fairness and compensation.
In his final and concluding statement, Judge Joseph Spero became more revealing about a Reserve Fund being allocated in excess of the $399,983.09 that is already included in Rust Consulting's invoice. The following are his:
"The Court, having reviewed the parties’ stipulation, and good cause appearing, hereby ORDERS as follows:
(1) a Reserve Fund in the amount of $150,000.00 will be withheld from the settlement fund for the sole purpose of providing settlement awards to eligible settlement class members who may be inadvertently omitted from the initial settlement fund distribution, and to pay Rust Consulting, Inc. for any related administration charges and/or costs in excess of the $399,983.09 already included in Rust Consulting’s June 15, 2011 invoice; and
(2) any residual monies left in the Reserve Fund 180 days after the initial distribution of the individual settlement awards will be distributed evenly to the cy pres recipients identified in Section 2.12(G) of the Settlement Agreement.
IT IS SO ORDERED."
The court has mentioned about "cy pres" recipients. What is it?
The term has been applied in the context of class action settlement specifically in the United States. It allows the court to amend the terms of the trust or settlement fund as closely as possible to the original intention of the settlor to prevent the said trust from failing. This happens when the original objective of the settlor became impossible, or illegal to perform. In short, it is a protection clause that a court can perform favorably both for the recipients (or beneficiaries) and the settlor.
Finally, the rest of the stipulations did not mention how the distribution of the individual checks will be implemented but we TRUST RUST Consulting to perform well as the settlement administrator.
To Rust Consulting:
You are being paid close to $400 Thousand just to perform this job description. If you can update information on claims for a
lawnmower product that you previously administered, which fees were not even close to the amount you get from RGIS Settlement Claims, why can't you update us in a more timely and accurate manner? Give us good reasons this time that you perform well and beyond the plaintiffs' expectations and satisfaction.
Rust Consulting is open to comment and share information pertinent to the case.
We also hope the court shall stand by its words.
videogame until the automaker can fix its safety issue. Shall we?
