A proposed settlement (the “Settlement”) has been reached in a class action lawsuit in Kierre J. Townsend v. G2 Secure Staff, L.L.C. et al., Superior Court of the State of California, County of Los Angeles, Case No. 18STCV04429 (the “Action”). The purpose of the Notice of Settlement (“Notice”) is to describe the case, and to inform you of your rights and options in connection with the Action and the proposed Settlement. The proposed Settlement will resolve all claims in the Action.

A hearing concerning the fairness of the Settlement will be held before the Hon. William F. Highberger on July 7, 2020 at 11:00 a.m. at the following address: 312 N. Spring St., Los Angeles, CA 90012, in Department 10, to determine whether the case should be finally approved. The date and time of the Final Approval Hearing may change without further notice to the Class.

AS A CLASS MEMBER, YOU ARE ELIGIBLE TO RECEIVE A PAYMENT UNDER THE SETTLEMENT AND WILL BE BOUND BY THE RELEASED CLAIMS DESCRIBED IN THE NOTICE, UNLESS YOU REQUESTED TO BE EXCLUDED FROM THE SETTLEMENT BY MAY 2, 2020.

The Court has certified, for settlement purposes, the following class (the “Class”):

“All persons in the United States who applied for employment with Defendants and were the subject of a background check(s) that was procured by Defendants, or caused to be procured by Defendants, at any time from November 9, 2016 through February 3, 2020.”

If you received a Settlement Notice, according to the records of G2 Secure Staff, L.L.C., you are a member of the Class (“Class Member”).

In the Action, Plaintiff alleges on behalf of herself and a putative nationwide and California class the following claims against Defendants: (1) violation of 15 U.S.C § 1681b(b)(2)(A) (Fair Credit Reporting Act); (2) violation of 15 U.S.C. §§ 1681d(a)(l) and 1681g(e) (Fair Credit Reporting Act); (3) violation of California Civil Code §§ 1786 et seq. (Investigative Consumer Reporting Agencies Act); and (4) violation of California Civil Code §§ 1785 et seq. (Consumer Credit Reporting Agencies Act). The Action asserts claims for penalties, injunctive relief, costs of suit, interest, restitution, and reasonable attorneys’ fees.

Defendants are confident that they have strong legal and factual defenses to these claims, but they recognize the risks, distractions, and costs associated with litigation. Defendants contend that their background check policies and procedures and background check disclosures/authorizations are lawful and have been lawful throughout the Class Period. Defendants also contend that Plaintiff’s claims do not meet the requirements for class certification.

This Settlement is the result of good faith, arm’s length negotiations between Plaintiff and Defendants, through their respective attorneys. Both sides agree that in light of the risks and expenses associated with continued litigation, this Settlement is fair and appropriate under the circumstances, and in the best interests of the Class Members. The Settlement is a compromise and is not an admission of liability on the part of Defendants.

The attorneys for the Class Representative in the Action (“Class Counsel”) are:

Shaun Setareh
Thomas Segal
Setareh Law Group
315 South Beverly Drive, Suite 315
Beverly Hills, CA 90212
Telephone: (310) 888-7771

The attorneys for Defendant are:

Robert Jon Hendricks
Kathy H. Gao
Morgan, Lewis & Bockius LLP
300 South Grand Avenue, 22nd Floor
Los Angeles, CA 90071
Telephone: (213) 612-2500

Subject to final Court approval, Defendants will pay $759,000 (the “Gross Settlement Amount”) for: (a) settlement payments to Class Members; (b) the Court-approved Service Payment to the Class Representative; (c) the Court-approved Class Counsel’s fees (i.e., $253,000) and costs (up to $17,000); and (d) the costs of administering the Settlement.

Class Members’ Settlement Payments. After deductions from the Gross Settlement Amount for attorneys’ fees and costs, the Service Payments to the Class Representative, and the costs of administering the Settlement, there will be a Net Settlement Amount. From this Net Settlement Amount, Defendants will make a payment (“Settlement Payment”) to each Class Member who did not opt out of the Settlement Class as follows: (a) each Class Member whose state of residence is California and/or whose background check(s) was/were procured by Defendants in California during the Class Period shall be allocated 1.25 points; (b) each Class Member whose state of residence is not California and/or whose background check(s) was/were procured by Defendants outside of California during the Class Period shall be allocated 1 point; (c) the total aggregate points for all Class Members shall be calculated by the Settlement Administrator; and (d) each Class Member will be paid from the Net Settlement Amount on a pro rata basis based on their individual point(s). Any payments which are not cashed after 180 days shall be sent to the California State Unclaimed Property Fund for the benefit of the respective Class Member whose state of residence is California, or the equivalent state unclaimed property fund for the benefit of the respective Class Member whose state of residence is not California.

None of the parties or attorneys makes any representations concerning the tax consequences of this Settlement or your participation in it. Class Members should consult with their own tax advisors concerning the tax consequences of the Settlement. Class Counsel is unable to offer advice concerning the state or federal tax consequences of payments to any Class Member.

Class Counsel Attorneys’ Fees and Costs, Class Representative’s Service Payment, and Settlement Administration Costs. Class Counsel will ask the Court to award attorneys’ fees up to 33 1/3% of the Gross Settlement Amount, and reasonable litigation costs. In addition, Class Counsel will ask the Court to authorize a Service Payment of up to $7,500 for the Class Representative in addition to the Class Representative’s portion of the Net Settlement Amount. The parties estimate the cost of administering the Settlement will be $51,000.

Upon the Effective Date of the Settlement, Plaintiff and each member of the Settlement Class shall be deemed to have fully, finally, and forever released the Releasees from all Released Claims through the date of the Preliminary Approval Order. “Settlement Class” shall mean all Class Members who did not timely send a signed valid Opt-Out Request that is received by the Settlement Administrator. “Releasees” shall mean Defendants and each of their respective past or present direct and/or indirect, officers, directors, owners, managers, employees, agents, representatives, attorneys, insurers, partners, investors, shareholders, members, trustees, fiduciaries, administrators, parent companies, subsidiaries, affiliates, divisions, predecessors, successors, and/or assigns, in their personal, individual, official, and/or corporate capacities. “Released Claims” as to each member of the Settlement Class shall mean any and all claims that were pled or could have been pled based on the factual allegations contained in the Complaint and/or FAC and covers the period from November 9, 2016 through the Preliminary Approval Date including, without limitation, any claims, actions, causes of action, demands, damages, losses, or remedies, whether based upon federal, state, or local statutes or federal, state, or local common law, relating to, based upon, resulting from, or arising out of the alleged violations of the Fair Credit Reporting Act, including but not limited to 15 U.S.C. § 1681b(b)(2)(A), (d)(a)(1), and/or (g)(c), Investigative Consumer Reporting Agencies Act (California Civil Code §§ 1786 et seq.), Consumer Credit Reporting Agencies Act (California Civil Code §§ 1785 et seq.), California Business & Professions Code §§ 17200, et seq., and/or any other federal, state or local law governing the procurement or use of background/credit checks, including laws regarding background check disclosures and authorizations and pre-adverse and adverse action notices, other penalties, related tort, contract, and punitive damages claims, claims for interest, attorneys’ fees, litigation and other costs, expenses, restitution, and equitable and declaratory relief.

Plaintiff and each Settlement Class Member also are waiving and releasing any and all claims under FCRA and any similar state or local claims, including those regarding an allegedly inadequate or otherwise improper disclosure about the procurement or use of consumer reports and/or background checks for employment purposes or pre-adverse and adverse action notices.

You had two options under this Settlement. You had the options to: (A) do nothing to remain in the Class and be mailed a Settlement Payment; or (B) exclude yourself from the Class and from the Settlement by May 2, 2020. If you chose to remain in the Class, you had the opportunity to object to the Settlement by May 2, 2020. The deadlines to object to the Settlement or exclude yourself from the Class have passed.

If you remained in the Class, you will be represented at no cost by Class Counsel. However, Class Counsel will not represent you for purposes of making objections to the Settlement. If you remained in the Class, you will be subject to any Judgment that will be entered in this Action, including the release of the Released Claims as described in Question 6.

OPTION A. Remain in the Class. If you wished to remain in the Class and be eligible to receive a payment under the Settlement, you did not need to do anything. You will be included in the Class automatically. By remaining in the Class and receiving settlement monies, you consent to the release of the Released Claims.

Any amount paid to Class Members will not count or be counted for determination of eligibility for, or calculation of, any employee benefits (for example, vacations, holiday pay, retirement plans, non-qualified deferred compensation plans, etc.), or otherwise modify any eligibility criteria under any employee pension benefit plan or employee welfare plan sponsored by Releasees, unless otherwise required by law.

OPTION B. Exclude Yourself from the Settlement. If you did not want to be part of the Settlement, you had to submit a signed written request to be excluded from the Settlement (“Opt-Out Request”) to the Settlement Administrator. To be valid, your Opt-Out Request must be postmarked on or before May 2, 2020. This deadline has passed. If you did not timely submit a signed Opt-Out Request (as evidenced by the postmark), your Opt-Out Request will be rejected, you will be deemed a member of the Settlement Class, and you will be bound by the release of Released Claims as described in Question 6 and all other Settlement terms. If you timely submitted a signed Opt-Out Request, you will have no further role in the Action, and for all purposes, you will be regarded as if you never were either a party to this Action or a Class Member, and thus you will not be entitled to any payment from the Settlement and will not be entitled to or permitted to assert an objection to the Settlement.

Objecting to the Settlement: If you believed the proposed Settlement is unfair or inadequate in any respect, you had the opportunity to object to the Settlement by submitting a written objection to the Settlement Administrator by May 2, 2020. This deadline has passed. You could not have objected to the Settlement if you submitted an Opt-Out Request to be excluded from the Settlement.

You may hire an attorney at your own expense to appear on your behalf or you may appear personally at the Final Approval Hearing if you submitted a timely objection. Even if you submitted an objection, you will be bound by the terms of the Settlement, including applicable releases as set forth above, if the Court finally approves the Settlement.

The Court will hold a Final Approval Hearing on the fairness and adequacy of the proposed Settlement, the plan of distribution, Class Counsel’s request for attorneys’ fees and costs, the Settlement Administration Costs, and the Service Payment to the Class Representative on July 7, 2020 at 11:00 a.m. at the following address: 312 N. Spring St., Los Angeles, CA 90012, in Department 10, to determine whether the case should be finally approved. The Final Approval Hearing may be continued without further notice to Class Members. You are not required to attend the Final Approval Hearing to receive a share of the Settlement.

The Notice only summarizes the Action, the basic terms of the Settlement, and other related matters. For more information, you may review the Court’s files, including the detailed Joint Stipulation of Class Action Settlement, which is on file with the Clerk of the Court. You can also obtain a copy of the Joint Stipulation of Class Action Settlement from the Important Documents page.

Any questions regarding the Notice should be directed to the Settlement Administrator or to Class Counsel at the contact information listed in Question 4. For more information you may also call the Settlement Administrator toll-free at 1-888-964-0606.

PLEASE DO NOT CALL OR WRITE THE COURT OR THE ATTORNEYS FOR DEFENDANTS ABOUT THE NOTICE

If you received the Notice at an address other than the address shown on the Notice, or if your address changes, please promptly contact the Settlement Administrator by email at info@TownsendvG2SecureStaff.com. This will ensure that you will be mailed further notices about this Settlement at your current address, including your Settlement Payment if the Settlement is finally approved by the Court.