Frattarola v. Prosegur Security USA Inc.

Background

Joe Frattarola and Luciano Carbone brought this action for themselves and other similarly situated individuals against Prosegur Security USA Inc. The action included federal wage-and-hour claims under the Fair Labor Standards Act and New York wage-and-hour claims. The proposed settlement covered certain current and former Prosegur employees who worked in specified positions at Prosegur’s Westchester Medical Center, LaGuardia airport, or JFK airport locations, as well as additional and outstanding collective members meeting the order’s requirements.

The parties negotiated a settlement to avoid the uncertainty and burden of continued litigation. The court reviewed the settlement agreement, the case record, the parties’ submissions, and arguments presented at a fairness hearing. The order states that the negotiations were conducted at arm’s length with the assistance of a mediator and that the court considered the strengths and weaknesses of the claims, the monetary recovery, the notice and distribution process, the risks and costs of further litigation, the amount of discovery, and the absence of opposition from participating class and collective members.

Rulings

The court granted final approval of the settlement and ordered its terms into effect. It found the settlement procedurally and substantively fair, reasonable, and adequate, and found that it was not the product of collusion. The court separately found that the settlement of the Fair Labor Standards Act claims was a fair, reasonable, and adequate resolution of a genuine dispute.

For settlement purposes only, the court finally certified the class under Federal Rule of Civil Procedure 23(a), (b)(2), and (b)(3). It found that the class was sufficiently numerous, that common legal or factual questions existed, that the named plaintiffs’ claims were typical, that they could adequately protect the class’s interests, that common questions predominated, that the class was ascertainable, and that settlement was superior to other methods of resolving the class claims. The court confirmed Frattarola and Carbone as class representatives and Outten & Golden LLP as class counsel solely for purposes of seeking settlement.

The court approved the notice process, finding that it was the best practicable notice under the circumstances and satisfied Rule 23 and constitutional due process. Under the settlement, participating class members who did not timely opt out release specified New York claims upon entry of the final approval order. Participating class and collective members release specified federal Fair Labor Standards Act claims, and certain additional or outstanding collective members also release specified New York claims, upon cashing or negotiating a settlement check. The order excludes claims that cannot legally be released.

Awards and Implementation

The court approved service awards of $10,000 each for the two named plaintiffs. It awarded class counsel $833,333.33 in attorneys’ fees and $22,705.81 in costs from the gross settlement amount. It also approved ILYM Group Inc. as settlement administrator and approved its $19,950 fee.

The order authorizes Prosegur to deposit $2.5 million into a qualified settlement fund within seven days after the settlement’s effective date. Within fourteen days after that deposit, the settlement administrator is to mail settlement checks, pay the approved fees and costs, pay the service awards, and pay the administration fee. The administrator must later send reminders to participating class members who have not negotiated their checks.

Disposition

The court approved the settlement and authorized the parties to implement it. Upon fulfillment of all settlement terms, the entire litigation will be dismissed with prejudice, without costs, expenses, or attorneys’ fees except as provided in the settlement agreement and order. The court retained jurisdiction over interpreting and implementing the settlement. Judge Cathy Seibel signed the order.