Andujar v. Purchase Street Ventures Corp

Background

Magdalena Andujar brought claims against Purchase Street Ventures Corp. doing business as Great Stuff Apparel Inc., Adam Friedman, and Dina Grossman Née Friedman. She alleged violations of the Fair Labor Standards Act and New York Labor Law, along with discrimination, failure to accommodate, hostile work environment, and retaliation under federal and state law. The defendants denied the allegations.

The parties submitted a Settlement Agreement and General Release for court review, along with a joint letter, a damages calculation, and records supporting attorney time and costs. The parties had consented to the jurisdiction of the magistrate judge over the matter for all purposes.

Settlement Review

The court applied the factors used to determine whether a proposed Fair Labor Standards Act settlement is fair and reasonable. Those factors include the plaintiff’s possible recovery, the burdens and expenses avoided by settlement, the litigation risks, whether experienced counsel negotiated at arm’s length, and the possibility of fraud or collusion.

The court noted that the parties settled early, before extensive discovery, thereby conserving attorney and judicial resources. After reviewing the agreement and the record, the court found that able counsel negotiated at arm’s length and that the settlement terms were a fair and reasonable resolution. The agreement included an award of plaintiff’s counsel’s fees equal to one-third of the total settlement amount. The court stated that approving the fee award did not endorse the reasonableness of the attorneys’ hourly rates or hours worked.

The parties discontinued the Fair Labor Standards Act claims with prejudice and privately settled the remaining non-wage-and-hour claims. The court reviewed the separate settlement concerning those remaining claims and found that it did not modify or affect the submitted agreement. The court also found that the private agreement’s confidentiality provisions did not extend to the submitted agreement.

Ruling

Judge Judith C. McCarthy found the settlement fair and reasonable and approved the Settlement Agreement. The parties were directed to file a joint stipulation of dismissal with prejudice by June 13, 2025. The court retained jurisdiction for the limited purpose of enforcing the settlement agreement.