Sparkman v. Comerica Bank

Background

Paula Sparkman brought this class action against Comerica Bank and Conduent State & Local Solutions, Inc. The order concerns California Way2Go Card prepaid Mastercard holders who reported unauthorized charges, whose records did not show certain types of fraud or disputes about goods or services, and whose reimbursement requests were denied by letters using specified conflicting-information codes on or before December 10, 2024.

The court held a final approval hearing on December 11, 2025. It found that notice to the settlement class complied with Federal Rule of Civil Procedure 23(e), due process, and the court’s earlier approval order. The settlement administrator also timely notified the appropriate officials under the Class Action Fairness Act.

Class certification and settlement approval

The court certified the settlement class for settlement purposes only. It found that the class satisfied Rule 23(a) and Rule 23(b)(3), including requirements concerning the number of class members, common questions, typicality, adequate representation, predominance, and superiority. The court appointed Paula Sparkman as class representative and Terrell Marshall Law Group PLLC, Berger Montague PC, and Schlanger Law Group LLP as class counsel.

The court found that the settlement was fair, reasonable, adequate, and in the best interests of the settlement class. In reaching that conclusion, it considered the relief provided, the strength of Sparkman’s case, the risks and costs of continued litigation, the stage of the case, counsel’s experience and views, class-member responses, the adequacy of representation, the negotiations, and the distribution of the settlement fund. The court also found no signs of improper collusion in the settlement negotiations.

The settlement created a $1,956,000 fund, which the order says provided recovery equal to 73.58% of settlement class members’ actual damages. Settlement awards were ordered to be distributed under the settlement agreement. One person, Sajia Ghias, made a timely and valid exclusion request and therefore was not bound by the order or settlement.

Releases and other settlement obligations

Upon final approval, Sparkman and the settlement class members released the released parties from the released claims identified in the settlement agreement and agreed not to sue over those released claims. Conduent was required to revise its form letters so they no longer listed conflicting information as a reason for denying California Way2Go unauthorized-transaction disputes and to retrain its fraud investigators consistently with the revised letters.

The order states that the settlement and approval order were not admissions of liability, wrongdoing, or the truth of the allegations by the defendants. It also states that the order was not a ruling on the merits of the claims and defenses. The court retained jurisdiction over settlement administration, enforcement, and disputes concerning the settlement agreement and order.

Fees, costs, and service award

The court approved $24,936 in settlement-administration costs. It awarded class counsel $489,000 in attorneys’ fees from the settlement fund. The court used the percentage-of-the-fund method, finding that 25% of the fund was reasonable, and also relied on a lodestar cross-check. The order states that counsel reasonably worked 1,233.6 hours, producing a lodestar of $833,400, and that the fee request represented a 0.59 negative multiplier.

The court also awarded class counsel $56,164 in litigation costs and approved a $10,000 service award for Sparkman. The order states that Sparkman devoted at least 40 hours to the litigation and was the class’s sole representative.

Disposition

The court granted final approval of the class action settlement and awarded the specified fees, costs, administration expenses, and service award. It dismissed the action in its entirety with prejudice and without costs except as otherwise provided in the order, including the released claims. The court directed the Clerk to enter final judgment.