McKinney-Drobnis v. Massage Envy Franchising, LLC

Background

The plaintiffs filed a renewed motion for final approval of a class-action settlement and entry of final judgment. The court held a hearing on May 20, 2022, and considered written submissions, oral arguments, and objections raised in connection with an earlier hearing. The defendant was Massage Envy Franchising LLC, and Kurt Oreshack appeared as an objector.

Settlement Class and Notice

The court found that the notice provided to the class was the best notice practicable under the circumstances and complied with Federal Rule of Civil Procedure 23, due process, and other applicable laws. For settlement purposes only, the court certified a class consisting of “all Members of any ME Location since November 4, 2006, who paid for a Fee Increase prior to the date of Preliminary Approval.”

The class excluded employees, directors, officers, and agents of Massage Envy Franchising LLC or other released parties; specified federal court judges, judicial officers, and staff; class counsel, defense counsel, and their staff; and 523 people who timely excluded themselves from the class.

Approval of Settlement

After applying heightened scrutiny, the court considered the settlement’s fairness and adequacy and the factors relevant to possible collusion. The court overruled the objections and found that the amended settlement agreement was fair, reasonable, and adequate. The order granted the renewed motion.

Attorneys’ Fees, Expenses, and Incentive Awards

The court deferred ruling on the part of the attorneys’ fee award attributable to coupon redemption until the redemption period ends, because the actual redemption value would then be known. For work attributable to non-coupon relief, including injunctive relief and settlement-administration fees, the court awarded class counsel $938,026.22, representing 57.24% of the lodestar for all work performed on the case. The court stated that an adjustment might be necessary after the coupon and non-coupon portions of the settlement could be calculated precisely.

The court also awarded class counsel $65,603.05 in expenses. It awarded each class representative—Baerbel McKinney-Drobnis, Joseph B. Piccola, and Camille Berlese—a $5,000 incentive award.

Further Administration

The parties and settlement administrator were directed to perform their obligations under the settlement agreement. The court retained jurisdiction to ensure compliance with the agreement and to consider any additional request for attorneys’ fees after the coupon redemption period. Class counsel was directed to serve the order on the named parties and objectors and on the settlement administrator, which was directed to post the order on the settlement website.