Reichert v. Juniper Networks, Inc.

Background

The plaintiffs alleged that Juniper Networks, Inc., Juniper’s Board of Directors, and Juniper’s Investment Committee breached fiduciary duties in managing the Juniper Networks, Inc. 401(k) Plan, in violation of the Employee Retirement Income Security Act of 1974 (ERISA). The parties reported reaching a settlement on September 15, 2022. The court initially denied an application for preliminary approval without prejudice, later approved a revised application, and held a fairness hearing on January 18, 2024. No objections were filed by the deadline.

Settlement Approval

The court certified a settlement class under Federal Rule of Civil Procedure 23(b)(1), for settlement purposes only. The class consists of all participants and beneficiaries of the Juniper Networks, Inc. 401(k) Plan beginning August 11, 2015, through the date of preliminary approval of the settlement.

The court found that the notice process satisfied Rule 23 and due process and was the best notice practicable under the circumstances. It also found that the settlement resulted from arm’s-length negotiations by experienced counsel, followed the exchange of relevant information and documents, and accounted for the risks, costs, and uncertainty of continued litigation. The court approved the $3,000,000 settlement as fair, reasonable, and adequate and ordered the parties to take the steps necessary to carry it out.

The action and all released claims were dismissed with prejudice, without costs to the settling parties except as provided in the settlement agreement. The class representatives and class members were required to release the released claims and were barred and enjoined from bringing actions alleging those claims. The order also made the settling parties, the settlement class, and the Plan bound by the settlement agreement and the final approval order.

Attorney’s Fees, Costs, and Representative Awards

The plaintiffs initially sought $900,000 in attorney’s fees from the $3,000,000 settlement fund, more than $100,000 in expenses, and incentive awards for the class representatives. After the court found the requests inadequately supported, the plaintiffs revised the attorney-fee request to $750,000 and reduced the requested representative awards from $5,000 to $4,000 each.

The court approved the fee motion in part. It rejected the $750,000 request as unreasonable in the circumstances, noting that the settlement was reached early, required minimal work from counsel, and was influenced in part by a change in law outside the litigation. The court awarded Class Counsel $373,715 in attorney’s fees from the common fund. Twenty-five percent of that award, or $93,428.75, was held back pending a further order after the required post-distribution accounting; $280,286.25 was authorized for disbursement when the order was entered.

The court also approved reimbursement of $10,560 in litigation expenses, $39,388 in settlement-administration expenses, and $15,000 in independent-fiduciary fees. It awarded Brian Reichert and Derek Deviny $2,000 each as class representatives. The court found their requested $4,000 awards unreasonable because they were not deposed and the record showed limited time spent assisting with the litigation.

Disposition

The court approved the settlement, certified the class for settlement purposes, dismissed the action and released claims with prejudice, and approved the fee motion in part with the awards described above.