Hufford v. Maxim Inc.

Background

Patrick Hufford and John Wisbiski brought this class action individually and on behalf of others similarly situated against Maxim Inc. The proposed settlement class consisted of all persons with a Michigan street address who directly subscribed to receive a Maxim magazine at a Michigan street address between May 15, 2016, and July 30, 2016. The action concerned alleged disclosure of settlement-class members’ magazine-subscription information.

On August 13, 2020, the court granted preliminary approval of the class-action settlement and conditionally certified the class under Federal Rule of Civil Procedure 23(b)(3). The court then considered the parties’ settlement agreement, the motion for final approval, the motion for attorneys’ fees, costs, expenses, and service awards, the supporting materials, the parties’ arguments, and the November 10, 2020 final-approval hearing.

Settlement Approval

The court found that the notice provided by mail, email, and a settlement website complied with Rule 23 and due process. The notice informed class members about the case, the settlement, their right to object or exclude themselves, and their right to attend the final-approval hearing. The court also found that Maxim properly and timely notified the required government officials under the Class Action Fairness Act and that more than 90 days had passed since that notice.

The court gave final approval to the settlement. It found the agreement fair, reasonable, adequate, and in the best interests of the settlement class. In reaching that conclusion, the court considered the disputed factual and legal circumstances, asserted defenses, litigation risks, the complexity and likely duration of the case, the discovery completed, the class’s reaction, the risks of proving liability and damages, the risks of maintaining the class through trial, and the settlement’s reasonableness compared with possible recoveries. The court also found that the settlement resulted from arm’s-length negotiations and that there was no collusion.

The court found that the class representatives and class counsel adequately represented the settlement class. It directed the parties to implement the agreement, which the court incorporated into the final judgment.

Disposition and Payments

The court dismissed the action on the merits and with prejudice. Upon the settlement’s effective date, the plaintiffs and settlement-class members who did not opt out would release the claims covered by the agreement, including claims arising from the alleged disclosure of magazine-subscription information. The order stated that the release would have preclusive effect on related pending and future proceedings and permanently barred covered class members from bringing or participating in lawsuits based on the released claims.

The court adjudged $76,055 in attorneys’ fees, costs, and expenses reasonable under the fee-award standards used in the Second Circuit. It also approved service awards of $5,000 each for Patrick Hufford and John Wisbiski. The order provided for handling uncashed settlement payments through a possible additional distribution to class members or, if that was not feasible or would produce less than $5 per person, payment to the Michigan Bar Association’s Access to Justice Fund.

The court retained jurisdiction until the settlement’s effective date over matters concerning administration, completion, enforcement, and interpretation of the settlement agreement. It directed entry of the final judgment under Federal Rule of Civil Procedure 58.

Judge

Judge Andrew L. Carter, Jr. signed the order on November 11, 2020.