DeSimone v. TIAA Bank, FSB
- Barbara Moses
- 1:20-cv-06492
- U.S. District Court · Southern District of New York
- 4
In DeSimone v. TIAA Bank, Judge Moses approved the class settlement, fees, and expenses, then dismissed the action with prejudice.
The settlement binds TIAA Bank, FSB, the plaintiffs and opt-in plaintiffs, and members of the seven State Law Classes. It also provides court-approved payments to representative plaintiffs, 101 discovery opt-in plaintiffs, class counsel, and the claims administrator.
What happened
In DeSimone v. TIAA Bank, FSB, the parties asked the court to give final approval to their settlement of a class and collective action. After a fairness hearing, the court found that the settlement was fair, reasonable, and adequate.
The court approved the settlement, made final the certification of seven state-law classes, and approved the named plaintiffs and class counsel. It also approved $2,833,333 in attorneys’ fees, $32,634.19 in litigation expenses, $10,000 service payments for each representative plaintiff, $250 payments for each of 101 discovery opt-in plaintiffs, and up to $35,000 for the claims administrator.
Judge Barbara Moses directed the claims administrator to distribute settlement checks and ordered a later report about the settlement fund’s distribution. The court dismissed the action with prejudice and without costs, while retaining limited authority to enforce the settlement and oversee distribution of the fund.
The detailed version
- DeSimone v. TIAA Bank, FSB · No. 1:20-cv-06492
- Barbara Moses
- Aug. 1, 2023
Background
The plaintiffs filed an unopposed motion for final approval of a class and collective action settlement with TIAA Bank, FSB, formerly identified in the caption as EverBank Financial Corp. The court considered the motion, supporting materials, and arguments presented at the final fairness hearing held on August 1, 2023.
Settlement Approval
Applying Federal Rule of Civil Procedure 23(e)(2) and the standard cited from Cheeks v. Freeport Pancake House, Inc., the court found that the parties’ Settlement Agreement and Release was fair, reasonable, and adequate in all respects. The court therefore granted the Final Approval Motion and approved the Settlement Agreement. The agreement is binding on the defendant, all plaintiffs, including opt-in plaintiffs, and members of the seven State Law Classes previously certified provisionally for settlement purposes.
The court confirmed as final the certification of the seven State Law Classes, the appointment of the seven named plaintiffs as representative plaintiffs, and the appointment of Justin L. Swidler, Robert D. Soloff, Marc A. Silverman, and Carly Meredith as class counsel.
Fees, Expenses, and Payments
The court approved class counsel’s request for $2,833,333 in attorneys’ fees, described as one-third of the Gross Settlement Amount. It also approved reimbursement of $32,634.19 in litigation expenses. In addition, the court approved a $10,000 service payment to each representative plaintiff, a $250 service payment to each of the 101 discovery opt-in plaintiffs who answered written discovery, and payment to Angeion Group as claims administrator in an amount not exceeding $35,000.
Distribution and Case Closure
The court directed Angeion Group to issue and mail settlement checks to settlement plaintiffs, and to mail the court-approved fees and costs to class counsel, within three days after the settlement’s effective date. The order states that, if no appeal is taken, the effective date will be 30 days after the order.
The court also directed class counsel to file a status report by April 1, 2024, concerning distribution of the Qualified Settlement Fund. Angeion Group was directed to provide class counsel and defense counsel with a declaration by March 22, 2024, addressing the matters required for that report, including issued and negotiated checks, uncashed checks, cy pres donations to Secure Futures, and the estimated timing and amounts of tax refunds, penalties, and other matters related to closing the fund.
The court dismissed the action with prejudice and without costs, except as otherwise provided in the order, and directed the Clerk of Court to close the case. The court retained jurisdiction for the limited purposes of enforcing the Settlement Agreement and overseeing distribution of the Qualified Settlement Fund.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.