Zeng v. USA QR Culture Industrial Development LLC
- Subramanian
- 1:22-cv-07132
- U.S. District Court · Southern District of New York
- 4
In Zeng v. USA QR Culture Industrial Development LLC, Judge Subramanian approved the wage settlement and dismissed the case with prejudice.
Yang Zeng, the defendants, and Yang Zeng’s counsel were affected: the settlement required a $30,000 payment, allocated $10,693.08 to attorney’s fees and costs, provided Yang Zeng $19,307, released claims related to the action, and ended the case with prejudice.
What happened
In Zeng v. USA QR Culture Industrial Development LLC, Yang Zeng and the defendants agreed to settle claims under federal and New York wage laws. The proposed settlement required a $30,000 payment and released claims related to the case.
The court found the settlement fair and reasonable after considering the case’s early stage, litigation risks, expected costs, the parties’ represented negotiations, and the absence of fraud or collusion. Yang Zeng would receive $19,307 after $10,693.08 in attorney’s fees and costs were deducted.
Judge Arun Subramanian approved the settlement and the attorney’s fees and costs, dismissed the case with prejudice, ruled that all pending motions were moot, and directed the Clerk of Court to close the case.
The detailed version
- Zeng v. USA QR Culture Industrial Development LLC · No. 1:22-cv-07132
- Subramanian
- Sept. 27, 2023
Background
Yang Zeng brought claims under the Fair Labor Standards Act, a federal wage law, and the New York State Labor Law. The parties told the court that they had agreed to settle. The court required information supporting approval of the proposed settlement under the factors used for reviewing Fair Labor Standards Act settlements.
The settlement provided for a total payment of $30,000. Of that amount, $10,693.08 would go to Yang Zeng’s counsel for attorney’s fees and costs, leaving $19,307 for Yang Zeng. The agreement also included Yang Zeng’s release of claims against the defendants related to this action.
Settlement approval
The court found the settlement fair and reasonable. Yang Zeng estimated that the total recoverable amount was $49,472.78, so the amount she would receive after fees was approximately 39% of that estimate. The court also considered that the case was at an early stage: fact discovery was incomplete, and Yang Zeng had not sought conditional certification of a group of similarly situated plaintiffs. Settlement at that stage would avoid additional litigation expenses and risks.
The court noted that both sides were represented by counsel and that the settlement resulted from litigation. It found no indication of fraud or collusion. The court also noted that Yang Zeng no longer worked for the defendant, reducing concerns that job-related pressure might have affected the release of claims.
Attorney’s fees and costs
The court approved $10,693.08 in attorney’s fees and costs. Although that amount was more than 35% of the settlement, the court noted that courts in the district had approved fees of up to 36% of similar recoveries. As an additional check, the court reviewed counsel’s billing records, which showed more than $14,000 in incurred legal fees and 49.2 hours of work. The court found no excessive work or staffing, determined that the $300 hourly rate was consistent with local market rates, and noted that the requested amount was less than counsel’s billed amount.
Disposition
The court approved the settlement and dismissed the case with prejudice. It ruled that all pending motions were moot and directed the Clerk of Court to close the case.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.