Mateer v. Peloton Interactive, Inc.

Background

The plaintiffs sought approval of service awards for the three class representatives in a settled class and collective action against Peloton Interactive, Inc. The requested awards were $25,000 for Joseph Mateer, $10,000 for Christopher Branchcomb, and $25,000 for Katharine Johnson. Earlier orders had granted final approval of the class and collective settlement agreement and had granted in part and denied in part the plaintiffs’ motion for attorneys’ fees and expense reimbursement.

Court’s Analysis

The court explained that service awards are payments to class representatives for their work and risks in pursuing litigation for the benefit of absent class members. The court considered the representatives’ contributions, any special personal or professional risks, and the relationship between the awards and class members’ recoveries.

Mateer spent about 240 hours on the litigation, and Johnson spent about 97 hours. Branchcomb spent about 104 hours. Mateer and Johnson also prepared for, traveled to, and participated in a 15-hour mediation; Branchcomb did not. The court relied on class counsel’s representations that Mateer and Johnson had been especially active and helpful in investigating the facts relevant to the settlement.

The court also considered risks and harms. All three representatives faced some professional risk from suing their former employer. Mateer described media attention, concerns about future employment, workplace isolation, attacks on his and his husband’s character, and ten lost workdays. Johnson described significant stress and anxiety, including an anxiety attack during the mediation and approximately $10,000 in related medical expenses. Branchcomb stated that the litigation worsened a pre-existing medical condition and caused more than $10,000 in expenses, but the court found his supporting explanation vague and conclusory. The court therefore credited $5,000 of his claimed harm for purposes of the award.

The court found that average class-member recoveries did not require reducing or increasing the awards. The average recoveries were approximately $6,400 for the Fair Labor Standards Act class, $4,800 for the Rule 23 New York Wage Class, $1,800 for the Pennsylvania Wage Class, and $110 for the New York Wage Theft Prevention Act Class. The court noted that recoveries varied substantially within the classes and that an award could exceed an average class member’s recovery when it reasonably reflected a representative’s work and special circumstances.

Ruling

The court ordered that the request for service awards was GRANTED in part and DENIED in part. It awarded $21,450 to Mateer, $21,450 to Johnson, and $9,000 to Branchcomb. Mateer’s and Johnson’s awards each included $10,000 for contributions, $10,000 for special circumstances, and $1,450 for out-of-pocket mediation expenses. Branchcomb’s award included $4,000 for contributions and $5,000 for special circumstances. The awards were to be paid from the settlement fund after class members received their cash awards.