douglas h. wigdor (ny sbn 2609469) jeanne m. …. sephora has agreed to establish a $950,000...
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Ye, et al. v. Sephora USA, Inc. 1 Declaration of Jeanne M. Christensen No. 14-cv-5237-EMC
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DOUGLAS H. WIGDOR (NY SBN 2609469) JEANNE M. CHRISTENSEN (NY SBN 2622124) ELIZABETH J. CHEN (NY SBN 5126214) (All admitted pro hac vice) WIGDOR LLP 85 Fifth Avenue New York, NY 10003 Tel.: (212) 257-6800 Fax: (212) 257-6845 JAMIE C. COUCHE (SBN 252001) ANDERSON & POOLE, P.C. 601 California Street, Suite 1300 San Francisco, CA 94108 Telephone: (415) 956-6413 Facsimile: (415) 956-6416 Attorneys for Plaintiffs, RUIQI YE, YOLIN HAN
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA
RUIQI YE and YOLIN HAN, individually and on behalf of all other similarly-situated individuals, Plaintiffs, v. SEPHORA USA, INC., Defendant.
Case No.: 3:14-cv-05237-EMC
DECLARATION OF JEANNE M. CHRISTENSEN IN SUPPORT OF PLAINTIFFS’ MOTION FOR APPROVAL OF CLASS COUNSEL’S FEES AND EXPENSES AND SERVICE AWARDS TO NAMED PLAINTIFFS
I, Jeanne M. Christensen, pursuant to 28 U.S.C. § 1746, declare:
1. I am a Partner at the law firm Wigdor LLP, and together with Anderson & Poole,
P.C., represent Plaintiffs in the above-captioned action and the class herein, and as such, am
fully familiar with all the facts, circumstances, and proceedings herein.
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Ye, et al. v. Sephora USA, Inc. 2 Declaration of Jeanne M. Christensen No. 14-cv-5237-EMC
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2. I am an attorney admitted pro hac vice in the Northern District of California and
am counsel of record for Plaintiffs Ruiqi Ye and Yolin Han (“Plaintiffs” or “Named Plaintiffs”)
in this action.
3. I have personal knowledge of the facts set forth herein and submit this
declaration in support of Plaintiff’s Motion for Approval of Class Counsel’s Fees and Expenses
and Service Awards to Named Plaintiffs.
4. The parties met and conferred as required by Civil Local Rule 54-5(b)(1).
5. This declaration sets forth the nature of the work my Firm performed in the
litigation to demonstrate why Class Counsel’s request for attorneys’ fees and expenses is
reasonable and should be approved by the Court.
Background
6. This action was filed in November 2014, alleging that during a sale for Very
Important Beauty Insider (“VIB”) members that Sephora held from November 6-10, 2014 (the
“Sale”), Sephora deactivated accounts of customers using email addresses with the domains
@qq.com, @126.com and @163.com that are based in China and use Chinese as the default
language (the “Chinese Domains”), thus preventing them from accessing the Sale.
7. Plaintiffs allege that Sephora deactivated the accounts using Chinese Domains
because of the discriminatory belief that Chinese customers abuse discount sales to resell
products.
8. Before filing suit, Class Counsel conducted a thorough factual investigation,
including tracking and analyzing Sephora’s public statements regarding the deactivation of
accounts, reviewing Sephora’s purported terms of service and the methods by which such terms
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were communicated to consumers, and speaking with numerous customers about their
experiences with the Sale as well as reviewing documentation from those customers.
9. Class Counsel also conducted considerable legal research regarding the legal
issues raised, and expected to be raised, in the litigation.
10. The accounts that had been deactivated were reactivated shortly after this action
was filed. We believe that absent this litigation, the likelihood of these accounts being
reactivated was extremely low.
11. Class Counsel’s investigative efforts continued after the Complaint was filed,
including through significant formal discovery. Among other things, Class Counsel deposed
two senior Sephora executives, propounded written discovery, reviewed and analyzed thousands
of documents produced by Defendant (including, but not limited to, internal correspondence and
documents regarding the events that precipitated the mass deactivation of accounts), reviewed
and analyzed technical data in conjunction with technology consultants, and reviewed and
analyzed pertinent customer data to evaluate potential class damages. Class Counsel engaged in
multiple meet and confer conference calls with Defendant’s counsel regarding the appropriate
scope of discovery and Defendant’s search for and production of responsive materials.
12. Moreover, Class Counsel continued to speak with potential Class Members about
their experiences during the Sale.
13. There were a number of substantial discovery disputes that required Plaintiffs to
research and file motions to compel. See Dkt. Nos. 65, 84. Moreover, in filing Plaintiffs’
motion for class certification, Plaintiffs were required to conduct legal research and closely
analyze the substantive issues, including Sephora’s defenses, both for purposes of making their
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motion, and also to be in a position to advance the case and address those arguments at both
mediations, including the settlement conference before Judge Corley.
14. The proposed Settlement is the product of extensive, hard-fought settlement
negotiations and related efforts by Class Counsel.
15. In October 2015, the parties participated in a mediation session with the Hon.
Edward A. Infante (ret.), an experienced mediator and former U.S. Magistrate Judge in this
District. This session was held in San Francisco and Class Counsel prepared extensively for the
process. Specifically, despite limited discovery, we prepared a detailed analysis of potential
legal issues should litigation continue and calculated damages assessments. This mediation was
unsuccessful. Thereafter, we engaged in multiple telephone conferences with Judge Infante in
an attempt to resolve. Unfortunately, the negotiations through Judge Infante stalled.
16. Thereafter, Plaintiffs filed a motion to compel discovery on April 29, 2016. See
Dkt. No. 84. The parties appeared before The Hon. Laurel Beeler to address discovery disputes
on May 12, 2016. See Dkt. No. 94.
17. Following further discovery and depositions, Plaintiffs’ motion for class
certification was fully briefed by August 25, 2016 and scheduled for oral argument on
September 8, 2016. See Dkt. Nos. 114-123, 126-129.
18. At the same time, the parties agreed to engage in further mediation.
Settlement
19. The parties engaged in an all-day settlement conference before The Hon.
Jacqueline S. Corley on August 24, 2016. Again, Class Counsel spent considerable time
preparing for this mediation, including analyzing the likelihood of success of class certification.
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With Judge Corley’s assistance, after an all-day session, the parties reached a settlement and
drafted terms.
20. After the parties reached agreement in principle on the merits they were able to
reach an agreement, with Judge Corley’s assistance, regarding Class Counsel’s request for
attorneys’ fees and expenses.
21. Following the mediation, Class Counsel worked hard on negotiating and
finalizing the written settlement agreement, forms of notice, claim form, exclusion form and
other exhibits to the settlement agreement, and have devoted substantial time and resources to
ensuring that the funds procured will go to Class Members, including working closely with the
Claims Administrator on the design and implementation of the notice program and claims
process. Class Counsel have also continued to speak with Class Members and worked on
drafting settlement approval papers.
22. Sephora has agreed to establish a $950,000 non-reversionary Settlement Fund
that will be used for: (a) providing up to $125 in cash or $250 in electronic gift cards to VIB
members affected by the mass deactivations in November 2014; (b) payment of administrative
costs; (c) service awards to Plaintiffs; and (d) attorneys’ fees and costs to Class Counsel.
23. The Claims Administrator estimates that the total administrative costs will be
approximately $25,663. The estimate increased subsequent to the preliminary approval hearing
primarily because the Claims Administrator did not initially estimate the cost of sending notice
by mail to Authorized Claimants, or that some Authorized Claimants would only have addresses
outside of the U.S.
24. Taking into consideration the risks of continued litigation as compared to the
relief granted by the Settlement, I believe the Settlement Agreement is fair, reasonable, and
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adequate and represents an extremely favorable result for the Class. The settlement provides
substantial monetary relief to the Class in relation to the damages they suffered.
25. On January 26, 2017 this Court granted Plaintiffs’ Motion for Preliminary
Approval of Class Action Settlement and appointed Wigdor LLP and Anderson & Poole, P.C.
as Class Counsel for purposes of settlement. See Dkt. No. 161.
26. The notice program uses a multi-pronged approach, and is well-designed to give
notice of the Settlement to the Class and provide easy-to-follow guidance on how to submit
claims.
27. The robust notice program, which was approved by the Court and is being
implemented by the Claims Administrator and the parties, includes:
• Direct mail and email notice to Class Members for whom Sephora has contact information;
• A Settlement Website where Class Members can submit online claims, obtain additional information, and view key documents;
• A toll-free telephone number where Class Members can obtain additional information; and
• Notice posted on Sephora’s Facebook page.
28. The Settlement also provides for a straightforward claim form and a simplified
claim process that are designed to make claim submission easy and convenient. Class Members
have the option of submitting claims electronically via the Settlement Website or by mail.
Recovery
29. There have already been nearly 1,300 valid claims submitted to date, with half
the Claim Period remaining. Given the time remaining, it is highly likely that additional Class
Members will continue to file claims forms.
30. Given the number of claims submitted to date, it is expected that the full amount
of the net settlement funds will be distributed to Class Members, with at least 15 percent (and
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likely close to 30 percent, or more) of Class Members receiving payments. Any percentage
close to this number is outstanding.
31. Claims have come in at a rate of roughly 600 per week since the notice period
began. Based on this, we anticipate at least another 600-1800 claims to be made. As expected,
some claims have failed to include all relevant information and will need to be re-submitted.
32. The reaction from the Class has been very positive thus far. The deadline for
Class Members to exclude themselves or object is April 5, 2017. As of March 10, 2017, only
two individuals have asked to be excluded and no objections have been submitted.
33. In addition, none of the State Attorneys General have opposed either the request
for attorneys’ fees and expenses or for the Service Awards to Plaintiffs.
34. Based on Class Counsel’s communications with other potential Class Members,
counsel believed that, on average, customers with email addresses associated with the Chinese
Domains would have spent between $100-$800 during the Sale, thereby receiving 20% off
discounts in the range of $20 to $150.
35. The recovery of $125 to $250 represents a substantial increase over this average
range.
36. On average, these individuals had between 100-1500 redeemable points, with
most falling on the lower end.
37. Based on calculations from the promotions that were running in November 2014,
a 100-point reward was worth approximately $10 or less.
38. By definition, Class Members are individuals who made the effort to sign up for
the Beauty Insider rewards program, track purchases and points in order to receive promotional
coupons worth between $5-$25. This makes it unlikely that such consumers were spending
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thousands of dollars as part of a single online order, and demonstrates the exceptional result
here of $150 to $250 for Class Members.
39. In order to receive a 20% discount worth $250, a customer would have attempted
to spend at least $1,250 during the Sale.
40. Class Counsel’s review of data and information from affected customers
suggests that such an amount was atypical and average consumers spent substantially less.
41. The value of the damages awards in the amount of $150 to $250 is apparent
when analyzed with the purchase experiences of the class representatives. For example,
Plaintiff Ye had approximately 365 points available to redeem at the time of the Sale, and had
never spent more than $82.62 in one online purchase in the months prior to the Sale. Plaintiff
Han attempted to make purchases that totaled $142.00, thus potentially providing her a 20%
discount of $28.40. As such, the recovery here is a greater amount than the projected discount
savings for them during the Sale.
Experience
42. I received my Juris Doctor degree from the University of Maryland School of
Law, with honors, where I was a member and manuscripts editor of the Maryland Law Review.
I attended Smith College and graduated from the University of Vermont with a B.A. in History
and Economics, cum laude. I am a member of the bar of the state of Maryland and New York,
since 1994.
43. I am admitted to practice in the U.S. District Courts for the Southern, Eastern
and Western Districts of New York, as well as the U.S. District Court for the Northern District
of Illinois.
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44. I am also admitted to practice in the U.S. Bankruptcy Courts for the Southern
and Eastern Districts of New York. Currently, I am a member of the National Association of
Consumer Advocates.
45. I have served as lead counsel in numerous discrimination class actions, in state
and federal courts, as well as those involving other issues, including considerable experience in
prosecuting wage and hour law claims. I also practice in the area of federal consumer
protection law, including unfair trade, unlawful debt collection and consumer fraud matters. By
way of example on recent matters only, my hourly fees, and those of my partners, have been
approved at these rates by courts within the Second Circuit, including in Das v. Hakkasan NYC,
LLC, et al., No. 15 Civ. 8411 (RLE), Dkt. No. 42 (S.D.N.Y Oct. 27, 2016) (approving fee
application at level above lodestar rate given hourly rates of $700 for partner time, $450 for
senior associate time, $210 for law clerk time, and $180 for paralegal time); Omar, et al. v.
Broadway Regency Restaurant LLC, et al., No. 16 Civ. 0139 (GBD), Dkt. No. 40 (S.D.N.Y.
Jan. 19, 2017) (approving fee application given Class Counsel’s hourly rate of $700 for partner
time, $450 for senior associate time, $325 for other associate time, and $180 for paralegal time);
Sanz, et al. v. Johny Utah 51 LLC, et al., No. 14 Civ. 4380 (JMF), Dkt. No. 120 (S.D.N.Y. Apr.
20, 2015) (approving payment of attorney’s fees and expenses, acknowledging Class Counsel’s
hourly rates of $700-650 for partner time, $295 for associate time, and $180 for paralegal time);
Raniere v. Citigroup, Inc., 310 F.R.D. 211, 220-22 (S.D.N.Y. 2015) (approving fee application
at level above lodestar rate given Class Counsel’s hourly billing rates of $650 for partner time,
$250-$550 for associate time, and $180 for paralegal time); Kule-Rubin, et al. v. Bahari Group
Limited, et al., No. 11 Civ. 2424 (TPG), Dkt. Nos. 23, 43 (S.D.N.Y. Nov. 15, 2012) (approving
contingency fee based on full hourly rates); Byrne, et al. v. RMJM, Inc., et al., No. 12 Civ. 8203
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(AT), Dkt. No. 58 (S.D.N.Y. Oct. 21, 2013) (in approving payment of attorneys’ fees and
expenses, the court acknowledged counsel’s regular hourly rates of $750 for partner time, $500
for senior associate time, and $300 for other associate time); Asare v. Change Grp. of New York,
Inc., No. 12 Civ. 3371, 2013 WL 6144764 (S.D.N.Y. Nov. 18, 2013) (approving payment of
attorneys’ fees and expenses, acknowledging counsel’s regular hourly rates of $750 for partner
time, $500 for senior associate time, $300 for associate time); Munir v. Sunny’s Limousine
Service, Inc., et al., No. 13 Civ. 1581 (VSB), Dkt. No. 155 (S.D.N.Y. Jan. 8, 2015) (approving
fee application at level above lodestar rate given Class Counsel’s hourly billing rates of $650
for partner time, $275-$475 for associate time, and $180 for paralegal time).
46. Attached hereto as Exhibit 7 are Representative Retainer Agreements for myself
and the two other partners who worked on this case, Douglas Wigdor and David Gottlieb.
These retainer agreements show that partners at Wigdor LLP are billed at hourly rates of
between $700 and $950 per hour, and associates are billed at up to $650 per hour. Nonetheless,
for purposes of calculating our lodestar in this fee application, we have used rates of $750 per
hour for me (despite retainers at $800 per hour).
47. Our associate, Elizabeth J. Chen, and I performed the majority of the work in this
case. Ms. Chen received her J.D. from Washington University School of Law in 2012, after
receiving her undergraduate degree from the University of Chicago. Prior to joining Wigdor
LLP, Ms. Chen was a law clerk for the Hon. William Joseph Haynes, Chief Judge of the Middle
District of Tennessee. Her hourly rate of $375-350 has been approved by courts in the Southern
District of New York, including in Krzyzelewski, et al. v. Laurel Lee Rest. Inc., et al., No. 15
Civ. 4292 (GBD) (S.D.N.Y. Jan. 4, 2016) and Burgos v. Lex 70 LLC, et al., No. 14 Civ. 9784
(JMF) (S.D.N.Y. May 29, 2015).
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48. Douglas H. Wigdor is the founding partner of Wigdor LLP. Mr. Wigdor
received his J.D. from Catholic University in 1993, after receiving his undergraduate degree
from Washington University in St. Louis, cum laude, and a Master’s Degree from Oxford
University in England. The hourly rate charged for Mr. Wigdor’s services ranges as high as
$900.00 an hour, but will be charged at $750.00 per hour in this matter.
49. David E. Gottlieb is a partner at Wigdor LLP. Mr. Gottlieb received his J.D.
from the University of Miami in 2005, after receiving his undergraduate degree from the
University of Arizona. The hourly rate charged for Mr. Gottlieb’s services ranges as high as
$800.00 an hour, but will be charged at $700.00 per hour in this matter.
50. The firm resume is available at https://www.wigdorlaw.com/the-firm/, and full
biographies for attorneys are also located on our site at https://www.wigdorlaw.com/team/.
51. Yuhl Carr LLP was local Counsel in this matter from the commencement of the
action until November 9, 2016. We are not seeking fees for the hours they expended on this
litigation.
52. On November 9, 2016, Anderson & Poole, P.C. became local counsel in this
action and since then, has spent approximately 10.25 hours on this matter. We will not be
seeking fees separately for Anderson & Poole, P.C.
Attorneys’ Fees and Costs
53. I was involved in all major efforts by Class Counsel. Those efforts generally fell
into ten phases of the litigation: (i) Pre-filing Investigation; (ii) Pleadings and Motions; (iii)
Discovery and Depositions; (iv) Document Review; (v) Technology Consulting; (vi) Research;
(vii) Client Meetings; (viii) Court Appearances; (ix) Settlement; and (x) Case Management.
Wigdor LLP’s work in each phase of the litigation is described below.
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54. The regular practice at Wigdor LLP is for all attorneys, law clerks, and
paralegals to keep contemporaneous time records, maintained on a daily basis, and describing
tasks performed in 0.1 hour (6 minute) increments. Wigdor LLP has used and continues to use
the Time Matters program for recording time.
55. Wigdor LLP has used current hourly rates for all time billed for individuals now
employed with the firm. For one paralegal that has left the firm, we have used the hourly rate
applicable to her at the time of her departure for all hours billed. Further, we have only
included time for individuals who spent more than ten hours working on the case.
56. The rates used here are comparable, and lower in many cases, than Class
Counsel’s regular hourly rates for clients paying on an hourly basis, as demonstrated by
numerous hourly retainer agreements attached hereto that show Wigdor LLP has numerous
clients who pay hourly billable rates in excess of those requested here. See Exhibit 6.
57. Courts in comparable districts have recently awarded Class Counsel fees that are
the same or comparable to the pre-reduction rates they are seeking in this case.
58. To account for the potential discrepancy in rates between the Northern District of
California and the Southern District of New York, Class Counsel is voluntarily agreeing to
discount their overall lodestar amount.
59. Despite the significant litigation risks, including Defendant’s aggressive denial
of liability and objection to class certification, Class Counsel represented Plaintiffs on a
contingency basis, advanced all necessary expenses, and turned down other work opportunities
to work on this case.
60. To date, Wigdor LLP has not been paid for any of the time spent on this Action.
We have devoted 1,620.2 hours, over a period of two and a half years, to achieve the excellent
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Ye, et al. v. Sephora USA, Inc. 13 Declaration of Jeanne M. Christensen No. 14-cv-5237-EMC
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result here without any assurance of success or assurance of payment for our work. From the
beginning of the case, Class Counsel were aware they might not recover any of their expenses,
and, at the very least, would not recover anything until the Action was successfully resolved.
61. Plaintiffs, as well, devoted many hours to the successful prosecution of this
Action.
62. The parties have entered into an enforceable settlement agreement that expressly
allows Plaintiffs to seek attorneys’ fees, and the Court retains jurisdiction over the enforcement
of this agreement.
63. The information in this declaration regarding Wigdor LLP’s time and expenses is
taken directly from time and expense records and supporting documentation prepared and/or
maintained by the firm in the ordinary course of business. I am the partner who oversaw and/or
conducted the day-to-day activities in the litigation and I reviewed these records (and backup
documentation where necessary or appropriate) in connection with the preparation of this
declaration. The purpose of this review was to confirm the accuracy of the entries on the
printouts as well as the necessity for, and reasonableness of, the time and expenses committed
to the litigation. As a result of this review, reductions were made to both time and expenses in
the exercise of billing judgment. I believe that the time reflected in the Firm’s lodestar
calculation and the expenses for which payment is sought, as set forth in this declaration, are
reasonable in amount and were necessary for the effective and efficient prosecution and
resolution of the litigation. In addition, I believe that the expenses are all of a type that would
be normally charged to a fee-paying client in the private legal market.
64. After the reductions referred to above, the total number of hours spent on the
litigation by attorneys and paralegals at my firm is 1,620.2. See Exhibit 1 (a true and correct
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Ye, et al. v. Sephora USA, Inc. 14 Declaration of Jeanne M. Christensen No. 14-cv-5237-EMC
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summary of the total hours billed on this case and the hourly rates for Wigdor LLP through
March 10, 2017).
65. A breakdown of the lodestar per attorney is provided below. The total lodestar
amount for Wigdor LLP’s time based on the firm’s current rates is $745,306.50. The hourly
rates are the usual and customary rates set by my firm for each individual. All time and expense
entries are current through March 10, 2017.
66. Despite this lodestar, Class Counsel seek substantially less, specifically,
$418,560 in attorneys’ fees and $90,000 in costs and expenses.
67. In fact, the attorneys’ fees Class Counsel seek represent a negative multiplier of
0.44 times their collective lodestar, or only 56.2% of the lodestar.
68. This factor substantially supports the reasonableness of Class Counsel’s fee
request despite being more than the 25% benchmark for common fund cases. Indeed, there is
no possible claim that Class Counsel is seeking a “windfall” result. See, e.g., In re Bluetooth,
654 F.3d at 942 (the Ninth Circuit has made clear that in “megafund” cases, courts may
“employ the lodestar method instead” if rote application of the 25% benchmark “would yield
windfall profits for class counsel in light of the hours spent on the case.”); Gutierrez v. Wells
Fargo Bank, N.A., No. 07 Civ. 5923 (WHA), 2015 WL 2438274, at *4 (N.D. Cal. May 21,
2015) (rejecting class counsel’s request to apply the percentage-of-recovery method to a $203
million restitution award and opting for the lodestar method instead because “blindly adopting
the 25-percent benchmark . . . would result in a windfall to class counsel”).
69. The lodestar for those employees working 10 hours or more is as follows:
Attorney Position Hours Hourly Rate Lodestar
Jeanne M. Christensen Partner 495.1 $750.00 $371,325.00
Douglas H. Wigdor Partner 67.6 $750.00 $50,700.00
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Ye, et al. v. Sephora USA, Inc. 15 Declaration of Jeanne M. Christensen No. 14-cv-5237-EMC
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David E. Gottlieb Partner 17.7 $700.00 $12,390.00
Elizabeth J. Chen Associate 634.5 $375.00 $237,937.50
Annie T. Stanford Paralegal 318 $180.00 $57,240.00
Jayshree Balakrishnan Paralegal 87.3 $180.00 $15,714.00
TOTALS: 1,620.2 $745,306.50
70. Further, if the Court requests, we can provide detailed time entries for each
billing entry in this matter to the Court for its in camera review. See Civ. L.R. 54-5(b)(2).
71. Despite the already substantial reduction in hours worked, Wigdor LLP staff
spent considerably more time on this case than is reflected in the time compilations presented,
as I reduced our time in the exercise of billing judgment for certain work potentially duplicative
and eliminated all hours billed by persons who worked on the case for fewer than ten hours.
Additionally, we are not seeking any reimbursement for billable time by local counsel.
72. Between now and the final hearing in this matter, as well as the successful
dissemination of funds, our firm will spend significantly more time on this case. This additional
time will not be compensated, nor will future out-of-pocket expenses. Despite the assistance of
a Claims Administrator, Class Counsel is ultimately responsible for overseeing the claims
process and must work to liaison with defense counsel in negotiating all aspects of post-
settlement activities.
73. In further support of the reasonableness of Class Counsel’s fee request, as
detailed below, we provide the Court with a breakdown of the central phases of the work
performed in this case.
Pre-filing Investigation
74. As in all cases, we performed an investigation into the facts of this case as well
as the researching potential claims before commencing litigation. In this regard, I personally
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communicated with more than twenty people who claimed that their accounts had been
deactivated during the Sale, and reviewed account information and correspondence between
account holders and Sephora representatives.
75. The hours worked during this phase of the litigation are summarized below:
Attorney Position Hours
Jeanne M. Christensen Partner 27.40
Douglas H. Wigdor Partner 3.50
David E. Gottlieb Partner 1.10
Elizabeth J. Chen Associate 5.40
Annie T. Stanford Paralegal 5.40
TOTALS: 42.80
Pleadings and Motions
76. During this phase of the litigation, work performed by Wigdor LLP included, but
was not limited to, participation in the research, drafting, revision and filing of the complaint in
this action; research, drafting, revision and filing of discovery motions; research, review,
drafting, editing, revision and filing of Plaintiffs’ Motion for Class Certification, including
declarations submitted in support thereto; research, review, drafting, editing, revision and filing
of both Plaintiffs’ Motion for Preliminary Approval of Class Action Settlement and Motion for
Approval of Class Counsel’s Fees and Expenses and Service Awards to Named Plaintiffs,
including declarations submitted in support thereto; research, review, drafting, editing, revision
and filing of the Joint Supplemental Brief in Support of Plaintiffs’ Motion for Preliminary
Approval of Class Action Settlement, including the declaration submitted in support thereto;
and, traveled to and attended court hearings.
77. The work performed by the attorneys and paralegals of Wigdor LLP during this
phase of the litigation is summarized below:
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Ye, et al. v. Sephora USA, Inc. 17 Declaration of Jeanne M. Christensen No. 14-cv-5237-EMC
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Attorney Position Hours
Jeanne M. Christensen Partner 81.10
Douglas H. Wigdor Partner 14.10
David E. Gottlieb Partner 10.80
Elizabeth J. Chen Associate 191.20
Annie T. Stanford Paralegal 77.90
Jayshree Balakrishnan Paralegal 22.00
TOTALS: 397.10
Discovery and Depositions
78. During this phase of the litigation, work performed by Wigdor LLP included, but
was not limited to, participation in the drafting of initial disclosures, propounding and
responding to discovery requests, and drafting a confidentiality order.
79. The work performed by the attorneys and paralegals of Wigdor LLP during this
phase of the litigation is summarized below:
Attorney Position Hours
Jeanne M. Christensen Partner 163.30
Douglas H. Wigdor Partner 1.80
Elizabeth J. Chen Associate 150.70
Annie T. Stanford Paralegal 92.30
Jayshree Balakrishnan Paralegal 24.80
TOTALS: 432.90
Document Review
80. During this phase of the litigation, work performed by Wigdor LLP included, but
was not limited to, review of documents to assess their relevance to the action, for use in
preparation for depositions and for the purposes of assessing the case in chief and defenses.
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81. The work performed by the attorneys and paralegals of Wigdor LLP during this
phase of the litigation is summarized below:
Attorney Position Hours
Jeanne M. Christensen Partner 46.80
Elizabeth J. Chen Partner 58.60
Annie T. Stanford Paralegal 44.40
Jayshree Balakrishnan Paralegal 16.90
TOTALS: 166.70
Technology Consulting
82. During this phase of the litigation, work performed by Wigdor LLP included, but
was not limited to, consulting with individuals retained to consult on the technical aspects of the
action, including discovery requests to make, assessing whether discovery produced and to
analyze and assess whether discovery produced was responsive to discovery requests made.
83. The work performed by the attorneys and paralegals of Wigdor LLP during this
phase of the litigation is summarized below:
Attorney Position Hours
Jeanne M. Christensen Partner 12.40
Elizabeth J. Chen Associate 10.10
Annie T. Stanford Paralegal 2.30
TOTALS: 24.80
Research
84. During this phase of the litigation, work performed by Wigdor LLP included, but
was not limited to, legal research in advance of and in preparation for filing pleadings and
motions, as well as general research to substantiate facts as presented.
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Ye, et al. v. Sephora USA, Inc. 19 Declaration of Jeanne M. Christensen No. 14-cv-5237-EMC
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85. The work performed by the attorneys and paralegals of Wigdor LLP during this
phase of the litigation is summarized below:
Attorney Position Hours
Jeanne M. Christensen Partner 17.40
Elizabeth J. Chen Associate 47.10
Annie T. Stanford Paralegal 38.90
Jayshree Balakrishnan Paralegal 9.30
TOTALS: 112.7
Client Meetings
86. During this phase of the litigation, work performed by Wigdor LLP included, but
was not limited to, meetings and telephone calls with potential class members and current
clients regarding case status, discovery obligations, deposition preparation, mediation
preparation, and conferring regarding filings in this action.
87. The work performed by the attorneys and paralegals of Wigdor LLP during this
phase of the litigation is summarized below:
Attorney Position Hours
Jeanne M. Christensen Partner 12.80
Elizabeth J. Chen Associate 8.10
Annie T. Stanford Paralegal 3.20
TOTALS: 24.10
Court Appearances
88. During this phase of the litigation, work performed by Wigdor LLP included, but
was not limited to, preparing for, travelling to, and appearing for court conferences.
89. The work performed by the attorneys and paralegals of Wigdor LLP during this
phase of the litigation is summarized below:
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Ye, et al. v. Sephora USA, Inc. 20 Declaration of Jeanne M. Christensen No. 14-cv-5237-EMC
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Attorney Position Hours
Jeanne M. Christensen Partner 35.80
Elizabeth J. Chen Associate 0.80
Annie T. Stanford Paralegal 6.20
TOTALS: 42.80
Settlement
90. During this phase of the litigation, Wigdor LLP engaged in all material respects
relating to the settlement negotiations with Defense Counsel and the Hon. Edward A. Infante
(ret.) and the Hon. Jacqueline S. Corley, attended both the mediation and the settlement
conference, and reviewed and revised various iterations of the settlement agreement and
associated documents.
91. The work performed by the attorneys and paralegals of Wigdor LLP during this
phase of the litigation is summarized below:
Attorney Position Hours
Jeanne M. Christensen Partner 56.90
Douglas H. Wigdor Partner 43.90
Elizabeth J. Chen Associate 135.60
Annie T. Stanford Paralegal 21.80
Jayshree Balakrishnan Paralegal 8.50
TOTALS: 266.7
Case Management
92. During this phase of the litigation, Wigdor LLP discussed case strategy with co-
counsel, communicated with clients regarding the case, participated in the Rule 26(f)
conference, drafted and edited various stipulations, and addressed scheduling issues.
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Ye, et al. v. Sephora USA, Inc. 21 Declaration of Jeanne M. Christensen No. 14-cv-5237-EMC
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93. The work performed by the attorneys and paralegals of Wigdor LLP during this
phase of the litigation is summarized below:
Attorney Position Hours
Jeanne M. Christensen Partner 41.20
Douglas H. Wigdor Partner 4.30
David E. Gottlieb Partner 5.80
Elizabeth J. Chen Associate 26.90
Annie T. Stanford Paralegal 25.60
Jayshree Balakrishnan Paralegal 5.80
TOTALS: 109.60
94. In sum, Class Counsel’s combined lodestar based on current hourly rates is
$745,306.50 and their combined expenses total $96,023.78. Class Counsel seeks $508,560.00
for both total lodestar and expenses which represents a 0.44 negative multiplier on their lodestar
of $745,306.50 after deducting expenses from the requested $508,560.00.
Expenses
95. As set forth in the attached Exhibit 2, during the prosecution of the Action,
Wigdor LLP incurred $96,023.78 in reasonable and necessary out-of-pocket expenses,
summarized in the following table:
Expense Amount
Costs:
Conference Call Costs $157.85
Copies/Postage/FedEx $5,293.64
Court/Process Servers/Subpoenas Costs $4,134.00
E-Discovery Costs $1,367.32
Meals/Non-Air Transportation Costs $2,195.08
Technology Consultant Costs $10,095.80
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Ye, et al. v. Sephora USA, Inc. 22 Declaration of Jeanne M. Christensen No. 14-cv-5237-EMC
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Transcript Costs $4,761.50
Website Costs $500.00
Westlaw/PACER Costs $1,029.25
Costs, Plus Associated Travel Expenses:
Court Conferences Costs $21,044.50
Deposition Costs $16,248.24
Mediation 2015 Costs $21,932.03
Mediation 2016 Costs $7,264.57
TOTAL: $96,023.78
96. The following is additional information regarding certain of these expenses:
(a) Telecommunication Costs: Class Counsel incurred phone and fax costs,
as well as costs associated with maintaining a case website. These costs
were necessary for Class Counsel to communicate with class members,
opposing counsel, and the court.
(b) Copying and Printing: Class Counsel incurred costs on copying and
printing.
(c) Postage/Delivery and Messenger Services: Class Counsel incurred
postage costs, including communicating with the class, sending courtesy
copies to the Court, and mailing deposition exhibits.
(d) Filing and Service Fees: These expenses have been paid to the court for
filing fees and to attorney service firms or individuals who served process
of the complaint.
(e) Electronic Database: Class Counsel incurred costs from operating an
electronic database to review documents and tag them for use.
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(f) Technology Consultants: Class Counsel incurred costs from hiring
technology consultants to analyze the complex issues relating to the
website crash and database management.
(g) Hearing and Deposition Transcripts: Class Counsel paid for transcripts of
court proceedings and depositions. These costs are allowed by statute.
(h) Online Legal Databases and Research Materials: In this case, vendors
such as Pacer, Thomson Reuters West, and other specialized databases
were used to obtain access filings, court orders, factual databases, legal
research and for cite-checking briefs. The expense represents the expense
incurred by my firm for use of these services in connection with this
litigation. The charges for these vendors vary depending upon the type of
service requested.
(i) Travel: Class Counsel had to travel throughout the United States in order
to take and defend depositions and attend Court Conferences. Their travel
costs included reasonable expenses for hotels, meals, and airfare.
(j) Mediation Services: Class Counsel incurred costs in mediation services.
Such costs were necessary to resolve the lawsuit.
97. The expenses we incurred in this Action are reflected in the books and records of
my firm. These books and records are prepared from expense vouchers, check records and other
source materials and are an accurate record of the expenses incurred.
98. The expenses we incurred were necessary and appropriate for the prosecution of
this Action, all of which was at risk in this litigation. These expenses are a necessary part of
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litigation of this magnitude and scale and were essential to enable Plaintiffs’ Counsel to achieve
the results now before the Court.
99. Class Counsel have advanced all of these costs on a wholly contingent basis.
Attached Documents
100. In support of Plaintiffs’ Motion, I attach hereto the following additional
documents:
101. Exhibit 1: A true and correct summary of the total hours billed on this case and
the hourly rates for Wigdor LLP through March 10, 2017
102. Exhibit 2: A true and correct summary of the expenses incurred by Wigdor LLP
on this case, through March 10, 2017.
103. Exhibit 3: A Proposed Order Granting Plaintiffs’ Motion for Approval of
Attorneys’ Fees and Expenses to Class Counsel and for Payment of Service Awards to Named
Plaintiffs (“Proposed Order”).
104. Exhibit 4: A true and accurate copy of the fully-executed Settlement Agreement
and Release (the “Settlement”) in this action.
105. Exhibit 5: A true and accurate copy of the Complaint filed in this action on or
about November 26, 2014 (the “Complaint”).
106. Exhibit 6: A true and accurate copy of the Email Notice of Class Action Lawsuit
and Fairness Hearing (the “Notice”) is attached hereto.
107. Exhibit 7: True and accurate copies of representative retainer agreements for
Wigdor LLP’s hourly paying clients in recent years (with client names and identifying
information redacted) (“Representative Redacted Retainer Agreements”).
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108. Exhibit 8: True and accurate copies of the retainer agreements between Plaintiffs
Ruiqi Ye and Yolin Han, and Wigdor LLP signed by Ms. Ye and Ms. Han on November 24,
2014.
109. Exhibit 9: A true and correct copy of the Declaration of named Plaintiff Ruiqi
Ye, dated March 7, 2017.
110. Exhibit 10: A true and correct copy of the Declaration of named Plaintiff Yolin
Han, dated March 6, 2017.
111. I declare under penalty of perjury under the laws of the State of California that
the foregoing is true and correct.
Dated: March 15, 2017 New York, New York By:
JEANNE M. CHRISTENSEN, ESQ.
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Exhibit 1
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Timekeeper Position Hours Worked Hourly Rate Lodestar
Attorneys:
Jeanne M. Christensen Partner 495.10 $750.00 $371,325.00
Douglas H. Wigdor Partner 67.60 $750.00 $50,700.00
David E. Gottlieb Partner 17.70 $700.00 $12,390.00
Elizabeth J. Chen Associate 634.50 $375.00 $237,937.50
Attorney Totals: 1,214.90 $672,352.50
Paralegals:
Annie T. Stanford Paralegal 318.0 $180.00 $57,240.00
Jayshree Balakrishnan Paralegal 87.30 $180.00 $15,714.00
Paralegal Totals: 405.30 $72,954.00
TOTAL: 1,620.20 $745,306.50
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Exhibit 2
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Expense Amount
Costs:
Conference Call Costs $157.85
Copies/Postage/FedEx $5,293.64
Court/Process Servers/Subpoenas Costs $4,134.00
E-Discovery Costs $1,367.32
Meals/Non-Air Transportation Costs $2,195.08
Technology Consultant Costs $10,095.80
Transcript Costs $4,761.50
Website Costs $500.00
WestLaw/PACER Costs $1,029.25
Costs, Plus Associated Travel Expenses:
Court Conferences Costs $21,044.50
Deposition Costs $16,248.24
Mediation 2015 Costs $21,932.03
Mediation 2016 Costs $7,264.57
TOTALS: $96,023.78
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Exhibit 3
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1 Ye, et al. v. Sephora USA, Inc. [Proposed] Order
No. 14-cv-5237-EMC
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DOUGLAS H. WIGDOR (NY SBN 2609469) JEANNE M. CHRISTENSEN (NY SBN 2622124) ELIZABETH J. CHEN (NY SBN 5126214) (All admitted pro hac vice) WIGDOR LLP 85 Fifth Avenue New York, NY 10003 Tel.: (212) 257-6800 Fax: (212) 257-6845 JAMIE C. COUCHE (SBN 252001) ANDERSON & POOLE, P.C. 601 California Street, Suite 1300 San Francisco, CA 94108 Telephone: (415) 956-6413 Facsimile: (415) 956-6416 Attorneys for Plaintiffs, RUIQI YE, YOLIN HAN
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA
RUIQI YE and YOLIN HAN, individually and on behalf of all other similarly-situated individuals, Plaintiffs, v. SEPHORA USA, INC., Defendant.
Case No.: 3:14-cv-05237-EMC
[PROPOSED] ORDER GRANTING PLAINTIFFS’ MOTION FOR APPROVAL OF CLASS COUNSEL’S FEES AND EXPENSES AND SERVICE AWARDS TO NAMED PLAINTIFFS
This matter came before the Court on Plaintiffs’ Motion for Approval of Class Counsel’s Fees
and Expenses and Service Awards to Named Plaintiffs (the “Attorneys’ Fees Motion”). Defendant
agreed, for settlement purposes only, not to oppose the Attorneys’ Fees Motion.
Based upon the Court’s review of Plaintiffs’ Attorneys’ Fees Motion, including the
Declaration of Jeanne M. Christensen, Esq. (“Christensen Decl.”), and all other papers submitted in
connection with Plaintiffs’ Final Approval Motion, as well as the discussion held between the Court
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2 Ye, et al. v. Sephora USA, Inc. [Proposed] Order
No. 14-cv-5237-EMC
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and the parties on the record at the May 25, 2017, Final Approval Hearing, the Court finds and
concludes as follows:
1. Notice of the requested award of attorneys’ fees and costs was directed to Class
Members in a reasonable manner, and complied with Rule 23(h)(1) of the Federal Rules of Civil
Procedure.
2. Class Members and any party from whom payment is sought have been given the
opportunity to object in compliance with Fed. R. Civ. P. 23(h)(2).
3. No class member has objected to the requested fees and expenses.
4. Plaintiffs are a “prevailing party” for purposes of awarding attorneys’ fees pursuant to
42 U.S.C. § 2000e-5(k). See Prison Legal News v. Schwarzenegger, 608 F.3d 446, 451 (9th Cir.
2010).
5. The lodestar method is the appropriate means of calculating attorneys’ fees in this
case, where a major part of the relief sought and obtained was injunctive. See In re Bluetooth
Headset Products Liab. Litig., 654 F.3d 935, 941 (9th Cir. 2011).
6. The number of hours that Class Counsel spent on this case was reasonable in light of
the length and complexity of the litigation and the excellent result obtained. Class Counsel have
reasonably accounted for and eliminated unnecessary or duplicative hours.
7. The rates used by Class Counsel are reasonable, and are in line with attorneys of
comparable skill, experience, and reputation who practice in the Northern District of California.
This conclusion is supported by the Christensen Declaration.
8. The use of current rates is appropriate here because of the very significant delay in
payment. See Missouri v. Jenkins by Agyei, 491 U.S. 274, 284 (1989).
9. The attorneys’ fees requested, which is fifty-six (56%) percent less than the full
lodestar, is reasonable. No further reduction of the lodestar is necessary.
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3 Ye, et al. v. Sephora USA, Inc. [Proposed] Order
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10. No cross-check against the percentage of recovery is required, since there is no
common fund in this case. However, even if the settlement were viewed as creating a constructive
or putative common fund, the lodestar is still reasonable, in light of the complexity and duration of
the litigation, Class Counsel’s skill and experience, and the important injunctive and monetary relief
that Class Counsel obtained in this case. See, e.g., Wren v. RGIS Inventory Specialists, No. 06 Civ.
5778 (JCS), 2011 WL 1230826, at *29 (N.D. Cal. Apr. 1, 2011), supplemented, 2011 WL 1838562
(N.D. Cal. May 13, 2011).
11. The costs and expenses incurred by Class Counsel are reasonable and are the type that
would normally be charged by an attorney to a fee-paying client. See Grove v. Wells Fargo Fin.
California, Inc., 606 F.3d 577, 580 (9th Cir. 2010).
12. The Court finds reasonable the Service Awards for Class Representatives Ruiqi Ye
and Yolin Han in the amounts of $5,000 each. These amounts shall be paid from the Settlement
Amount.
13. The total award of $418,560 for attorneys’ fees, $90,000 for costs, and $10,000 for
Service Awards is fair and reasonable.
14. The Court retains jurisdiction over the interpretation and implementation of the
Settlement Agreement.
Accordingly, IT IS HEREBY ORDERED as follows:
Class Counsel are hereby awarded: (i) attorneys’ fees in the amount of $418,560; (ii) costs in
the amount of $90,000; and (iii) Service Awards in the amount of $5,000 each to Named Plaintiffs.
Date: ________ __, 2017 ______________________________ Hon. Edward M. Chen United States District Judge Northern District of California
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Exhibit 4
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CLASS ACTION SETTLEMENT AGREEMENT
CASE NO. 3:14-CV-05237-EMC
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UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
SAN FRANCISCO DIVISION
RUIQI YE and YOLIN HAN, individually and on behalf of all other similarly-situated individuals,
Plaintiff,
v.
SEPHORA USA, INC.,
Defendant.
Case No. 3:14-cv-05237-EMC
CLASS ACTION SETTLEMENT AGREEMENT
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-1- CLASS ACTION SETTLEMENT AGREEMENT
CASE NO. 3:14-CV-05237-EMC
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SETTLEMENT AGREEMENT
This Settlement Agreement (“Settlement Agreement”) is entered into between the
following parties: (a) plaintiffs Ruiqi Ye and Yolin Han (collectively, “Plaintiffs”), on behalf of
themselves and all Class Members as defined herein; and (b) defendant Sephora USA, Inc.
(“Defendant”). The undersigned Parties agree, subject to approval by the Court, that this
Litigation (as defined below) and all Released Claims (as defined below) are hereby fully and
finally compromised, settled, and released on the terms and conditions set forth in this
Agreement.
I. DEFINITIONS
1.1 “Administrative Expenses” means all costs, disbursements, and expenses
reasonably incurred in the implementation of this Settlement Agreement by the Claims
Administrator including, but not limited to: the cost of preparing and disseminating notice to all
Class Members informing them of the Settlement Agreement and the claims process; the cost of
reviewing claims; the cost of distributing Settlement Benefits to Authorized Claimants; and other
reasonable fees and expenses of the Claims Administrator. The cost estimate for the
Administrative Expenses at the time of the finalization of the Settlement Agreement is
approximately $20,000.
1.2 “Authorized Claimant” means a Settlement Class Member who submits a timely
and valid Claim Form to the Claims Administrator.
1.3 “Claims Administrator” means Dahl Administration LLC (“Dahl”), , as well as
other employees of Dahl and outside vendors working under Dahl’s supervision, or such other
qualified third-party retained by mutual agreement of the Parties to perform the duties of the
Claims Administrator set forth in this Agreement.
1.4 “Claim Form” means a proof of claim and release in substantially the form of
Exhibit B, attached hereto.
1.5 “Claim Period” means the period of time beginning from the date that the Class
Notice is emailed to Class Members and ending 45 days after said date (or, if the 45th day falls on
a weekend or holiday, the next business day thereafter).
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-2- CLASS ACTION SETTLEMENT AGREEMENT
CASE NO. 3:14-CV-05237-EMC
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1.6 “Class Counsel” or “Plaintiffs’ Counsel” means collectively the law firms of
Wigdor LLP and Anderson & Poole, P.C.
1.7 “Class Members” and the “Class” means all Sephora customers who meet all of
the following criteria: (i) had one or more Sephora “Beauty Insider” account(s) with VIB or VIB
Rouge status as of November 4, 2014 that was associated with an email address from the domain
@qq.com, @126.com, or @163.com; (ii) had their account(s) deactivated as a result of the
computer code that Sephora implemented on or about November 6, 2014; and (iii) attempted to
but were unable to make a purchase at www.sephora.com using their “Beauty Insider” account(s)
at some point in November 2014.
1.8 “Class Notice” means the Court-approved form of notice to Class Members, which
will include language in substantially the same form as Exhibit A, attached hereto and will notify
Class Members of the preliminary approval of the Settlement Agreement, the scheduling of the
Final Approval Hearing, and the process to submit a Claim Form, among other things.
1.9 “Complaint” means the class action complaint filed in the Litigation on November
26, 2014.
1.10 “Court” means the United States District Court, Northern District of California.
1.11 “Defendant” means Sephora USA, Inc.
1.12 “Defendant’s Counsel” means, collectively, the law firms of Barack Ferrazzano
Kirschbaum & Nagelberg LLP and Orrick, Herrington & Sutcliffe LLP.
1.13 “Days” means calendar days, unless otherwise expressly stated herein, except that,
when computing any period of time prescribed or allowed by this Settlement Agreement, the day
of the act, event, or default from which the designated period of time begins to run shall not be
included.
1.14 “Effective Date” means the date on which the Court’s Final Approval Order
becomes final. For purposes of this paragraph, the Court’s Final Approval Order “becomes final”
upon the last to occur of the following: (a) the date of final affirmance on appeal of the Judgment;
(b) the date of final dismissal of any appeal from the Judgment or the final dismissal of any
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-3- CLASS ACTION SETTLEMENT AGREEMENT
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proceeding to review the Judgment; or (c) if no appeal is filed, the expiration date of the time for
the filing or noticing of any appeal from the Court’s Judgment.
1.15 “Fees and Expenses” means the attorneys’ fees and expenses incurred by Class
Counsel in the prosecution of the Litigation, sought by Class Counsel in their application to the
Court in accordance with Paragraph 5.1 of this Agreement, and approved by the Court to Class
Counsel.
1.16 “Final Approval” means that the Court has entered the Judgment and Order of
Dismissal.
1.17 “Final Approval Hearing” means a hearing held before the Court to consider Final
Approval of the Settlement as described in Paragraph 6.3.3 of this Agreement.
1.18 “Final Approval Order” and “Final Judgment” means the Court order entered after
the Final Approval Hearing that approves this Settlement Agreement and dismisses the
Litigation, substantially in the form attached hereto as Exhibit E.
1.19 “Litigation” means Lee, et al. v. Sephora USA, Inc., United States District Court,
Northern District of California, Case No. 3:14-cv-05237 EMC.
1.20 “Net Settlement Proceeds” means the Settlement Amount less Administrative
Expenses, Fees and Expenses and Service Awards, as approved by the Court,
1.21 “Parties” means Plaintiffs and Defendant, collectively.
1.22 “Party” means any one of Plaintiffs or Defendant.
1.23 “Persons” includes, without limitation, natural persons, firms, corporations,
businesses, limited liability companies, partnerships, federal, state and other governments and
their political subdivisions, agencies and instrumentalities, and all other entities.
1.24 “Plaintiffs” and “Class Representatives” means Ruiqi Ye and Yolin Han.
1.25 “Preliminary Approval” means issuance of an order, in substantially the same form
as Exhibit D hereto, that is consistent with and preliminarily approves in all material respects the
terms of the Settlement and this Agreement.
1.26 “Preliminary Approval Date” means the date the Court enters an order
preliminarily approving the Settlement.
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-4- CLASS ACTION SETTLEMENT AGREEMENT
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1.27 “Released Claims” shall have the meaning set forth in Section 7.1 of this
Agreement.
1.28 “Released Parties” means (i) Sephora USA, Inc., (ii) its respective past or present
parents, subsidiaries, divisions, affiliates (including LVMH Moet Hennessy Louis Vuitton SE and
Fresh, Inc.), associates, predecessors, successors, officers, directors, managing directors,
controlling shareholders, partners, principals, members, employers, employees, agents,
consultants, advisors, insurers and attorneys; (iii) any Person, firm, trust, corporation, officer,
director or other individual or entity in which Sephora USA, Inc. has a controlling interest; (iv)
the legal representatives, heirs, successors in interest or assigns of any of the foregoing.
1.29 “Request for Exclusion” means the document which a Class Member must
complete and timely submit to request exclusion from the Settlement Class, in the form set forth
in Exhibit C to this Agreement, pending approval by the Court.
1.30 “Service Awards” shall have the meaning set forth in Paragraph 5.6 of this
Agreement.
1.31 “Settlement Agreement” or “Settlement” means this Settlement Agreement
including the exhibits attached hereto.
1.32 “Settlement Amount” means Nine Hundred Fifty Thousand Dollars ($950,000.00)
that Sephora has agreed to pay in accordance with the Settlement Agreement. The Settlement
Amount will not be increased regardless of the rate of participation of Class Members in
connection with Settlement Benefits.
1.33 “Settlement Benefits” means the benefits provided to Settlement Class Members
as set forth in Paragraph 3.1.3 of this Agreement.
1.34 “Settlement Class” and “Settlement Class Members” mean those Class Members
who do not properly and timely submit a Request for Exclusion from the Settlement.
II. RECITALS
Background
2.1 Plaintiffs filed this Litigation on November 26, 2014. Sephora filed its Answer on
February 2, 2015. After engaging in targeted discovery and litigating discovery disputes, the
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-5- CLASS ACTION SETTLEMENT AGREEMENT
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Parties participated in private mediation before the Honorable Edward A. Infante on October 29,
2015. Plaintiffs filed a motion for class certification on July 21, 2016, and Sephora timely
opposed on August 11, 2016. Thereafter, on August 24, 2016, the parties participated in a second
mediation before the Honorable Jacqueline Corley, United States Magistrate Judge. After
substantive discussion about the claims, negotiations, and careful consideration of the merits,
risks and costs of the impending litigation, the Parties agreed to settle the Litigation.
2.2 In their Complaint, Plaintiffs, individually and on behalf of a proposed class,
allege that Sephora discriminated against them on the basis of their race and national origin when
Sephora deactivated their loyalty program accounts during the November 2014 20% off customer
rewards sale because they were associated with @qq.com, @126.com, or @163.com domains.
They further allege that the account deactivations had a discriminatory impact on customers of
actual and perceived Chinese/Asian descent. Plaintiffs sought to certify a class of all Sephora
customers who they contend were similarly situated.
2.3 Defendant has disputed and continues to dispute each of the allegations and claims
alleged by Plaintiffs in this Litigation, including, but not limited to, the allegations described
above in Paragraph 2.2. Defendant has denied and continues to deny all charges of wrongdoing
or liability arising out of any of the conduct, statements, acts, or omissions that have been alleged
or that could have been alleged in the Litigation. Defendant also disputes that Plaintiffs, the
Class, or any other members of the Class have suffered damages or harm by reason of the
conduct, statement, acts, or omission of Defendant. Defendant does not concede or agree that
class certification is proper , except for purposes of this Settlement Agreement. Neither this
Settlement Agreement, nor any document referred to or contemplated herein, nor any action taken
to carry out this Settlement Agreement, may be construed as, or used as, an admission by
Defendant of any fault, wrongdoing, or liability whatsoever, or as a concession that certification
of a class other than for purposes of this Settlement Agreement is appropriate in this or any other
case.
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-6- CLASS ACTION SETTLEMENT AGREEMENT
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Benefits of Settlement to Class Members and the Parties
2.4 Plaintiffs contend the Settlement Agreement is an extraordinary result in light of
the risks and uncertainties faced by Plaintiffs. Although Plaintiffs believe that their claims are
strong on the merits and capable of being tried on a class-wide basis, Class Counsel realizes that
the case presents significant risks, particularly given the contested factual disputes and unresolved
legal issues. For its part, Defendant disputes Plaintiffs’ allegations, but acknowledges that
continued litigation would be protracted and costly. Plaintiffs maintain that this non-reversionary
settlement makes timely and meaningful monetary recovery available to an estimated 15,000
class members. The Settlement Agreement was negotiated in good faith and at arms’ length,
following both a private mediation with the Hon. Edward J. Infante and a settlement conference
before Magistrate Judge Jaqueline Corley. Its terms are based on an agreement in principle that
the parties reached with Magistrate Judge Corley’s assistance.
2.5 Defendant, while continuing to deny all allegations of wrongdoing and to dispute
any liability with respect to the claims asserted in the Complaint, considers it desirable to resolve
the Litigation on the terms stated herein, in order to avoid further risk, expense, inconvenience,
and interference with its ongoing business operations.
III. SETTLEMENT AMOUNT AND BENEFITS
The Settlement Amount will be non-reversionary, with no portion to revert to Sephora. The
Settlement Amount will be used to satisfy (1) the claims of all Authorized Claimants, (2)
Plaintiffs’ Attorney’s Fees and Expenses subject to Court approval and pursuant to the terms
enumerated in Paragraph 5.1, (3) Service Awards to the Class Representatives subject to Court
approval and pursuant to the terms enumerated in Paragraph 5.6, and (4) Administrative
Expenses.
3.1 The Net Settlement Proceeds will be allocated as follows:
3.1.1 Each Class Member who does not submit a timely and valid Request for
Exclusion or otherwise request exclusion from the Settlement during the
Claim Period shall be a Settlement Class Member.
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-7- CLASS ACTION SETTLEMENT AGREEMENT
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3.1.2 Each Settlement Class Member will be permitted, through the process
described in Paragraph 4.4 of this Agreement, to submit a Claim Form
selecting either cash or a Sephora Electronic Gift Card (as defined below)
(collectively, the “Settlement Benefit”).
3.1.3 The amount of the Settlement Benefit an Authorized Claimant will receive
will be determined on a pro rata basis based on the total amount of the Net
Settlement Proceeds to be allocated among all Authorized Claimants and
the total number of Authorized Claimants, with each Authorized Claimant
who selected a Sephora Electronic Gift Card receiving twice what each
Authorized Claimant who selected cash will receive, and subject to a cap of
$125.00 in cash or $250.00 in a Sephora Electronic Gift Card to each
Authorized Claimant.
3.1.4 Any amount remaining in the Net Settlement Proceeds after allocation
among the Authorized Claimants at the conclusion of the Claim Period will
be collected in a cy pres fund that will be delivered to the National Asian
Pacific American Women’s Forum or another 501(c)(3) non-profit to be
agreed upon by the Parties.
3.2 Subject to the claims process described in this Settlement Agreement, Authorized
Claimants will receive either a check or a “Sephora Electronic Gift Card” (as defined below).
3.3 Any checks issued to Authorized Claimants shall remain valid and negotiable for
one hundred eighty (180) days from the date of their issuance; after this 180 day period, the
checks will no longer be valid or negotiable and may be cancelled. If cancelled, the value of
those check(s) will be distributed to the same cy pres recipient specified in Paragraph 3.1.4 above.
3.4 A “Sephora Electronic Gift Card” is an electronic credit that may be used to
purchase any item(s) offered on www.sephora.com or a “Sephora Retail Location” (as defined
below). The Sephora Electronic Gift Card can be used to pay for applicable sales tax and
shipping charges on purchases, in addition to the cost of item(s). The Sephora Electronic Gift
Card shall be freely transferable. Each Sephora Electronic Gift Card shall expire one year after
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-8- CLASS ACTION SETTLEMENT AGREEMENT
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the date on which it is first e-mailed to the recipient Authorized Claimant, and may not be used to
purchase items after the expiration date.
3.5 A “Sephora Retail Location” is any retail store operated and owned by Sephora in
the United States. For the avoidance of doubt, a Sephora Retail Location does not include any
Sephora Inside JC Penney location.
IV. NOTICE AND CLAIM PROCESS
4.1 Concurrently with the filing of the motion for Preliminary Approval of the
Settlement, Plaintiffs will move the Court to appoint Dahlas the Claims Administrator, who will
administer the Settlement Agreement in accordance with this Settlement Agreement or as
required by the Court.
4.2 Sephora will provide the Claims Administrator with a list of each Sephora “Beauty
Insider” account(s) with VIB or VIB Rouge status as of November 4, 2014 that was associated
with an email address from the domain @qq.com, @126.com, or @163.com that was deactivated
as a result of the computer code that Sephora implemented on or about November 6, 2014 along
with the name and email address(es) associated with each account according to Sephora’s records
(the “Class Data”), to the extent that Sephora has access to this information. Sephora agrees to
reasonably assist the Claims Administrator by providing the names and last known email
address(es)for purposes of notifying Class Members, to the extent that Sephora has access to this
information. . In accordance with Exhibit A, the Parties will request that the Court permit Dahl to
issue Class Notice via email address(es). Sephora will provide the Class Data to the Claims
Administrator no later than fourteen (14) days (or, if that date falls on a weekend or holiday, the
next business day thereafter) after the date the Court enters an order granting preliminary
approval of the Settlement. Class Data shall be used by the Claims Administrator solely for the
purpose of notifying the Class Members of the Settlement. Class Data shall be provided in a
format to be mutually agreed upon by the Claims Administrator and Sephora.
4.3 As soon as practicable after receiving the Class Data, but no later than ten (10)
business days after its receipt, the Claims Administrator shall email to each Class Member at the
email address associated with a qualifying “Beauty Insider” account, a link to the Class Notice
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-9- CLASS ACTION SETTLEMENT AGREEMENT
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and a link to the website created and operated by the Claims Administrator (“Class Website”) that
is dedicated to this Settlement Agreement and provides access to fillable and downloadable Class
Forms.
4.4 To receive a Settlement Benefit, each Class Member must, during the Claim
Period, electronically submit the Claim Form, which shall include: (a) his or her full name,
current mailing address, current phone number, and current email address; (b) any and all email
address(es) associated with his or her Sephora “Beauty Insider” account(s); (c) a statement that he
or she attempted to but was unable to make a purchase at www.sephora.com using his or her
“Beauty Insider” account(s) in November 2014; and (d) confirmation under penalty of perjury
that the foregoing information provided is true and correct. To assist the Claims Administrator in
the confirmation process, the Claim Form shall also contain a blank where Class Members are
instructed to describe any errors to their name or other personal identifying information apparent
in the e-mailed Notice. The Claims Administrator shall strictly adhere to the time deadlines set
forth in this Paragraph.
4.5 To be valid, a Claim Form must be submitted within the Claim Period, and the
submitting Class Member must not submit a Request for Exclusion or otherwise request
exclusion from the Settlement Agreement within the Claim Period.
4.6 Subject to the terms of this Settlement Agreement and other claims procedures that
may be implemented, the Claims Administrator will have discretion to accept or reject any
Claims Form returned by any Class Member and to determine whether Class Members are
Authorized Claimants. The Claims Administrator shall have the right to reject any claims
deemed to be fraudulent, insufficient, or incomplete. Should the Claims Administrator reject any
claim, the reasons for rejection shall be recorded and provided to the Parties upon request. The
Claims Administrator shall notify any Class Member whose claim is rejected in full, explaining
the reasons for rejection. If any Party disputes the decision of the Claims Administrator to reject
a Claim Form, Plaintiffs’ Counsel and Defendant’s Counsel shall meet and confer in an effort to
resolve the dispute. In the event the Parties cannot resolve the dispute, the Parties shall request
the assistance of Magistrate Judge Corley.
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-10- CLASS ACTION SETTLEMENT AGREEMENT
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4.7 Within ten (10) business days after the conclusion of the Claim Period, the Claims
Administrator shall, based upon the Claim Forms received by the Claims Administrator and
according to the terms of this Agreement and other claims procedures that may be implemented:
(a) determine whether each Claim Form represents an Authorized Claimant; (b) determine
whether any individual has submitted more than one Claim Form, and if so de-duplicate; (c)
based on the number of Authorized Claimants, determine the Settlement Benefits to be provided
to each Authorized Claimant; and (d) provide to the Parties, if and as requested, the information
and methodology used by the Claims Administrator to determine the Settlement Benefits due to
each Authorized Claimant.
4.8 No later than ten (10) business days after the Effective Date, Defendant shall
transmit the funds necessary to the Claims Administrator to cover the total payments to be sent to
Authorized Claimants and provide the Claims Administrator the Electronic Gift Card code for the
Sephora Electronic Gift Cards for Authorized Claimants.
4.9 The Settlement Benefits shall be sent to Authorized Claimants by the Claims
Administrator, subject to the terms of this Settlement Agreement, within fourteen (14) days after
receipt of the funds specified in Paragraph 4.8 from Sephora.
V. ATTORNEYS’ FEES AND EXPENSES, INCENTIVE AWARDS, AND ADMINISTRATIVE EXPENSES
5.1 At or before the time of the Final Approval Hearing, Class Counsel will file a
motion for approval of Counsel’s Fees and Expenses, to be paid out of the Settlement Amount,
supported by appropriate documentation and in amounts not in excess of $418,560 for Fees and
$90,000 for Expenses. Class Counsel agrees that in no event shall they seek approval of legal
Fees or Expenses in excess of these amounts. Defendant agrees not to oppose any motion by
Class Counsel for an award of Fees up to and including $325,000, but reserves the right to oppose
any fee request in excess of that amount. Defendant agrees not to oppose the motion by Class
Counsel for Expenses up to and including $90,000, but reserves the right to oppose any expense
request in excess of that amount. Any Fees or Expenses sought by Class Counsel but not
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-11- CLASS ACTION SETTLEMENT AGREEMENT
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approved by the Court shall remain in the Net Settlement Fund and shall be distributed
accordingly.
5.2 No payment for Fees and Expenses shall be made to Class Counsel until and
unless (a) there is Final Approval of the Settlement, (b) the Court has approved Plaintiffs’ motion
and determined the appropriate amount (not to exceed the amounts set forth herein) of Fees and
Expenses to be paid to Plaintiffs’ Counsel, and (c) the Effective Date has passed. Sephora shall
deliver payment for such Fees and Expenses awarded by the Court (not to exceed the amounts set
forth herein) to the Claims Administrator within ten (10) business days after the Effective Date.
After delivering the Fees and Expenses as approved by the Court, Sephora shall have no
additional liability for Class Counsels’ legal fees or costs.
5.3 The allowance or disallowance by the Court of any Fees and Expenses are to be
considered by the Court separately from its consideration of the fairness, reasonableness and
adequacy of the Settlement Agreement, and any order or proceedings relating to the application
for Fees and Expenses, or any appeal from any order relating thereto or reversal or modification
thereof, shall not operate to terminate or cancel this Settlement Agreement, or affect or delay the
issuance or the finality of the Judgment and Order of Dismissal.
5.4 The Released Parties shall have no responsibility for, and no liability with respect
to, payment of any Class Member’s attorneys’ fees, costs, or expenses to any other individual,
law firm, or other entity. The Released Parties shall also have no responsibility for, and no
liability with respect to, the fee allocation among Plaintiffs’ Counsel or any disputes regarding
such allocation. Plaintiffs’ Counsel agrees to indemnify and hold harmless all of the Released
Parties in connection with any such claim or dispute.
5.5 Except as expressly provided herein, Plaintiffs shall bear their own fees, costs and
expenses for this litigation, including but not limited to the activities necessary to consummate
this settlement. Defendant shall not assert any claim for expenses, costs, and fees against
Plaintiffs relating to or arising out of the Litigation or this Settlement Agreement.
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-12- CLASS ACTION SETTLEMENT AGREEMENT
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5.6 At or before the time of Final Approval, Plaintiffs will make an application to the
Court for two Class Representative service awards, to be paid out of the Settlement Amount, in
the following amounts: five thousand dollars ($5,000) to Class Representative Yolin Han and five
thousand ($5,000) to Class Representative Ruiqi Ye (the “Service Awards”). Class
Representatives shall not be entitled to any Service Awards in excess of these amounts.
Defendant agrees not to oppose the application to the Court for Service Awards up to and
including the amounts set forth herein. Any amount of Service Awards sought by Plaintiffs but
not approved by the Court shall remain in the Net Settlement Fund and be distributed
accordingly.
5.7 No payment for Service Awards shall be made to Plaintiffs until and unless (a)
there is Final Approval of the Settlement and (b) the Court has approved Plaintiffs’ application
for Service Awards and determined the appropriate amount (not to exceed the amounts set forth
herein) of the Service Awards. Sephora shall deliver payment for the Service Awards awarded by
the Court (not to exceed the amounts set forth herein) to the Claims Administrator within ten (10)
business days after the Effective Date.
5.8 Final resolution by the Court of Plaintiffs’ application for Service Awards shall not
be a precondition to Final Approval of the Settlement or to the dismissal of the Released Claims
in accordance with this Settlement Agreement.
5.9 Payment of Administrative Expenses incurred by the Claims Administrator to
implement and administer the Settlement Agreement, in an amount not to exceed $25,000, as
approved by the Court, shall be paid out of the Settlement Amount.
VI. PROCEDURE FOR APPROVAL, REQUESTS FOR EXCLUSION, OBJECTIONS, AND TERMINATION
6.1 Preliminary Approval of Settlement. After the execution of this Settlement
Agreement, the Plaintiffs will within a reasonable time prepare submit to the Court an Motion for
Preliminary Approval of this Settlement with supporting papers and a proposed Preliminary
Approval Order, substantially in the form attached hereto as Exhibit D, which: (1) preliminarily
approves this Agreement and this Settlement as fair, just, reasonable and adequate; (2)
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-13- CLASS ACTION SETTLEMENT AGREEMENT
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conditionally certifies a Class for settlement purposes only; (3) appoints Wigdor LLP and
Anderson & Poole, P.C. as Class Counsel; (4) appoints Yolin Han and Ruiqi Ye as Class
Representatives; (5) approves and directs Class Notice to the Class Members as described in this
Agreement; and (6) sets a hearing to consider Final Approval of the Settlement and any
objections thereto.
6.2 Final Approval and the Judgment and Order of Dismissal. Within a reasonable
time following the close of the Claim Period, Plaintiffs will file a motion for Final Approval of
the Settlement and for entry of the Judgment and Order of Dismissal holding this Agreement to
be final, fair, reasonable, adequate, and binding on all Settlement Class Members who have not
excluded themselves as provided below; ordering that the Settlement Benefits be provided as set
forth in this Agreement; ordering the releases as set forth in this Agreement to become effective;
and entering the Judgment and Order of Dismissal. As set forth below in Paragraph 8.15, in the
event of any modification or termination of this Settlement Agreement, the Court retains the
ongoing and exclusive jurisdiction of the Litigation.
6.3 Opt-Outs and Objections. The Class Notice shall advise Class Members of their
rights: (a) to forego the Settlement Benefits and preserve their right to pursue an individual claim;
and (b) to object to this Settlement Agreement individually or through counsel.
6.3.1 Class Members who wish to be excluded from the Class, forgo the
Settlement Benefits, and pursue an individual claim will be instructed to
electronically submit a Request for Exclusion to the Claims Administrator
within the Claim Period, setting forth their name and a statement that they
request exclusion from the class and do not wish to participate in the
settlement. Any Class Member who submits a timely and valid Request
for Exclusion shall not be a Settlement Class Member, shall not be an
Authorized Claimant, and shall not have standing to object to or otherwise
contest the Settlement Agreement.
6.3.2 The proposed Preliminary Approval Order and the Class Notice will
provide that any Class Member wishing to exclude herself or himself from
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-14- CLASS ACTION SETTLEMENT AGREEMENT
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the Settlement Class who fails to properly and timely submit the required
documents and information will not be excluded from the Settlement Class.
6.3.3 If, within such time as is ordered by the Court and contained in the Class
Notice, any Settlement Class Member wishes to object to the Settlement
and/or to be heard by the Court, he or she may electronically submit an
objection to the Claims Administrator, which in turn will be collected by
the Claims Administrator and described in their declaration to the Court in
advance of Final Approval. Each such objection shall follow submission
of information sufficient to establish (under penalty of perjury) that the
individual objecting is a Settlement Class Member and shall provide a
detailed statement of any objection asserted, including the grounds therefor
and reasons, if any, for requesting the opportunity to appear and be heard at
the Final Approval Hearing. A Settlement Class Member may also appear
at the Final Approval Hearing, either in person or through his or her own
legal representative. Pursuant to Paragraph 5.4 of this Settlement
Agreement, no Party will be responsible for any payments to any legal
representatives appearing on behalf of Settlement Class Members who
choose to object and/or to appear at the Final Approval Hearing.
6.4 Within ten (10) business days of the end of the Claim Period, the Claims
Administrator shall prepare a list of the names of the persons who, pursuant to the Class Notice
and the procedures described herein, have excluded themselves from the Settlement Class in a
valid and timely manner, and provide that list simultaneously to Defendant’s Counsel and
Plaintiffs’ Counsel.
6.5 Notwithstanding anything else contained in this Agreement, if the total number of
Class Members who exclude themselves from the Settlement Class, pursuant to Paragraph 6.3.1
above, exceeds 10%, Sephora will have the option in its sole discretion of withdrawing itself from
this Agreement and from the Settlement in its entirety, in which event this Settlement shall not
become effective and the provisions of Paragraph 6.6 will apply; provided, however, that such
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-15- CLASS ACTION SETTLEMENT AGREEMENT
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option must be exercised within 10 (ten) business days after receiving notice from the Claims
Administrator as to how many Class Members have submitted a timely and valid Request for
Exclusion from the Settlement Class.
6.6 Modification or Termination of Settlement Agreement. The terms and provisions
of this Settlement Agreement may be amended, modified, or expanded by written agreement of
the Parties and approval of the Court. This Settlement Agreement shall terminate at the discretion
of either Plaintiffs or Defendant if: (1) the Court, or any appellate court(s), rejects, modifies, or
denies approval of any portion of this proposed Settlement Agreement that the terminating Party
in its sole judgment and discretion reasonably determine is material, including, without limitation,
the terms of relief, the findings, or conclusions of the Court, the provisions relating to notice, the
definition of the Class, and/or the terms of the Release; or (2) the Court, or any appellate court(s),
does not enter or completely affirm, or alters, narrows or expands, any portion of the Final
Approval Order, or any of the Court’s findings of fact or conclusions of law, that the terminating
Party in its sole judgment and discretion reasonably determines is material. The terminating Party
must exercise the option to withdraw from and terminate this Settlement Agreement by sending a
signed writing served on the other Party no later than twenty days after receiving notice of the
event prompting the termination. Plaintiffs and Defendant will be returned to their positions status
quo ante. For the avoidance of doubt, the Court’s denial, in whole or in part, of Class Counsel’s
Motion for Fees and Costs is not a ground for Plaintiffs to withdraw from and/or terminate this
Settlement Agreement. In the event that this Settlement Agreement does not become effective
because any of the conditions precedent prior to the Effective Date do not occur , then this
Settlement Agreement shall be null and void and of no force and effect and the following
provisions shall apply:
6.6.1 No Fees and Expenses whatsoever shall be awarded or payable to
Plaintiffs’ Counsel.
6.6.2 No Service Awards whatsoever shall be awarded or payable to Plaintiffs.
6.6.3 Sephora will remain responsible to pay for Administrative Expenses
already incurred by the Claims Administrator, and neither Plaintiffs nor
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-16- CLASS ACTION SETTLEMENT AGREEMENT
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Plaintiffs’ Counsel shall be responsible to pay for such Administrative
Expenses.
6.6.4 No term or condition of this Settlement Agreement, or any draft thereof, or
discussion, negotiation, documentation, or other aspect of the Parties’
settlement discussions shall have any effect, be construed as an admission
by any Party, or be admissible or discoverable for any purpose in the
Litigation or in any other proceeding.
6.6.5 Nothing herein will be deemed to prejudice the position of any of the
Parties with respect to the Litigation.
6.6.6 The Litigation shall for all purposes revert to its status as of the close of
business (Pacific Time) on June 9, 2016. Within ten (10) business days
after a determination that the Effective Date will not occur, the Parties shall
advise the Court and seek to place Plaintiffs’ motion for class certification
and the scheduling conference back on the Court’s calendar.
6.7 Confidentiality and Publicity. The Parties, Plaintiffs’ Counsel, and Defendant’s
Counsel agree not to make any public statements, or statements to the press or media, or
statements on websites, about the Litigation or the Settlement Agreement; provided, however,
that nothing in this Paragraph shall preclude:
6.7.1 Any Party or that Party’s counsel from making statements, representations,
and disclosures that are legally required by any applicable statute, court
order, rule, regulation, or disclosure requirement;
6.7.2 Any Party or that Party’s counsel from discussing the Litigation and/or
Settlement Agreement directly with any Class Members or their
representatives in a non-public communication or forum;
6.7.3 Defendant, its counsel, or its representatives from discussing the Litigation
and/or the Settlement Agreement in responding to inquiries from actual or
potential customers;
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-17- CLASS ACTION SETTLEMENT AGREEMENT
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6.7.4 Any Party or that Party’s counsel from responding to statements that
appear in the press or media that are disparaging to the Party or that Party’s
counsel;
6.7.5 Counsel for any of the Parties from setting forth basic information
concerning their involvement in the Litigation (which shall not include
information about the amount of payments made or benefits provided
pursuant to the Settlement Agreement) on their firms’ websites;
6.7.6 Counsel for any of the Parties from setting forth basic information
concerning their involvement in the Litigation (which shall not include
information about the amount of payments made or benefits provided
pursuant to the Settlement Agreement) in their resumes or in court filings
in unrelated actions where the experience of counsel is an issue;
6.7.7 Any Party and that Party’s counsel from directing a press or media
organization to information about the Litigation and the Settlement
Agreement on the law firms’ websites, per Paragraph 6.7.5 above;
6.7.8 Any Party and that Party’s counsel from providing a press or media
organization, upon request by such organization, with copies of the
pleadings or Court orders related to the Settlement Agreement.
6.8 In making statements permitted under Paragraph 6.7 above, the Parties and their
counsel shall not make any statements (whether written or oral) that disparage, defame, criticize,
or demean the Parties or their counsel relating to the Litigation or the Settlement, and shall not
state or imply that the Settlement Agreement in any way reflects or implies the existence of fault,
liability, loss, or damage.
VII. RELEASES
7.1 Settlement Class Member Released Claims. Upon the Effective Date, each of the
Settlement Class Members, on behalf of themselves and each of their respective agents,
successors, heirs, and assigns, will be deemed to have, and by operation of the Judgment and
Order of Dismissal will have, fully, finally, and forever released, relinquished and discharged the
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-18- CLASS ACTION SETTLEMENT AGREEMENT
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Released Parties from the following claims, which pursuant to the Settlement Agreement are
being released through and including the dates of the Preliminary Approval Order: all claims or
causes of action that are pled in or reasonably related to claims and potential claims Litigation,
including but not limited to any and all claims related to the November 2014 20% off sale, the
Settlement Class Members’ “Beauty Insider” accounts, and any and all breach of contract or
related or derivative tort claims against any of the Released Parties (the “Settlement Class
Released Claims”).
7.1.1 With regard to the Settlement Class Released Claims, the Settlement Class
Members expressly waive all rights under California Civil Code section
1542, which states:
A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known to him or her must have materially affected his or her settlement with the debtor.
7.1.2 A Settlement Class Member may hereafter discover facts in addition to or
different from those which she now knows or believes to be true with
respect to the subject matter of the Settlement Class Released Claims, but
she shall be deemed to have, and by operation of the Judgment and Order
of Dismissal shall have, fully, finally, and forever settled and released any
and all Settlement Class Released Claims, known or unknown, suspected
or unsuspected, contingent or non-contingent, whether or not concealed or
hidden, which then exist, or heretofore have existed upon any theory of law
or equity now existing or coming into existence in the future, including, but
not limited to, conduct which is negligent, intentional, with or without
malice, or a breach of any duty, law or rule, without regard to the
subsequent discovery or existence of such different or additional facts.
7.1.3 All Class Members shall be bound by this release unless they formally
request exclusion from this Settlement Agreement by submitting a valid
and timely Request for Exclusion or comparable documentation.
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-19- CLASS ACTION SETTLEMENT AGREEMENT
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7.1.4 Consistent with the foregoing, Settlement Class Members may not sue or
otherwise make a claim against any of the Released Parties that is in any
way related to, arises out of, or is connected with any of the Settlement
Class Released Claims.
7.2 Class Representative Released Claims. Upon the Effective Date, Class
Representatives, on behalf of themselves and each of their respective heirs, representatives,
successors, assigns, and attorneys, shall be deemed to have, and by operation of the Judgment
shall have, fully, finally, and forever released, relinquished, and discharged the Released Parties
from all claims or causes of action of any type whatsoever, whether known or unknown, and
whether or not arising out of or related to the Litigation (the “Class Representative Released
Claims”).
7.2.1 With regard to the Class Representative Released Claims, the Class
Representatives expressly waive all rights under California Civil Code
section 1542, which states:
A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known to him or her must have materially affected his or her settlement with the debtor.
7.2.2 A Class Representative may hereafter discover facts in addition to or
different from those which she now knows or believes to be true with
respect to the subject matter of the Class Representative Released Claims,
but she shall be deemed to have, and by operation of the Judgment and
Order of Dismissal shall have, fully, finally, and forever settled and
released any and all Class Representative Released Claims, known or
unknown, suspected or unsuspected, contingent or non-contingent, whether
or not concealed or hidden, which then exist, or heretofore have existed
upon any theory of law or equity now existing or coming into existence in
the future, including, but not limited to, conduct which is negligent,
intentional, with or without malice, or a breach of any duty, law or rule,
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-20- CLASS ACTION SETTLEMENT AGREEMENT
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without regard to the subsequent discovery or existence of such different or
additional facts.
7.2.3 Consistent with the foregoing, the Class Representatives agree not to sue or
otherwise make a claim against any of the Released Parties that is in any
way related to, arises out of, or is connected with the Class Representative
Released Claims set forth in this section.
7.3 Notwithstanding the foregoing, neither the Settlement Class Released Claims nor
the Class Representative Released Claims do not include any claim or right that may arise after
their execution of this Agreement; any claim or right regarding compliance with this Settlement
Agreement; or any claim or right that is not waivable as a matter of law.
VIII. ADDITIONAL PROVISIONS
8.1 Cooperation. The Parties and their counsel shall cooperate to effectuate the
Settlement on the stated terms and conditions, to obtain preliminary approval of the Settlement
Agreement, and to obtain Final Approval. In the event that the Court asks the Parties to modify
any aspect of the Settlement Agreement, the Parties shall meet and confer in good faith to attempt
to resolve any issues identified by the Court and to discuss how to allocate any increase in the
cost or burden of the Settlement Agreement Any such modification of the Settlement Agreement
shall be by mutual written consent of the Parties, and no Party shall be obligated to accept
modifications without its consent except pursuant to Court order.
8.2 The Parties represent and agree that the terms of the Settlement Agreement were
negotiated at arm’s length and in good faith by the Parties, and reflect a settlement that was
reached voluntarily based upon adequate information and sufficient discovery and after
consultation with experienced legal counsel.
8.3 The Parties agree to the conditional certification of the Class described herein for
purposes of this Settlement Agreement only. Should, for whatever reason, the Effective Date not
occur, the Parties’ stipulation to certification of the Class as part of the Settlement Agreement
shall become null and void ab initio and shall have no bearing on, and shall not be admissible in
connection with, the issue of whether or not certification may be proper or appropriate in the
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-21- CLASS ACTION SETTLEMENT AGREEMENT
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Litigation. Defendant expressly reserves its right to, and declares that it intends to, oppose class
certification vigorously should this Settlement not become final.
8.4 Motion Papers for Preliminary and Final Approval. Plaintiffs shall draft the
motion for preliminary approval and for final approval of the Settlement as described above, and
shall submit the drafts to Defendant’s Counsel at least five (5) business days before filing for
review and comment.
8.5 Class Action Fairness Act Notice. Within ten (10) business days following the
filing of the Motion for Preliminary Approval, Defendant, through the Claims Administrator,
shall serve notice of the proposed Settlement upon the required governmental officials pursuant to
the Class Action Fairness Action of 2005, 28 U.S.C. § 1715 (with a copy to Plaintiffs’ Counsel).
8.6 Resolution of Disputes. The Parties agree that they will return to Magistrate Judge
Corley to seek resolution of any dispute, claim or controversy arising out of or relating to this
Settlement Agreement or the breach, termination, enforcement, interpretation or validity thereof.
8.7 Change of Time Periods. The time periods and/or dates described in this
Settlement Agreement with respect to filings, hearings, and notices are subject to approval and
modification by the Court or by mutual written agreement of the Parties, without notice to Class
Members. The Class Notice will advise Class Members that they may check the Court’s
calendar, which is available at http://www.cand.uscourts.gov/emc, to confirm whether the date for
the Final Approval Hearing has been changed.
8.8 Time for Compliance. If the date for performance of any act required by or under
this Settlement Agreement falls on a Saturday, Sunday or court holiday, that act may be
performed on the next business day with the same effect as if it had been performed on the day or
within the period of time specified by or under this Settlement Agreement.
8.9 Governing Law. This Agreement is intended to and shall be governed by the laws
of the State of California, without regard to conflicts of law principles.
8.10 Entire Agreement. The terms and conditions set forth in this Settlement
Agreement constitute the complete and exclusive statement of the agreement between the Parties
hereto relating to the subject matter of this Settlement Agreement, superseding all previous
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-22- CLASS ACTION SETTLEMENT AGREEMENT
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negotiations and understandings, including the Memorandum of Understanding executed by
Plaintiffs’ Counsel and Defendant’s Counsel on August 24, 2016, and may not be contradicted by
evidence of any prior or contemporaneous agreement. The Parties further intend that this
Settlement Agreement constitutes the complete and exclusive statement of the terms of the
Settlement as between the Parties hereto, and that no extrinsic evidence whatsoever may be
introduced in any arbitration or judicial proceeding involving this Agreement. Any modification
of this Settlement Agreement must be in writing signed by Plaintiffs’ Counsel, Defendant’s
Counsel, and Defendant.
8.11 Advice of Counsel. The determination of the terms of, and the drafting of, this
Settlement Agreement have been by mutual agreement after negotiation, with consideration by
and participation of all Parties hereto and their counsel.
8.12 Binding Agreement. This Settlement Agreement shall be binding upon and inure
to the benefit of the respective heirs, successors, and assigns of the Parties hereto.
8.13 No Waiver. The waiver by any Party of any provision or breach of this Settlement
Agreement shall not be deemed a waiver of any other provision or breach of this Settlement
Agreement.
8.14 Extensions of Time. The Parties reserve the right, by mutual written agreement, to
grant any reasonable extension of time that might be needed to carry out any of the provisions of
this Settlement Agreement.
8.15 Enforcement of this Settlement Agreement. The Court shall retain jurisdiction to
enforce, interpret, and implement this Settlement Agreement until such time as the Court
determines that the Settlement Agreement is fully consummated according to the terms and
conditions.
8.16 Notices. All notices to the Parties or counsel required by this Settlement
Agreement shall be made in writing and communicated by mail and fax or email to the following
addresses:
If to Plaintiffs or Plaintiffs’ Counsel:
Jeanne M. Christensen, Esq.
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-23- CLASS ACTION SETTLEMENT AGREEMENT
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Elizabeth J. Chen, Esq. WIGDOR LLP 85 Fifth Avenue New York, NY 10003 Tel.: (212) 257-6800 Fax: (212) 257-6845 Email: [email protected] Email: [email protected] -and- Jamie C. Couche ANDERSON & POOLE, P.C. 601 California Street Suite 1300 San Francisco, California 94108-2818 Tel.: 415-956-6413 Fax: 415-956-6416 Email: [email protected]
If to Defendant or Defendant’s Counsel:
Robert Shapiro, Esq. Shermin Kruse, Esq. BARACK FERRAZZANO KIRSCHBAUM & NAGELBERG LLP 200 W. Madison St Suite 3900 Chicago, IL 60606 Tel: (312) 984-3100 Fax: (312) 984-3150 Email: [email protected] Email: [email protected] -and-
Andrew R. Livingston, Esq. Kathryn G. Mantoan, Esq. ORRICK, HERRINGTON & SUTCLIFFE LLP 405 Howard Street San Francisco, CA 94105 Tel: (415) 773-5700 Fax: (415) 773-5759 Email: [email protected] Email: [email protected]
8.17 The Plaintiffs and Plaintiffs’ counsel represent and warrant that Plaintiffs have not
assigned, encumbered, or in any manner transferred in whole or in part the Settlement Class
Released Claims or the Class Representative Released Claims.
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-24- CLASS ACTION SETTLEMENT AGREEMENT
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8.18 Execution in Counterparts. The Parties may execute this Settlement Agreement in
counterparts and/or by fax or e-mailed PDF, and execution of counterparts shall have the same
force and effect as if all Parties had signed the same instrument.
IN WITNESS HEREOF the undersigned, being duly authorized, have caused this
Settlement Agreement to be executed on the dates shown below.
[signature pages to follow]
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AGREED TO AN D ACCEPTED:
Dated: \)~ . ·G-t( ' 2016
Dated: ___ ___ _ , 2016
8 Dated: ___ ___ _ ,2016
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Volin Han Plaintiff
Ruiqi Ye Plaintiff
SEPHORA USA, INC. By: Eric Baysinger, Esq.
Vice President and General Counsel
II APPROVED AS TO FORM AND AGREED AS TO PARAGRAPH 6.7:
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13 Dated: _______ ,2016
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Dated:-------' 2016
23 Dated: _______ , 2016
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Jeanne Christensen, Esq. WlGDORLLP Counsel for Plaintiffs
Jamie Couche, Esq. ANDERSON & POOLE, P.C. Counsel for Plaintiffs
Robert E. Shapiro, Esq. BARACK FERRAZZANO KIRSCHBAUM & NAGELBERG LLP Counsel for Defendant
Andrew R. Livingston, Esq. ORRICK, HERRINGTON & SUTCLIFFE LLP Counsel for Defendant
-2S·
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AGREED TO AND ACCEPTED:
-25- CLASS ACTION SETTLEMENT AGREEMENT CASE NO. 3: 14-CV -05237-EMC
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AGREED TO AND ACCEPTED:
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3 Dated:-~~---~ ------·····' 2016
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Dated:
Volin Han Plaintiff
R:uiqiVe. Plaintiff
1/;/p I J 1ft .. ····• "';1::".
SEPfldf(A~isA,TNc.···· By: Eric Baysinger, Esq.
Vice President and General Counsel
ll APPROVED AS TO FORM AND AGREED AS TO PARAGRAPH 6.7:
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13 Dated:-·-···-··~·····~-·~ .... ~~--···' 2016
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Dated:---~-~-·····~-· 2016
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Jeaili1echrlsie·n-se11'; Esq."··· WIGDOR LLP Counsel for Plaintiffs
-25- CLASS ACT! ON SETTLEMEN l AGREEMEN1 CASE NO. 3:14-CV-05237-EMC
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-26- CLASS ACTION SETTLEMENT AGREEMENT
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SCHEDULE OF EXHIBITS
Exhibit A Class Notice
Exhibit B Claim Form
Exhibit C Request for Exclusion
Exhibit D [Proposed] Preliminary Approval Order
Exhibit E [Proposed] Judgment and Order of Dismissal
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Exhibit A
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To: <<class member email address>> From: Settlement Administrator Re: LEGAL NOTICE OF SETTLEMENT OF CLASS ACTION ---------------------------------------------------------------------------------- This email is intended for: <<Claimant Name>> Claim ID: <<DAHLID>> ----------------------------------------------------------------------------------- NOTICE OF PENDING CLASS ACTION AND NOTICE OF PROPOSED SETTLEMENT Ye, et al. v. Sephora USA, Inc., United States District Court for the Northern District of California, Case No. 3:14-cv-05237 ------------------------------------------------------------------------------------ You are receiving this e-mail because in November 2014 you may have had an online account at Sephora with an associated email address from one the following email service providers: @qq.com, @126.com or @163.com. Why did I get this notice? A settlement (“Settlement”) has been proposed in a class action lawsuit pending in the Northern District of California (“Court”) entitled Ye, et al. v. Sephora USA, Inc. (the “Action”). According to available records, you might be a “Class Member.” The purpose of this notice is to inform you of the Action and the Settlement so that you may decide what steps to take in relation to it. What is the Action about? The Action was filed against Sephora alleging it discriminatorily deactivated from its website thousands of customers in the U.S. whose customer accounts had email addresses with China-based service providers: @qq.com, @126.com and @163.com. The Action alleges that Sephora prevented these users from participating in the annual 20% discount sale available to VIB and VIB Rouge customers scheduled to begin on November 6, 2014 (the “VIB Sale”). Sephora denies wrongdoing and liability, and no court or other entity has made any judgment or other determination of any liability. Am I a Class Member? You are a “Class Member” if as of November 4, 2014, you (i) had an active VIB or VIB Rouge account as of November 4, 2014 that was associated with an email address from @qq.com, @126.com or @163.com, (ii) had your account deactivated on or about November 6, 2014, and (iii) attempted to but were unable to make a purchase at ww.sephora.com using their “Beauty Insider” account(s) at some point in November 2014. What relief does the Settlement provide? If you are a Class Member, you are eligible to receive your choice of either a cash payment or an electronic gift card. The amounts paid to Class Members will be determined on a pro rata basis depending on the number of Class Members, up to maximum amounts of a $125 cash payment or a $250 electronic gift card. To be considered eligible, you must timely complete a valid Claim Form. A Claim Form is available
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by clicking HERE or on the Internet at the Settlement website www.sephorasettlement.com. The deadline to submit a Claim Form is [TBD], 2016. What are my other options? If you do not want to be legally bound by the Settlement, you must exclude yourself by [TBD], 2016, or you will be releasing Sephora from any liability with the Action and you cannot sue Sephora for the legal claims in the Action in the future. The full terms of the release are described more fully in the Settlement website available HERE. If you exclude yourself, you cannot receive any money from this Settlement if it is approved. A form to exclude yourself is available HERE or @ www.sephorasettlement.com. If you are a member of the Class and object to any part of the Settlement, your views will be heard by the Court at the hearing. The date for this hearing is not yet scheduled but you can stay updated by regularly checking the Settlement website. More information? For complete information about the Settlement, to view the Settlement Agreement, Court documents and Forms, and to learn more about how to exercise your various options under the Settlement, visit www.sephorasettlement.com. If your web-browser is preventing the hyperlink in this paragraph from working, enter the URL address manually into your browser. You may also write to the Settlement Administrator at: Sephora Claims Administrator c/o Dahl Administration, P.O. Box 3614, Minneapolis, MN 55403-0614. This is an automatically generated email. Please do not reply to this message. Please send email inquiries to: [email protected].
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Exhibit B
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SEPHORA “BEAUTY INSIDER” SETTLEMENT CLAIM FORM
QUESTIONS? Visit the settlement website at www.XXXXXXXXXXXXXXXXXXX.com or call 1‐xxx‐xxx‐xxxx
CLAIM FORM INSTRUCTIONS
1. Sephora customers who meet all of the following criteria are eligible to submit a Claim Form:
(i) had one or more Sephora “Beauty Insider” account(s) with VIB or VIB Rouge status as of November 4, 2014 that was associated with an email address from the domain @qq.com, @126.com, or @163.com;
(ii) had their account(s) deactivated as a result of the computer code that Sephora implemented on or about November 6, 2014; and
(iii) attempted to but were unable to make a purchase at www.sephora.com using their “Beauty Insider” account(s) at some point in November 2014.
2. Authorized Claimants will receive either a check or an electronic “Sephora Gift Card” that may be used to purchase any item(s) offered on www.sephora.com or any retail store operated and owned by Sephora.
3. The amount of the check or electronic Sephora Gift Card an Authorized Claimant will receive will be determined on a pro rata basis based upon the total number of Authorized Claimants, with each Authorized Claimant who selected an electronic Sephora Gift Card receiving twice what each Authorized Claimant who selected cash will receive, and subject to a cap of $125.00 in cash or $250.00 in a Sephora Gift Card to each Authorized Claimant.
4. To complete the Claim Form, you must sign and date the confirmation under penalty of perjury at the bottom of this form.
5. Return your signed and completed Claim Form postmarked by [DATE]. Your claim can be submitted by mail, email or online:
By mail: Sephora Settlement Administrator c/o Dahl Administration PO Box 3614 Minneapolis, MN 55403-0614
By email: [email protected] Online: www.XXXXXXXXXXXXXXXXXXXXX.com
6. QUESTIONS? Visit the settlement website at www.XXXXXXXXXXXXXXXXXXXXXX.com or call 1-xxx-xxx-xxxx.
CLASS MEMBER IDENTIFICATION
FIRST NAME OF SETTLEMENT CLASS MEMBER MIDDLE INITIAL
LAST NAME OF SETTLEMENT CLASS MEMBER
CURRENT MAILING ADDRESS
CITY STATE ZIP CODE
CURRENT PHONE NUMBER CURRENT ALTERNATE PHONE NUMBER
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SEPHORA “BEAUTY INSIDER” SETTLEMENT CLAIM FORM
QUESTIONS? Visit the settlement website at www.XXXXXXXXXXXXXXXXXXX.com or call 1‐xxx‐xxx‐xxxx
CURRENT EMAIL ADDRESS
ACCOUNT EMAIL ADDRESS(ES)
Please provide any and all email address(es) associated with your Sephora “Beauty Insider” accounts:
ACCOUNT EMAIL ADDRESS 1
ACCOUNT EMAIL ADDRESS 2
ACCOUNT EMAIL ADDRESS 3
ACCOUNT EMAIL ADDRESS 4
CLASS MEMBERSHIP AND BENEFITS ELECTION
1- By marking YES below I state that I attempted to but was unable to make a purchase at www.sephora.com using my “Beauty Insider” account(s) in November 2014.
O YES O NO
2- Authorized Claimants will receive either a check or an electronic “Sephora Gift Card” that may be used to purchase any item(s) offered on www.sephora.com or any retail store operated and owned by Sephora. Each Authorized Claimant who selects an electronic Sephora Gift Card will receive twice the amount that each Authorized Claimant who selected cash will receive. Please select one:
O CHECK O ELECTRONIC SEPHORA GIFT CARD (TWICE THE CHECK AMOUNT)
NAME OR PERSONAL IDENTIFYING INFORMATION CORRECTION
3- If you received an e-mailed notice relating to this settlement that contained any errors to your name or other personal identifying information, please describe the errors in the box below:
CONFIRMATION AND SIGNATURE
I confirm under penalty of perjury that the information provided in this Claim Form is true and correct.
PRINT NAME
SIGNATURE DATE
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Exhibit C
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Ye, et al. v. Sephora USA, Inc., Case No. 3:14-cv-05237 (EMC)
REQUEST FOR EXCLUSION
Ye, et al. v. Sephora Class Action
By filing this form, you acknowledge that you have received notice of this class action, the proposed Settlement, the right of exclusion, and the Final Approval Hearing (the “Notice”) and that you do NOT wish to remain a member of the Settlement Class in the case known as Ye, et al. v. Sephora USA, Inc., Case No. 3:14-cv-05237 (EMC), pending in the United States District Court for the Northern District of California.
File this form if you (a) had one or more Sephora “Beauty Insider” account(s) with VIB or VIB Rouge status as of November 4, 2014 that was associated with an email address from the domain @qq.com, @126.com, or @163.com; (b) had your account(s) deactivated as a result of the computer code that Sephora implemented on or about November 6, 2014; (c) attempted to but were unable to make a purchase at www.sephora.com using your “Beauty Insider” account(s) at some point in November 2014; and (d) you wish to exclude yourself from the lawsuit. If you file this form, do not file any other form. Do not file this form if you wish to participate in the Settlement of this lawsuit. Do not file this form if you wish to object to the Settlement.
If you want to exclude yourself from the Settlement Class and not participate in the Settlement, you must complete and mail this form to:
Sephora Claims Administrator c/o Dahl Administration P.O. Box 3614 Minneapolis, MN 55403-0614
Your mailing must be postmarked by __________. If you have any questions, please visit the website, www.sephorasettlement.com, or call _______.
I understand that by signing and mailing this form:
• I will not receive any of the monetary benefits of the Settlement as described in the Notice of Settlement;
• I will not participate in or be represented as an Authorized Claimant in this Action; and
• I may pursue, at my own expense, whatever claims I may have against Sephora with regard to claims that were the subject of the class action.
Please type or print:
First Name MI Last Name
Address
City State ZIP Code
Telephone
– –
Email Address (if any)
I wish to be excluded from the Settlement Class and excluded from participation in the Settlement.
Signature
– –
MM DD YYYY
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Exhibit D
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1 Ye, et al. v. Sephora USA, Inc. [Proposed] Order
No. 14-cv-5237-EMC
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DOUGLAS H. WIGDOR (NY SBN 2609469) JEANNE M. CHRISTENSEN (NY SBN 2622124) ELIZABETH J. CHEN (NY SBN 5126214) (All admitted pro hac vice) WIGDOR LLP 85 Fifth Avenue New York, NY 10003 Tel.: (212) 257-6800 Fax: (212) 257-6845 JAMIE C. COUCHE (SBN 252001) ANDERSON & POOLE, P.C. 601 California Street, Suite 1300 San Francisco, CA 94108 Telephone: (415) 956-6413 Facsimile: (415) 956-6416 Attorneys for Plaintiffs, RUIQI YE, YOLIN HAN
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA
RUIQI YE and YOLIN HAN, individually and on behalf of all other similarly-situated individuals, Plaintiffs, v. SEPHORA USA, INC., Defendant.
Case No.: 3:14-cv-05237-EMC
[PROPOSED] ORDER PRELIMINARILY APPROVING THE PROPOSED SETTLEMENT
The above matter came before the Court for Preliminary Approval of the Proposed
Settlement, Certification of the Settlement Class, Appointment of Named Plaintiff’s Counsel,
Wigdor LLP and Anderson & Poole, P.C., as Class Counsel, Appointment of Dahl
Administration LLC (“Dahl”) as administrator of the settlement (“Claims Administrator” or
“Administrator”) and Approval of the Proposed Court-Authorized Notice of Settlement (the
“Proposed Notice” or “Notice”) (collectively, the “Proposed Order”).
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2 Ye, et al. v. Sephora USA, Inc. [Proposed] Order
No. 14-cv-5237-EMC
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1. Based upon the Court’s review of the motion papers filed by Plaintiffs Ruiqi Ye
and Yolin Han (together referred to as, “Plaintiffs”), including the Declaration of Jeanne M.
Christensen (“Christensen Decl.”) and the Declaration of Elizabeth J. Chen, and all other papers
submitted in connection with the Motion for Preliminary Approval, the Court grants preliminary
approval of the settlement memorialized in the Class Action Settlement Agreement (the
“Agreement”) by and between Plaintiffs and Defendant (the “Parties”).
2. The Court provisionally certifies the following class under Federal Rule of Civil
Procedure 23(e), for settlement purposes only (“Class Members” or the “Proposed Class”) as:
All Sephora customers who meet all of the following criteria: (i) had one or more Sephora “Beauty Insider” account(s) with VIB or VIB Rouge status as of November 4, 2014 that was associated with an email address from the domain @qq.com, @126.com, or @163.com; (ii) had their account(s) deactivated as a result of the computer code that Sephora implemented on or about November 6, 2014; and (iii) attempted to but were unable to make a purchase at www.sephora.com using their “Beauty Insider” account(s) at some point in November 2014.
3. The Proposed Class meets all of the requirements for class certification under
Federal Rule of Civil Procedure 23(a) and (b)(3).
4. The Court appoints Jeanne M. Christensen and Elizabeth J. Chen of Wigdor LLP,
85 Fifth Avenue, New York, New York 10003, and Jamie C. Couche of Anderson & Poole, P.C.,
601 California Street, Suite 1300, San Francisco, CA 94108, as Class Counsel because the firms
meet all of the requirements of Federal Rule of Civil Procedure 23(g).
5. The Court appoints Named Plaintiffs Ruiqi Ye and Yolin Han as Class
Representatives.
6. The Court appoints Dahl Administration LLC as Claims Administrator, who will
be responsible for administering the settlement.
7. The Court approves the proposed Court-Authorized Notice of Settlement (the
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3 Ye, et al. v. Sephora USA, Inc. [Proposed] Order
No. 14-cv-5237-EMC
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“Proposed Notice”), attached as Exhibit 3 to the Christensen Decl., and directs its distribution to
the Class Members.
8. The Court approves the proposed Claim Form, attached as Exhibit 4 to the
Christensen Decl., and directs its distribution to the Class Members.
9. The Court approves the proposed Request for Exclusion Form, attached as Exhibit
5 to the Christensen Decl., and directs its distribution to the Class Members.
10. The Court hereby sets the following settlement procedure:
a. Within 14 days after the entry of this Order, Defendants will provide the Claims
Administrator and Class Counsel with a list of each Sephora “Beauty Insider” account(s) with
VIB or VIB Rouge status as of November 4, 2014 that was associated with an email address
from the domain @qq.com, @126.com, or @163.com that was deactivated as a result of the
computer code that Sephora implemented on or about November 6, 2014, along with the name
and email address(es) associated with each account according to Sephora’s records (the “Class
Data”), to the extent that Sephora has access to this information.
b. No later than 10 days after receiving the Class Data, the Claims Administrator
shall email to each Class Member at the email address associated with a qualifying “Beauty
Insider” account, a link to the Class Notice and a link to the website created and operated by the
Claims Administrator (“Class Website”) that is dedicated to this Settlement Agreement and
provides access to fillable and downloadable Claim Form.
c. The Proposed Class will have 45 days after the date the Proposed Notice is
emailed to submit the Claim Form, or opt-out of or object to the Agreement (the “Claim
Period”).
d. The Court will hold a Final Approval Hearing on ____________
at ______ a.m./p.m. at Courtroom 5, United States District Court, Northern District of
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4 Ye, et al. v. Sephora USA, Inc. [Proposed] Order
No. 14-cv-5237-EMC
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California, 450 Golden Gate Avenue, 17th Floor, San Francisco CA 94102.
e. Within 10 business days after the conclusion of the Claim Period, the Claims
Administrator shall, based upon the Claim Forms received by the Claims Administrator and
according to the terms of this Agreement and other claims procedures that may be implemented:
(a) determine whether each Claim Form represents an Authorized Claimant; (b) determine
whether any individual has submitted more than one Claim Form, and if so de-duplicate; (c)
based on the number of Authorized Claimants, determine the Settlement Benefits to be provided
to each Authorized Claimant; and (d) provide to the Parties, if and as requested, the information
and methodology used by the Claims Administrator to determine the Settlement Benefits due to
each Authorized Claimant.
f. Within a reasonable time following the close of the Claim Period, Plaintiffs will
submit a Motion for Final Approval of the Settlement and for Entry of the Judgment and Order
of Dismissal, and a Motion for Approval of Class Counsel’s Fees and Expenses (“Final Approval
Motions”).
g. After the fairness hearing, if the Court grants the Final Approval Motion, the
Court will issue a Final Approval Order. If no party appeals the Final Approval Order, the
“Effective Date” of the Agreement will be the last to occur of the following: (a) the date of final
affirmance on appeal of the Judgment; (b) the date of final dismissal of any appeal from the
Judgment or the final dismissal of any proceeding to review the Judgment; or (c) if no appeal is
filed, the expiration date of the time for the filing or noticing of any appeal from the Court’s
Judgment.
h. No later than 10 business days after the Effective Date, Defendant shall transmit
the funds necessary to the Claims Administrator to cover the total payments to be sent to
Authorized Claimants.
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5 Ye, et al. v. Sephora USA, Inc. [Proposed] Order
No. 14-cv-5237-EMC
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i. The Claims Administrator will disburse the first distribution of settlement checks
to the Authorized Claimants, Court-approved attorneys’ fees and costs, Court-approved
enhancement awards, and Court-approved Claims Administrator’s fees within 14 days after
receipt of the funds from Defendant.
j. The Parties shall abide by all terms of the Agreement, including, but not limited
to, those terms addressing the timing and method of Defendant’s payments into a settlement
fund, and disbursal of same by the Claims Administrator to the Proposed Class.
11. The Court removes all trial-related deadlines and hearings from the calendar.
IT IS SO ORDERED.
Date: December __, 2016 ______________________________ Hon. Edward M. Chen United States District Court Judge Northern District of California
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Exhibit E
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1 Ye, et al. v. Sephora USA, Inc. [Proposed] Order
No. 14-cv-5237-EMC
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DOUGLAS H. WIGDOR (NY SBN 2609469) JEANNE M. CHRISTENSEN (NY SBN 2622124) ELIZABETH J. CHEN (NY SBN 5126214) (All admitted pro hac vice) WIGDOR LLP 85 Fifth Avenue New York, NY 10003 Tel.: (212) 257-6800 Fax: (212) 257-6845 JAMIE C. COUCHE (SBN 252001) ANDERSON & POOLE, P.C. 601 California Street, Suite 1300 San Francisco, CA 94108 Telephone: (415) 956-6413 Facsimile: (415) 956-6416 Attorneys for Plaintiffs, RUIQI YE, YOLIN HAN
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA
RUIQI YE and YOLIN HAN, individually and on behalf of all other similarly-situated individuals, Plaintiffs, v. SEPHORA USA, INC., Defendant.
Case No.: 3:14-cv-05237-EMC
[PROPOSED] ORDER GRANTING PLAINTIFFS’ MOTION FOR FINAL APPROVAL OF SETTLEMENT AND FOR ENTRY OF THE JUDGMENT AND ORDER OF DISMISSAL AND MOTION FOR APPROVAL OF CLASS COUNSEL’S FEES AND EXPENSES
This matter came before the Court on Plaintiffs’ Motion for Final Approval of Settlement and
for Entry of the Judgment and Order of Dismissal and Motion for Approval of Class Counsel’s Fees
and Expenses (the “Final Approval Motions”). Defendant agreed, for settlement purposes only, not
to oppose the Final Approval Motions.
1. Based upon the Court’s review of Plaintiffs’ Final Approval Motions, including the
Declaration of Jeanne M. Christensen, Esq. (“Christensen Decl.”), and all other papers submitted in
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2 Ye, et al. v. Sephora USA, Inc. [Proposed] Order
No. 14-cv-5237-EMC
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connection with Plaintiffs’ Final Approval Motions, as well as the discussion held between the Court
and the parties on the record at the ____________, 2017 Final Approval Hearing, the Court grants
final approval of the settlement memorialized in the Settlement Agreement, attached to the
Christensen Decl. as Exhibit __. Capitalized terms used in this Order shall have the same meanings
as set forth in the Settlement Agreement, unless otherwise defined herein.
2. For settlement purposes, the Court certifies the following class under Rule 23 Fed. R.
Civ. P. 23(e) (“Settlement Class”):
All Sephora customers who meet all of the following criteria: (i) had one or more Sephora “Beauty Insider” account(s) with VIB or VIB Rouge status as of November 4, 2014 that was associated with an email address from the domain @qq.com, @126.com, or @163.com; (ii) had their account(s) deactivated as a result of the computer code that Sephora implemented on or about November 6, 2014; and (iii) attempted to but were unable to make a purchase at www.sephora.com using their “Beauty Insider” account(s) at some point in November 2014.
3. The Settlement Class meets all of the requirements for class certification under
Federal Rule of Civil Procedure 23(a) and (b)(3).
4. Wigdor LLP and Anderson & Poole, P.C., which the Court previously appointed as
Class Counsel, satisfy the adequacy requirements of Rule 23(a)(4).
5. The Court approves the settlement and all terms set forth in the Settlement
Agreement, and finds that the settlement is, in all respects, fair, adequate, reasonable, and binding on
all members of the Settlement Class who have not timely and properly opted out pursuant to
Paragraph 6.3 of the Settlement Agreement.
6. The Court grants Plaintiffs’ Motion for Attorneys’ Fees and Expenses to Class
Counsel and awards Class Counsel $418,560.00 in attorneys’ fees, plus $90,000.00 in costs and
expenses reasonably expended litigating and resolving the lawsuit. These amounts shall be paid
from the Settlement Amount.
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3 Ye, et al. v. Sephora USA, Inc. [Proposed] Order
No. 14-cv-5237-EMC
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7. The Court finds reasonable the Service Awards for Class Representatives Ruiqi Ye
and Yolin Han in the amounts of $5,000 each. These amounts shall be paid from the Settlement
Amount.
8. The Court authorizes the payment of the Claims Administration fees to Dahl
Administration LLC, estimated to be $25,000 as set forth in the Declaration of __________, attached
to the Christensen Decl. as Exhibit __, which shall be paid from the Settlement Amount.
9. The “Effective Date” of the Agreement will be the last to occur of the following: (a)
the date of final affirmance on appeal of the Judgment; (b) the date of final dismissal of any appeal
from the Judgment or the final dismissal of any proceeding to review the Judgment; or (c) if no
appeal is filed, the expiration date of the time for the filing or noticing of any appeal from the
Court’s Judgment.
10. No later than 10 business days after the Effective Date, Defendant shall transmit the
funds necessary to the Claims Administrator to cover the total payments to be sent to Authorized
Claimants.
11. The Claims Administrator will disburse the first distribution of settlement checks to
the Authorized Claimants, Court-approved attorneys’ fees and costs, Court-approved enhancement
awards, and Court-approved Claims Administrator’s fees within 14 days after receipt of the funds
from Defendant.
12. The Claims Administrator shall provide verification to Class Counsel and Defendant’s
Counsel that it has distributed the Settlement Benefits, retain copies of all of the endorsed
Settlement Checks with releases, and provide Defendants’ Counsel with the original or copies of the
endorsed Settlement Checks (both sides) in accordance with the Settlement Agreement.
13. Upon the fulfillment of all settlement terms, the entire Litigation will be dismissed
with prejudice, and without costs, expenses or attorneys’ fees to any party except as provided in the
Case 3:14-cv-05237-EMC Document 168-4 Filed 03/15/17 Page 50 of 51
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4 Ye, et al. v. Sephora USA, Inc. [Proposed] Order
No. 14-cv-5237-EMC
1
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Settlement Agreement and this Order. All Class Members who did not opt out in accordance with
the terms of the Settlement Agreement are permanently enjoined from asserting, pursuing, and/or
seeking to reopen claims that have been released in accordance with the terms of the Settlement
Agreement.
14. The Court retains jurisdiction over the interpretation and implementation of the
Settlement Agreement.
IT IS SO ORDERED.
Date: ________ __, 2017 ______________________________ Hon. Edward M. Chen United States District Judge Northern District of California
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Exhibit 5
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Exhibit 6
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To: <<class member email address>>
From: Settlement Administrator
Re: LEGAL NOTICE OF SETTLEMENT OF CLASS ACTION
----------------------------------------------------------------------------------
This email is intended for: <<Claimant Name>>
Claim ID: <<DAHLID>>
-----------------------------------------------------------------------------------
NOTICE OF PENDING CLASS ACTION AND NOTICE OF PROPOSED SETTLEMENT
Ye, et al. v. Sephora USA, Inc., United States District Court for the Northern District of
California, Case No. 3:14-cv-05237
------------------------------------------------------------------------------------
You are receiving this e-mail because in November 2014 you may have had an online
account at Sephora with an associated email address from one the following email service
providers: @qq.com, @126.com or @163.com. The Net Settlement Proceeds will be
distributed among all eligible Settlement Class Members who submit claim forms, up to a
maximum of $125 in cash or $250 in an electronic gift card per person. The total amount you
receive depends on the number of Settlement Class Members who submit claims forms.
Why did I get this notice? A settlement (“Settlement”) has been proposed in a class action
lawsuit pending in the Northern District of California (“Court”) entitled Ye, et al. v. Sephora
USA, Inc. (the “Action”). According to available records, you might be a “Class Member.” The
purpose of this notice is to inform you of the Action and the Settlement so that you may decide
what steps to take in relation to it.
What is the Action about? The Action was filed against Sephora alleging it discriminatorily
deactivated from its website thousands of customers in the U.S. whose customer accounts had
email addresses with China-based service providers: @qq.com, @126.com and @163.com. The
Action alleges that Sephora prevented these users from participating in the annual 20% discount
sale available to VIB and VIB Rouge customers scheduled to begin on November 6, 2014 (the
“VIB Sale”). Sephora denies wrongdoing and liability, and no court or other entity has made any
judgment or other determination of any liability.
Am I a Class Member? You are a “Class Member” if as of November 4, 2014, you (i) had an
active VIB or VIB Rouge account as of November 4, 2014 that was associated with an email
address from @qq.com, @126.com or @163.com, (ii) had your account deactivated on or about
November 6, 2014, and (iii) attempted to but were unable to make a purchase at ww.sephora.com
using their “Beauty Insider” account(s) at some point in November 2014.
What relief does the Settlement provide? If you are a Class Member, you are eligible to
receive your choice of either a cash payment or an electronic gift card. The amount of the
Settlement Benefit an Authorized Claimant will receive will be determined on a pro rata basis,
based on the total amount of the Net Settlement Proceeds to be allocated among all Authorized
Claimants, the total number of Authorized Claimants, and the number of Claims Forms
submitted. An Authorized Claimant who selects to receive a Sephora electronic gift card will
receive a pro rata amount twice what each Authorized Claimant who selected cash will receive.
The Settlement Benefits are capped at $125.00 in cash or $250.00 in a Sephora electronic gift
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card per Authorized Claimant. To be considered eligible, you must timely complete a valid
Claim Form. A Claim Form is available by clicking HERE or on the Internet at the Settlement
website www.BeautyInsiderSettlement.com. The deadline to submit a Claim Form either
electronically or by mail to the address listed below is April 3, 2017.
How much is my share of the settlement if it is approved? If the Court grants final approval of
the Settlement, Sephora will make a settlement payment (“Settlement Payment”) of $950,000. It
is estimated that the $950,000 will be apportioned as follows:
$418,500 (Estimated Attorneys’ Fees)
$90,000 (Estimated Litigation Expenses)
$10,000 (Service Awards to Plaintiffs Ye and Han)
$25,000 (Claims Administrative Expenses)
$406,500 (Estimated “Net Settlement Proceeds” Payable to Authorized Claimants)
This is an estimated amount. The total amount of Net Settlement Proceeds available to make
payments to Authorized Claimants may vary depending upon whether, and in what amounts, the
Court approves the attorneys’ fees, litigation expenses, and service payments described above. It
will also depend on how much Sephora has to pay the Claims Administration firm.
The entire amount of the Net Settlement Proceeds will be paid to Authorized Claimants who
submit a Claim Form selecting either cash or a Sephora electronic gift card (collectively, the
“Settlement Benefit”) within a certain period (the “Claim Period”). After the conclusion of the
Claim Period, the Claims Administrator will determine whether each Claim Form represents an
Authorized Claimant. The amount of the Settlement Benefit an Authorized Claimant will
receive will be determined on a pro rata basis, based on the total amount of the Net Settlement
Proceeds to be allocated among all Authorized Claimants, the total number of Authorized
Claimants, and the number of Claims Forms submitted. An Authorized Claimant who selects to
receive a Sephora electronic gift card will receive a pro rata amount twice what each Authorized
Claimant who selected cash will receive. The Settlement Benefits are capped at $125.00 in cash
or $250.00 in a Sephora electronic gift card per Authorized Claimant.
Any amount remaining in the Net Settlement Proceeds after allocation among the Authorized
Claimants at the conclusion of the Claim Period will be collected in a cy pres fund that will be
donated to the National Asian Pacific American Women’s Forum, a non-profit charitable
organization (https://napawf.org/). No portion of the Net Settlement Proceeds will revert back to
Sephora.
What are my other options? If you do not want to be legally bound by the Settlement, you
must exclude yourself by April 3, 2017, or you will be releasing Sephora from any liability with
the Action and you cannot sue Sephora for the legal claims in the Action in the future. The full
terms of the release are described more fully in the Settlement website available HERE. If you
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exclude yourself, you cannot receive any money from this Settlement if it is approved. A form
to exclude yourself is available HERE or @ www.BeautyInsiderSettlement.com. If you do not
exclude yourself, you will be bound by the terms of the Settlement.
If you wish to object to the terms of the Settlement before the Final Approval Hearing,
you may either file an objection at Sephora Claims Administrator, c/o Dahl Administration, P.O.
Box 3614, Minneapolis, MN 55403-0614, or file a notice of your intent to appear and object at the
Final Approval Hearing at the time and place listed below in this Notice. However, if the Court
rejects your objection and approves the Settlement, you will be bound by the terms of the
Settlement. As a condition to objection to the Settlement, you must still timely submit a
Claim Form. Each objection must be accompanied by submission of a Claim Form and shall
provide a detailed statement of any objection asserted and for requesting the opportunity to
appear and be heard at the Final Approval Hearing. You may appear in person or through a legal
representative. The Court will hold a Final Approval Hearing on the proposed Settlement on
May 25, 2017 at 1:30 p.m., at Courtroom 5, United States District Court, Northern District of
California, 450 Golden Gate Avenue, 17th Floor, San Francisco CA 94102.
To be valid and effective, the Claims Administrator must receive objections and/or notices
of intent to appear at the hearing no later than April 3, 2017.
More information? For complete information about the Settlement, to view the Settlement
Agreement, Court documents and Forms, and to learn more about how to exercise your various
options under the Settlement, visit www.BeautyInsiderSettlement.com. If your web-browser is
preventing the hyperlink in this paragraph from working, enter the URL address manually into
your browser. You may also write to the Settlement Administrator at: Sephora Claims
Administrator c/o Dahl Administration, P.O. Box 3614, Minneapolis, MN 55403-0614.
This is an automatically generated email. Please do not reply to this message. Please send email inquiries
to: [email protected].
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Exhibit 7
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1
Sent: Thursday, February 23, 2017 10:18 AM To: Jeanne M. Christensen Subject: Re: Agreement I agree. Sent from my iPhone On Feb 23, 2017, at 9:30 AM, Jeanne M. Christensen <[email protected]> wrote:
PRIVILEGED AND CONFIDENTIAL ATTORNEY‐CLIENT COMMUNICATION
REDACTED
REDACTED
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2
A retainer agreement is imbedded. You can execute the document electronically by completing the following:
(1) Select “reply” to this e‐mail [as you normally would if you were sending a reply to an e‐mail]; and
(2) Type “I agree” in the body of the email and select “send.”
You have the right to terminate this engagement, by written notice, at any time. We have the same right to terminate this engagement, by written notice, at any time, subject to our obligation to give you reasonable notice to permit you to obtain alternative representation and subject to applicable ethical provisions. If you or we decide to terminate this engagement, we will charge you for the legal fees incurred up to that date at our standard billing rates and all expenses already incurred, as well as for any further reasonable fees and expenses incurred in transferring the representation to another counsel of your choice. Our standard billing rates are $850.00 per hour for partners’ time, between $350.00 ‐$650.00 per hour for associates’ time (depending on seniority), and $180.00 per hour for paralegals’ time. In lieu of charging you legal fees according to
REDACTED
REDACTED
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3
our standard billing rates, we shall have the option of placing a lien on your case in the amount of the contingency fee set forth in this agreement. You agree to pay those amounts as well as any outstanding balances on our statements within a normal 30‐day period.
REDACTED
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4
I agree that my electronic signature as set forth below is valid and binding.
Sincerely, /s/Jeanne M. Christensen Jeanne M. Christensen AGREED:
Jeanne M. Christensen Partner
WIGDOR LLP 85 Fifth Avenue, New York, NY 10003
T: (212) 257‐6835 | Cell: (917) 868‐1727
[email protected] www.wigdorlaw.com
Please consider the environment before printing this e-mail
This communication may contain Confidential or Attorney-Client Privileged Information and/or Attorney Work Product. If you are not the addressee indicated in this message or its intended recipient (or responsible for delivery of the message to such person(s)), do not read, copy, or forward this message to anyone and, in such case, please immediately destroy or delete this message, including any copies hereof, and kindly notify the sender by reply e-mail, facsimile or phone. Thank you.
REDACTED
REDACTED
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1
Date: February 3, 2017 at 6:02:51 AM EST To: "Jeanne M. Christensen" <[email protected]> Subject: Re: Agreement
I Agree
On Wed, Feb 1, 2017 at 5:10 PM Jeanne M. Christensen <[email protected]> wrote:
PRIVILEGED AND CONFIDENTIAL ATTORNEY-CLIENT COMMUNICATION
A retainer agreement is imbedded. You can execute the document electronically by completing the following:
(1) Select “reply” to this e‐mail [as you normally would if you were sending a reply to an e‐mail]; and
(2) Type “I agree” in the body of the email and select “send.”
REDACTED
REDACTED
REDACTED
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2
You have the right to terminate this engagement, by written notice, at any time. We have the same right to terminate this engagement, by written notice, at any time, subject to our obligation to give you reasonable notice to permit you to obtain alternative representation and subject to applicable ethical provisions. If you or we decide to terminate this engagement, we will charge you for the legal fees incurred up to that date at our standard billing rates and all expenses already incurred, as well as for any further reasonable fees and expenses incurred in transferring the representation to another counsel of your choice. Our standard billing rates are $850.00 per hour for partners’ time, between $350.00 -$650.00 per hour for associates’ time (depending on seniority), and $180.00 per hour for paralegals’ time. In lieu of charging you legal fees according to our standard billing rates, we shall have the option of placing a lien on your case in the amount of the contingency fee set forth in this agreement. You agree to pay those amounts as well as any outstanding balances on our statements within a normal 30-day period.
REDACTED
REDACTED
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REDACTEDCase 3:14-cv-05237-EMC Document 168-7 Filed 03/15/17 Page 8 of 26
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4
I agree that my electronic signature as set forth below is valid and binding.
Sincerely,
/s/Jeanne M. Christensen
Jeanne M. Christensen
AGREED:
Dated: February 1, 2017
Jeanne M. Christensen Partner
WIGDOR LLP 85 Fifth Avenue, New York, NY 10003 T: (212) 257-6835 | Cell: (917) 868-1727
[email protected] www.wigdorlaw.com
Please consider the environment before printing this e-mail
REDACTED
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5
This communication may contain Confidential or Attorney-Client Privileged Information and/or Attorney Work Product. If you are not the addressee indicated in this message or its intended recipient (or responsible for delivery of the message to such person(s)), do not read, copy, or forward this message to anyone and, in such case, please immediately destroy or delete this message, including any copies hereof, and kindly notify the sender by reply e-mail, facsimile or phone. Thank you.
Case 3:14-cv-05237-EMC Document 168-7 Filed 03/15/17 Page 10 of 26
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Exhibit 8
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1
From: Ruiqi Ye < >Sent: Sunday, November 23, 2014 7:08 PMTo: Jeanne ChristensenSubject: Re:Re: Sephora, agreement
I agree.
At 2014-11-24 02:14:24, "Jeanne Christensen" <[email protected]> wrote:
Ruiqi,
A retainer agreement is attached and imbedded. You can execute the document electronically by completing the following:
(1) Select “reply” to this e-mail [as you normally would if you were sending a reply to an e-mail];
(2) Type “I agree” in the body of the email and select “send.”
AUTHORIZATION AND RETAINER
The Client and the Attorneys agree that any fee for the Attorney’s services to the Client or the class willbe contingent upon effecting a recovery or successful result in any lawsuit brought against the defendants orother parties. If the class is certified, the fee will be determined or approved by the court, will be payable solelyfrom the parties against whom the claims are brought, and/or from any recovery or benefits obtained orprotected for the Client and other members of the class. The Client understands that the Attorneys will seek feesthat are reasonable within the meaning of the law, subject to the court’s approval, but that such fees, dependingon the circumstances of the case, will be the greater of 33-1/3% of the total recovery for the Client and othermembers of the class or total professional time at the Attorneys customary hourly rate.
REDACTED
REDACTED
REDACTED
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2
I agree that my electronic signature as set forth below is valid and binding.
/s/Ruiqi Ye
Ruiqi Ye November 22, 2014
/s/Jeanne Christensen
Jeanne Christensen, on behalf of
Imbesi Christensen November 22, 2014
REDACTED
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3
/s/DouglasWigdor November 22, 2014
Douglas Wigdor, on behalf of
Wigdor LLP
Attorneys at Law
Jeanne Christensen, Esq.
450 Seventh Avenue, 14th Floor
New York, NY 10123
Direct Dial:(212) 736-5588
Facsimile: (866) 830-7484
www.lawicm.com
This email message contains information intended for the exclusive use of the individual or entity to which it is addressed that may be privileged, proprietary, confidential and/or exempt from disclosure under applicable law. If you are not the intended recipient (or an employee or agent responsible for delivering this email to the intended recipient), or you have received this communication in error, please notify Sender by email to the address above. Thank you for your cooperation. An attorney-client relationship does not exists between our law firm and any individual or entity unless an retainer agreement has been executed by all parties, including the law firm.
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4
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1
From: Yolin [mailto: ]Sent:Monday, November 24, 2014 3:15 PMTo: Jeanne ChristensenSubject: Re:Re: Sephora, agreement
I agree.
--
Yolin Han
Is it really necessary to print this email? Think of the environment.
At 2014-11-25 03:53:35, "Jeanne Christensen" <[email protected]> wrote:
Yolin,
A retainer agreement is attached and imbedded. You can execute the document electronically by completing the following:
(1) Select “reply” to this e-mail [as you normally would if you were sending a reply to an e-mail];
(2) Type “I agree” in the body of the email and select “send.”
AUTHORIZATION AND RETAINER
REDACTED
REDACTED
REDACTED
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2
I agree that my electronic signature as set forth below is valid and binding.
REDACTEDCase 3:14-cv-05237-EMC Document 168-8 Filed 03/15/17 Page 7 of 9
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3
/s/ Yolin Han
Yolin Han November 24, 2014
/s/Jeanne Christensen
Jeanne Christensen, on behalf of
Imbesi Christensen November 24, 2014
/s/ Douglas Wigdor November 24, 2014
Douglas Wigdor, on behalf of
Wigdor LLP
Attorneys at Law
Jeanne Christensen, Esq.
450 Seventh Avenue, 14th Floor
New York, NY 10123
Direct Dial:(212) 736-5588
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4
Facsimile: (866) 830-7484
www.lawicm.com
This email message contains information intended for the exclusive use of the individual or entity to which it is addressed that may be privileged, proprietary, confidential and/or exempt from disclosure under applicable law. If you are not the intended recipient (or an employee or agent responsible for delivering this email to the intended recipient), or you have received this communication in error, please notify Sender by email to the address above. Thank you for your cooperation. An attorney-client relationship does not exists between our law firm and any individual or entity unless an retainer agreement has been executed by all parties, including the law firm.
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Exhibit 9
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Lee, et al. v. Sephora USA, Inc. 1 Declaration of Ruiqi Ye
Case No. 3:14-cv-05237-EMC
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DOUGLAS H. WIGDOR (NY SBN 2609469) JEANNE M. CHRISTENSEN (NY SBN 2622124) ELIZABETH J. CHEN (NY SBN 5126214) (All admitted pro hac vice) WIGDOR LLP 85 Fifth Avenue New York, NY 10003 Tel.: (212) 257-6800 Fax: (212) 257-6845 JAMIE C. COUCHE (SBN 252001) ANDERSON & POOLE, P.C. 601 California Street, Suite 1300 San Francisco, CA 94108 Telephone: (415) 956-6413 Facsimile: (415) 956-6416 Attorneys for Plaintiffs, RUIQI YE, YOLIN HAN
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA
RUIQI YE and YOLIN HAN, individually and on behalf of all other similarly-situated individuals, Plaintiffs, v. SEPHORA USA, INC., Defendant.
Case No.: 3:14-cv-05237-EMC
DECLARATION OF RUIQI YE
I, Ruiqi Ye, declare:
1. I am a named Plaintiff and have been named a Class Representative in the above-
captioned case along with Yolin Han (“Plaintiffs”). I submit this declaration in support of
Plaintiffs’ Motion for Approval of Class Counsel’s Fees and Expenses. The facts set forth
herein are true and based on my own personal knowledge, except where based upon a review of
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Lee, et al. v. Sephora USA, Inc. 2 Declaration of Ruiqi Ye
Case No. 3:14-cv-05237-EMC
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the relevant pleadings and records. I have personal knowledge of the facts set forth herein, and
if called to testify thereto, I could and would do so competently.
2. I am an Asian woman of Chinese descent.
3. In November 2014, I was a Sephora “Very Important Beauty Insider” (“VIB”), a
status conferred after I spent more than $350 at Sephora during the required time period. My
VIB account was associated with my email address which is registered to the domain
@163.com, a website that is based in China and uses Chinese as the default language.
4. During Sephora’s largest online sale event of the year from November 5-12,
2014 (the “Sale”), individuals with VIB status such as myself were given access to a special
discount.
5. I, along with Sephora customers who had accounts associated with email
addresses associated with three email service providers based in China that use Chinese as the
default language: (1) @qq.com; (2) @126.com; and (3) @163.com (hereinafter, the “Chinese
domains”), had my Sephora account deactivated and I was not permitted to participate in the
Sale or otherwise access my account.
6. Like me, thousands of Chinese/Asian customers were publicly declared by
Sephora to be “unlawful resellers” and had their accounts deactivated without notice based on
the discriminatory belief that all Chinese/Asian customers abuse discount sales to resell
products.
7. Based on my experience, I decided to file a lawsuit against Sephora and agreed
to be a class representative in this case, undertaking the burdens and risks associated with
litigation, to help put a stop to what I believed were Sephora’s wrongful and discriminatory
practices.
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Lee, et al. v. Sephora USA, Inc. 3 Declaration of Ruiqi Ye
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8. Pursuant to my duties as a Named Plaintiff and Class Representative, I have been
actively engaged in this case. Among other things, I have provided information during Class
Counsel’s pre-filing investigation, produced documents, participated in discovery, was
subjected to a daylong deposition, and consulted with Class Counsel multiple times during the
course of the case, staying updated about the status of the case and the settlement negotiations.
9. I reviewed the settlement agreement and discussed the settlement agreement
terms with Class Counsel. Based on my personal experience as a VIB account holder registered
under a Chinese domain who experienced subsequent Sephora account deactivation, and on my
involvement in this lawsuit, I believe that the settlement is fair, reasonable, adequate and in the
best interests of the Class Members.
10. I have never been promised any compensation for performing my duties as a
Named Plaintiff and Class Representative. I understand, however, that the parties have
requested the Court to award me $5,000 for my time and efforts on behalf of the class. I will be
most appreciative if the Court determines that my efforts on behalf of the Class in commencing
and assisting with the prosecution of this action warrant an award in that amount.
11. I also support Class Counsel's request for attorney's fees and costs. I have been
impressed by the representation Class Counsel provided to me and other class members. The
lawyers I have communicated with have always been professional, and made sure to keep me
informed about the status of the litigation. I am very appreciative for the results Class Counsel's
efforts achieved.
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Exhibit 10
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Lee, et al. v. Sephora USA, Inc. 1 Declaration of Yolin Han
Case No. 3:14-cv-05237-EMC
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DOUGLAS H. WIGDOR (NY SBN 2609469) JEANNE M. CHRISTENSEN (NY SBN 2622124) ELIZABETH J. CHEN (NY SBN 5126214) (All admitted pro hac vice) WIGDOR LLP 85 Fifth Avenue New York, NY 10003 Tel.: (212) 257-6800 Fax: (212) 257-6845 JAMIE C. COUCHE (SBN 252001) ANDERSON & POOLE, P.C. 601 California Street, Suite 1300 San Francisco, CA 94108 Telephone: (415) 956-6413 Facsimile: (415) 956-6416 Attorneys for Plaintiffs, RUIQI YE, YOLIN HAN
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA
RUIQI YE and YOLIN HAN, individually and on behalf of all other similarly-situated individuals, Plaintiffs, v. SEPHORA USA, INC., Defendant.
Case No.: 3:14-cv-05237-EMC
DECLARATION OF YOLIN HAN
I, Yolin Han, declare:
1. I am a named Plaintiff and Class Representative in the above-captioned case
along with Ruiqi Ye (“Plaintiffs”). I submit this declaration in support of Plaintiffs’ Motion for
Approval of Class Counsel’s Fees and Expenses. The facts set forth herein are true and based on
my own personal knowledge, except where based upon a review of the relevant pleadings and
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Lee, et al. v. Sephora USA, Inc. 2 Declaration of Yolin Han
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records. I have personal knowledge of the facts set forth herein, and if called to testify thereto, I
could and would do so competently.
2. My legal name is Xiaolin Han, but I go by “Yolin Han.”
3. I am an Asian woman of Chinese descent.
4. In November 2014, I was a Sephora “Very Important Beauty Insider” (“VIB”), a
status conferred after I spent more than $350 at Sephora over the course of the year. My VIB
account was associated with my email address which is registered to the domain @163.com, a
website that is based in China and uses Chinese as the default language.
5. During Sephora’s largest online sale event of the year from November 5-12,
2014 (the “Sale”), individuals with VIB status such as myself were given access to a special
discount.
6. I, along with Sephora customers who had accounts associated with email
addresses associated with three email service providers based in China that use Chinese as the
default language: (1) @qq.com; (2) @126.com; and (3) @163.com (hereinafter, the “Chinese
domains”), had my Sephora account deactivated and I was not permitted to participate in the
Sale or otherwise access my account.
7. Like me, thousands of Chinese/Asian customers were publicly declared by
Sephora to be “unlawful resellers” and had their accounts deactivated without notice based on
the discriminatory belief that all Chinese/Asian customers abuse discount sales to resell
products.
8. Based on my experience, I decided to file a lawsuit against Sephora and agreed
to be a class representative in this case, undertaking the burdens and risks associated with
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Lee, et al. v. Sephora USA, Inc. 3 Declaration of Yolin Han
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litigation, to help put a stop to what I believed were Sephora’s wrongful and discriminatory
practices.
9. Pursuant to my duties as a Named Plaintiff and Class Representative, I have been
actively engaged in this case. Among other things, I have provided information during Class
Counsel’s pre-filing investigation, produced documents, participated in discovery, was subjected
to a daylong deposition, travelled to San Francisco to participate in a mediation session and a
subsequent settlement conference, and consulted with Class Counsel multiple times during the
course of the case, staying updated about the status of the case and the settlement negotiations.
10. I reviewed the settlement agreement and discussed the settlement agreement
terms with Class Counsel. Based on my personal experience as a VIB account holder registered
under a Chinese domain who experienced subsequent Sephora account deactivation, and on my
involvement in this lawsuit, I believe that the settlement is fair, reasonable, adequate and in the
best interests of the Class Members.
11. I have never been promised any compensation for performing my duties as a
Named Plaintiff and Class Representative. I understand, however, that the parties have
requested the Court to award me $5,000 for my time and efforts on behalf of the class. I will be
most appreciative if the Court determines that my efforts on behalf of the Class in commencing
and assisting with the prosecution of this action warrant an award in that amount.
12. I also support Class Counsel's request for attorney's fees and costs. I have been
impressed by the representation Class Counsel provided to me and other class members. The
lawyers I have communicated with have always been professional, and made sure to keep me
informed about the status of the litigation. I am very appreciative for the results Class Counsel's
efforts achieved.
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