Case 3:19-md-02913-WHO Document 4214-1 Filed 04/09/24 Page 1 of 5
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`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF CALIFORNIA
`SAN FRANCISCO DIVISION
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`IN RE JUUL LABS, INC.,
`MARKETING, SALES PRACTICES,
`AND PRODUCTS LIABILITY
`LITIGATION
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`This Document Relates to:
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`All Cases
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`Case No. 3:19-md-02913-WHO
`DECLARATION OF SARAH R. LONDON IN
`SUPPORT OF FEE COMMITTEE’S FIRST
`SUPPLEMENTAL RECOMMENDATIONS
`RE: EXPENSE PAYMENTS
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`2927014.1
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`DECLARATION OF SARAH R. LONDON
`ISO FEE COMMITTEE RECOMMENDATIONS
`CASE NO. 3:19-MD-02913-WHO
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`Case 3:19-md-02913-WHO Document 4214-1 Filed 04/09/24 Page 2 of 5
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`I, Sarah R. London, declare and state as follows:
`1.
`I am an attorney in the law firm of Lieff, Cabraser, Heimann & Bernstein, LLP. I
`serve as Co-Lead Counsel and Liaison Counsel in this litigation. I am a member of the State Bar
`of California and am admitted to practice before this Court. I make this declaration based on my
`own personal knowledge. If called upon to testify, I could and would testify competently to the
`truth of the matters stated herein.
`2.
`I submit this declaration in support of the Fee Committee’s Altria Settlement Fee
`Recommendations and First Supplemental Expense Recommendations.
`The Fee Committee’s Approach to Altria-Related Fees
`3.
`When allocating fees in connections with the JLI settlements, the Fee Committee
`was aware of the estimated fees to come from the Altria settlements, as well as the efforts various
`firms put towards both class certification and the SFUSD trial against Altria.
`4.
`To set firms’ expectations, the Fee Committee determined it made sense to account
`for the potential Altria fees in allocating JLI fees.
`5.
`In particular, the Committee decided that, for most firms, their JLI allocation
`would reflect their contributions to the litigation as a whole. They would receive no additional
`Altria allocation.
`6.
`A few firms, especially those that contributed most significantly to the SFUSD
`trial or to class certification, would receive Altria-specific allocations (and bear the risks that the
`Court would reduce the Altria class fee or the Altria settlements would not become final).
`7.
`The Fee Committee communicated this determination to all affected firms, and
`they were given the opportunity to respond or object.
`8.
`On February 26, 2023, the Fee Committee sent to each firm that reported common
`benefit time to this Court or the JCCP the Committee’s Altria-related recommendations.
`9.
`The Committee invited any firm that wished to discuss their proposed allocation to
`schedule a meeting with the Committee. A few firms requested and received meetings.
`10.
`The Committee took those meetings into account when crafting the allocation
`attached to these Recommendations.
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`2927014.1
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`DECLARATION OF SARAH R. LONDON
`ISO FEE COMMITTEE RECOMMENDATIONS
`CASE NO. 3:19-MD-02913-WHO
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`Case 3:19-md-02913-WHO Document 4214-1 Filed 04/09/24 Page 3 of 5
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`Status of CMO 5(A) Cost Accounts
`11.
`As directed by the Court’s order approving Fee Committee recommendations
`(ECF 4178), in my role as Co-Lead Counsel, Liaison Counsel, and JLI Settlement Trustee, I
`directed that the Court’s authorized fee and cost payments be made from the CMO 5(A) cost fund
`established in connection with the JLI settlements.
`12.
`The Settlement Trust paid out approximately 93% of the awarded cost fund
`assessments and held costs, $700,000 in pending and anticipated expenses to the MDL cost fund,
`and $1,350,000 to BrownGreer PLC, reflecting its initial invoices.
`13.
`As of April 1, 2024, the CMO 5(A) cost fund currently has approximately
`$1,883,000. We deliberately held back this amount to ensure sufficient funds to pay the MDL’s
`ongoing bills while awaiting future payments from the JLI and Altria settlements.
`14. More funds are expected when the Altria settlements become effective, and when
`JLI makes its future settlement payments.
`15.
` After the Court approved the Fee Committee Recommendations, Co-Lead
`Counsel became aware of two record-keeping errors in the held cost data. First, certain held costs
`($28,996.21) were inadvertently attributed to one firm when they should have been attributed to
`two other firms. This error will be corrected in future cost payments. Second, one firm had a
`$200,000 cost fund assessment that was mistakenly double-counted. This error has already been
`accounted for by reducing one of that firm’s fee payment (with the difference transferred from the
`fee account to the cost account).
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`REQUESTED COST REIMBURSEMENTS
`16.
`Since the Court approved the Fee Committee’s Recommendations, several cost-
`related developments have occurred. First, MDL and JCCP firms continued to report their held
`costs to Judge Andler and to the Court (for MDL firms). Second, the MDL cost fund continues to
`incur expenses related to MDL management generally. And third, the Tribal Subcommittee has
`established a Tribal Litigation Fund to manage common expenses related to the ongoing tribal
`litigation against Altria. Fourth, BrownGreer PLC has submitted invoices and projected expenses
`that exceed the $4.3 million the Court has already authorized.
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`2927014.1
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`DECLARATION OF SARAH R. LONDON
`ISO FEE COMMITTEE RECOMMENDATIONS
`CASE NO. 19-md-02913-WHO
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`Case 3:19-md-02913-WHO Document 4214-1 Filed 04/09/24 Page 4 of 5
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`17.
`The Fee Committee recommends the Court authorize additional reimbursements in
`all three areas. At this time, there are not sufficient funds available to reimburse all of the held
`costs, but the Fee Committee anticipates making those payments when future JLI and Altria
`settlement payments are made.
`18.
`The Committee recommends reimbursement of $2,076,034.37 in MDL held costs
`and $121,903.33 in JCCP held costs. These numbers account for a large trial-related cost reversal
`that will be included in the March 15, 2024 report to the Court. As with the held costs previously
`authorized by the Court, all of these amounts were submitted to and approved by Judge Andler.
`19.
`Even in a settlement posture, this litigation continues to require significant
`ongoing expenses, including large document hosting costs and Special Master fees. To simplify
`ongoing cost payments, the MDL and the JCCP have agreed that significant ongoing expenses
`will be paid for out of the MDL cost fund. As of March 25, 2024, the JCCP cost fund had a
`current balance of approximately $5,900, will use these funds to pay ongoing expenses in
`connection with JCCP proceedings, and will transmit the balance to the MDL at the appropriate
`time. As of April 9, 2024, the MDL cost fund has a balance of $34,758.26 and outstanding bills of
`$722,051.33.
`20.
`The Altria settlements include personal injury, government entity, and class
`plaintiffs, but did not include the tribal cases. Those cases continue to be litigated.
`21.
`The Court-appointed Tribal Subcommittee, consistent with CMO 5 and with the
`approval and under the supervision of Co-Lead Counsel, established a Tribal Litigation Fund to
`manage expenses for that ongoing litigation that meet the definition of “Shared Costs” in CMO 5.
`22.
`At this time, firms have contributed $750,000 into the tribal litigation fund. As of
`March 27, 2024, the fund had $59,828.50 in remaining funds (with $19,074.06 in invoices
`outstanding), which will be used to pay ongoing tribal-related expenses.
`23.
`The Court earlier authorized payment up to $4.3 million to the BrownGreer PLC,
`the non-class settlement administrator. Co-Lead Counsel directed payments of $1,350,000 in
`initial invoices. BrownGreer has now submitted invoices for an additional $3,127,029.23.
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`DECLARATION OF SARAH R. LONDON
`ISO FEE COMMITTEE RECOMMENDATIONS
`CASE NO. 19-md-02913-WHO
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`Case 3:19-md-02913-WHO Document 4214-1 Filed 04/09/24 Page 5 of 5
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`BrownGreer estimates its future fees and expenses in connection with administering the JLI and
`Altria settlements will be $572,000.
`24.
`Exhibit 1 to the Fee Committee’s Recommendations (ECF 4152-2) inadvertently
`omitted one firm’s contribution of $300,000. Exhibit 2 to these Recommendations includes that
`omitted amount.
`I declare under the penalty of perjury that the foregoing is true and correct.
`Executed this 9th day of April, 2024, in San Francisco, California.
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`/s/ Sarah R. London
` Sarah R. London
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`DECLARATION OF SARAH R. LONDON
`ISO FEE COMMITTEE RECOMMENDATIONS
`CASE NO. 19-md-02913-WHO
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