`
`UNITED STATES DISTRICT COURT
`DISTRICT OF MARYLAND
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`JUDY JIEN, et al.,
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`
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`Plaintiffs,
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`v.
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`PERDUE FARMS, INC., et al.,
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`
`
`
`Defendants.
`
`
`C.A. No. 1:19-CV-2521-SAG
`
`PLAINTIFFS’ MEMORANDUM IN
`SUPPORT OF MOTION FOR
`PRELIMINARY APPROVAL OF
`SETTLEMENT WITH PILGRIM’S
`PRIDE CORP., CERTIFICATION OF
`SETTLEMENT CLASS, AND
`APPOINTMENT OF SETTLEMENT
`CLASS COUNSEL
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`Case 1:19-cv-02521-SAG Document 481-1 Filed 07/02/21 Page 2 of 33
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`TABLE OF CONTENTS
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`I.
`
`INTRODUCTION .................................................................................................................. 1
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`II. BACKGROUND .................................................................................................................... 1
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`A. The Litigation...................................................................................................................... 1
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`B. The Settlement Agreement ................................................................................................. 2
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`1. The Settlement Class................................................................................................... 3
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`2. The Settlement Amount .............................................................................................. 3
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`3. Cooperation Requirements.......................................................................................... 3
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`4. Release of All Claims against Pilgrim’s ..................................................................... 4
`
`III. THE COURT SHOULD PRELIMINARILY APPROVE THE SETTLEMENT
`AGREEMENT ....................................................................................................................... 5
`
`A. Standard for Granting Preliminary Approval ..................................................................... 5
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`B. The Settlement Agreement Is Fair ...................................................................................... 7
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`C. The Settlement Agreement Is Adequate ........................................................................... 10
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`IV. THE COURT SHOULD CERTIFY THE PROPOSED SETTLEMENT CLASS ............... 13
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`A. The Settlement Class Satisfies Rule 23(a) ...................................................................................... 14
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`1. Numerosity ................................................................................................................ 14
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`2. Commonality............................................................................................................. 15
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`3. Typicality .................................................................................................................. 15
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`4. Adequacy .................................................................................................................. 16
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`B. The Requirements of Rule 23(b)(3) Are Satisified ....................................................................... 16
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`1. Predominance of Common Issues ............................................................................. 17
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`a. Violation of the Antitrust Laws ........................................................................... 18
`
`b.
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`Impact of the Unlawful Activity ......................................................................... 19
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`c. Measurable Damages .......................................................................................... 22
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`2. Superiority of a Class Action .................................................................................... 22
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`V. DEFERRING CLASS NOTICE IS APPROPRIATE IN THIS CASE ............................ 23
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`VI. CONCLUSION ................................................................................................................. 25
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`i
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`Case 1:19-cv-02521-SAG Document 481-1 Filed 07/02/21 Page 3 of 33
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`TABLE OF AUTHORITIES
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`
`CASES
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` PAGE(S)
`
`In re A.H. Robins Co.,
`880 F.2d 709 (4th Cir. 1989) ...................................................................................................14
`
`Adesso Homeowners’ Ass’n v. Holder Props., Inc.,
`No. 3:16-cv-710-JFA, 2017 U.S. Dist. LEXIS 224941 (D.S.C. May 23, 2017) .................9, 15
`
`Am. Sales Co. v. Pfizer, Inc.,
`No. 2:14cv361, 2017 U.S. Dist. LEXIS 137222 (E.D. Va. July 28, 2017) .................15, 18, 19
`
`Amchem Prods., Inc., v. Windsor,
`521 U.S. 591 (1997) .....................................................................................................16, 17, 23
`
`Amgen Inc. v. Conn. Ret. Plans & Tr. Funds,
`568 U.S. 455 (2013) .................................................................................................................17
`
`In re Ampicillin Antitrust Litig.,
`82 F.R.D. 652 (D.D.C. 1979) ...................................................................................................13
`
`In re Auto. Wire Harnesses,
`No. 12-md-02311, 2020 U.S. Dist. LEXIS 183483 (E.D. Mich. Sept. 30, 2020) ...................24
`
`Brown v. Transurban USA, Inc.,
`318 F.R.D. 560 (E.D. Va. 2016) ..............................................................................................14
`
`Cantu-Guerrero v. Lumber Liquidators, Inc.,
`952 F.3d 471 (4th Cir. 2020) .................................................................................................6, 7
`
`In re Cardizem CD Antitrust Litig.,
`200 F.R.D. 297 (E.D. Mich. 2001) ..........................................................................................17
`
`In re Cardizem CD Antitrust Litig.,
`218 F.R.D. 508 (E.D. Mich. 2003) ..........................................................................................12
`
`City of Ann Arbor Employees’ Ret. Sys. v. Sonoco Prods. Co.,
`270 F.R.D. 247 (D.S.C. 2010) .................................................................................................23
`
`City of Cape Coral Mun. Firefighters’ Ret. Plan v. Emergent Biosolutions, Inc.,
`322 F. Supp. 3d 676 (D. Md. 2018) .........................................................................................17
`
`In re Corrugated Container Antitrust Litig.,
`643 F.2d 195 (5th Cir. 1981) ...................................................................................................16
`
`Cypress v. Newport News Gen. & Non-Sectarian Hosp. Ass’n,
`375 F.2d 648 (4th Cir. 1967) ...................................................................................................14
`
`
`
`ii
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`
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`Case 1:19-cv-02521-SAG Document 481-1 Filed 07/02/21 Page 4 of 33
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`D&M Farms v. Birdsong Corp.,
`No. 2:19-cv-463, 2020 U.S. Dist. LEXIS 226047 (E.D. Va. Dec. 1, 2020) ............................15
`
`Donovan v. Estate of Fitzsimmons,
`778 F.2d 298 (7th Cir. 1985) ...................................................................................................11
`
`Fire & Police Retiree Health Care Fund v. Smith,
`Civil Action No. CCB-18-3670, 2020 U.S. Dist. LEXIS 217892 (D. Md. Nov.
`20, 2020) ....................................................................................................................................6
`
`Gaston v. Lexisnexis Risk Sols., Inc.,
`No. 5:16-cv-00009-KDB-DCK, 2021 U.S. Dist. LEXIS 12872 (W.D.N.C. Jan.
`25, 2021) ..............................................................................................................................9, 10
`
`Gen. Tel. Co. of Sw. v. Falcon,
`457 U.S. 147 (1982) .................................................................................................................16
`
`Grunin v. Int’l House of Pancakes,
`513 F.2d 114 (8th Cir. 1975) ...................................................................................................11
`
`Gunnells v. Healthplan Servs., Inc.,
`348 F.3d 417 (4th Cir. 2003) .............................................................................................14, 16
`
`Herrera v. Charlotte Sch. of Law, LLC,
`818 F. App’x 165 (4th Cir. 2020) ..............................................................................................7
`
`Hughes v. Baird & Warner, Inc.,
`No. 76 C 3929, 1980 U.S. Dist. LEXIS 13885 (N.D. Ill. Aug. 20, 1980) ...............................17
`
`In re Hydrogen Peroxide Antitrust Litig.,
`552 F.3d 305 (3d Cir. 2008).....................................................................................................19
`
`In re India Globalization Cap., Inc.,
`No. DKC 18-3698, 2020 U.S. Dist. LEXIS 77190 (D. Md. May 1, 2020) .....................7, 8, 10
`
`In re IPO Sec. Litig.,
`226 F.R.D. 186 (S.D.N.Y. 2005) .............................................................................................13
`
`In re Jiffy Lube Sec. Litig.,
`927 F.2d 155 (4th Cir. 1991) ...............................................................................................5, 10
`
`McKinney v. U.S. Postal Serv.,
`292 F.R.D. 62 (D.D.C. 2013) ...................................................................................................24
`
`In re MicroStrategy, Inc. Sec. Litig.,
`148 F. Supp. 2d 654 (E.D. Va. 2001) ......................................................................................10
`
`
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`iii
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`Case 1:19-cv-02521-SAG Document 481-1 Filed 07/02/21 Page 5 of 33
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`In re Mid-Atlantic Toyota Antitrust Litig.,
`564 F. Supp. 1379 (D. Md. 1983) ........................................................................................6, 11
`
`In re Nexium Antitrust Litig.,
`777 F.3d 9 (1st Cir. 2015) ........................................................................................................21
`
`In re PNC Fin. Servs. Grp., Inc., Sec. Litig.,
`440 F. Supp. 2d 421 (W.D. Pa. 2006) ..............................................................................8, 9, 12
`
`S.C. Nat’l Bank v. Stone,
`139 F.R.D. 335 (D.S.C. 1991) .............................................................................................6, 12
`
`Seaman v. Duke Univ.,
`No. 1:15-CV-462, 2018 U.S. Dist. LEXIS 16136 (M.D.N.C. Feb. 1, 2018) ..............20, 21, 22
`
`In re Serzone Prods. Liab. Litig.,
`231 F.R.D. 221 (S.D. W. Va. 2005).....................................................................................8, 22
`
`Sharp Farms v. Speaks,
`917 F.3d 276 (4th Cir. 2019) ...................................................................................................11
`
`Strang v. JHM Mortg. Sec. Ltd. P’ship,
`890 F. Supp. 499 (E.D. Va. 1995) .............................................................................................8
`
`Sullivan v. DB Invs., Inc.,
`667 F.3d 273 (3d Cir. 2011) (en banc) ......................................................................................7
`
`Temp. Servs., Inc. v. Am. Int’l Grp., Inc.,
`No. 3:08-cv-00271-JFA, 2012 U.S. Dist. LEXIS 86474 (D.S.C. June 22, 2012) ........... passim
`
`In re Titanium Dioxide Antitrust Litig.,
`284 F.R.D. 328 (D. Md. 2012) .................................................................................................14
`
`United States v. Manning Coal Corp.,
`977 F.2d 117 (4th Cir. 1992) .....................................................................................................6
`
`US Airline Pilots Ass’n v. Velez,
`No. 3:14-cv-00577-RJC-DCK, 2016 U.S. Dist. LEXIS 54239 (W.D.N.C. Apr.
`22, 2016) ..................................................................................................................................11
`
`Wal-Mart Stores, Inc. v. Dukes,
`564 U.S. 338 (2011) .................................................................................................................15
`
`In re Zetia Ezetimihe Antitrust Litig.,
`No. 2:18-md-2836, 2020 U.S. Dist. LEXIS 112331 (E.D. Va. June 18, 2020) .....17, 18, 19, 21
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`
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`iv
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`Case 1:19-cv-02521-SAG Document 481-1 Filed 07/02/21 Page 6 of 33
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`
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`RULES
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`Fed. R. Civ. P. 23(b)(3)..................................................................................................................16
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`Fed. R. Civ. P. 23(e) ........................................................................................................................5
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`Fed. R. Civ. P. 23(e)(2) ................................................................................................................5, 7
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`STATUTES
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`Sherman Act, 15 U.S.C. § 1 .............................................................................................................2
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`OTHER AUTHORITIES
`
`7AA Charles Alan Wright, Arthur R. Miller & Mary K. Kane, Federal Practice &
`Procedure: Civil 3d § 1778 ......................................................................................................17
`
`Alba Conte & Herbert Newberg, Newberg on Class Actions § 18.26 (4th ed.
`2002) ........................................................................................................................................18
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`v
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`Case 1:19-cv-02521-SAG Document 481-1 Filed 07/02/21 Page 7 of 33
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`Pursuant to Rule 23(e) of the Federal Rules of Civil Procedure, Plaintiffs Judy Jien, Kieo
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`Jibidi, Elaisa Clement, Glenda Robinson and Emily Earnest (collectively “Plaintiffs”) submit this
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`Memorandum in Support of their Motion for Preliminary Approval of a proposed settlement
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`between Plaintiffs and Defendant Pilgrim’s Pride Corporation (hereinafter “Pilgrim’s”). The
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`Settlement Agreement achieves an excellent result for the Plaintiffs in this action and is attached
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`as Exhibit A to the accompanying Declaration of George F. Farah, July 2, 2021 (“Farah Decl.”).
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`All defined terms herein have the same meaning as set forth in the Settlement Agreement.
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`I.
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`INTRODUCTION
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`After hard-fought, arm’s-length negotiations by highly experienced counsel, Plaintiffs and
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`Pilgrim’s reached a Settlement Agreement resolving the claims of a proposed class of poultry
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`processing workers employed at Defendants’ plants (the “Settlement Class” as defined in § II.B.1
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`below). The Settlement Agreement, which was executed on June 14, 2021, secures a $29,000,000
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`cash payment for the Settlement Class and requires Pilgrim’s to provide material cooperation to
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`Plaintiffs in the litigation against the remaining Defendants.
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`Accordingly, Plaintiffs respectfully request that the Court enter an order: (1) preliminarily
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`approving the Settlement Agreement; (2) certifying the Settlement Class defined below;
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`(3) appointing Interim Co-Lead Counsel as Settlement Class Counsel; (4) appointing Plaintiffs as
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`Settlement Class Representatives; (5) deferring notice of the Settlement Agreement to the
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`Settlement Class until an appropriate future date; and (6) ordering a stay of all proceedings against
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`Pilgrim’s except those proceedings provided for or required by the Settlement Agreement.
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`II.
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`BACKGROUND
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`A.
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`The Litigation
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`Plaintiffs allege that the nation’s leading poultry processors and two consulting companies
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`conspired to depress the compensation paid to workers at poultry processing plants. Specifically,
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`1
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`Case 1:19-cv-02521-SAG Document 481-1 Filed 07/02/21 Page 8 of 33
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`Plaintiffs allege that Defendants entered into two unlawful agreements in violation of the Sherman
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`Act, 15 U.S.C. § 1: (1) a per se illegal agreement to fix compensation for poultry processing
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`workers; and (2) an agreement to exchange competitively sensitive compensation information, in
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`violation of the rule of reason. Defendants have denied Plaintiffs’ allegations.
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`This action was initiated on August 30, 2019. ECF No. 1. Defendants moved to dismiss
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`Plaintiffs’ First Amended Complaint on March 2, 2020. See, e.g., ECF No. 341. The Court granted
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`those motions in part and denied them in part, without prejudice. ECF No. 379. On November 2,
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`2020, Plaintiffs filed their Second Amended Complaint, which, as the Court later found, cured the
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`pleading defects that the Court had identified in the First Amended Complaint. ECF Nos. 386, 414,
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`415. Defendants have filed their Answers, and the parties have commenced discovery, serving and
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`responding to document requests and interrogatories. See, e.g., ECF No. 431.
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`B.
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`The Settlement Agreement
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`Plaintiffs’ counsel and counsel for Pilgrim’s engaged in comprehensive, hard-fought
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`negotiations to achieve a settlement. Farah Decl. ¶¶ 7-8. The discussions were predicated on an
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`understanding of the strengths and weaknesses of the case, including factual information gleaned
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`from an extensive pre-filing investigation. Id. ¶ 10.
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`To assist with those negotiations, the parties enlisted Eric D. Green, an experienced class-
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`action mediator with close to 40 years’ experience mediating and resolving complex disputes. Id.
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`¶ 7. The parties participated in an extended full-day mediation session with Mr. Green on March
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`19, 2021. At the end of the mediation, the parties were still at an impasse; Mr. Green subsequently
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`submitted a Mediator’s Proposal to try to bridge the gap between the parties’ positions. Id. The
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`parties accepted the Mediator’s Proposal on March 22, 2021. Id.
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`For the subsequent 12 weeks, the parties negotiated the particular terms of the written
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`2
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`Case 1:19-cv-02521-SAG Document 481-1 Filed 07/02/21 Page 9 of 33
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`settlement agreement. During that time period, the parties continued to negotiate over the details
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`and scope of the cooperation required of Pilgrim’s in the litigation against the remaining
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`Defendants. Id. ¶ 8. The agreement was executed on June 14, 2021. The basic terms of the
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`Settlement Agreement include:
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`1.
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`The Settlement Class
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`The Settlement Class consists of “[a]ll persons employed by Defendant Processors, their
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`subsidiaries, and/or related entities at poultry processing plants in the continental United States
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`from January 1, 2009 until the Date of Preliminary Approval.” Settlement Agreement § II(F)(3).
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`The following persons and entities are excluded from the Settlement Class: “complex managers,
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`plant managers, human resources managers, human resources staff, office clerical staff, guards,
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`watchmen, and salesmen; Defendants, co-conspirators, and any of their subsidiaries, predecessors,
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`officers, or directors; and federal, state or local governmental entities.” Id. The Settlement Class is
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`the same as the class alleged in the operative complaint.
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`2.
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`The Settlement Amount
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`The proposed Settlement Agreement provides that Pilgrim’s will pay $29 million dollars
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`($29,000,000) for the benefit of the Settlement Class. This amount will be deposited in an escrow
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`account by Pilgrim’s within 14 calendar days after entry of the preliminary approval order.
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`Settlement Agreement § II(A)(1). This is a non-reversionary fund; once the Settlement Agreement
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`is finally approved by the Court and after administrative costs, litigation expenses, and attorneys’
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`fees are deducted, the net funds will be distributed to Settlement Class members with no amount
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`reverting back to Pilgrim’s.
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`3.
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`Cooperation Requirements
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`In addition to providing a substantial monetary payment, the Settlement Agreement
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`obligates Pilgrim’s to cooperate with Plaintiffs in the further prosecution of their claims against
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`3
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`Case 1:19-cv-02521-SAG Document 481-1 Filed 07/02/21 Page 10 of 33
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`the remaining Defendants, which each remain jointly and severally liable for all damages caused
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`by the members of the alleged conspiracy. This cooperation will include, inter alia:
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`the deposition of five current employees identified by Plaintiffs1;
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`the production of relevant structured compensation data;
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`the production of responsive documents from five current employees identified by
`Plaintiffs;
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`the production of the following specific categories of documents:
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`i.
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`ii.
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`iii.
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`iv.
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`v.
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`all documents sent to and received from WMS;
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`all written agreements or contracts with Agri-Stats, Inc. and/or Express Markets,
`Inc.;
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`all Pilgrim’s contracts with labor unions executed during the Settlement Class
`Period;
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`all documents produced to, and received from, the Joint Poultry Industry Human
`Resources Council, National Chicken Council, and U.S. Poultry & Egg
`Association that reference compensation;
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`any documents that have been or will be produced to the Department of Justice
`by Pilgrim’s regarding any investigation regarding compensation, so long as the
`agency consents or does not object to the production or the Court orders the
`production.
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`
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`the authentication of documents produced by Pilgrim’s; and
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` assistance with Plaintiffs’ efforts to obtain phone records from third-party carriers.
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`See Settlement Agreement § II(A)(2).
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`4.
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`Release of All Claims against Pilgrim’s
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`In exchange for the monetary and cooperation consideration from Pilgrim’s, upon entry of
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`a final judgment approving the Settlement Agreement, Plaintiffs and the Settlement Class will
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`1 Plaintiffs may conduct depositions of former employees of Pilgrim’s without limitation, so long
`as those depositions are conducted in accordance with overall discovery limitations established by
`the Court.
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`4
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`Case 1:19-cv-02521-SAG Document 481-1 Filed 07/02/21 Page 11 of 33
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`release and discharge Pilgrim’s from any and all claims arising out of or relating to “an alleged or
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`actual conspiracy or agreement between Defendants relating to reducing competition for the hiring
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`and retaining of, or to fixing, depressing, restraining, exchanging information about, or otherwise
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`reducing the Compensation paid or provided to, the” Settlement Class. Settlement Agreement §
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`II(B)(2). This Release covers both claims that were asserted and claims that could have been
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`asserted.
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`The Settlement Agreement, however, does nothing to abrogate the rights of any member
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`of the Settlement Class to recover from any other Defendant. The Settlement Agreement also
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`expressly excludes from the Release “any claims wholly unrelated to the allegations or underlying
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`conduct alleged in the Action that are based on breach of contract, negligence, personal injury,
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`bailment, failure to deliver lost goods, damaged or delayed goods, product defect, discrimination,
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`COVID-19 safety protocols, failure to comply with wage and hours laws unrelated to
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`anticompetitive conduct, or securities claims.” Id.
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`II.
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`THE COURT SHOULD PRELIMINARILY APPROVE THE SETTLEMENT
`AGREEMENT
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`A.
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`Standard for Granting Preliminary Approval
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`Federal Rule of Civil Procedure 23(e) provides that “[t]he claims, issues, or defenses of a
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`certified class—or a class proposed to be certified for purposes of settlement—may be settled,
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`voluntarily dismissed, or compromised only with the court’s approval.” Fed. R. Civ. P. 23(e).
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`Before a court may approve a proposed settlement, it must conclude that the settlement is “fair,
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`reasonable, and adequate.” Fed. R. Civ. P. 23(e)(2). This boils down to “examining [a] proposed
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`. . . settlement for fairness and adequacy.” In re Jiffy Lube Sec. Litig., 927 F.2d 155, 158 (4th Cir.
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`5
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`Case 1:19-cv-02521-SAG Document 481-1 Filed 07/02/21 Page 12 of 33
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`1991).2
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`At the preliminary approval stage, however, the Court does not make a final determination
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`of the merits of the proposed settlement. In re Mid-Atlantic Toyota Antitrust Litig., 564 F. Supp.
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`1379, 1384 (D. Md. 1983) (internal citation omitted). Full evaluation is made at the final approval
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`stage, after notice of the settlement has been provided to the members of the class and those class
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`members have had an opportunity to voice their views of the settlement. Id.
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`Rather, “at the preliminary approval stage, the court’s role is to determine whether there
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`exists probable cause to submit the proposal to members of the class and to hold a full-scale hearing
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`on its fairness.” Fire & Police Retiree Health Care Fund v. Smith, Civil Action No. CCB-18-3670,
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`2020 U.S. Dist. LEXIS 217892, at *6 (D. Md. Nov. 20, 2020). A court should grant preliminary
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`approval “when the preliminary evaluation of the proposed settlement does not disclose grounds
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`to doubt its fairness or other obvious deficiencies such as unduly preferential treatment of class
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`representatives or of segments of the class or excessive compensation for attorneys and appears to
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`fall within the range of possible approval.” Temp. Servs., Inc. v. Am. Int’l Grp., Inc., No. 3:08-cv-
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`00271-JFA, 2012 U.S. Dist. LEXIS 86474, at *16-17 (D.S.C. June 22, 2012) (internal citation
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`omitted). “In assessing the fairness and adequacy of a proposed settlement, there is a strong initial
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`presumption that the compromise is fair and reasonable.” S.C. Nat’l Bank v. Stone, 139 F.R.D.
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`335, 339 (D.S.C. 1991) (internal quotation marks and citation omitted).
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`When evaluating the fairness and adequacy of a proposed settlement, courts keep in mind
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`the following policy consideration: “It has long been clear that the law favors settlement.” United
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`States v. Manning Coal Corp., 977 F.2d 117, 120 (4th Cir. 1992). This “strong presumption” is
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`2 The United States Court of Appeals for the Fourth Circuit has “not enumerated factors for
`assessing a settlement’s reasonableness.” Cantu-Guerrero v. Lumber Liquidators, Inc., 952 F.3d
`471, 484 (4th Cir. 2020).
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`6
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`Case 1:19-cv-02521-SAG Document 481-1 Filed 07/02/21 Page 13 of 33
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`“especially strong in class actions and other complex cases because they promote the amicable
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`resolution of disputes and lighten the increasing load of litigation faced by the federal courts.”
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`Sullivan v. DB Invs., Inc., 667 F.3d 273, 311 (3d Cir. 2011) (en banc) (affirming certification of
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`two nationwide antitrust settlement classes) (internal citation omitted).
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`B.
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`The Settlement Agreement Is Fair
`
`A court’s fairness analysis is intended primarily to ensure that a “settlement [is] reached as
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`a result of good-faith bargaining at arm’s length, without collusion.” In re India Globalization
`
`Cap., Inc., No. DKC 18-3698, 2020 U.S. Dist. LEXIS 77190, at *8 (D. Md. May 1, 2020). The
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`fairness analysis involves examination of “(1) the posture of the case at the time settlement was
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`proposed, (2) the extent of discovery that had been conducted, (3) the circumstances surrounding
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`the negotiations, and (4) the experience of counsel in the area of [antitrust] class action litigation.”3
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`Id.
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`The Settlement Agreement with Pilgrim’s is fair. The first factor—i.e. the posture of the
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`case—weighs in favor of preliminary approval. The Settlement Agreement was reached after 22
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`months of adversarial and informative litigation. The prosecution and defense of the action
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`included the briefing of two rounds of motions to dismiss, each of which yielded a lengthy and
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`detailed ruling by the Court regarding the viability of the alleged claims. The Court’s resolution
`
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`3 “Federal Rule of Civil Procedure 23(e)(2) has been amended and now sets forth factors for the
`district court to assess in evaluating fairness, reasonableness, and adequacy.” Herrera v. Charlotte
`Sch. of Law, LLC, 818 F. App’x 165, 176 n.4 (4th Cir. 2020). The United States Court of Appeals
`for the Fourth Circuit, however, has noted that “our factors for assessing class-action settlements
`almost completely overlap with the new Rule 23(e)(2) factors.” Cantu-Guerrero, 952 F.3d at 484
`n.8. As the overlap “render[s] the analysis the same,” the Fourth Circuit “continues to apply its
`own standards.” Herrera, 818 F. App’x at 176 n.4; see also Fed. R. Civ. P. 23(e)(2) advisory
`committee’s note to 2018 amendment (“The goal of this amendment is not to displace any factor,
`but rather to focus the court and the lawyers on the core concerns of procedure and substance that
`should guide the decision whether to approve the proposal.”).
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`7
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`Case 1:19-cv-02521-SAG Document 481-1 Filed 07/02/21 Page 14 of 33
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`of Defendants’ motions to dismiss materially narrowed the list of defendants, clarified the
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`applicable law and legal hurdles, and set the stage for the parties’ positions in their settlement
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`negotiations. See Farah Decl. ¶ 11.
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`The second factor—i.e. the extent of discovery—also weighs in favor of preliminary
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`approval. The parties have recently begun formal discovery. The parties have served extensive
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`document requests; exchanged and responded to interrogatories; and are currently in the midst of
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`meet-and-confers to identify document custodians and search terms for electronic records. Yet,
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`while extensive formal discovery has not yet been completed, there has been “sufficient informal
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`discovery and investigation to fairly evaluate the merits of Defendants’ positions during settlement
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`negotiations.” Strang v. JHM Mortg. Sec. Ltd. P’ship, 890 F. Supp. 499, 501-02 (E.D. Va. 1995)
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`(emphasis added). Indeed, “[d]istrict courts within the Fourth Circuit have found that even when
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`cases settle early in the litigation after only informal discovery has been conducted, the settlement
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`may nonetheless be deemed fair.” Temp. Servs., 2012 U.S. Dist. LEXIS 86474, at *32. There is
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`“no minimum or definitive amount of discovery that must be undertaken,” In re Serzone Prods.
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`Liab. Litig., 231 F.R.D. 221, 244 (S.D. W. Va. 2005), and “[e]ngaging in formal discovery is not
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`essential . . . or even the critical focal point of the analysis.” In re PNC Fin. Servs. Grp., Inc., Sec.
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`Litig., 440 F. Supp. 2d 421, 433 (W.D. Pa. 2006). See, e.g., In re India, 2020 U.S. Dist. LEXIS
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`77190, at *11 (preliminarily approving class action settlement before the filing of motions to
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`dismiss and or commencement of formal discovery).
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`Here, as the Court is aware, Plaintiffs’ capable counsel have engaged in substantial
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`informal discovery to analyze the strengths and weaknesses of the Settlement Class’s claims. Both
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`prior to and after filing the detailed complaint, Plaintiffs’ counsel expended considerable time and
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`resources to conduct an extraordinary investigation of Defendants’ collaboration in setting
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`8
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`Case 1:19-cv-02521-SAG Document 481-1 Filed 07/02/21 Page 15 of 33
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`compensation for their plant employees. See Farah Decl. ¶ 10. Plaintiffs’ counsel interviewed
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`multiple confidential witnesses formerly employed by Defendants and other poultry processors.
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`Id. Furthermore, Plaintiffs’ counsel retained an expert economist to conduct a preliminary analysis
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`of compensation in the poultry processing industry, as compared to other non-poultry food
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`manufacturers. Id. Plaintiffs’ counsel also conducted extensive research of both the poultry labor
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`market and the plant workers that comprise the Settlement Class. Id. These unusually extensive
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`investigative and analytical efforts support a finding of fairness. See In re PNC, 440 F. Supp. 2d
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`at 430-31; see also Adesso Homeowners’ Ass’n v. Holder Props., Inc., No. 3:16-cv-710-JFA, 2017
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`U.S. Dist. LEXIS 224941, at *34 (D.S.C. May 23, 2017) (“[T]he parties have committed
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`substantial resources to the investigation and legal analysis of the claims and defenses of the
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`parties, to obtain sufficient information to weigh the benefits of the proposed settlement against
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`the risks of continued litigation.”).
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`The third factor—i.e. the circumstances surrounding the negotiations—heavily favors
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`preliminary approval. Where, as here, “a settlement is the result of genuine arm’s-length
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`negotiations, there is a presumption that it is fair.” Gaston v. Lexisnexis Risk Sols., Inc., No. 5:16-
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`cv-00009-KDB-DCK, 2021 U.S. Dist. LEXIS 12872, at *18 (W.D.N.C. Jan. 25, 2021); see also
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`Adesso, 2017 U.S. Dist. LEXIS 224941, at *33 (“[A] proposed class action settlement is
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`considered presumptively fair where there is no evidence of collusion and the parties, through
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`capable counsel, have engaged in arms’ length negotiations.”). Before executing the Settlement
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`Agreement, the parties engaged in approximately four months of hard-fought, arm’s-length
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`negotiations, which were adversarial throughout and showed no trace of collusion. See Farah Decl.
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`¶¶ 4, 7. Indeed, to reach a settlement agreement, the parties enlisted the assistance of Eric D. Green,
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`a highly experienced class-action mediator who has particular expertise mediating and resolving
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`9
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`Case 1:19-cv-02521-SAG Document 481-1 Filed 07/02/21 Page 16 of 33
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`complex disputes such as the one at bar. Id. “[S]upervision by a mediator lends an air of fairness
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`to agreements that are ultimately reached.” Temp. Servs., 2012 U.S. Dist. LEXIS 86474, at *33.
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`In keeping with their zealous advocacy throughout, the two sides were not able to reach agreement
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`at the conclusion of the mediation. The se