Hakeem

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

CHAUENGA M HAKEEM, Case No. 19-cv-02161-VC

Plaintiff,

ORDER DENYING MOTION FOR

v. PRELIMINARY APPROVAL OF

CLASS ACTION SETTLEMENT

TRANSDEV SERVICES, INC., et al., Re: Dkt. No. 97 Defendants.

It appears, at least on this record, that the plaintiff class is entitled to $592,100 in penalties under California Labor Code section 226 for wage statement violations. In the motion for preliminary approval, class counsel did not provide any reason why an award of that amount would not be automatic (or nearly automatic). Indeed, on this record, it does not appear that a trial would be necessary; summary judgment would likely be entered in favor of the class. Yet the proposed settlement agreement would provide only $280,500 to the class members—a discount of more than fifty percent of their likely recovery amount. Absent an explanation for why an award of $592,100 would not be automatic or nearly automatic, and absent the identification of any other reason for such a significant discount, the Court cannot grant the motion for preliminary approval of the settlement. See Cotter v. Lyft,…