Notice of Class Action Settlement

Mengyu Chou v. LA Slauson Property Inc. dba Furst Motel, et al.

County of Los Angeles Superior Court Case Nos. 18STCV04347

NOTICE OF CLASS ACTION SETTLEMENT

The Los Angeles County Superior Court permitted this notice. This is not an ad.

YOU MAY BE ENTITLED TO RECEIVE MONEY FROM A CLASS ACTION SETTLEMENT FOR HAVING WORKED FOR LA Slauson Property, Inc., dba Furst Motel, LA Olympic Property, Inc., dba Tuscan Garden Inn, LA Alvarado Property, Inc., dba Casa Bella Inn, City Property, Inc., dba City Motel, Mao & Qun Co., Inc., dba Edge O’ Town IN CALIFORNIA AS A RESULT OF A CLASS ACTION PENDING IN SUPERIOR COURT.

YOU ARE NOT BEING SUED, AND THIS LAWSUIT IS NOT AGAINST YOU.

LA Slauson Property, Inc., dba Furst Motel, LA Olympic Property, Inc., dba Tuscan Garden Inn, LA Alvarado Property, Inc., dba Casa Bella Inn, City Property, Inc., dba City Motel, Mao & Qun Co., Inc., dba Edge O’ Town HAVE AGREED TO THIS SETTLEMENT.

YOUR RIGHTS MAY BE AFFECTED – PLEASE READ THIS NOTICE IMMEDIATELY!

ATTENTION: A judge has granted approval to a settlement of the above-captioned Class Action lawsuit (“Action”) against LA Slauson Property, Inc., dba Furst Motel, LA Olympic Property, Inc., dba Tuscan Garden Inn, LA Alvarado Property, Inc., dba Casa Bella Inn, City Property, Inc., dba City Motel, Mao & Qun Co., Inc., dba Edge O’ Town. (“Defendants”) If you were employed by the Defendants as a non-exempt employee between November 8, 2014 and May 1, 2022, then you are a “Class Member” and may be eligible to receive money from the Settlement of the Action.

PLEASE READ THIS NOTICE CAREFULLY. This Notice relates to the Settlement of the Action. If you are a Class Member, it contains important information affecting your rights to participate in the Settlement as further described below. This notice advises you of the terms of the Settlement and your rights and options under it.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

You Can DO NOTHING	This is the only way to get a settlement payment. If you do nothing, you will lose any rights to sue Corporate Defendants separately about the same legal claims made in this lawsuit, but you will receive a settlement payment.
You Can ASK TO BE EXCLUDED FROM THE SETTLEMENT (Deadline: November 25, 2024)	If you ask to be excluded from the settlement, you will get no settlement payment, but you will keep any rights to Corporate Defendants separately about the same legal claims made in this lawsuit. IMPORTANT: YOU CANNOT ASK TO BE EXCLUDED AND STILL GET A SETTLEMENT PAYMENT.
You Can OBJECT TO THE SETTLEMENT (Deadline: November 25, 2024)	If you do not agree with the terms of the settlement, you can make a written objection to the Claims Administrator and the Claims Administrator will pass on your objection to the court. BUT IF YOU OBJECT TO THE SETTLEMENT, YOU CANNOT ASK TO BE EXCLUDED TOO.

What is this proposed Settlement about?

A Class Action lawsuit was filed against the Defendants. Mengyu Chou filed the original Class Action Complaint on November 8, 2018. Mr. Chou is designated as the “Class Representative” for the lawsuit. Based on the assertion that Defendants owe the class members compensation for unpaid wage claims and penalties for employees, the Class Action complaint alleges that Corporate Defendants failed to provide lawful meal and rest periods, failed to provide compliant paycheck stubs, violated the California Unfair Competition Law, violated other provisions of the California Labor Code for which statutory penalties may be recovered, and failed to pay overtime and minimum wage compensation.

Defendants deny that they have done anything wrong. Defendants contend that it has complied with all California and federal laws regarding those matters. Defendant also denies that it owed Class Members any wages, restitution, penalties, damages or other amounts. Accordingly, the Settlement constitutes a compromise of disputed claims and should not be construed as an admission of liability on the part of Defendants, which expressly deny all liability.

The Court has not ruled on the merits of Plaintiff’s claims. The Court has only determined that there is sufficient evidence to suggest that the proposed Settlement might be fair, adequate, and reasonable. Any final determination of whether the proposed Settlement is fair, adequate, and reasonable will be made at the Final Approval Hearing. However, to avoid additional expense, inconvenience, and interference with its business operations, Defendant has concluded that it is in its best interests to settle the Action on the terms summarized in this Notice. After Defendant provided relevant information to Class Counsel, the Settlement was reached after mediation and arm’s length negotiations between the parties.

The Class Representative and Class Counsel support the Settlement. Among the reasons for the support are the defenses to liability potentially available to Defendant, the risk of denial of class certification, the inherent risk of trial on the merits, and the delays and uncertainties associated with ongoing litigation.

What are the terms of the Settlement?

On August 21, 2024, the Court preliminary certified a class, for settlement purposes only, of all non-exempt employees who worked for Defendants in the State of California during the time period of November 8, 2014 through May 1, 2022. Defendants have agreed to pay $318,000.00 (the “Settlement Amount”) to resolve all claims that were or could have been asserted in the Action and for your release of claims described below.

If finally approved by the Court, the proposed Settlement will distribute money as follows:

Attorneys’ Fees and Costs Award to Class Counsel: Upon approval by the Court, Corporate Defendants will pay attorneys’ fees and out-of-pocket costs/expenses to Class Counsel (Sam X. J. Wu of the Law Offices of Sam X. J. Wu, A Professional Corporation). The proposed Settlement permits Class Counsel to request up to 40% of the Maximum Settlement Amount, or up to $127,200 as their fees for prosecuting the Action, and expenses reimbursement [not to exceed $20,000] of their out-of-pocket costs/expenses incurred in the Action. You are not personally responsible for any of Class Counsel’s attorneys’ fees or costs/expenses. This payment of attorneys’ fees and costs will be made out of the Total Settlement Amount.

Claims Administration Costs: The Settlement provides for payment estimated to be $10,000 to the Claims Administrator, Simpluris Class Action Settlement Administration for its services in mailing the Class Notice and processing Settlement Awards. This payment will be made out of the Maximum Settlement Amount.

Class Representative Service Payment: The Settlement provides for up to $10,000.00 to be paid to Plaintiff, Mengyu Chou as a Service Payment for bringing and maintaining the Action and for the comprehensive release of all of his claims, known and unknown, with a waiver of California Civil Code section 1542. This payment will be made out of the Maximum Settlement Amount.

Settlement Awards to Class Members: After deducting each of the above payments from the Maximum Settlement Amount, the remaining amount is the “Settlement Fund.” All Class members who do not exclude themselves from the settlement, as described below (the “Qualified Persons”) will receive a portion of the Settlement Fund as their individual Settlement Payment.

Formula for Settlement Payment Calculations. Each Class Member’s Settlement Payment shall be calculated by dividing the Class Member’s total number of workweeks during the Class Period as reflected in Defendant’s records. The resulting number shall be multiplied by the Settlement Fund to arrive at each Class Member Payment.

Unclaimed Portion of Net Settlement Amount: Any settlement checks paid to Qualified Persons that are not cashed within 180 days after the issuance date will be voided and the funds from such checks shall, subject to Court approval of the recipient, go to the California Bar Foundation in the name of the Qualified Claimant.

What are my rights and options?

1. You can do nothing: If you do nothing, you will lose any rights to sue Corporate Defendants separately about the same legal claims made in this lawsuit, but you will receive a Settlement Award as a member of the Settlement Class.

2. You can exclude yourself from the Settlement: Class members who wish to exercise this option must timely submit a letter, with the case information, their basic contact information (name, address, last four numbers of their social security numbers) and statement to the effect that they do not wish to participate in the settlement, are asking to exclude themselves and understand that as a result they will not receive his/her share of the Settlement Fund, but will preserve the right to pursue an individual claim (“Opt-Out Letter”). The Opt-Out Letter must be postmarked on or before the Exclusion Period Deadline, November 25, 2024. You should not request exclusion if you wish to receive money from the Settlement.

Claims Administrator Address and Contact Information:

Chou v. LA Slauson Property Inc. dba Furst Motel, et al.

c/o Settlement Administrator

P.O. Box 26170

Santa Ana, CA 92799

Tel: 1-888-369-3780

3. You can object to the Settlement:

A Class member may object to the Settlement by submitting an objection within 60 days from mailing of the Notice of Settlement, which is set for November 25, 2024. To object, a Class member must mail to the Claims Administrator, Class Counsel, and Defendant’s Counsel a letter saying that he or she objects to the Settlement (the “Objection Letter”). The Claims Administrator will file your Objection Letter with the court.

To be valid, the Objection Letter must include your name, address, telephone number, signature, and the reason(s) why you object to the Settlement and attach any documents supporting your objection. If you intend to appear at the Final Approval Hearing, you must say so in the Objection Letter, however, all Eligible Persons and/or Qualified Persons may appear at the Final Approval Hearing either in person or through their own counsel.

You must serve copies of your written objection to the following attorneys:

ATTORNEYS FOR PLAINTIFF MENGYU CHOU AND THE CLASS MEMBERS

Sam X. J. Wu, Esq.

Law Offices of Sam X. J. Wu

8600 Utica Ave, Building 100

Rancho, Cucamonga, CA 91730

T: (626) 588-2388

F: (626) 656-8088

ATTORNEYS FOR DEFENDANTS LA SLAUSON PROPERTY, INC. DBA FURST MOTEL; et al.

John A. Mavros, Esq.

Kyley Chelwick, Esq.

Fisher & Phillips, LLP

2050 Main Street, Suite 1000

Irvine, CA 92614

T: (949) 851-2424

F: (949) 851-0152

Remember: You may object to the Settlement only if you do NOT submit a Request for Exclusion. The deadline for the attorneys to submit the response to objections is December 23, 2024.

What claims am I releasing by participating in the Settlement?

As of the Effective Date, the Settlement Class will release the Released Parties from the Released Claims. The Class Representative (and his assigns, heirs, successors and personal representatives) shall release, waive, and forfeit, and shall be deemed to have released, waived and forfeited, all the Class Representative’s Released Claims against the Released Parties, and each of them, through the Effective Date.

The above releases given are conditional and shall only take effect unconditionally upon the Preliminary Approval Date Settlement is fully funded.

The “Effective Date” is defined generally as the date when the final approval of the Settlement can no longer be appealed; also, if there is no objection to the Settlement, the Effective Date will be the date the Court enters the Final Judgment.

The ”Released Claims” shall mean all claims for wages, statutory and civil

penalties, damages and liquidated damages, interest, fees and costs that were or could have been alleged under California law, arising out of the allegations of the Complaint (and any amendments thereto), including, but not limited to: (1) claims for failure to pay overtime and minimum wage; (2) failure to provide lawful meal periods; (3) failure to provide legally compliant rest periods; (4) failure to furnish accurate and itemized wage statements; (5) failure to timely pay wages; (6) claims for any and all penalties under Labor Code sections 203 or 206, (6) attorneys' fees and costs; and (7) violation of California's Business and Professions Code.

"Released Parties" means Defendants and its subsidiaries, affiliates, parents and attorneys and each of their company-sponsored employee benefit plans, and their respective successors and predecessors in interest, all of their respective officers, directors, employees, administrators, fiduciaries, trustees and agents, and each of their past, present and future officers, directors shareholders, employees, agents, principals, heirs, representatives, accountants, auditors, consultants, attorneys, insurers and reinsurers; Maoson Young, Sue Lee Young and Marshall Young.

All Settlement Class Members intend and are deemed to intend that this Settlement shall be effective as a bar to any and all Released Claims.

When is the next Court hearing?

A Final Approval Hearing will be held before the Honorable, Elihu M. Berle, Dept. 6 of the Superior Court of the State of California for the County of Los Angeles, located at Spring Street Courthouse, 312 N. Spring Street, Los Angeles, California 90012 on January 3, 2025 at 9:00 a.m. to determine whether the Settlement is fair, reasonable and adequate. Judge Berle will be asked to approve the plan for distributing the Settlement Awards, Class Counsel’s Fee and Expense Award, the Service Payment to the Class Representative, and payment to the Claims Administrator of its costs. A motion for final approval of these items should be on file with the Court no later than October 25, 2024, and will be available for review after that date. This hearing may be continued without further notice to Class Members. It is not necessary for you to appear at this hearing unless you have timely filed an objection with the Court.

What if I need more information?

For the precise terms and conditions of the Settlement, you should consult the detailed Agreement and the Preliminary Approval Order, which is also on file with the Court. Capitalized terms in this Notice have the same meaning they are given in the Joint Stipulation and Settlement Agreement (“Agreement”) on file with the Court in the Action. If you have any questions, you can contact the Claims Administrator at 1-(888)-369-3780. You can also contact Class Counsel listed above. The filing of Motion for Final Approval and evidence in support of any request for attorneys fees and costs will be done by October 25, 2024, and Claim administrator's report will be filed by December 23, 2024.

PLEASE DO NOT TELEPHONE THE COURT OR DEFENDANT’S COUNSEL FOR INFORMATION REGARDING THIS SETTLEMENT OR THE CLAIM PROCESS!

Additional information and key documents relating to the Action and the Settlement can also be accessed at the following Internet site maintained by Class counsel: www.laslausonclassaction.com

BY ORDER OF THE SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF LOS ANGELES