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AN IMPORTANT NOTICE FROM THE ALAMEDA COUNTY SUPERIOR COURT ABOUT A CLASS ACTION SETTLEMENT INVOLVING VERIZON WIRELESS PHONES
A proposed settlement has been reached in two class action proceedings,
Nguyen, et al., v. Cellco Partnership d/b/a Verizon Wireless, Alameda County Superior Court, Case No. RG 04137703, and
Patricia Brown and Harold P. Schroer, on an individual basis, and also on a classwide basis on behalf of others similarly situated – against – Cellco Partnership d/b/a Verizon Wireless, American Arbitration Association No. 11 494 01274 05 ("Actions"), alleging that Cellco Partnership d/b/a Verizon Wireless (“Verizon Wireless”) installed software locks on its wireless phones to prevent them from being reprogrammed for use with other wireless carrier networks. Plaintiffs allege that by locking handsets in this manner, Verizon Wireless violated California’s Unfair Competition Law (“UCL”), Business & Professions Code § 17200, et seq., and the Consumer Legal Remedies Act (“CLRA”), Civil Code § 1750, et seq., as well as the Federal Communications Act and similar consumer protection laws of the states and territories of the United States. You may be a member of the Class whose rights are affected by this lawsuit.
The sole purpose of this notice is to inform you of the settlement so that you may decide what steps to take in relation to it.
After independent investigation and the exchange of formal and informal discovery, the parties engaged in comprehensive settlement negotiations. Following the parties’ negotiations, the parties have reached an agreement (the “Settlement Agreement”) providing for the settlement of the Actions. The Court has certified a class (the “Settlement Class”), for settlement purposes only, consisting of:
“All persons who have or had a Verizon Wireless individual account and who purchased a handset for use with Verizon Wireless service from Verizon Wireless directly or from a Verizon Wireless indirect retailer from January 1, 2000 to March 16, 2007.”
The Class Representatives are Christina Nguyen, Advanced Systems Integration, Inc., Laura Peters, Jennifer Preuss, Patricia Brown, and Harold P. Schroer. The Class Representatives and Class Counsel (listed below) believe that the claims asserted in the Actions have merit, but that the settlement, described below, is in the best interests of the Settlement Class. Class Counsel have evaluated information made available in the course of the Actions and have taken into account the risks and uncertainties of proceeding with this litigation. Those risks include the uncertainty of obtaining class certification, prevailing on the merits, proving substantial damages at trial, and prevailing on post-trial motions and likely appeals. Based upon their consideration of these factors, and on the substantial time and expense that will be incurred, the Class Representatives and Class Counsel believe it is in the best interests of the Settlement Class to settle the Actions on the terms described below.
Verizon Wireless denies that it has ever installed software locks on the overwhelming majority of its wireless phones and denies any liability to the Class Representatives or the Settlement Class. Verizon Wireless, however, has agreed to settle the Actions for the purpose of avoiding the uncertainties and expense of, and diversion of business resources resulting from, further litigation.
No court has determined the merits of the plaintiffs’ claims or Verizon Wireless’s defenses. This Notice does not imply that there have been or would be any findings of violation of the law by Verizon Wireless or that recovery could be had in any amount if the Actions were not settled.
TERMS OF THE PROPOSED SETTLEMENT
The follwing is a summary of pertinent provisions of the Settlement Agreement and is not a complete statement of the settlement or of the Actions. To take effect, this Settlement must be approved by the Court.
Expanded Disclosure of Handset Policies
Verizon Wireless has agreed to disclose to Class Members information regarding the nature of software on their phones that may assist Class Members in using their phones on other wireless carriers’ networks.
Handset Software
Verizon Wireless has agreed to set the software code on all of its phones, except for models intended for sale with pre-pay plans and global phone service, to a default value that will be disclosed to consumers.
Additional Customer Support
Verizon Wireless has agreed to implement certain changes to its customer support services to provide guidance to Class Members regarding the use of phones from another company on the Verizon Wireless network.
Release
If the Settlement is approved by the Court, Settlement Class Members who have not filed a valid and timely request for exclusion shall be forever barred from asserting against Verizon Wireless any and all actions, causes of action, claims, demands, liabilities, obligations, fees, costs, sanctions, proceedings and/or rights of any nature and description whatsoever, including, without limitation, violations of any state or federal statutes, rules or regulations, including but not limited to 47 U.S.C. § 201, or principles of common law, whether liquidated or unliquidated, known or unknown, in law, equity, arbitration, or otherwise, whether or not concealed or hidden, that in any way relate to, in whole or in part, or arise out of, any of the allegations, claims, and/or theories raised in or that could have been raised in the Actions. This includes, but is not limited to, any and all actions, causes of action, claims, demands, liabilities, obligations, fees, costs, sanctions, proceedings and/or rights of any nature and description whatsoever that in any way relate to or arise out of Verizon Wireless’s policies and procedures relating to the alleged locking of handsets.
YOUR RIGHTS TO PARTICIPATE IN, EXCLUDE YOURSELF FROM, OR OBJECT TO THE SETTLEMENT
If you wish to participate in the Settlement, you do not need to do anything at this point.
If you do not wish to remain a member of the Class, you may exclude yourself from the Class. If you request to be excluded from the Class, you will not be entitled to receive any benefits from the Settlement, you may not object to the Settlement, and you will retain any individual rights you have with respect to the claims asserted in the Actions. If you wish to be excluded from the Class, you must submit a written exclusion request addressed to Munger, Tolles & Olson LLP, P.O. Box Number 194323, San Francisco, CA 94119-4323, postmarked no later than May 5, 2007. The notification must clearly indicate that you request to be excluded from the Class, and must include your name, address, and telephone number. A list of class members requesting exclusion will be filed with the Court. If you do not request exclusion, then: (1) you will be bound by the final judgment entered in this class action; and (2) you may, if you so elect, object to the proposed settlement. Visit www.vzwcellphonesettlement.com for more information.
You may, if you desire, appear at the Settlement Hearing to object to the proposed Settlement or to the application for attorneys’ fees and reimbursement of expenses, if you do not request to be excluded from the Class. To do so, you must file a written notice of objection, together with a statement of your reasons, with the Court: Clerk of the Court, Alameda County Superior Court, 1225 Fallon Street, Oakland, CA 94612. To be considered by the Court, all objections (including all supporting documentation or evidence of any kind) must be received before May 21, 2007, and copies must also be sent to Class Counsel:
Law Offices of Scott A. Bursor
500 Seventh Avenue, 10th Floor
New York, NY 10018
and to Verizon Wireless’s counsel:
Hojoon Hwang, Esq.
Munger, Tolles & Olson LLP
560 Mission Street, 27th Floor
San Francisco, CA 94105-2907
You have the right to consult and/or retain an attorney of your choice at your own expense, to advise you regarding the settlement and your rights in connection with the settlement and the Final Hearing as described below. You also have the right, either personally or through an attorney retained and paid by you, to seek to intervene in the Actions.
SETTLEMENT FAIRNESS HEARING; ATTORNEYS’ FEES, EXPENSES, AND OTHER PAYMENTS
On June 4, 2007, at 10:00 a.m., a hearing will be held in Department 22 of the Superior Court of the State of California for the County of Alameda, located at 1221 Oak Street, 4th Floor, Oakland, California 94612, to determine whether the Settlement should be approved by the Court as fair, reasonable, and adequate, and whether judgment should be entered thereon (“Settlement Hearing”).
The Court will also consider at the Settlement Hearing the request of Class Counsel for an award of attorneys’ fees and reimbursement of expenses in the amount of $1,900,000 and incentive awards to each class representative not to exceed $5,000, which Verizon Wireless has agreed to pay as a part of this Settlement over and above the other remedies described in this Notice.
Your attendance at the Settlement Hearing is not required. However, you may be heard orally at the Settlement Hearing in opposition to the proposed Settlement or Class Counsels’ application for attorneys’ fees and expenses,
but only if you have timely filed written objections in the manner described above, including a statement that you intend to appear and be heard at the Settlement Hearing. You may also enter an appearance through an attorney, at your own expense. If you do not do so, you will be represented in the Actions by Class Counsel.
Pending final determination of whether the Settlement should be approved, you and your representatives are barred from filing any lawsuit asserting any claims against Verizon Wireless that relate to the settled claims as defined above.
FURTHER INFORMATION
For more details of the matters involved in this Action, you may inspect the case files at the Superior Court of the State of California for the County of Alameda, Docket Number RG 04137703, during regular business hours at 1225 Fallon Street, Oakland, CA 94612.
Inquiries regarding the Settlement benefits and procedures may be directed to the Class Counsel at the above listed address or visit
www.vzwcellphonesettlement.com.
PLEASE DO NOT CALL, OR DIRECT ANY INQUIRIES TO THE COURT, TO VERIZON WIRELESS, OR TO VERIZON WIRELESS ’S COUNSEL.