EXHIBIT 1 - Good Jobs First · WHEREAS, Donald Maddy, Kurt Frederick, Frederick R. Shellhammer,...

EXHIBIT 1

Case 1:14-cv-00490-JBS-KMW Document 279-3 Filed 12/28/16 Page 1 of 32 PageID: 4145

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW JERSEY

DONALD MADDY, et al., individually, and on

behalf of all others similarly situated,

Plaintiffs,

v.

GENERAL ELECTRIC COMPANY,

a New York corporation,

Defendant.

Civil Action No. 1:14-cv-00490

JOINT SETTLEMENT AND RELEASE

This Joint Stipulation of Settlement and Release (collectively, the “Agreement”), is entered

into by and between Plaintiffs (as hereinafter defined) and the class of individuals that they seek

to represent (as hereinafter defined), on the one hand, and Defendant (as hereinafter defined), and

Haier (as hereinafter defined) on the other hand.

RECITALS

WHEREAS, on October 25, 2013 Rolando Alvarez, Lance Bergmann, Fernandez S.

Austin, Kevin Frawley, Randall Henry, Peter Herrada, Mario Garcia, Mark L. Hale, James

Hutchins, Jr., Roy T. Lagana, Gaetano Leone, David Leppo, David Lombardo, David McMillin,

Louis Mejia, Jimmy Nelson, Armando Ortiz, Rolando Ortiz, Jr., Michael Perkins, Gary Pierce,

and Jonathan Scull filed a Complaint entitled Alvarez v. General Electric Company (No. 0-13-cv-

62333) in the United States District Court for the Southern District of Florida;

WHEREAS, on January 23, 2014, Donald Maddy, Kurt Frederick, Frederick R.

Shellhammer, Frank Michienzi, Mario Laureano, Anthony Chelpaty, and William Madden filed

an Individual, Collection Action and Class Complaint entitled Maddy v. General Electric

Company (No. 1:14-cv-00490) in the United States District Court for the District of New Jersey;

WHEREAS, Donald Maddy, Kurt Frederick, Frederick R. Shellhammer, Frank Michienzi,

Mario Laureano, Anthony Chelpaty, William Madden, Steven LeBlanc, Jeffrey Scott Wilkerson,

Jeffrey Navarette, and Phillip Eric Benson filed a First Amended Individual, Collective Action and

Class Action Complaint on May 29, 2014;

WHEREAS, in July 2014, the Alvarez and Maddy actions were consolidated in the District

of New Jersey;


Lance Bergmann, Anthony Chelpaty, William Madden, Steven LeBlanc, Jeffrey Scott Wilkerson,


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Jeffrey Navarette, Phillip Eric Benson, Bradley Palmer and Thomas Kiss filed a Second Amended

Individual, Collective Action and Class Action Complaint on November 7, 2014;


Lance Bergmann, Anthony Chelpaty, William Madden, Steven LeBlanc, Jeffrey Scott Wilkerson,

Jeffrey Navarette, Phillip Eric Benson, Bradley Palmer, Thomas filed a Third Amended Individual,

Collective Action and Class Action Complaint on December 28, 2016;

WHEREAS, the Third Amended Complaint asserted class claims under the New Jersey

Wage and Hour Law, the New Jersey Wage Payment Collection Law, the Pennsylvania Minimum

Wage Act, the Pennsylvania Wage Payment Collection Law, the Massachusetts minimum Fair

Wages Law, the Massachusetts Overtime Law, the Rhode Island Minimum Wage Act, the

Maryland Wage and Hour Law, the Maryland Wage Payment and Collection Law, the New York

Labor Law, the New York Department of Labor Regulations, the Michigan Minimum Wage Act,

the California Unfair Competition Law, the California Labor Code, and the California Wage

Orders, the Illinois Wage Payment and Collection Act, the Illinois Minimum Wage Act, the

Colorado Minimum Wages of Workers Act, the Connecticut Wage Laws, the Indiana Minimum

Wage Law, the Indiana Wage Payment Statute, the Kentucky Wage and Hour Laws, the Missouri

Minimum Wage Law, the Nevada Wage and Hour Law, the Ohio Minimum Fair Wage Standards

Act, and the Washington Minimum Wage Act, and collective claims under the Fair Labor

Standards Act (“FLSA”) and sought recovery of unpaid overtime wages and compensable time,

liquidated damages, interest, and attorneys’ fees and costs, as well as injunctive and declaratory

relief;

WHEREAS, the aforementioned Complaints will henceforth be collectively referred to as

“the Litigation”;

WHEREAS, Defendant denied and continues to deny all of the allegations made by

Plaintiffs in the Litigation and has denied and continues to deny that it is liable or owes damages

to anyone with respect to the alleged facts or causes of action asserted in the Litigation.

Nonetheless, without admitting or conceding any liability or damages whatsoever, Defendant has

agreed to settle the Litigation on the terms and conditions set forth in this Agreement, to avoid the

burden, expense, and uncertainty of continuing the Litigation;

WHEREAS, Class Counsel (as hereinafter defined) has litigated this case for nearly three

years during which time they have reviewed and analyzed thousands of documents and millions

of data points produced by Defendant,

WHEREAS, the Parties participated in a private mediation session with the Honorable

Diane Welsh in Philadelphia, Pennsylvania;

WHEREAS, Class Counsel has analyzed and evaluated the merits of the claims made

against Defendant in the Litigation, and the impact of this Agreement on Plaintiffs and the Class

(as hereinafter defined); and

WHEREAS, based upon their analysis and their evaluation of a number of factors, and

recognizing the substantial risks of continued litigation, including the possibility that the


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Litigation, if not settled now, might not result in any recovery whatsoever for the Class, or might

result in a recovery that is less favorable to the Class, and that would not occur for several years,

Class Counsel is satisfied that the terms and conditions of this Agreement are fair, reasonable and

adequate and that this Agreement is in the best interests of the Class.

NOW, THEREFORE, in consideration of the mutual covenants and promises set forth in

this Agreement, as well as the good and valuable consideration provided for herein, the Parties and

Haier hereto agree to a full and complete settlement of the Litigation on the following terms and

conditions:

1. DEFINITIONS

The defined terms set forth herein shall have the meanings ascribed to them below.

1.1 Maddy. “Maddy” shall mean Donald Maddy, Kurt Frederick, Frederick R. Shellhammer,

Frank Michienzi, Lance Bergmann, Anthony Chelpaty, William Madden, Steven LeBlanc,

Jeffrey Scott Wilkerson, Jeffrey Navarette, Phillip Eric Benson, Bradley Palmer, Thomas

Kiss, , on behalf of himself and all others similarly situated v. General Electric Company,

Civil Action No. 1:14-cv-00490 (District of New Jersey).

1.2 Collective Action Complaint. “Collective Action Complaint” shall mean the complaints

filed by Plaintiffs in Alvarez v. General Electric Company, Civil Action No. 0-13-cv-62333

(Southern District of Florida) and Maddy, on behalf of himself and all others similarly

situated v. General Electric Company, Civil Action No. 1:14-cv-00490 (District of New

Jersey).

1.3 Class; Class Member. “Class” shall mean all persons who worked as a service technician

for General Electric Appliances or Haier U.S. Appliance Solutions, Inc. d.b.a. GE

Appliances, a Haier Company from January 23, 2011 through December 31, 2016. A

member of the Class is a “Class Member.”

1.4 Claims Administrator. “Claims Administrator” shall mean Angeion Group.

1.5 Class Counsel. “Class Counsel” shall mean Swartz Swidler, LLC; Robert D. Soloff

P.A.; and Alan Eichenbaum.

1.6 Court. “Court” shall mean the United States District Court for the District of New Jersey,

the Honorable Jerome Simandle and the Honorable Karen M. Williams presiding.

1.7 Covered Period. “Covered Period” shall mean January 23, 2011 through December 31,

2016.

1.8 Covered Position. “Covered Position” shall mean an individual who worked for General

Electric Appliances or Haier as a service technician.

1.9 Defendant. “Defendant” shall mean General Electric Company (“GE”), and all its

affiliates, parents, subsidiaries, divisions, and/or other related entities, and all of its and


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their incumbent and former officers, directors, owners, shareholders, investors, agents,

attorneys, fiduciaries, employees, successors, assigns and representatives.

1.10 Defendant’s Counsel. “Defendant’s Counsel” shall mean Littler Mendelson, P.C. For

purposes of providing any notices required under this Agreement, Defendant’s Counsel

shall refer to Nina K. Markey, Esquire, Littler Mendelson, P.C., 1601 Cherry Street, Suite

1400, Philadelphia, PA 19102.

1.11 Escrow Account. “Escrow Account” shall mean the interest-bearing account created and

controlled by the Claims Administrator.

1.12 Fairness Hearing. “Fairness Hearing” shall mean the hearing on the Motion for Judgment

and Final Approval.

1.13 Haier. “Haier” shall mean Haier U.S. Appliance Solutions, Inc. d.b.a. GE Appliances, a

Haier Company, and all its affiliates, parents, subsidiaries, divisions, and/or other related

entities, and all of its and their incumbent and former officers, directors, owners,

shareholders, investors, agents, attorneys, fiduciaries, employees, successors, assigns and

representatives.

1.14 Litigation. “Litigation” shall mean Maddy, on behalf of himself and all others similarly

situated v. General Electric Company, Civil Action No. 1:14-cv-00490 (District of New

Jersey).

1.15 Named Plaintiffs. “Named Plaintiffs” shall refer to all individuals named in the caption

of the Third Amended Complaint.

1.16 Net Settlement Payment. “Net Settlement Payment” shall mean the remainder of the

Settlement Payment after court-approved attorneys’ fees and costs as described in Section

3.2, Service Awards described in 3.3, and any taxes incurred directly or indirectly as a

result of investing the Settlement Payment.

1.17 Non-Opt-In Plaintiff. “Non-Opt-In Plaintiff” shall mean an individual who is a Class

Member, but who did not file a Consent Form to join the Litigation prior to [DATE – close

of 60 day notice period].

1.18 Opt-In Plaintiff. “Opt-In Plaintiff” shall mean an individual who filed a Consent Form

to join the Litigation prior to [DATE – close of 60 day notice period].

1.19 Order Granting Final Approval. “Order Granting Final Approval” shall mean the final

Order entered by the Court after the Fairness Hearing.

1.20 Order Granting Preliminary Approval. “Order Granting Preliminary Approval” shall

mean the Order entered by the Court preliminarily approving, inter alia, the terms and

conditions of this Agreement, the manner and timing of providing notice to the Class, and

the time period for opt-outs and objections.


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1.21 Parties. “Parties” shall mean Plaintiffs, the Class, and Defendant.

1.22 Plaintiffs. “Plaintiffs” shall mean each of the individuals who properly opted-in to the

collective action and/or who are members of the Class.

1.23 Qualified Class Member. “Qualified Class Member” shall mean a Class Member who

does not opt out.

1.24 Service Awards. “Service Awards” shall mean all amount(s) paid to Named Plaintiffs in

addition to amounts they will receive per the settlement allocation formula, for their

services in assisting in the litigation and settlement of this matter.

1.25 Settlement Payment. “Settlement Payment” shall mean the $9.5 million payment that

Defendant pays to settle the Litigation as described in Section 3.1.

2. APPROVAL AND CLASS NOTICE

2.1 Retention of Claims Administrator. Within 15 calendar days after the execution of this

Agreement, the Parties shall retain the Claims Administrator to administer the claims

process. The Claims Administrator shall be responsible for the claims notice and

administration process and distribution to Qualified Class Members as provided herein.

Defendant agrees to cooperate with the Claims Administrator and assist it in any way

possible in administering the Settlement. The Claims Administrator’s fees shall be paid

out of the Settlement Payment.

2.2 Preliminary Approval by the Court. On or before December 28, 2016, Plaintiffs will

submit to the Court a Motion for an Order Preliminarily Approving the Class Action

Settlement and the Proposed Notice of Settlement of the Class Action Lawsuit and Fairness

Hearing (the “Motion for Preliminary Approval”). If the Court denies the Motion for

Preliminary Approval, then the Litigation will resume unless the Parties jointly agree to

seek reconsideration of the ruling or seek Court approval of a renegotiated settlement. If a

mutually agreed class settlement is not approved, the case will proceed as if no settlement

had been attempted.

2.3 Class Notice

(A) Within 15 calendar days of the date of the Order Granting Preliminary Approval,

Defendant and Haier will provide the Claims Administrator and Class Counsel with

a list, in electronic form, of the names, last known addresses, and telephone

numbers of all Class Members.

(B) Within 15 calendar days after receiving the information described in Section

2.3(A), the Claims Administrator shall mail, via First Class United States mail,

postage prepaid, and email, the Notice of Proposed Settlement of Class Action

Lawsuit and Fairness Hearing in the draft form attached as Exhibit A, to all Class

Members using each individual’s last known address and email as recorded in

Defendant’s records. The Claims Administrator shall take all reasonable steps to


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obtain the correct address of any Class Members for whom the notice is returned

by the post office as undeliverable and shall attempt re-mailings as described below.

The Claims Administrator shall notify Class Counsel and Defendant’s Counsel of

any mail sent to Class Members that is returned as undeliverable after the first

mailing as well as any such mail returned as undeliverable after any subsequent

mailing(s) as set forth in Section 2.4.

(C) With the mailing from the Claims Administrator, those Class Members who did not

opt-in to the Litigation prior to the mailing and emailing by the Claims

Administrator shall also receive an opt-in form for the Class Member to opt-in to

the Litigation. The opt-in form also shall be made available online on the website

maintained by Class Counsel, www.getechlawsuit.com. The language on the

website will be approved by Defendant.

2.4 Class Member Opt-Out.

(A) Any Class Member may request exclusion from the Class by “opting out.”

Additionally, any Class Member who signed a consent form to opt-in to the

collective action filed pursuant to the FLSA may withdraw their consent to

participate in the collective action. Class Members who choose to do so must mail

a written, signed statement to the Claims Administrator that he or she is opting out

of the monetary portion of the Settlement (“Opt-Out Statement”). In the case of a

class member who has opted in to the collective action under the FLSA, they must

indicate their intent to withdraw their consent to participate in the collective action.

To be effective, such Opt-Out Statements must be sent via First Class United States

Mail and postmarked by a date certain to be specified on the Notice of Proposed

Class Action Lawsuit and Fairness Hearing, which will be 30 calendar days after

the Claims Administrator mails the Notice. The 30 day period will begin to run

from the first mailing, except for those Class Members whose first mailing was

returned to the Claims Administrator as undeliverable, in which case the 30 day

period for any such Class Member will begin to run from the date of the second

mailing (or, if there are more than 2 mailings, the final mailing) to such Class

Member. The Claims Administrator shall not attempt more than 3 mailings of the

Notice of Proposed Class Action Lawsuit and Fairness Hearing to any Class

Member. The end of the “Opt-Out Period” shall be 30 calendar days after the last

day on which the Claims Administrator makes a mailing. The Claims

Administrator shall, within 10 calendar days after the last day on which it makes

such a mailing, notify Class Counsel and Defendant’s Counsel in writing by email

and overnight delivery of the precise date of the end of the Opt-Out Period.

(B) The Claims Administrator shall stamp the postmark date on the original of each

Opt-Out Statement that it receives and shall serve copies of each Statement on Class

Counsel and Defendant’s Counsel not later than 3 calendar days after receipt

thereof. The Claims Administrator also shall, within 3 calendar days of the end of

the Opt-Out Period, file with the Clerk of Court, stamped copies of any Opt-Out

Statements. The Claims Administrator shall, within 24 hours of the end of the Opt-


http://www.getechlawsuit.com/

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Out Period, send a final list of all Opt-Out Statements to Class Counsel and

Defendant’s Counsel by both email and overnight delivery. The Claims

Administrator shall retain the stamped originals of all Opt-Out Statements and

originals of all envelopes accompanying Opt-Out Statements in its files until such

time as the Claims Administrator is relieved of its duties and responsibilities under

this Stipulation.

2.5 Objections to Settlement.

(A) Class Members who wish to present objections to the proposed settlement at the

Fairness Hearing must first do so in writing. To be considered, such statement must

be sent to the Claims Administrator via First-Class United States mail, postage

prepaid, and be received by the Claims Administrator by a date certain, to be

specified on the Notice of Proposed Class Action Lawsuit and Fairness Hearing,

which shall be for each Class Member 30 days after the Claims Administrator mails

such Notice to such Class Member. The Claims Administrator shall stamp the date

received on the original and send copies of each objection to Class Counsel and

Defendant’s Counsel by email and overnight delivery not later than 3 calendar days

after receipt thereof. The Claims Administrator shall also file the date-stamped

originals of any and all objections with the Clerk of Court within 3 calendar days

after the end of the Opt-Out Period.

(B) An objector also has the right to appear at the Fairness Hearing either in person or

through counsel hired by the objector. An objector who wishes to appear at the

Fairness Hearing must state his or her intention to do so at the time he/she submits

his/her written objections. An objector may withdraw his/her objections at any

time. No Class Member may appear at the Fairness Hearing unless he or she has

filed a timely objection that complies with the procedures provided in Section

2.5(A). Any Class Member who has submitted an Opt-Out Form may not submit

objections to the settlement.

(C) The Parties may file with the Court written responses to any filed objections not

later than 14 calendar days before the Fairness Hearing.

2.6 Entry of Order. At the Fairness Hearing, the Parties will request that the Court, among

other things, (a) enter an Order in accordance with this Agreement; (b) approve the

settlement and Agreement as final, fair, reasonable, adequate, and binding on all Class

Members who have not timely opted out pursuant to Section 2.4(A); and (c) dismissing the

Litigation with prejudice.

2.7 Effect of Failure to Grant Final Approval. In the event the Court fails to enter an Order

in accordance with this Agreement, or such Order does not become Final as defined herein,

the Parties shall proceed as follows: The Litigation will resume unless the Parties jointly

agree to: (1) seek reconsideration or appellate review of the decision denying entry of an

Order approving this Agreement, or (2) attempt to renegotiate the settlement and seek

Court approval of the renegotiated settlement. In the event any reconsideration and/or

appellate review is denied, or a mutually agreed-upon settlement is not approved, the Court


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will provide notice to Class Members that the Agreement did not receive final approval

and that, as a result, no payments will be made to Class Members under the Agreement.

Such notice shall be mailed by the Claims Administrator via First Class United States Mail,

postage prepaid, and emailed to the addresses used by the Claims Administrator in mailing

the Notice of Proposed Settlement of Class Action Lawsuit and Fairness Hearing.

2.9 Effect of Certain Percentage of the Class Members Opting Out of the Settlement. If

ten percent (10%) or more of the members of the Class exercise their rights to opt out and

be excluded from the Class and the Agreement, Defendant shall have the right,

notwithstanding any other provisions of the Agreement, to withdraw from the Agreement

and settlement terms, whereupon the Agreement will become null and void for all purposes

and may not be used or introduced in further litigation or any other proceeding of any kind.

2.10 Termination of Agreement. This Agreement shall automatically terminate, and the final

settlement certification shall automatically be cancelled if this Agreement is terminated

pursuant to Paragraph 2.9, in which event this Agreement shall not be offered, received, or

construed as an admission of any kind as to liability, damages, whether any class is

certifiable, or any other matter.

3. SETTLEMENT TERMS

3.1 Settlement Payment.

(A) Defendant agrees to pay $9.5 million, on behalf of itself and Haier, which shall

resolve and satisfy any claim for attorneys’ fees and costs approved by the Court,

any and all amounts to be paid to Class Members, any fees associated with

facilitating the Settlement Payment (including Claims Administrator fees and FICA

taxes), and employer payroll taxes. Defendant will not be required to pay more

than $9.5 million under the Agreement.

(B) Plaintiffs shall have the right, but not the obligation, to rescind this Agreement in

the event that Defendant or Haier enters into a bankruptcy proceeding at any time

up to the time of the distribution of Settlement Payment and bankruptcy preference

period (the “Rescission Period”).

(C) In the event that Defendant or Haier files for bankruptcy protection prior to

Rescission Period, Plaintiffs shall have the right, but not the obligation, to seek

administrative priority status for unpaid wages in the bankruptcy proceeding in

addition to any other rights that are conferred by the terms of this Agreement.

Defendant takes no position on the propriety of such a position, and reserves the

right to take the position it determines is appropriate in the event such an application

is made. In no event will Defendant or the bankruptcy trustee be required to pay

more than $9.5 million to Plaintiffs and Plaintiffs’ Counsel to settle this action.

(D) Defendant shall deposit $9.5 million into the Escrow Account within 20 days after

the Order Granting Final Approval. Any interest accrued from the Escrow Account,


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net of taxes and any fees associated with investing such amount, shall immediately

be added to and become part of the Settlement Payment.

3.2 Settlement Amounts Payable as Attorneys’ Fees and Costs.

(A) At the Fairness Hearing, Class Counsel shall petition the Court for 33 1/3% of the

Settlement Payment ($3,166,666) _ of the Settlement Payment as an award of

attorneys’ fees and shall be permitted to petition separately for reimbursement of

reasonable litigation costs and expenses, which include the Claims Administrator’s

fees as described in Section 2.1. Defendant shall have no additional liability for

fees and costs, including without limitation, administrative costs, expert fees and

costs, or attorneys’ fees and costs.

(B) Assuming that the amount in Section 3.2(A) is approved by the Court in the Order

Granting Final Approval, the Claims Administrator shall, within twenty (20) days

of payment by Defendant under Section 3.1(D), pay the amount in Section 3.2(A)

to Class Counsel.

3.3 Settlement Amounts Payable as Service Awards.

(A) At the Fairness Hearing, Class Counsel shall petition the Court for $100,000 of the

Settlement Payment as Service Awards. These Service Awards are requested

because Named Plaintiffs have provided service to Plaintiffs by helping Class

Counsel formulate claims and by assisting in bringing the Litigation forward. Each

Named Plaintiff will petition the Court for a $5,000 Service Award.

(B) Assuming that the amount in Section 3.3(A) is approved by the Court in the Order

Granting Final Approval, the Claims Administrator shall, within twenty (20) days

of payment by Defendant under Section 3.1(D), pay the amount in Section 3.3(A)

to Named Plaintiffs.

3.4 Distribution to Class Members.

(A) A Qualified Class Member’s proportionate share of the Settlement Payment less

any amounts approved by the Court under Sections 3.2 and 3.3 (“Net Settlement

Payment”) shall be determined based on the following Allocation Formula below.

The Net Settlement Payment shall be allocated as follows:

1. All Qualified Class Members who are Non-Opt-In Plaintiffs shall receive a flat

$750 payment and shall also be awarded 1 point for each workweek worked

during the class period.

2. All Qualified Class Members who are Opt-in Plaintiffs shall receive a flat

$1,500 payment (representing the $750 awarded to Non-Opt-In Plaintiffs in

addition to $750 in liquidated damages available pursuant to the FLSA) and


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shall also be awarded 2 points for each workweek worked during the class

period.

3. A workweek is considered “worked” if the Qualified Class Member worked at

least one shift during the workweek.

4. After subtracting from the Net Settlement Payment all amounts paid pursuant

to subsections 1 and 2, the dollar value of each point shall be computed by

dividing the remainder of the Net Settlement Payment by the number of points

awarded under subsections 1 and 2.

5. Each Qualified Class Member shall receive a total settlement distribution of the

total of the flat payment in addition to the dollar value of the number of points

awarded under this allocation. Non-Opt-In Plaintiffs’ payments shall be

reported as taxable wages and shall be issued a W2 for the entire payment. Opt-

in Plaintiffs’ payments shall be 50% taxable wages which will be reported on a

W2, and 50% liquidated damages, which will be reported as non-wage income

on a 1099.

By way of example only, if the Net Settlement Payment was equal to $50,000,

and there were 10 Qualified Class Members, 5 Non-Opt-In Plaintiffs and 5 Opt-

In Plaintiffs, each of whom worked for 10 workweeks, the distribution would be

as follows:

First, the 5 Opt-in Plaintiffs would be awarded $1,500 each and the 5 Non-

Opt-In Plaintiffs would be awarded $750 each, totaling $11,250. The

remainder of the Net Settlement Payment would thus be $38,750 ($50,000 -

$11,250).

Second, the 5 Opt-In Plaintiffs would be awarded 2 points each for each of

the 10 workweeks worked (20 points each, totaling 100 points) and the 5

Non-Opt-In Plaintiffs would be awarded 1 point each for each of the 10

workweeks worked (10 points each, totaling 50 points).

Third, the dollar value of each point would be calculated by dividing the

remainder of the Net Settlement Payment ($38,750) by the total number of

points awarded to all Qualified Class Members (150) to arrive at: $258.33.

Thus, the 5 Opt-In Plaintiffs would receive $6,666.66 ($1,500 + $258.33 x

20), half of which would be wages and half liquidated damages. The 5 Non-

Opt-In Plaintiffs would receive $3,333.33 ($750 + $258.33 x 10), all of

which would be reported as wages.

This example is solely utilized to explain the formula; it is not intended to

estimate what the actual point valuation will be.

(B) The Claims Administrator shall mail to all Qualified Class Members their payment


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of their proportionate share within 20 days of payment by Defendant under Section

3.1(D). The Claims Administrator shall use reasonable efforts to make an

additional mailing to Qualified Class Members whose checks are returned because

of incorrect addresses. If any checks are returned because of incorrect addresses,

Defendant and Haier will provide, if available, the social security numbers of those

Class Members whose checks were returned. The Claims Administrator’s

reasonable efforts shall include using social security numbers to obtain better

address information and attempting to call such Qualified Class Members. Any

additional efforts undertaken shall be in the sole discretion of the Claims

Administrator, except that the Claims Administrator shall not undertake more than

two (2) mailings.

(C) If payments to Qualified Class Members are not cashed within one hundred twenty

(120) days of the date the check was mailed, the amount of any unclaimed

settlement checks will be null and void and the money will remain in the Escrow

Account. For situations involving incorrect addresses under Section 3.4(B), the

120-day period runs from the last mailing(s) of checks. The checks shall be

distributed with a cover letter stating words to the effect that “the check must be

cashed within one hundred twenty (120) days or it will become void.” Any funds

remaining in the Escrow Account after 120 days from the last mailing of checks

will remain in the Escrow Account for ninety (90) days. Within the 90-day period,

any Class Member may request a new check within the first sixty (60) days.

Following the expiration of the 90-day period, any funds remaining in the Escrow

Account will be sent to the Wounded Warrior Project.

3.5 Taxability of Settlement Payments.

(A) For tax purposes, 50% of payments to Opt-In Plaintiffs shall be treated as back

wages and 50% of such payments shall be treated as liquidated damages. With

regard to the Non-Opt-In Plaintiffs, 100% of payments shall be treated as back

wages.

(B) Payments treated as back wages pursuant to Section 3.4(A) shall be made net of all

applicable employment taxes, including, without limitation, federal, state and local

income tax withholding and the employee share of the FICA tax, and shall be

reported to the Internal Revenue Service (“IRS”) and the payee under the payee’s

name and social security number on an IRS Form W-2. Payments treated as

liquidated damages and interest pursuant to Section 3.5(A) shall be made without

withholding and shall be reported to the IRS and the payee, to the extent required

by law, under the payee’s name and social security number on an IRS Form 1099.

Payments of attorneys’ fees and costs pursuant to Section 3.2 shall be made without

withholding and reported to the IRS and the payee under the payee’s name and

taxpayer identification number, which each such payee shall provide for this

purpose, on an IRS Form 1099.


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(C) The state and federal payroll taxes imposed by applicable law, including the

employer’s share of the FICA tax and any federal and state unemployment tax due,

with respect to the amounts treated as wages pursuant to Section 3.5(A) shall be

paid out of the Settlement Payment.

(D) Plaintiffs, on behalf of the Class and each individual member of the Class,

acknowledge and agree that each individual Class Member will be solely

responsible for all taxes, interest and penalties due with respect to any payment

received pursuant to this Agreement (other than taxes specified in Section 3.5(C))

and will indemnify, defend and hold Defendant, Haier, and the Claims

Administrator harmless from and against any and all taxes, interest, penalties,

attorneys’ fees and other costs imposed on Defendant, Haier, or the Claims

Administrator as a result of a Class Member’s failure to timely pay such taxes.

Plaintiffs, on behalf of the Class and each individual member of the Class,

acknowledge and agree that they have not relied upon any advice from Defendant

or Haier as to the taxability of the payments received pursuant to this Agreement.

4. RELEASE

4.1 Release of Claims.

(A) By operation of the entry of the Judgment and Final Approval, and except as to

such rights or claims as may be created by this Agreement, Plaintiffs and each

individual Qualified Class Member forever and fully release Defendant and Haier

from all state wage and hour laws for failure to pay for hours worked and overtime

wages, as well as attorneys’ fees and costs related to such claims, through

December 31, 2016.

(B) In addition to the Released Claims described in Section 4.1(A), all Qualified Class

Members forever and fully release Defendant and Haier from all Fair Labor

Standards Act claims asserted in the Class Action Complaints through December

31, 2016 (“FLSA Released Claims”). The FLSA Released Claims include all

FLSA claims for unpaid overtime wages, liquidated damages, and attorneys’ fees

and costs related to such claims.

(C)

(D

4.2 Release of Fees and Costs for Settled Matters. Class Counsel and Plaintiffs, on behalf

of the Class and each individual Qualified Class Member, hereby irrevocably and

unconditionally release, acquit, and forever discharge any claim that they may have against

Defendant or Haier for attorneys’ fees or costs associated with Class Counsel’s

representation of Plaintiffs and the Class. Class Counsel further understand and agree that

any fee payments approved by the Court will be the full, final and complete payment of all

attorneys’ fees and costs associated with Class Counsel’s representation of these

individuals.


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4.3 No Assignment. Class Counsel and Plaintiffs, on behalf of the Class and each individual

Class Member, represent and warrant that they have not assigned or transferred, or

purported to assign or transfer, to any person or entity, any claim or any portion thereof or

interest therein, including, but not limited to, any interest in the Litigation, or any related

action.

4.4 Non-Admission of Liability. By entering into this Agreement, Defendant and Haier in no

way admit any violation of law or any liability whatsoever to Plaintiffs and/or the Class,

individually or collectively, all such liability being expressly denied. Likewise, by entering

into this Agreement, Defendant and Haier in no way admit to the suitability of this case for

class or collective action litigation other than for purposes of settlement. Rather, Defendant

and Haier enter into this Agreement to avoid further protracted litigation and to resolve and

settle all disputes with Plaintiffs and the Class. Settlement of the Litigation, negotiation

and execution of this Agreement, and all acts performed or documents executed pursuant

to or in furtherance of this Agreement or the settlement: (a) are not, shall not be deemed to

be, and may not be used as an admission or evidence of any wrongdoing or liability on the

part of Defendant or Haier or of the truth of any of the factual allegations in any and all

Complaints filed in the Lawsuit; (b) are not, shall not be deemed to be, and may not be

used as an admission or evidence of fault or omission on the part of Defendant or Haier in

any civil, criminal, administrative or arbitral proceeding; and (c) are not, shall not be

deemed to be, and may not be used as an admission or evidence of the appropriateness of

these or similar claims for class certification or administration or collective action

treatment other than for purposes of administering this Agreement. The Parties understand

and agree that this Agreement is a settlement document and shall be inadmissible in

evidence in any proceeding, except an action or proceeding to approve, interpret, or enforce

the terms of the Agreement.

5. MISCELLANEOUS

5.1 Cooperation Between the Parties; Further Acts. The Parties shall cooperate fully with

each other and shall use their best efforts to obtain the Court’s approval of this Agreement

and all of its terms. Each of the Parties, upon the request of any other party, agrees to

perform such further acts and to execute and deliver such other documents as are

reasonably necessary to carry out the provisions of this Agreement.

5.2 Entire Agreement. This Agreement constitutes the entire agreement between the Parties

with regard to the subject matter contained herein, and all prior and contemporaneous

negotiations and understandings between the Parties shall be deemed merged into this

Agreement.

5.3 Binding Effect. This Agreement shall be binding upon the Parties and, with respect to

Plaintiffs and the Class Members, their spouses, children, representatives, heirs,

administrators, executors, beneficiaries, conservators, attorneys and assigns.

5.4 Arm’s Length Transaction; Materiality of Terms. The Parties have negotiated all the

terms and conditions of this Agreement at arm’s length. All terms and conditions of this


14

Agreement in the exact form set forth in this Agreement are material to this Agreement and

have been relied upon by the Parties in entering into this Agreement.

5.5 Captions. The captions or headings of the sections and paragraphs of this Agreement have

been inserted for convenience of reference only and shall have no effect upon the

construction or interpretation of any part of this Agreement.

5.6 Construction. The determination of the terms and conditions of this Agreement has been

by mutual agreement of the Parties. Each party participated jointly in the drafting of this

Agreement, and therefore the terms and conditions of this Agreement are not intended to

be, and shall not be, construed against any party by virtue of draftsmanship.

5.7 Governing Law. This Agreement shall in all respects be interpreted, enforced and

governed by and under the laws of the State of New Jersey, without regard to choice of law

principles, except to the extent that the law of the United States governs any matter set

forth herein, in which case such federal law shall govern.

5.8 Continuing Jurisdiction. The Court shall retain jurisdiction over the interpretation and

implementation of this Agreement as well as any and all matters arising out of, or related

to, the interpretation or implementation of this Agreement and of the settlement

contemplated thereby. The Court shall not have jurisdiction to modify the terms of the

Agreement or to increase Defendant’s payment obligations hereunder. That Parties

explicitly agree that no disputes relating to the interpretation or enforcement of this

Agreement are subject to any arbitration agreement(s) between the Parties.

5.9 Waivers, etc. to be in Writing. No waiver, modification or amendment of the terms of

this Agreement, whether purportedly made before or after the Court’s approval of this

Agreement, shall be valid or binding unless in writing, signed by or on behalf of all Parties

and then only to the extent set forth in such written waiver, modification or amendment,

subject to any required Court approval. Any failure by any party to insist upon the strict

performance by the other party of any of the provisions of this Agreement shall not be

deemed a waiver of future performance of the same provisions or of any of the other

provisions of this Agreement, and such party, notwithstanding such failure, shall have the

right thereafter to insist upon the specific performance of any and all of the provisions of

this Agreement.

5.10 When Agreement Becomes Effective; Counterparts. This Agreement shall become

effective upon its execution. The Parties may execute this Agreement in counterparts, and

execution in counterparts shall have the same force and effect as if Plaintiffs and Defendant

had signed the same instrument.

5.11 Facsimile Signatures. Any party may execute this Agreement by causing its counsel to

sign on the designated signature block below and transmitting that signature page via

facsimile to counsel for the other party. Any signature made and transmitted by facsimile

for the purpose of executing this Agreement shall be deemed an original signature for

purposes of this Agreement and shall be binding upon the party whose counsel transmits

the signature page by facsimile.


15

5.12 Authorization of Signature. Named Plaintiffs and Class Counsel are duly authorized to

sign this Agreement on behalf of the Qualified Members of the Class.

5.13 Confidentiality. All Parties agree that they will not publicize the terms of this Agreement,

the negotiations with respect thereto, or other matters relating to the instant actions, either

directly or indirectly, that is, through agents, attorneys, or accountants, or any other person

or entity, either in specific or as to general content, except that Plaintiffs’ Counsel shall be

permitted to maintain on its website information regarding the case and settlement, where

such language will be agreed upon by the Parties. Notwithstanding the foregoing, Plaintiffs

may disclose information concerning payments made to them to members of their

immediate families, and Class Counsel may disclose information concerning this

Agreement to its employees and agents to the extent necessary to effectuate the terms of

the Agreement. Plaintiffs and Class Counsel may also disclose information concerning

this Agreement to their respective counsel and tax advisors who have first agreed to keep

said information confidential and to not disclose it to others. The foregoing shall not

prohibit or restrict such disclosure as is required by law or as may be necessary for the

prosecution of claims relating to the performance or enforcement of this Agreement, or

prohibit or restrict Plaintiffs and Class Counsel from responding to any inquiry about this

settlement or its underlying facts and circumstances from any governmental agency.

5.14 Data Security. Class Counsel and Claims Administrator shall keep confidential and

comply with all applicable data security laws and regulations regarding personal

information of class members, including, but not limited to, social security numbers.

5.15 Press Releases. The Parties and/or their counsel shall refrain from any public comment

about this settlement. Plaintiffs and Class Counsel will not issue a press release or respond

to any media inquiries regarding the settlement of the claims related to this matter. If the

parties and/or their counsel are contacted by the media, they will merely inform them that

the case has been resolved to the satisfaction of all parties. Notwithstanding, Plaintiffs’

Counsel shall be permitted to maintain on its website information regarding the case and

settlement, where such language will be agreed upon by the Parties.

DATED: ______ General Electric Company

By: _________________________________

Its: _________________________________

DATED: ______ Haier U.S. Appliance Solutions, Inc. d.b.a. GE

Appliances, a Haier Company

By: _________________________________

Its: _________________________________


16

DATED: ______ SWARTZ SWIDLER LLC as Class Counsel

By: __________________________________

Justin L. Swidler

DATED: ______ Robert D. Soloff PA as Class Counsel

By: __________________________________

Robert Soloff

DATED: ______ Alan Eichenbaum as Class Counsel

By: __________________________________

Alan Eichenbaum


EXHIBIT A


i

THIS IS NOT AN ADVERTISEMENT.

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

As a current or former service technician for GE Appliances you are

eligible to get a payment from a class action settlement.

A federal court authorized this notice. This is not a solicitation from a lawyer.

The settlement will provide $9,500,000 to resolve all claims that GE Appliances failed to pay its service technicians overtime for all hours worked under federal and state law during the Class Period of January 23, 2011 through December 31, 2016.

The court-appointed lawyers will ask the Court for up to 33 1/3% of the maximum $9,500,000 settlement amount as fees for investigating the case, litigating the case, and negotiating the settlement.

The two sides disagree as to who would win, and how much could be won, if the case went to trial.

Your legal rights will be affected whether you act or don’t act. Read this notice carefully.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT:

Do Nothing You previously submitted a Consent Form to join the lawsuit. No action is required of you to remain in the case. If the Court grants final approval of the settlement, you will get a payment.

Exclude Yourself Get no payment. This is the only option that allows you to ever be part of any other lawsuit against GE Appliances (or Haier) for the legal claims in this case.

Object Write to the Court about what you don’t like in the settlement.

Go to a Hearing Ask to speak in Court about the fairness of the settlement.

These rights and options – and the deadlines to exercise them – are explained in this notice.

The Court in charge of this case still has to decide whether to approve the settlement. Payments will be made if the Court approves the settlement and after any appeals are resolved. Please be patient.

QUESTIONS? CALL CLASS COUNSEL OR VISIT WWW.SWARTZ-LEGAL.COM


http://www.swartz-legal.com/

ii


TABLE OF CONTENTS – WHAT IS IN THIS NOTICE PACKAGE

Why did I get this Notice Package? ............................................................................................................. 1

What is this lawsuit about and why did it settle? .................................................................................. 1

What does the settlement provide and how much will I be paid? ................................................... 2

How can I receive my payment?................................................................................................................... 3

What am I giving up as a class member? ................................................................................................... 3

How do I exclude myself (opt-out) from this settlement? .................................................................. 3

Final Approval of settlement at Fairness Hearing ................................................................................. 4

How do I object to the settlement? .............................................................................................................. 4

Are there more details about the Settlement? Questions? ................................................................. 4

Do I have an attorney in this case? .............................................................................................................. 5




DONALD MADDY, et al.

Plaintiffs,

v.

GENERAL ELECTRIC CO.,

Defendant.

Case No.: 14-00490

NOTICE OF CLASS AND COLLECTIVE ACTION SETTLEMENT

A Federal Court authorized this notice. This is not a solicitation from a lawyer.

PLEASE READ THIS NOTICE CAREFULLY.

1. Why did I get this notice package?

You are receiving this notice because records indicate that you (1) worked as a service technician for General Electric Appliances

(“GE”) or Haier U.S. Appliance Solutions, Inc. d.b.a. GE Appliances, a Haier Company (“Haier”) at some point between January

23, 2011 and December 31, 2016, and (2) previously submitted a Consent Form to join the Lawsuit. The above-referenced lawsuit,

Donald Maddy, et al. v. General Electric Co., 14-00490 (the “Lawsuit”), is pending in the United States District Court for the

District of New Jersey in Camden, New Jersey (the “Federal Court”). You are receiving this Notice because the Federal Court has

ordered that it be mailed to you.

The Federal Court has preliminarily approved a settlement (“Settlement”) of the Lawsuit. The Settlement provides for current and

former service technicians of GE Appliances (“GE”) to receive a portion of a Nine Million, Five-Hundred Thousand ($9,500,000)

fund (“Settlement Fund”). The Federal Court will conduct a hearing (“Fairness Hearing”) to determine if the Settlement should be

approved.

This Notice describes the Settlement and describes how you can obtain a money recovery from the Settlement. This Notice also

describes how you can exclude yourself from, or object to, the Settlement.

2. What is this lawsuit about and why did it settle?

The Lawsuit alleges that GE violated the federal Fair Labor Standards Act (“FLSA”) and various state laws by failing to pay

service technicians for all hours worked. Specifically, the Lawsuit contends that GE failed to pay service technicians for: (1) pre-

shift computer work (logging onto GE’s computer system, etc. and drive time to the first customer of the day); (2) working

through lunch; (3) post-shift computer work; and (4) other unpaid work - receiving, unpacking and organizing parts and servicing

of the GE supplied van. GE disputes the allegations in the Lawsuit, and asserts that it paid service technicians for all legally

compensable time.

Even though GE has defenses to the claims alleged, it has decided to settle the Lawsuit. The Settlement enables GE and the service

technicians to avoid the uncertainty, risks, and time involved in continued litigation.


The employees’ attorneys, who are referred to as “Class Counsel,” believe that the Settlement benefits the class members. The

Settlement provides a benefit to a large number of present and former service technicians, and enables the class members to avoid

the risk that GE could win the lawsuit, in which case class members would recover nothing. The Settlement also enables class

members to recover money without the delay of protracted litigation.

The parties’ attorneys negotiated the Settlement after nearly three years of litigation that has enabled each side to understand the

risks of proceeding with adversarial litigation. Substantial documents were produced by both sides to enable the Parties to evaluate

settlement. GE produced GPS records, pay records, time records, and records relating to TPTP for all class members. Both sides

have taken a large number of depositions, and significant motion practice has taken place, including disputes relating to discovery.

Class Counsel believe that the Settlement is fair and serves the best interests of the class members. The Federal Judge overseeing

the Lawsuit has “preliminarily approved” the Settlement as fair. The Federal Judge will make her final decision regarding the

fairness of the Settlement at the Fairness Hearing described in Section 7 below.

3. What does the Settlement provide and how much will I be paid?

Under the Settlement, GE has agreed to pay a Settlement amount of Nine Million, Five Hundred Thousand ($9,500,000) to resolve

all claims asserted in the Lawsuit. Your “Individual Settlement Payment” will be calculated based upon the settlement formula

stated in the settlement agreement on file with the Court.

After litigation costs, attorney’s fees, and service payments are subtracted from the Settlement Fund, the remaining fund (the “Net

Fund”) will be distributed to all Class Members who do not opt out of the Settlement. Class Members who do not opt out will

receive a payment from the Settlement Fund. Class Members who submit a Consent Form will receive a payment as an “Opt-In

Plaintiff,” as described below. Class Members do not submit a Consent Form will receive a payment as a “Non-Opt-In Class

Member.” While Class Members will receive compensation regardless of whether they submit a Consent Form, Opt-In Plaintiffs

will be eligible to receive more compensation. Because you have already submitted a Consent Form, you will receive payment

as an Opt-In Plaintiff.

All class members who do not opt-out of the lawsuit will receive as part of the settlement: (1) a flat amount of $750, (2) plus an

additional pro-rated amount for each workweek employed by GE during the Class Period. Individuals who complete a Consent

Form will receive an additional amount in liquidated damages which will effectively double their recovery. Because you have

already submitted a Consent Form, you will receive such additional damages in your Settlement Payment.

Non-Opt-In Class Members will receive their entire settlement check in the form of a payroll check, less all ordinary payroll taxes

and withholdings. This payment will be reported on an IRS Form W2 issued after the end of the tax year.

Opt-In Plaintiffs will receive half of their settlement amount (the amount which is for liquidated damages) in the form of a non-

payroll check with no deduction for payroll taxes or withholdings. This payment will be reported on an IRS Form 1099 issued after

the end of the tax year. The other half of their settlement payment will be in the form of a payroll check, less all ordinary payroll

taxes and withholdings. This payment will be reported on an IRS Form W2 issued after the end of the tax year.

At the Fairness Hearing, Class Counsel will apply to receive up to one-third of the Total Settlement (equivalent to $3,166,666) for

the services they provided. Class Counsel will also seek to recover its out-of-pocket expenses incurred in the Lawsuit, not to exceed

$300,000. This amount will be requested based on the substantial work Class Counsel performed in the Lawsuit and the risk Class

Counsel took in bringing the Lawsuit. Class Counsel has conducted extensive investigation in prosecuting the Lawsuit, including,

but not limited to, interviewing hundreds of employees, taking and defending more than 30 depositions, reviewing thousands of

documents related to the Lawsuit, including hundreds of thousands of electronic records, propounding discovery, answering


discovery for a substantial number of Class Members, reviewing and analyzing substantial amounts of payroll and time data, drafting

and filing of motions, and hiring and consulting with experts.

At the Fairness Hearing, the Named Plaintiffs in the action will request a service fee in the amount of $5,000, totaling []. The Service

Payments are requested because these individuals provided service to the Settlement Class by helping Class Counsel formulate

claims and by assisting in bringing the Lawsuit forward. The Named Plaintiffs participated in discovery and were subject to

depositions. The Service Payments are separate from, and in addition to, the portion of the Settlement Fund that they may receive

as a member of the Settlement Class.

4. How can I receive my payment?

You do not need to take any further action to receive a payment. However, if you want to receive liquidated damages in addition to

your wages, you must file a Consent Form. If you move prior to receiving a check, you should contact the Claims Administrator at

(xxx) xxx-xxxx to notify the Claims Administrator of your new address. You may also provide change of address information via

facsimile to (xxx) xxx-xxxx or by e-mail to [email protected]

The parties anticipate that the settlement checks will be issued in the____ Quarter of 2017.

5. What am I giving up as a Class member?

If the Federal Court grants final approval of the Settlement, the Lawsuit will be dismissed with prejudice, and you will release any

and all Wage and Hour claims, including FLSA claims and state law Wage and Hour claims, if any, relating back to the beginning

of time through the end of the December 31, 2016, including but not limited to off-the-clock claims, orientation claims, training

claims, travel-time claims, mileage pay claims, meal and rest break claims, and any and all other Wage and Hour claims that were

or could have been asserted in this matter, against GE and Haier, and including, without limitations, all state and federal claims for

wages, penalties, interest, and liquidated damages, as well as all claims for attorneys’ fees, costs, and expenses.

6. How do I exclude myself (opt-out) from this Settlement?

You will release your legal claims, as described in Section 5 above, unless you affirmatively exclude yourself from the Settlement.

If you exclude yourself, you will not release or waive any legal claims, and you will preserve your right to sue GE and Haier on

your own for alleged violations of the Released Claims. If you exclude yourself from the Settlement, you will not receive money

in this Settlement.

To exclude yourself from the Settlement, you must mail a written request to opt-out of the settlement to [TPA ADDRESS], or you

may send your request via facsimile to (xxx) xxx-xxxx or by e-mail to [email protected]. Your request for exclusion must be

postmarked or submitted on or before [60 days from mailing date] to be valid. To be valid, the Request for Exclusion from Class

Settlement form must be signed and dated by you, and must include the name of the case. You should also provide your phone

number on the request in case the Claims Administrator needs to contact you regarding same.

7. Final Approval of Settlement at Fairness Hearing

The Federal Judge presiding over this Lawsuit will conduct a Final Fairness Hearing at [TIME] on [DATE], 2017 in Courtroom []

of the United States Courthouse, [ADDRESS]. At the Fairness Hearing, the Judge will decide whether the Settlement is sufficiently

fair and reasonable to warrant final court approval. You are not required or expected to attend the Fairness Hearing. However, you

are welcome to attend at your own expense. If you plan on attending, please contact Class Counsel so that the Court can be notified

to ensure that there is enough space and time allotted for you.


8. How do I object to the Settlement?

If you believe the proposed Settlement is unfair or inadequate in any respect, you may object to the Settlement, either personally or

through an attorney at your own expense, by filing a written objection with the Court and mailing a copy of your written objection

to [TPA ADDRESS] or you may send your objection via facsimile to (xxx) xxx-xxxx or by e-mail to [email protected]. In

order to object to the Settlement, you must remain a class member and may not opt-out from the Settlement.

All objection(s) to any part of the Settlement must be signed by you or your counsel and set forth your address, telephone number,

and the name of the Action: Donald Maddy v. General Electric Co. (Civ. No. 14-490). All objections must be postmarked or

submitted no later than [**60 Days from Mailing**]. If you submit a timely objection, you may appear, either personally or

through an attorney, at your own expense, at the Final Approval Hearing discussed above. Your objection should clearly explain

why you object to the proposed Settlement and must state whether you or someone on your behalf intends to appear at the Final

Approval Hearing. If you object to the Settlement, Class Counsel will not represent you in your objection.

Any class member who does not object in the manner described above shall be deemed to have waived any objections, and shall

forever be foreclosed from objecting to the fairness and adequacy of the proposed Settlement, the payment of attorneys’ fees, service

payments, and litigation costs, the claims process, and any and all other aspects of the Settlement.

Likewise, regardless of whether you file an objection, you will be deemed to have released all of the Released Claims against GE

and Haier and subject to the Release contained in the Settlement Agreement as explained in Section 5 above unless you properly

request exclusion from the Settlement in accordance with the Section 6 above. Please note that if you exclude yourself from the

Settlement by following the procedures set forth in Section 6 above, you will not have standing to object to the Settlement, and the

Court will not consider your objection at the Final Fairness Hearing.

10. Are there more details about the Settlement? Questions?

Yes. This Notice summarizes the most important aspects of the Settlement. You can get a copy of the written Settlement Agreement

and obtain further information regarding the Lawsuit and the Settlement by calling Class Counsel. Their contact information is

listed below. You will not be charged any money for communicating with Class Counsel.

11. Do I have an attorney in this case?

Swartz Swidler, LLC, Robert D. Soloff, P.A., and Alan Eichenbaum, P.A. represents the interests of class members in the Lawsuit.

Class Counsel will represent you in the Lawsuit and can answer questions for you regarding the Lawsuit and the Settlement. Class

Counsel’s contact information is below. You will not be charged any money for Class Counsel’s representation of you; rather Class

Counsel will be paid out of the class-wide Settlement Fund. You also have the right to get your own attorney at your own expense

in which case Class Counsel will not represent you in the Lawsuit or Settlement. If you object to the Settlement, Class Counsel will

not represent you in your objections.

Justin L. Swidler, Esq.

Richard S. Swartz, Esq.

Swartz Swidler, LLC

1101 Kings Hwy N., Ste. 402

Cherry Hill, NJ 08034

Website: http://www.swartz-legal.com

Phone: (856) 685-7420

Fax: (856) 685-7417

Toll Free: (877) 529-9501

E-mail: [email protected]


mailto:[email protected]



Robert D. Soloff, Esq.

Robert D. Soloff, P.A.

7805 SW 6th Court

Plantation, FL 33324

Alan Eichenbaum, Esq.

Law Offices of Alan Eichenbaum

7890 Peters Road, Suite G-102


Phone: (954) 472-0002

Fax: (954) 472-0052

E-mail: Robert@ solofflaw.com

Phone: (954) 916-1202

Fax: (954) 916-1232




i


UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

As a current or former service technician for GE Appliances you are

eligible to get a payment from a class action settlement.

A federal court authorized this notice. This is not a solicitation from a lawyer.

The settlement will provide $9,500,000 to resolve all claims that GE Appliances failed to pay its service technicians overtime for all hours worked under federal and state law during the Class Period of January 23, 2011 through December 31, 2016.

The court-appointed lawyers will ask the Court for up to 33 1/3% of the maximum $9,500,000 settlement amount as fees for investigating the case, litigating the case, and negotiating the settlement.

The two sides disagree as to who would win, and how much could be won, if the case went to trial.

Your legal rights will be affected whether you act or don’t act. Read this notice carefully.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT:

Do Nothing No action is required of you to remain in the case. If the Court grants finals approval of the settlement, you will get a payment. However, you will be entitled to additional money if you submit a Consent Form

Submit a Consent

Form

By submitting an FLSA Consent Form, either by mailing the Form enclosed with this Notice or by submitting a form online at http://www.getechlawsuit.com, you will be eligible to receive additional money in your settlement payment.

Exclude Yourself Get no payment. This is the only option that allows you to ever be part of any other lawsuit against GE Appliances (or Haier) for the legal claims in this case.

Object Write to the Court about what you don’t like in the settlement.

Go to a Hearing Ask to speak in Court about the fairness of the settlement.

These rights and options – and the deadlines to exercise them – are explained in this notice.

The Court in charge of this case still has to decide whether to approve the settlement. Payments will be made if the Court approves the settlement and after any appeals are resolved. Please be patient.

QUESTIONS? CALL CLASS COUNSEL OR VISIT WWW.SWARTZ-LEGAL.COM


http://www.getechlawsuit.com/


ii


TABLE OF CONTENTS – WHAT IS IN THIS NOTICE PACKAGE

Why did I get this Notice Package? ............................................................................................................. 1

What is this lawsuit about and why did it settle? .................................................................................. 1

What does the settlement provide and how much will I be paid? ................................................... 2

How can I receive my payment?................................................................................................................... 3

What am I giving up as a class member? ................................................................................................... 3

How do I exclude myself (opt-out) from this settlement? .................................................................. 3

Final Approval of settlement at Fairness Hearing ................................................................................. 4

How do I object to the settlement? .............................................................................................................. 4

Are there more details about the Settlement? Questions? ................................................................. 4

Do I have an attorney in this case? .............................................................................................................. 5




DONALD MADDY, et al.

Plaintiffs,

v.

GENERAL ELECTRIC CO.,

Defendant.

Case No.: 14-00490

NOTICE OF CLASS AND COLLECTIVE ACTION SETTLEMENT

A Federal Court authorized this notice. This is not a solicitation from a lawyer.

PLEASE READ THIS NOTICE CAREFULLY.

1. Why did I get this notice package?

You are receiving this notice because records indicate that you worked as a service technician for General Electric Appliances

(“GE”) or Haier U.S. Appliance Solutions, Inc. d.b.a. GE Appliances, a Haier Company (“Haier”) at some point between January

23, 2011 and December 31, 2016. The above-referenced lawsuit, Donald Maddy, et al. v. General Electric Co., 14-00490 (the

“Lawsuit”), is pending in the United States District Court for the District of New Jersey in Camden, New Jersey (the “Federal

Court”). You are receiving this Notice because the Federal Court has ordered that it be mailed to you.

The Federal Court has preliminarily approved a settlement (“Settlement”) of the Lawsuit. The Settlement provides for current and

former service technicians of GE Appliances (“GE”) to receive a portion of a Nine Million, Five-Hundred Thousand ($9,500,000)

fund (“Settlement Fund”). The Federal Court will conduct a hearing (“Fairness Hearing”) to determine if the Settlement should be

approved.

This Notice describes the Settlement and describes how you can obtain a money recovery from the Settlement. This Notice also

describes how you can exclude yourself from, or object to, the Settlement.

2. What is this lawsuit about and why did it settle?

The Lawsuit alleges that GE violated the federal Fair Labor Standards Act (“FLSA”) and various state laws by failing to pay

service technicians for all hours worked. Specifically, the Lawsuit contends that GE failed to pay service technicians for: (1) pre-

shift computer work (logging onto GE’s computer system, etc. and drive time to the first customer of the day); (2) working

through lunch; (3) post-shift computer work; and (4) other unpaid work - receiving, unpacking and organizing parts and servicing

of the GE supplied van.GE disputes the allegations in the Lawsuit, and asserts that it paid service technicians for all legally

compensable time.

Even though GE has defenses to the claims alleged, it has decided to settle the Lawsuit. The Settlement enables GE and the

service technicians to avoid the uncertainty, risks, and time involved in continued litigation.


The employees’ attorneys, who are referred to as “Class Counsel,” believe that the Settlement benefits the class members. The

Settlement provides a benefit to a large number of present and former service technicians, and enables the class members to avoid

the risk that GE could win the lawsuit, in which case class members would recover nothing. The Settlement also enables class

members to recover money without the delay of protracted litigation.

The parties’ attorneys negotiated the Settlement after nearly three years of litigation that has enabled each side to understand the

risks of proceeding with adversarial litigation. Substantial documents were produced by both sides to enable the Parties to

evaluate settlement. GE produced GPS records, pay records, time records, and records relating to TPTP for all class members.

Both sides have taken a large number of depositions, and significant motion practice has taken place, including disputes relating to

discovery. Class Counsel believe that the Settlement is fair and serves the best interests of the class members. The Federal Judge

overseeing the Lawsuit has “preliminarily approved” the Settlement as fair. The Federal Judge will make her final decision

regarding the fairness of the Settlement at the Fairness Hearing described in Section 7 below.

3. What does the Settlement provide and how much will I be paid?

Under the Settlement, GE has agreed to pay a Settlement amount of Nine Million, Five Hundred Thousand ($9,500,000) to resolve

all claims asserted in the Lawsuit. Your “Individual Settlement Payment” will be calculated based upon the settlement formula

stated in the settlement agreement on file with the Court.

After litigation costs, attorney’s fees, and service payments are subtracted from the Settlement Fund, the remaining fund (the “Net

Fund”) will be distributed to all Class Members who do not opt out of the Settlement. Class Members who do not opt out will

receive a payment from the Settlement Fund. Class Members who submit a Consent Form will receive a payment as an “Opt-In

Plaintiff,” as described below. Class Members do not submit a Consent Form will receive a payment as a “Non-Opt-In Class

Member.” While Class Members will receive compensation regardless of whether they submit a Consent Form, Opt-In Plaintiffs

will be eligible to receive more compensation. If you wish to receive a higher amount of compensation from the settlement,

you must complete and return the enclosed Consent Form or complete the Consent Form online at

http://www.getechlawsuit.com on or before [60 days after notice].

All class members who do not opt-out of the lawsuit will receive as part of the settlement: (1) a flat amount of $750, (2) plus an

additional pro-rated amount for each workweek employed by GE during the Class Period. Individuals who complete a Consent

Form will receive an additional amount in liquidated damages which will effectively double their recovery.

Non-Opt-In Class Members will receive their entire settlement check in the form of a payroll check, less all ordinary payroll taxes

and withholdings. This payment will be reported on an IRS Form W2 issued after the end of the tax year.

Opt-In Plaintiffs will receive half of their settlement amount (the amount which is for liquidated damages) in the form of a non-

payroll check with no deduction for payroll taxes or withholdings. This payment will be reported on an IRS Form 1099 issued

after the end of the tax year. The other half of their settlement payment will be in the form of a payroll check, less all ordinary

payroll taxes and withholdings. This payment will be reported on an IRS Form W2 issued after the end of the tax year.

At the Fairness Hearing, Class Counsel will apply to receive up to one-third of the Total Settlement (equivalent to $3,166,666) for

the services they provided. Class Counsel will also seek to recover its out-of-pocket expenses incurred in the Lawsuit, not to

exceed $300,000. This amount will be requested based on the substantial work Class Counsel performed in the Lawsuit and the

risk Class Counsel took in bringing the Lawsuit. Class Counsel has conducted extensive investigation in prosecuting the Lawsuit,

including, but not limited to, interviewing hundreds of employees, taking and defending more than 30 depositions, reviewing

thousands of documents related to the Lawsuit, including hundreds of thousands of electronic records, propounding discovery,


answering discovery for a substantial number of Class Members, reviewing and analyzing substantial amounts of payroll and time

data, drafting and filing of motions, and hiring and consulting with experts.

At the Fairness Hearing, the Named Plaintiffs in the action will request a service fee in the amount of $5,000, totaling []. The

Service Payments are requested because these individuals provided service to the Settlement Class by helping Class Counsel

formulate claims and by assisting in bringing the Lawsuit forward. The Named Plaintiffs participated in discovery and were

subject to depositions. The Service Payments are separate from, and in addition to, the portion of the Settlement Fund that they

may receive as a member of the Settlement Class.

4. How can I receive my payment?

You do not need to take any further action to receive a payment. However, if you want to receive liquidated damages in addition

to your wages, you must file a Consent Form. If you move prior to receiving a check, you should contact the Claims

Administrator at (xxx) xxx-xxxx to notify the Claims Administrator of your new address. You may also provide change of

address information via facsimile to (xxx) xxx-xxxx or by e-mail to [email protected]

The parties anticipate that the settlement checks will be issued in the____ Quarter of 2017.

5. What am I giving up as a Class member?

If the Federal Court grants final approval of the Settlement, the Lawsuit will be dismissed with prejudice, and you will release any

and all Wage and Hour claims, including FLSA claims and state law Wage and Hour claims, if any, relating back to the beginning

of time through the end of the December 31, 2016, including but not limited to off-the-clock claims, orientation claims, training

claims, travel-time claims, mileage pay claims, meal and rest break claims, and any and all other Wage and Hour claims that were

or could have been asserted in this matter, against GE and Haier, and including, without limitations, all state and federal claims for

wages, penalties, interest, and liquidated damages, as well as all claims for attorneys’ fees, costs, and expenses.

6. How do I exclude myself (opt-out) from this Settlement?

You will release your legal claims, as described in Section 5 above, unless you affirmatively exclude yourself from the Settlement.

If you exclude yourself, you will not release or waive any legal claims, and you will preserve your right to sue GE and Haier on

your own for alleged violations of the Released Claims. If you exclude yourself from the Settlement, you will not receive money

in this Settlement.

To exclude yourself from the Settlement, you must mail a written request to opt-out of the settlement to [TPA ADDRESS], or you

may send your request via facsimile to (xxx) xxx-xxxx or by e-mail to [email protected]. Your request for exclusion must be

postmarked or submitted on or before [60 days from mailing date] to be valid. To be valid, the Request for Exclusion from Class

Settlement form must be signed and dated by you, and must include the name of the case. You should also provide your phone

number on the request in case the Claims Administrator needs to contact you regarding same.

7. Final Approval of Settlement at Fairness Hearing

The Federal Judge presiding over this Lawsuit will conduct a Final Fairness Hearing at [TIME] on [DATE], 2017 in Courtroom []

of the United States Courthouse, [ADDRESS]. At the Fairness Hearing, the Judge will decide whether the Settlement is

sufficiently fair and reasonable to warrant final court approval. You are not required or expected to attend the Fairness Hearing.

However, you are welcome to attend at your own expense. If you plan on attending, please contact Class Counsel so that the

Court can be notified to ensure that there is enough space and time allotted for you.


8. How do I object to the Settlement?

If you believe the proposed Settlement is unfair or inadequate in any respect, you may object to the Settlement, either personally

or through an attorney at your own expense, by filing a written objection with the Court and mailing a copy of your written

objection to [TPA ADDRESS] or you may send your objection via facsimile to (xxx) xxx-xxxx or by e-mail to

[email protected]. In order to object to the Settlement, you must remain a class member and may not opt-out from the

Settlement.

All objection(s) to any part of the Settlement must be signed by you or your counsel and set forth your address, telephone number,

and the name of the Action: Donald Maddy v. General Electric Co. (Civ. No. 14-490). All objections must be postmarked or

submitted no later than [**60 Days from Mailing**]. If you submit a timely objection, you may appear, either personally or

through an attorney, at your own expense, at the Final Approval Hearing discussed above. Your objection should clearly explain

why you object to the proposed Settlement and must state whether you or someone on your behalf intends to appear at the Final

Approval Hearing. If you object to the Settlement, Class Counsel will not represent you in your objection.

Any class member who does not object in the manner described above shall be deemed to have waived any objections, and shall

forever be foreclosed from objecting to the fairness and adequacy of the proposed Settlement, the payment of attorneys’ fees,

service payments, and litigation costs, the claims process, and any and all other aspects of the Settlement.

Likewise, regardless of whether you file an objection, you will be deemed to have released all of the Released Claims against GE

and Haier and subject to the Release contained in the Settlement Agreement as explained in Section 5 above unless you properly

request exclusion from the Settlement in accordance with the Section 6 above. Please note that if you exclude yourself from the

Settlement by following the procedures set forth in Section 6 above, you will not have standing to object to the Settlement, and the

Court will not consider your objection at the Final Fairness Hearing.

10. Are there more details about the Settlement? Questions?

Yes. This Notice summarizes the most important aspects of the Settlement. You can get a copy of the written Settlement

Agreement and obtain further information regarding the Lawsuit and the Settlement by calling Class Counsel. Their contact

information is listed below. You will not be charged any money for communicating with Class Counsel.

11. Do I have an attorney in this case?

Swartz Swidler, LLC, Robert D. Soloff, P.A., and Alan Eichenbaum, P.A. represent the interests of class members in the Lawsuit.

Class Counsel will represent you in the Lawsuit and can answer questions for you regarding the Lawsuit and the Settlement.

Class Counsel’s contact information is below. You will not be charged any money for Class Counsel’s representation of you;

rather Class Counsel will be paid out of the class-wide Settlement Fund. You also have the right to get your own attorney at your

own expense in which case Class Counsel will not represent you in the Lawsuit or Settlement. If you object to the Settlement,

Class Counsel will not represent you in your objections.

Justin L. Swidler, Esq.

Richard S. Swartz, Esq.

Swartz Swidler, LLC

1101 Kings Hwy N., Ste. 402

Cherry Hill, NJ 08034

Website: http://www.swartz-legal.com

Phone: (856) 685-7420

Fax: (856) 685-7417

Toll Free: (877) 529-9501






Robert D. Soloff, Esq.

Robert D. Soloff, P.A.

7805 SW 6th Court


Alan Eichenbaum, Esq.

Law Offices of Alan Eichenbaum

7890 Peters Road, Suite G-102


Phone: (954) 472-0002

Fax: (954) 472-0052

E-mail: Robert@ solofflaw.com

Phone: (954) 916-1202

Fax: (954) 916-1232




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