IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF FLORIDA
MIAMI DIVISION
CASE NO.: 05-21251-ALTONAGA/BANDSTRA
MANUEL FIGUEROA, individually
and on behalf of those similarly situated,
SHARPER IMAGE CORPORATION a
Delaware corporation, and ZENION INDUSTRIES, INC., a California
corporation,
SETTLEMENT AGREEMENT AND
RELEASE
By And Among
Plaintiffs Manuel Figueroa
and Dixie M. Garner, the Settlement Class, and Defendant Sharper
Image Corporation
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SETTLEMENT
AGREEMENT AND RELEASE
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TABLE OF
CONTENTS
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1.
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Definitions
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2
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2.
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The Class
Action and Settlement Class Covered by This Settlement
Agreement
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11
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3.
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Commitment To
Support
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12
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4.
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Conditions of
Settlement, Effect of Disapproval, Cancellation, or
Termination
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13
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5.
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Procedure For
Certification and Approving Settlement
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15
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6.
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Procedure For
Final Approval
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16
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7.
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Notice To
Class
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19
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8.
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Settlement
Benefits
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20
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9.
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Cost of Notice
and Additional Expenses
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23
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10.
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Attorneys’ Fees, Class Representative
Fees, And Litigation Costs And Expenses
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24
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11.
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Opt-Out Rights
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25
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12.
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Claims Procedure
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26
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13.
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Claims Administration
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26
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14.
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Agreement Not to Disparage Ionic Breeze®
Products
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30
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15.
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Release
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31
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16.
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Other Pending Actions
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33
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17.
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Final Approval of This Agreement
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34
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18.
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Final Judgment
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34
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19.
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Effect of Failure of Court To Approve
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34
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20.
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Successors & Assigns
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35
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21.
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Entire Agreement
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35
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22.
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Exhibits
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36
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23.
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No Presumption Against Drafter
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36
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24.
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Governing Law
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36
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25.
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Continuing Jurisdiction and Exclusive
Venue
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36
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26.
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Authority
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38
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27.
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Currency Dates & Times
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38
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28.
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Notices
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38
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29.
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Preliminary Injunction and Stays of Other
Actions
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39
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30.
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Permanent Injunction as Part of Final
Judgment
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40
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31.
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Order of Dismissal With Prejudice of Other
Pending Actions
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41
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32.
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Stay
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41
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33.
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Additional Terms
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42
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34.
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Counterparts
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THIS SETTLEMENT AGREEMENT AND
RELEASE (“Settlement Agreement”) is conditionally made
effective upon Preliminary Settlement Approval by the Court (as
provided in § 5.1), by and among defendant Sharper Image
Corporation (“Sharper Image” or “Settling
Defendant”) and plaintiff Manuel Figueroa and Dixie M. Garner
(“Plaintiffs” or “Settlement Class
Representatives”) and the Settlement Class (as defined in
§ 2.2 ), and becomes unconditionally effective when the Final
Order and Final Judgment become Final as defined herein.
WHEREAS, Sharper Image denies and has asserted
a number of defenses to each and every one of the allegations in
the above-captioned litigation (the “Class Action”)
regarding the efficacy of the Ionic Breeze® products. Sharper
Image stands behind the Ionic Breeze® and contends that
scientific testing has demonstrated the high quality, efficacy, and
safety of the Ionic Breeze®, but, regardless of the merits of
this Class Action, the outcome of any litigation is always
inherently uncertain; therefore, Sharper Image has concluded that
it is in the best interest of Sharper Image, its shareholders, and
its customers to settle this Class Action.
WHEREAS, Plaintiffs equally believe in the
allegations and assertions made in their Complaint and the merits
of this Class Action, but also believe that settlement is in the
best interest of the Settlement Class Members; WHEREAS, Plaintiffs,
Settlement Class, and Settling Defendant agree that this Settlement
Agreement, and any papers filed or prepared in connection with this
Settlement Agreement, shall not be deemed or construed to be an
admission or evidence of any violation of any statute or law or of
any liability or wrongdoing by Settling Defendant or of the truth
of any of the claims or allegations made in this Class Action or
otherwise; WHEREAS, arm’s length settlement negotiations have
taken place between Plaintiffs, Settlement Class Counsel (as
defined in § 1.46), Settling Defendant’s Counsel, and
the Settling Defendant; WHEREAS, as a product of those
negotiations, this Settlement Agreement, including its exhibits,
which embodies all of the terms and conditions of the settlement
between the Settling 1
Defendant
and the Plaintiffs, both individually and on behalf of the
Settlement Class, has been reached, subject to the final approval
of the United States District Court for the Southern District of
Florida (the “Court”); WHEREAS, Settlement Class
Counsel and the Plaintiffs have concluded, after due investigation
and after carefully considering the relevant circumstances of the
Settling Defendant, the Class Action, and the applicable law, that
it would be in the best interest of the Settlement Class to enter
into this Settlement Agreement in order to avoid the uncertainties
of litigation and to assure that the benefits reflected herein are
obtained for the Settlement Class, and further, that Settlement
Class Counsel and the Plaintiffs consider the settlement set forth
herein to be fair, reasonable, adequate, and in the best interests
of the Settlement Class; WHEREAS, the Settling Defendant, without
admitting any liability or wrongdoing, has concluded, despite its
belief that it is not liable for the claims asserted and has good
defenses thereto, that it will enter into this Settlement Agreement
solely to avoid the further expense, inconvenience, and burden of
this protracted and complex litigation, the risks inherent in
uncertain complex litigation, and the distraction and diversion of
its personnel and resources, and thereby put to rest this
controversy; and NOW THEREFORE, it is agreed by and among the
undersigned, on behalf of the Settling Defendant, the Plaintiffs,
and the Settlement Class, that this Class Action be conditionally
settled, compromised, and dismissed in its entirety with prejudice,
subject to the approval of the Court, on the following terms and
conditions:
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1.
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Definitions.
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1.1
“Agreement” and “Settlement Agreement” both
mean this agreement by and
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among Defendant Sharper Image,
Plaintiffs Manuel Figueroa and Dixie M. Garner, and the Settlement
Class, as defined in § 2.2 of this Settlement
Agreement.
1.2 “Claim Form” means the form to
be used by Settlement Class Members, who do not process their claim
on the Claims Web Site, to manually make a claim under this
Settlement Agreement in substantially the same form as Exhibit F
hereto.
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1.3 “Claims
Administration” means the process by which this Settlement
Agreement is administered pursuant to § 13.
1.4 “Claims Administrator” means
the person or entity appointed by the Court to administer this
Settlement Agreement pursuant to § 13.1.
1.5 “Claims Web Site” means the web
site administered jointly by the Claims Administrator and Settling
Defendant located at “ www.ibsettlement.com ”. The Claims
Web Site will enable Settlement Class Members who are contained in
the Ionic Breeze Database to process their claims, execute an
electronic release, and obtain their Merchandise Credit
Confirmation Number. Settlement Class Members who are not in the
Ionic Breeze® Database will be able to obtain a Claim Form on
the Claims Web Site that they can submit with proof of purchase to
the Claims Administrator to apply for a Merchandise Credit.
Settlement Class Members will be required to use the Claims Web
Site for processing their claims or obtaining a Claim Form, except
for those Settlement Class Members that do not have reasonable
access to the Internet. Notice of Final Approval will be made to
those Settlement Class Members who process their claims on the
Claims Web Site by publication on the Claims Website. Settlement
Class Members, at the time that they obtain their Merchandise
Credit Confirmation Number, will be told to check back within a
certain period of time to find out (1) whether the Court has
approved the settlement; (2) that they now have a valid Merchandise
Credit; and (3) the expiration date of the Merchandise
Credit.
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1.6
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“Class
Action” means the above-captioned litigation.
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1.7
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“Class
Notice” means the Court approved form of notice of the
conditional
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certification of the Settlement
Class and notice of Fairness Hearing to the Putative Class Members,
which shall be in substantially the same form as Exhibit D
hereto.
1.8 “Closing Date” means the date
so designated on Exhibit A that is attached hereto and incorporated
herein by reference, or such other date as may be set by the Court
for the doing or completion of the acts required to be completed by
said date, as contemplated by this Agreement when using said
defined term. If the Court sets a date or deadline for doing or
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completing
such acts other than the date designated on Exhibit A, then this
defined term shall mean the date set by the Court rather than the
date designated on Exhibit A.
1.9 “Confirmatory Discovery” shall
mean that discovery to be concluded by Settlement Class Counsel to
perform their due diligence with respect to the fairness and
appropriateness of the terms of the Settlement Agreement to the
Putative Class Members and the Settlement Class Members in relation
to the factual basis for the lawsuit; 1.10 “Court”
means the United States District Court for the Southern District of
Florida, Miami Division.
1.11 “Customer Number” means the
Sharper Image customer number that will be used to assist Sharper
Image in identifying Putative Class Members in the Ionic
Breeze® Database.
1.12 “Effective Date of Settlement”
means the date so designated on Exhibit A that is attached hereto
and incorporated herein by reference, or such other date as may be
set by the Court for the doing or completion of the acts required
to be completed by said date, as contemplated by this Agreement
when using said defined term. If the Court sets a date or deadline
for doing or completing such acts other than the date designated on
Exhibit A, then this defined term shall mean the date set by the
Court rather than the date designated on Exhibit A.
1.13 “Execution Date of The Settlement
Agreement” means the date upon which the last of all parties
and counsel listed as signatories on the Settlement Agreement have
executed it.
1.14 “Fairness Hearing” means the
hearing at which the Court will consider and finally decide whether
to certify the Settlement Class, approve this Settlement Agreement,
approve payment of fees and expenses, enter the Final Order and
Final Judgment, and make such other final rulings as are
contemplated by this Settlement Agreement or are otherwise
necessary to effectuate this Settlement.
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1.15 “Fairness Hearing
Date” means the date so designated on Exhibit A that is
attached hereto and incorporated herein by reference, or such other
date as may be set by the Court for the doing or completion of the
acts required to be completed by said date, as contemplated by this
Settlement Agreement when using said defined term. If the Court
sets a date or deadline for doing or completing such acts other
than the date designated on Exhibit A, then this defined term shall
mean the date set by the Court rather than the date designated on
Exhibit A.
1.16 “Final” means the time when
the Final Order and Final Judgment represent a final and binding
judgment with respect to the this Class Action, which shall take
place upon the occurrence of any of the following: (i) the date of
final affirmance on an appeal (without any material modification or
reversal of the Final Order and/or Final Judgment), or the date of
affirmance by means of a writ or other proceeding (without any
material modification or reversal of the Final Order and/or Final
Judgment), and the expiration of the time for a petition for or a
denial of a writ of certiorari to review such orders, or, if
certiorari is granted, the date of final affirmance (without any
material modification or reversal of the Final Order and/or Final
Judgment) following review pursuant to that grant; or (ii) the date
of final dismissal of any appeal from the final dismissal of any
proceeding on certiorari to review the Final Order and/or Final
Judgment; or (iii) if no appeal is filed, the expiration date of
the time for the filing or noticing of any appeal or filing or
initiating any other appellate proceeding challenging the
Court’s Final Order and/or Final Judgment, i.e .,
expected to be thirty (30) days after entry of the Final Order and
Final Judgment (or the expiration of any extension of time for the
filing of any appeal or other appellate proceeding as may result
from operation of law or order of the Court).
1.17 “Final Claims Bar Date” means
the date so designated on Exhibit A that is attached hereto and
incorporated herein by reference, or such other date as may be set
by the Court for the doing or completion of the acts required to be
completed by said date, as contemplated by this Settlement
Agreement when using said defined term. If the Court sets
a
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date or
deadline for doing or completing such acts other than the date
designated on Exhibit A, then this defined term shall mean the date
set by the Court rather than the date designated on Exhibit
A.
1.18 “Final Judgment” means the
final judgment and order of dismissal with prejudice, which
certifies the Settlement Class, approves this Settlement Agreement,
approves payment of attorneys’ fees and expenses, dismisses
the Class Action with prejudice, enters a permanent injunction
against other actions, and makes such other final rulings as are
contemplated by this Settlement Agreement, and which is entered in
conjunction with the Final Order. It is an express condition of
this Settlement that the Final Judgment be substantially in the
form attached as Exhibit C, with such additional orders as may be
determined by the Court as to only those matters that this
Settlement Agreement leaves to the determination of the Court or as
are necessary to effectuate this settlement.
1.19 “Final Order” means the final
Order by which the Court approves this Settlement
Agreement.
1.20 “Household” refers to the
street address at which a Purchaser registers as his/her/its
address and all other places in which that Person has resided for
more than thirty
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(30)
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days in any
calendar year since May 6, 1999.
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1.21
“Hybrid” refers to the Sharper Image Hybrid Air
Purifier, including the
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following model: SI724 Hybrid,
and other models to be developed under the Hybrid name. 1.22
“Ionic Breeze®” or “Ionic Breeze”
means the Sharper Image branded Ionic Breeze® Silent Air
Purifiers identified as the following models: SI737 - Professional
Series™ Ionic Breeze® Quadra®; SI830 - Professional
Series™ Ionic Breeze GP®; SI397 - Ionic Breeze®
3.0; SI637 - Ionic Breeze® Quadra®; SI697 - Ionic
Breeze® Quadra® Compact; SI730 - Ionic Breeze GP®;
SI720 - Ionic Breeze GP® Desktop; SI853 Professional
Series™ Plus Midi; SI719 Professional Series™ Plus
Tabletop; SI867 Professional Series™ Plus Quadra®; SI871
Professional Series™ Plus GP; SI620 Compact Ionic
Breeze®; SI624 Ionic Breeze® – 2.0; SI626 –
Ionic Breeze® Night Light; SI589 – Ionic Breeze®
cat litter box; 6
SI633
– Ionic Breeze® car air purifier; SI717 – Ionic
Breeze® small spaces/bathrooms – plug-in; SI627 –
Ionic Breeze® plug-in; S1628 – Ionic Breeze®
plug-in; SI629 – Ionic Breeze® dashboard ionizer; SI861
– Ionic Breeze® GP Professional Series™ with
OzoneGuard; SI837 – Ionic Breeze® Quadra® with
OzoneGuard; SI857 – Ionic Breeze® Quadra®
Professional Series™ with Ozoneguard; SI827 – Compact
Ionic Breeze® Quadra® with Ozoneguard; SI037
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Ionic
Breeze® Quadra® Professional Series™ with
Ozoneguard QVC.
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1.23
“Ionic Breeze® Database” means the database to be
compiled by Settling
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Defendant, which includes
information on Purchasers who Purchased an Ionic Breeze®
directly from Sharper Image, and includes information on Purchasers
that Settling Defendant is able to obtain from third-party
retailers.
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1.24
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“Merchandise Credit”
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1.24.1
“Merchandise Credit” means the credit given to
Settlement Class
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Members that are redeemable only
for Sharper Image Branded Products to which Settlement Class
Members are entitled as provided in § 8.
1.24.2 Merchandise Credits can only be redeemed
from (1) Sharper Image retail stores in the United States; (2)
Sharper Image’s online store at www.sharperimage.com ; or (3) by phone or
mail order directly from Sharper Image.
1.25 “Merchandise Credit Confirmation
Number” means the number used to track those Settlement Class
Members who have qualified for a Merchandise Credit.
1.26 “Notice” or
“Notices” means the manner in which the Class Notice,
Summary Notice of Settlement, and Notice of Final Approval are
given and published as provided in § 7.
1.27 “Notice Date” means the date
so designated on Exhibit A that is attached hereto and incorporated
herein by reference, or such other date as may be set by the Court
for the doing or completion of the acts required to be completed by
said date, as contemplated by this Settlement Agreement when using
said defined term. If the Court sets a date or deadline for doing
or completing such acts other than the date designated on Exhibit
A, then this defined term shall mean the date set by the Court
rather than the date designated on Exhibit A.
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1.28 “Notice of Final
Approval” means the form of notice to be provided to
Settlement Class Members that the Court has finally approved this
Settlement Agreement, in a form to be submitted by the parties and
determined and approved by the Court.
1.29 “Objection Date” means the
date so designated on Exhibit A that is attached hereto and
incorporated herein by reference, or such other date as may be set
by the Court for the doing or completion of the acts required to be
completed by said date, as contemplated by this Settlement
Agreement when using said defined term. If the Court sets a date or
deadline for doing or completing such acts other than the date
designated on Exhibit A, then this defined term shall mean the date
set by the Court rather than the date designated on Exhibit
A.
1.30 “Opt-Out Deadline” means the
date so designated on Exhibit A that is attached hereto and
incorporated herein by reference, or such other date as may be set
by the Court for the doing or completion of the acts required to be
completed by said date, as contemplated by this Settlement
Agreement when using said defined term. If the Court sets a date or
deadline for doing or completing such acts other than the date
designated on Exhibit A, then this defined term shall mean the date
set by the Court rather than the date designated on Exhibit
A.
1.31 “Opt-Out Form(s)” means the
written communication that must be provided by Putative Class
Members to exclude themselves from the Settlement Class.
1.32 “Person” and
“Persons” mean all persons and entities (including but
not limited to natural persons, individuals, corporations,
agencies, bodies, governments, associations, partnerships, trusts,
and their predecessors, successors, administrators, heirs and
assigns).
1.33 “Plaintiffs” means Manuel
Figueroa and Dixie M. Garner, proposed Settlement Class
Representatives.
1.34 “Preliminary Settlement
Approval” and “Preliminary Settlement Approval
Order” both mean the Order that the Court enters as provided
in § 5.1, in substantially the same form as Exhibit B
hereto.
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1.35 “Preliminary Settlement
Approval Hearing” means the hearing set by the Court to
preliminarily approve this Settlement Agreement and conditionally
certify a provisional Settlement Class.
1.36 “Preliminary Settlement Approval
Hearing Date” means the date so designated on Exhibit A that
is attached hereto and incorporated herein by reference, or such
other date as may be set by the Court for the doing or completion
of the acts required to be completed by said date, as contemplated
by this Settlement Agreement when using said defined term. If the
Court sets a date or deadline for doing or completing such acts
other than the date designated on Exhibit A, then this defined term
shall mean the date set by the Court rather than the date
designated on Exhibit A.
1.37 “Product Identification
Documentation” means the documentation with respect to claims
that is required by § 13 and the Claim Form.
1.38 “Proof of Purchase” means the
documentation required by the Claim Form with respect to purchases
not confirmed by the Ionic Breeze® Database. Proof of Purchase
will constitute any one or more of the following evidencing the
purchase of an Ionic Breeze®: a copy of a receipt; a cancelled
check; a bank copy or bank generated record of a negotiated check;
a credit card bill or receipt.
1.39 “Purchaser(s)” means any and
all Persons who Purchased in or from a location in the United
States of America an Ionic Breeze® from any source between May
6, 1999 and the Execution Date of The Settlement Agreement.
Purchasers will not include those who have sold and/or returned all
of their Purchased Ionic Breeze(s)®, unless at least one unit
was returned in exchange for another Ionic Breeze®. Class
Members may not separate Purchases within Households in order to
create a right to additional recovery.
1.40 “Purchased” means paid
monetary consideration for the Ionic Breeze®, subject to the
qualifications in § 1.39.
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1.41 “Putative Class
Member(s)” means all Persons who are within the scope of the
definition of “Settlement Class,” including those who
validly and timely request exclusion from the Settlement Class, as
provided in this Settlement Agreement.
1.42 “Released Parties” means those
Persons released under § 15 and more particularly defined
therein.
1.43 “Released Rights” or
“Released Claims” means any and all manner(s) of
claims, demands, actions, suits, and causes of action released
under § 15.
1.44 “Settlement Agreement” and
“Agreement” both mean this agreement by and among
Defendant Sharper Image, Plaintiffs Manuel Figueroa and Dixie M.
Garner, and the Settlement Class, as defined in § 2.2 of this
Settlement Agreement.
1.45 “Settlement Class” is the FRCP
23 class covered by this Settlement Agreement, as defined in §
2.2 of this Settlement Agreement.
1.46 “Settlement Class Counsel”
means Lightfoot Franklin & White LLC, and Haggard, Parks,
Haggard & Lewis, P.A., and their respective
attorneys.
1.47 “Settlement Class Members”
means all Purchasers who are within the scope of the definition of
the “Settlement Class” and who do not validly and
timely requested exclusion from the Settlement Class, as provided
in this Settlement Agreement.
1.48 “Settlement Class
Representatives” means Manuel Figueroa and Dixie M. Garner
and/or such other person(s) as the Court may appoint as
representatives of the Settlement Class.
1.49 “Settling Defendant” means
Sharper Image Corporation, the Defendant in this Class
Action.
1.50 “Settling Defendant’s
Counsel” means Thelen Reid Brown Raysman & Steiner LLP
fka Thelen Reid & Priest LLP and its attorneys, and Lowndes,
Drosdick, Doster, Kantor
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Reed, P.A. and its
attorneys.
1.51 “Settlement
Packages” means the consideration afforded the Settlement
Class
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1.52 “Sharper Image”
or “Sharper Image Corporation” means the Sharper Image
Corporation, the defendant in this Class Action, which is also
defined above as “Settling Defendant.” 1.53
“Sharper Image Branded Product” means a product sold by
Sharper Image that has the trademark Sharper Image® or Sharper
Image Design® displayed on the product or box. A product shall
not be deemed a Sharper Image Branded Product solely as a result of
such product being sold or offered for sale using promotional or
advertising materials prepared by Settling Defendant or promotional
or advertising materials using the Sharper Image® or Sharper
Image Design® trademark.
1.54 “Summary Notice of Settlement”
means the Court approved form of notice of the conditional
certification of the Settlement Class and notice of Fairness
Hearing to the Putative Class Members, which shall be in
substantially the same form as Exhibit E hereto.
1.55 “Zenion” refers
to Zenion Industries, Inc., former named defendant in this
Class
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2.
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The Class
Action and Settlement Class Covered by This Settlement
Agreement 2.1 This
Settlement Agreement governs, within the scope of its subject
matter, the
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Settling Defendant, Settling
Defendant’s Counsel, Settlement Class Counsel, Putative Class
Members, and those purporting to act on behalf of any Putative
Class Member.
2.2 The “Settlement Class” is
defined and composed of any and all Persons who Purchased in or
from a location in the United States of America an Ionic
Breeze® from any source between May 6, 1999, and the Execution
date of The Settlement Agreement. The Settlement Class does not
include any Person who sold and/or returned all of their Purchased
Ionic Breeze(s)®, unless at least one unit was returned in
exchange for another Ionic Breeze®. The Settlement Class does
not include Settling Defendant, Zenion Industries, Inc., or those
who timely and properly opted-out of this Agreement. The Settlement
Class may not separate purchases within Households in order to
create a right to additional recovery.
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3.
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Commitment
To Support .
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3.1
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Plaintiffs,
the Settling Defendant, Settlement Class Counsel, and
Settling
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Defendant’s Counsel agree to recommend
approval of and vigorously support this Settlement Agreement to the
Court and to the Putative Class Members and to undertake reasonable
steps and efforts contemplated by this Settlement Agreement and any
other reasonable steps and efforts that may be necessary or
appropriate, by order of the Court or otherwise, to carry out the
terms of this Settlement Agreement. The parties to this Class
Action shall aggressively cooperate, assist, and undertake all
reasonable actions in order to accomplish the above on a timely
basis in accordance with Exhibit A hereto. Settlement Class
Members, Plaintiffs, and Settlement Class Counsel expressly concur
and agree that Settling Defendant is entitled to communicate with
the Putative Class Members, except as it relates to this Class
Action (other than as provided in this Agreement). Settling
Defendant will not aid or encourage any objections to this
Settlement Agreement (or any of its terms or provisions) nor to
final certification of the Settlement Class, nor encourage any
Putative Class Members to elect to opt out.
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3.2
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The Settlement
Class Counsel shall make every reasonable effort to
encourage
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Putative Class
Members to participate and not to opt out. In addition, the parties
shall make all reasonable efforts to enforce the jurisdictional and
injunctive provisions of this Settlement Agreement, including
assisting and joining in any motions or stipulations that may be
necessary to stay current or future-filed actions that may come
within the scope of this Agreement.
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3.3
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The failure of
either party to cooperate and assist with regard to settlement
as
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expressly and
implicitly contemplated in this Agreement shall constitute a
material breach of this Agreement.
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3.4
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No material
modifications to the Final Judgment, Exhibit C, shall be
permitted
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unless
approved expressly in writing by the parties. If the Court
materially modifies Exhibit C,
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12
such
modifications shall give either party the right to terminate this
Settlement Agreement and render this Class Action as if the
Settlement Agreement had never been executed.
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4.
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Conditions
of Settlement, Effect of Disapproval, Cancellation, or
Termination
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4.1 This
Settlement Agreement shall be conditioned on the occurrence of all
of the
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following events:
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4.1.1
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The Court has
entered the Final Order;
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4.1.2
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The Court has
entered the Final Judgment, Exhibit C, without material
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modifications;
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4.1.3
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The Final
Order and Final Judgment have become Final; and
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4.1.4
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Neither
Settling Defendant nor Plaintiffs have elected to terminate
this
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Settlement Agreement in
accordance with the terms of this Agreement.
4.2 If all of the conditions specified in
Paragraph 4.1 are not met, then the Settlement Agreement will be
subject to termination in accordance with the terms of this
Settlement Agreement.
4.3 Settling Defendant reserves the right to
terminate the Settlement Agreement if the Preliminary Settlement
Approval Hearing does not take place by March 1, 2007, or the Court
has not otherwise entered the Preliminary Settlement Approval Order
prior to March 1, 2007. Further, Settling Defendant reserves the
right to terminate the Settlement Agreement if Preliminary
Settlement Approval and the Final Judgment do not include the
issuance of an injunction(s) that effectively enjoins the
prosecution of all pending litigation against Settling Defendant
and those Persons listed in the release at § 15, or each of
them, involving claims related the Ionic Breeze®, including,
but not limited to, any and all claims related in any way to the
efficacy, advertisements, emissions or reactions (e.g. ozone,
terpenes and reactions with terpenes, or any other type of reaction
related to the operation of the Ionic Breeze®), volatile
organic compounds, ultrafine particles, health risks, and/or
performance of the Ionic Breeze®, including but not limited
to, claims for alleged false advertising, breach of express and/or
implied warranties, unjust enrichment, Magnuson-Moss Warranty Act,
conspiracy, unfair 13
competition, state consumer protection
statutes, common law prohibiting unfair or deceptive trade
practices, breach of contract, fraud, and/or misrepresentation and
equity prohibiting unjust enrichment or requiring restitution or
disgorgement; and that are, were, or could have arisen out of or
been related in any way to Settling Defendant’s advertising
or sale of the Ionic Breeze® and the disclosures relating
thereto, which actions include but are not limited to,
Potter and Rittenhouse v.
Sharper Imag e, Cox
v. Sharper Image , Robertson v. Sharper Image
(all currently pending in the
Superior Court of California, in and for the County of San
Francisco), and Bryant v. Sharper Image (pending in the
Circuit Court for the State of Florida, County of Duval), including
the successful defeat of all challenges to any such injunctions.
Settling Defendant further reserves the right to terminate this
Settlement Agreement if the Final Judgment does not include a
permanent injunction in conformance with the above and does not
include an order requiring the dismissal with prejudice of the
above actions.
4.4 Plaintiffs reserve the right to terminate
the Settlement Agreement if, in the course of Confirmatory
Discovery, Settlement Class Counsel obtains information that they
did not previously know or have reason to know, and such
information relates directly to and would have materially and
substantially improved Plaintiffs’ likelihood of prevailing
in this Class Action if it had continued.
4.5 The Settling Defendant and Plaintiffs do
not agree to the conditional certification of the Settlement Class,
the conditional appointment of Settlement Class Counsel, or the
conditional appointment of Settlement Class Representatives for any
purpose other than to effectuate this Settlement Agreement. If this
Settlement Agreement is terminated pursuant to its terms, or if the
Effective Date of Settlement does not occur for any reason, then
the conditional certification of the Settlement Class and the
appointment of the Settlement Class Representatives and Settlement
Class Counsel shall be vacated, and the Class Action shall proceed
as though the Settlement Class had never been certified and this
Agreement has not been negotiated or entered into, the appointments
had not been made, and nothing done with regard to this Settlement
Agreement and any papers filed in support thereof shall be deemed
an 14
admission
by Sharper Image, and in such event will also be without prejudice
to Plaintiffs’ right to file a motion to certify a class or
classes and seek the appointment of settlement class
representatives and settlement class counsel.
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5.
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Procedure
For Certification and Approving Settlement. 5.1 Preliminary Settlement
Approval.
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As soon as is
possible after execution of this Settlement Agreement and in all
events no
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later than January 16, 2007, the
parties shall submit to the Court: a motion for preliminary
approval of this Settlement Agreement, for conditional
certification of the Settlement Class, for conditional appointment
of Settlement Class Counsel, and for conditional appointment of
Settlement Class Representative(s); a motion and order to protect
the jurisdiction of the Court; the draft of proposed form of
Preliminary Settlement Approval; the draft of proposed form of
Final Judgment; and proposed stay of all proceedings in the Class
Action against all Putative Class Members, Settlement Class
Members, Plaintiffs, Settlement Class Counsel, and Settling
Defendant, until the Final Order and Final Judgment have been
entered. The hearing on the preliminary approval of the settlement,
conditional certification of the Settlement Class, conditional
appointment of Settlement Class Counsel, and conditional
appointment of Settlement Class Representatives shall be decided in
the Order on Preliminary Settlement Approval Order. The parties
agree to move the Court to enter the Preliminary Settlement
Approval Order without a hearing or to set the Preliminary
Settlement Approval Hearing on the date stated on Exhibit
A.
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5.2
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Forms and
Notice Approval.
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5.2.1 Along
with the Motion for Preliminary Settlement Approval, the
parties
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will also submit to the Court
for its approval mutually agreeable forms of the Claim Form, Class
Notice, and Summary Notice of Settlement. Sharper Image will mail
and publish the Notices on the date stated on Exhibit A by mailing
the Class Notice as an affixed inclusion in the Sharper Image
catalog (to be selected by Sharper Image) to each Putative Class
Member contained in the Ionic Breeze® Database, by mailing the
Class Notice to each Putative Class Member who is contained in the
Ionic Breeze® Database to whom a catalog is not mailed, and by
publishing the 15
Summary
Notice of Settlement in a manner to be agreed by and between
Settlement Class Counsel and Settling Defendant’s Counsel, at
a cost not to exceed $200,000.00.
5.2.2 The Court’s approval or
determination of said forms and notices shall be determined as part
of the Preliminary Settlement Approval.
5.3 Confirmatory
Discovery.
Settlement Class Counsel already have
propounded discovery, reviewed documents provided by Settling
Defendant, deposed representatives of Settling Defendant, engaged
in expert discovery, and retained experts. In addition, Settlement
Class Representatives will have 60 days in which to conduct
confirmatory discovery. Settling Defendant will provide Settlement
Class Counsel with confirmatory discovery, including producing
documents, and making corporate representatives available for
deposition or interviews, and documentation upon request, on
issues, including, but not limited to, the following: (1) efficacy;
(2) ozone emission; and (3) recordkeeping relating to tracking of
Purchasers. Settlement of this Class Action is contingent upon
Settlement Class Representatives’ confirmation through this
discovery of material factual representations made by Settling
Defendant during settlement negotiations and completion of
Confirmatory Discovery, subject to § 4.4 of this
Agreement.
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6.
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Procedure
For Final Approval . 6.1
Overview.
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As provided
above, the parties contemplate that this Settlement Agreement shall
be
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presented to the Court for
Preliminary Settlement Approval. Settlement Class Members shall
have until the Objection Date to file, in the manner specified in
the Class Notice, any objection or other response to the proposed
Settlement Agreement. The parties agree to urge the Court to set
the Objection Date as stated on Exhibit A. The Class Notice and
Summary Notice of Settlement also shall provide that Putative Class
Members may request exclusion from the Settlement Class by
providing notice, in the manner specified in the Class Notice on or
before a date set by the Court as the Opt-Out Deadline, and as more
particularly provided in § 11. The parties agree to urge the
Court to set the Opt-Out Deadline as stated on Exhibit
A.
16
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6.2
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Opt-Outs.
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6.2.1 As more
particularly provided in § 11, Putative Class Members shall
be
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required to elect to opt out on
or before the Opt-Out Deadline by placing the completed Opt-Out
Form in the mail to the Claims Administrator.
6.2.2 The parties will move that the Court
enter an order requiring that the Opt-Out Form require that the
Putative Class Member provide: (1) the Person’s name,
address, and telephone number; and (2) a statement or
acknowledgment that the Person wishes to be excluded from the
Settlement Class. Any Putative Class Member who does not timely and
validly request exclusion from the Settlement Class in the manner
required by the Settlement Agreement and Notices shall be bound by
all the terms of the Settlement Agreement.
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6.3
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Filing
Objections Before The Fairness Hearing.
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6.3.1 The
parties will move that the Court enter an order requiring
any
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Settlement Class Member who
wishes to be heard orally at the Fairness Hearing or who wishes for
any objection to be considered to file a written notice