Common use of LITIGATION BACKGROUND Clause in Contracts

LITIGATION BACKGROUND. A. Plaintiffs allege that, during the Class Period, Defendant deceptively advertised discounts of its products on its website, ▇▇▇▇▇▇▇▇.▇▇▇. Based on these allegations, Plaintiff ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ filed suit on June 7, 2023, in the Eastern District of California. Following the ▇▇▇▇▇▇▇▇▇ action, Plaintiff ▇▇▇▇▇▇▇ ▇▇▇▇▇ informed Defendant of similar allegations regarding its online discounts. Together, Plaintiffs allege violations of certain California, Oregon, and Washington consumer protection statutes, and bring claims for breach of contract, breach of express warranty, quasi-contract/unjust enrichment, and intentional and negligent misrepresentation. They seek injunctive relief, compensatory damages, and restitution in amounts by which Defendant was allegedly unjustly enriched based on its product sales. B. Defendant expressly denies any liability or wrongdoing of any kind or that Plaintiffs or any putative Class Member has been damaged in any amount or at all in connection with the claims alleged in the Action, and further contends that, for any purpose other than Settlement, this Action is not appropriate for class treatment. Defendant does not admit or concede any actual or potential fault, wrongdoing, or liability against it in the Action or any other actions. Defendant maintained during the entire pendency of the Action, and continues to maintain, that the challenged advertising practices are not deceptive or misleading as a matter of law. C. In the ▇▇▇▇▇▇▇▇▇ case, Defendant filed a comprehensive Motion to Dismiss the entirety of ▇▇. ▇▇▇▇▇▇▇▇▇’▇ Complaint on August 30, 2023, and filed a Motion to Stay the case on September 6, 2023. In response to the Motion to Dismiss, Plaintiff ▇▇▇▇▇▇▇▇▇ filed a detailed First Amended Complaint on September 13, 2024. Defendant filed a renewed Motion to Dismiss the First Amended Complaint on October 5, 2023, challenging each of Plaintiff’s claims on a variety of grounds. The Parties extensively briefed the issues raised by Defendant’s Motion to Dismiss, as well as Defendant’s Motion to Stay. While briefing the issues raised in the First Amended Complaint, Plaintiff also served extensive Requests for Production, Requests for Admission, and Interrogatories, as well as a thorough Deposition Notice under FRCP 30(B)(6). Defendant responded to this discovery in November, 2023. D. The Parties began discussing settlement in May, 2024, and engaged in extensive negotiations regarding Plaintiffs’ claims. The Parties scheduled a mediation, and, in the lead up to it, exchanged informal discovery, including financial and sales records relevant to the claims and alleged damages. Plaintiffs’ Counsel spent significant time and effort analyzing these records to understand Defendant’s liability and the potential damages models available to Plaintiffs. The Parties also prepared comprehensive mediation briefs that discussed the claims, defenses, and alleged damages in detail. E. The Parties participated in an in-person mediation in Los Angeles on October 17, 2024, with ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ of JAMS. With the help of the mediator, the Parties were able to reach an agreement in principle at the mediation and negotiated a terms sheet, which was fully executed on October 21, 2024. F. As a result of the conscientious litigation of the ▇▇▇▇▇▇▇▇▇ case and the lengthy, substantive, and good faith negotiations regarding settlement, Class Counsel was able to assess thoroughly the claims of the Settlement Class Members and Defendant’s marketing practices and defenses. G. Based on the above-outlined investigation and litigation, the current state of the law, the expense, burden and time necessary to prosecute the Action through trial and possible appeals, the risks and uncertainty of further prosecution of this Action considering the defenses at issue, the sharply contested legal and factual issues involved, and the relative benefits to be conferred upon the Settlement Class Members pursuant to this Agreement, Plaintiffs and Class Counsel have concluded that a Settlement with Defendant on the terms set forth herein is fair, reasonable, adequate, and in the best interests of the Settlement Class in light of all known facts and circumstances. H. Based on the foregoing, it is the desire of the Parties to fully, finally, and forever settle, compromise, and discharge all disputes and claims arising from or related to the Actions which exist between the Parties. Therefore, it is the intention of Plaintiffs and the Settlement Class that this Agreement shall constitute a full and complete Settlement and release of the Released Claims against Defendant.

LITIGATION BACKGROUND. A. Plaintiffs allege that, during the Class Period, Defendant deceptively advertised various discounts of its products on its websitewebsites, ▇▇▇▇▇▇.▇▇▇, ▇▇▇▇▇▇▇▇▇▇.▇▇▇, and ▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇. Based on these allegations, Plaintiff ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ filed suit on June 7January 26, 2023, in the Eastern District of California. Following the ▇▇▇▇▇▇▇▇▇ action, and Plaintiff ▇▇▇▇▇▇▇ ▇▇▇▇▇ informed Defendant of similar allegations regarding its online discountsfiled suit on August 9, 2023. Together, Plaintiffs allege violations of certain California, Oregon, Washington and Washington California consumer protection statutes, and bring claims for breach of contract, breach of express warranty, quasi-contract/and unjust enrichment, and intentional and negligent misrepresentation. They Plaintiffs seek injunctive relief, compensatory damages, and restitution in amounts by which Defendant was allegedly unjustly enriched based on its product sales. B. Defendant expressly denies any liability or wrongdoing of any kind or that Plaintiffs or any putative Class Member class member has been damaged in any amount or at all in connection with the claims alleged in the Action, and further contends that, for any purpose other than Settlement, this Action is not appropriate for class treatment. Defendant does not admit or concede any actual or potential fault, wrongdoing, or liability against it in the Action or any other actions. Defendant maintained during the entire pendency of the Action, and continues to maintain, that the challenged advertising practices are not deceptive or misleading as a matter of law. C. In the ▇▇California case, the Parties met and conferred regarding a potential motion to dismiss and reached an agreement regarding narrowing the claims to avoid motion practice. The Parties exchanged briefs and participated in an Early Neutral Evaluation Conference before Magistrate Judge ▇▇▇▇▇▇▇ case, Defendant filed a comprehensive Motion to Dismiss the entirety of ▇▇. ▇▇▇▇▇▇▇▇▇’▇ Complaint on August 30, 2023, and filed a Motion to Stay the case on September 6, 2023. In response to the Motion to Dismiss, Plaintiff ▇▇▇▇▇▇▇▇▇ filed a detailed First Amended Complaint on September 13, 2024. Defendant filed a renewed Motion to Dismiss the First Amended Complaint on October 5, 2023, challenging each of Plaintiff’s claims on a variety of grounds. The Parties extensively briefed the issues raised by Defendant’s Motion to Dismiss, as well as Defendant’s Motion to Stay. While briefing the issues raised in the First Amended Complaint, Plaintiff also served extensive Requests for Production, Requests for Admission, and Interrogatories, as well as a thorough Deposition Notice under FRCP 30(B)(6). Defendant responded to this discovery in November, 2023. D. The Parties began discussing settlement in May, 2024, and engaged in extensive negotiations regarding Plaintiffs’ claims. The Parties scheduled a mediation, and, in the lead up to it, exchanged informal discovery, including financial and sales records relevant to the claims and alleged damages. Plaintiffs’ Counsel spent significant time and effort analyzing these records to understand Defendant’s liability and the potential damages models available to Plaintiffs. The Parties also prepared comprehensive mediation briefs that discussed the claims, defenses, and alleged damages in detail. E. The Parties participated in an in-person mediation in Los Angeles on October 17, 2024, with ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ of JAMS. With the help of the mediatorThe Parties also participated in an Initial Scheduling Conference. The Parties then proceeded to exchange discovery, the with both sides serving initial disclosures and Plaintiff preparing and serving extensive requests for production and interrogatories. The Parties were able to reach also exchanged discovery letters and met and several times in connection with Plaintiff’s discovery requests. The Parties ultimately reached an agreement on discovery exchange in principle at accordance with the mediation Magistrate Judge’s procedures for resolving discovery disputes. Plaintiff also engaged two experts (a liability expert and negotiated a terms sheet, which was fully executed on October 21, 2024. F. As damages expert) and began designing a result liability analysis and a conjoint survey in anticipation of the conscientious litigation of the ▇▇▇▇▇▇▇▇▇ case and the lengthy, substantive, and good faith negotiations regarding settlement, Class Counsel was able to assess thoroughly the claims of the Settlement Class Members and Defendant’s marketing practices and defenses. G. Based on the above-outlined investigation and litigation, the current state of the law, the expense, burden and time necessary to prosecute the Action through trial and possible appeals, the risks and uncertainty of further prosecution of this Action considering the defenses at issue, the sharply contested legal and factual issues involved, and the relative benefits to be conferred upon the Settlement Class Members pursuant to this Agreement, Plaintiffs and Class Counsel have concluded that a Settlement with Defendant on the terms set forth herein is fair, reasonable, adequate, and in the best interests of the Settlement Class in light of all known facts and circumstances. H. Based on the foregoing, it is the desire of the Parties to fully, finally, and forever settle, compromise, and discharge all disputes and claims arising from or related to the Actions which exist between the Parties. Therefore, it is the intention of Plaintiffs and the Settlement Class that this Agreement shall constitute a full and complete Settlement and release of the Released Claims against Defendant.class certification expert