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Magistrate Judge Timothy Rice of the United States District Court for the Eastern District of Pennsylvania authorized this notice to inform you about a proposed Settlement of this class action lawsuit and about all of your rights and options before the Court decides whether to approve the Settlement. The notice explains the lawsuit, the Settlement, and your legal rights.
The case is known as Reyes v. Zions First National Bank, Case No. 10-cv-0345, which was filed in 2010. The people who sued are called “Plaintiffs.” The companies sued are collectively called the “Defendants.” This Settlement is with a subset of the Defendants: Zions First National Bank, NetDeposit, LLC, and MP Technologies d/b/a Modern Payments. These defendants are referred to as “Zions Defendants.”
Defendant Teledraft, Inc. declared bankruptcy while this case was pending. It is insolvent.
The notice summarizes the Settlement, but you can view the complete Settlement Agreement on this website.
that the Zions Defendants violated federal law by initiating unauthorized
debits to consumers’ bank accounts that were originated by telephone and Internet
marketing entities Plaintiff alleges to be fraudulent. The Zions Defendants
deny Plaintiff’s allegations and deny any wrongdoing.
In a class action,
one or more people sue on behalf of other people who have similar claims. If
allowed by a court, all of these other people become part of a “class” or
“Class Members.” One lawsuit resolves the claims of all Class Members, except
for any who exclude themselves from the class. In this case, the Court held
that the individuals who filed this suit could represent a class for the
purposes of effectuating the Settlement.
The Court did not decide in favor of the Plaintiff or Zions
Defendants. Instead, both sides agreed to settle this case to avoid the burden,
cost, and risk of further litigation. The Settlement does not mean that any law
was broken or that the Zions Defendants did anything wrong. By settling, Zions
Defendants are not admitting any wrongdoing or liability. The Zions Defendants
continue to deny all factual and legal claims in this case. The Plaintiff and
his lawyers think the Settlement is best for all Class Members.
You are a member of the Settlement if you fall within this category of people:
All individuals in the United States as to whom ACH debit entries or remotely-created check drafts on their accounts were prepared by Defendants on behalf of the merchants identified as “Telemarketing Enterprises” in Plaintiff’s Second Amended Complaint during the period of January 26, 2006 through the present, and all individuals who incurred bank charges as a consequence of such ACH debit entries or remotely-created check drafts.
You may have received
a notice because your name and address appears in databases showing that you
had funds debited from your account or appear to have incurred insufficient
funds (NSF) charges as a result of the violations alleged in the complaint.
The Settlement creates a common fund of $37,500,000. This fund will be used to pay Class Members based on the amounts taken from their accounts, to pay the costs of notice and distribution, to pay plaintiff’s attorneys’ fees and expenses, and to pay a service award to the individual plaintiff who represented the class. The settlement also provides for an additional fund of up to $250,000 to cover claims for consumers debited by Teledraft, Inc. These consumers were debited by Teledraft, Inc. on behalf of companies using the names IDCustServ.com, IDProcs.com, IDthecs.com, PDloancs.com, PDCustserv.com, and PayDLCS.com. If the aggregate value of these claims exceeds $250,000, they will be covered by the common fund.
The net fund will be distributed based on transactional databases that identify most Class Members and the amounts debited from their accounts. A claim shall consist of any sums debited on behalf of one of the telemarketers or Internet marketers and/or any “insufficient funds” (NSF) charges incurred by the Class Member. An NSF charge shall be assumed where a return code in the database indicates an item was returned NSF. A claim amount shall be $25 for each NSF. Thus, by way of example, a person whose account was debited $100 on behalf of a telemarketer and shows three NSF returns will have a claim amount of $175. A Class Member with just one NSF charge and no debited amount will have a claim amount of $25.
To the extent Class Members’ bank account information is available, each claim shall be distributed pro rata based on the claim amount directly into each Class Member’s account by ACH without the need to file a claim. If you believe you are a Class Member and would prefer to receive a check in the amount of your pro rata share of the fund, please click here. Likewise, if you believe you are a Class Member and have changed banks or bank account numbers since the money was withdrawn from your account (i.e., at any point between October 2006 and March 2010), please click here to update your account information.
If you believe your account was debited by
IDCustServ.com, IDProcs.com, IDthecs.com, PDloancs.com, PDCustserv.com, or
PayDLCS.com during the period of February 15, 2008 through September 1, 2009,
please click here
for additional information about how to file a
If the Settlement is given Final Approval, you and all other Class Members will release certain claims defined in the Settlement as “Released Claims.” In general terms, Class Members who do not validly request to be excluded from the Settlement will release all Zions Defendants from any claims that have been or could have been asserted based upon the facts alleged in the complaint, including claims for money damages. If the Settlement is given Final Approval, the claims that were asserted against the Zions Defendants in the lawsuit will be dismissed with prejudice.
No. Unless you exclude yourself, you give up the right to sue the Zions Defendants for any claims that this Settlement resolves.
To exclude yourself, you must send a letter by mail clearly stating that you want to be excluded from the Settlement in Reyes v. Zions First National Bank, Case No. 10-cv-345. Include your name, address, telephone number, signature, and date, and mail your request for exclusion to:
All requests must be completed or postmarked by November 1, 2016.
You can object to the Settlement if you do not like some part or all of it. You must give reasons why you think the Court should not approve the Settlement. You may also object to Plaintiff’s Counsel’s request for attorneys’ fees, reimbursement of expenses, and a service award to the named plaintiff. To object, you must file your objection with the Court no later than November 1, 2016, and mail your objection to these two addresses postmarked no later than November 1, 2016.
|Plaintiff’s Counsel||Counsel For Zions Defendants|
Howard I. Langer|
LANGER, GROGAN & DIVER, P.C.
1717 Arch Street, Suite 4130
Philadelphia, PA 19103
|Grant S. Palmer|
BLANK ROME LLP
One Logan Square
130 North 18th Street
Philadelphia, PA 19103
The Court appointed Langer Grogan & Diver, P.C. to represent the class. You will not be charged for these lawyers, because their fees will be paid from the settlement fund if the court approves the fees. If you want to be represented by your own lawyer in this case, you may hire one at your own expense.
Plaintiff’s Counsel will ask the Court to award attorneys’ fees and reimbursement of the expenses they had in this case. Plaintiff’s Counsel’s application for attorneys’ fees and expenses will be filed with the Court by November 14, 2016, and posted on the Settlement website. Plaintiff’s Counsel will request up to one-third of the common fund in fees. They will also seek reimbursement for the litigation expenses they have incurred over this time.
Plaintiff’s Counsel will also ask for service awards of up to $25,000 for the named Plaintiff for his service on behalf of the class. The named Plaintiff worked with Plaintiff’s Counsel to litigate this case over the last six years, including retaining counsel, producing documents and being deposed by Defendants.
All fees, costs, and service awards are entirely in the discretion of the District Court. Any fees, costs, and service awards that the Court awards will be paid from the Common Fund.
At the Fairness Hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. The Court will also consider Plaintiff’s Counsel’s request for attorneys’ fees and expenses and a service award for the named Plaintiff. If there are objections, the Court will consider them. If you do not file a written objection, you will not be permitted to speak at the Fairness Hearing. If you submitted an objection and stated in your objection that you wish to be heard at the Fairness Hearing, you will be allowed to speak at the hearing. After the Fairness Hearing, the Court will decide whether to approve the Settlement and how much to award for fees, expenses and service awards.
The Court will hold the Fairness Hearing on November 21, 2016 at 1:30 p.m., at the United States
Courthouse, 601 Market Street, Philadelphia, PA 19106. A motion for final
approval of the Settlement will be filed by Plaintiff’s Counsel by November 14, 2016. The motion will
also be posted on this website.
The Fairness Hearing may be moved to a different date or time without additional notice, so it is recommended that you periodically check www.TelemarketingSettlement.com for updated information. Members of the Class who support the Settlement do not need to appear at the hearing or take any other action to indicate their approval of the Settlement. Members of the Class who object to the Settlement are not required to attend the Fairness Hearing.
The notice summarizes the Settlement. More details are in the Settlement Agreement by clicking here. If you still have questions, call the Settlement Administrator at 1-844-412-1946, contact them via the Settlement website, or write to Reyes v. Zions First National Bank; c/o Heffler Claims Group; Po Box 58547; Philadelphia, PA 19102-8547.
For the vast majority of Class Members, the answer is No. Class counsel has obtained databases identifying the bank account information of most Class Members. To the extent this information appears to remain accurate, each Class Member’s portion of the fund will be deposited directly into their account without the need to file a claim.
However, if you believe your account was debited by IDCustServ.com, IDProcs.com, IDthecs.com, PDloancs.com, PDCustserv.com, or PayDLCS.com during the period of February 15, 2008 through September 1, 2009, you may file a claim here. This claim will require you to affirm under penalty of perjury that you believe money was taken from your account by these entities. The claim will be evaluated by the claims administrator.
If you would prefer to receive a check, you may update your information by clicking here to visit the Payment Options section of this website.
The vast majority of Class Members do not need to do anything. Settlement funds will be distributed directly to bank accounts based on bank account information dating from the period of October 2006 through March 2010. Class counsel has obtained databases identifying the bank account information of most class members. To the extent this information appears to remain accurate, each class member’s portion of the fund will be deposited directly into their account without the need to file a claim.
If your bank account has changed since the period of October 2006 through March 2010, you may update your account information on this website by clicking here to visit the Payment Options section of the site.
each Class Member whose account information is no longer valid, checks will be
mailed to their last known address if available. If you would like to receive a check instead of an automatic disbursement, you may so indicate here.