IN RE: PAYLESS HOLDINGS LLC, et al.

Case No. 19-40883-659 in United States Bankruptcy Court for the Eastern District of Missouri, Eastern Division

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NOTICE OF PENDENCY OF CLASS ACTION AND PROPOSED SETTLEMENT
UNITED STATE BANKRUPTCY COURT, EASTERN DISTRICT OF MISSOURI
EASTERN DIVISION

In Re: Payless Holdings LLC, et al., Case No. 19-40883-659

If you worked for Payless ShoeSource in a non-exempt or hourly-paid position in California at any time from August 10, 2017 through July 31, 2019, you could get a payment from a class action settlement.

The United States Bankruptcy Court for the Eastern District of Missouri, Eastern Division, authorized this notice.  This is not a solicitation from a lawyer.

This document describes your rights with respect to the Payless class action.  Please read it carefully.  The details of the action and settlement are described below, but the relevant points are as follows:

  • A settlement of a class action lawsuit for $53,750.00, will provide approximately $27,958.33 to all current and former nonexempt or hourly employees of Payless ShoeSource, Inc. (“Payless”) within California at any time beginning August 10, 2017 through and including July 31, 2019 (“Class Members”);

  • The settlement resolves certain claims in a lawsuit in which Plaintiff asserted claims against the Payless under the California Labor Code for alleged failure to authorize timely, uninterrupted, off duty, ten-minute rest periods, provide accurate wage statements, and timely pay final wages, and derivative claims under the California Unfair Competition Law;

  • Payless denied all liability and vigorously defended its employment practices;

  • The parties agreed that the settlement was reasonable to avoid the costs and risks associated with continuing the lawsuit in the Bankruptcy Court;

  • The settlement pays money to current and former non-exempt employees like you and releases Payless from liability;

  • Court-appointed lawyers for the Class Members will ask the Court for up to $17,916.67 from the settlement as fees and costs (33-1/3% of the total settlement amount), and up to $5,375.00 from the settlement for the lawyers’ financial and strategic adviser (10% of the total settlement amount);

  • The two sides disagree on whether or not Plaintiff could have prevailed at trial and, if so, how much money could have been won;

  • The Bankruptcy Court overseeing this case still has to decide whether the settlement is fair and whether to approve the settlement.  Payments will be made if the Bankruptcy Court approves the settlement and after appeals are resolved.  Please be patient.

  • The settlement does not fully resolve certain claims asserted by Plaintiff against Payless arising under the Fair Credit Reporting Act, the California Investigative Consumer Reporting Agencies Act and the California Consumer Credit Reporting Agencies Act.  Such claims will be adjudicated by the United States District Court for the Northern District of California, but any recovery on such claims will be available solely to the extent there is indemnification coverage under any insurance policies on account of any settlement or judgment in the Class Action.

  • Your legal rights are affected whether you act, or do not act.  These rights and options—and the deadlines to exercise them—are explained in this notice.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

Do Nothing

You will be a part of the settlement and be bound by its terms.  You will receive payment. 

EXCLUDE YOURSELF (Opt Out)

You may elect to opt out of the Settlement.  If you do so, you will get no payment, but will not be bound by the Settlement.  However, please note that claims and causes of action against Payless arising prior to January 14, 2020 have been released and discharged through Payless’ chapter 11 plan or reorganization if you have not previously filed a proof of claim in Payless’ bankruptcy cases.  Therefore, your claim may be time barred if you elect to opt out of the Settlement.  Your request for exclusion must be postmarked or fax stamped on or before May 11, 2023.

OBJECT

Write to the Court about why you do not like the settlement.

GO TO A HEARING

Ask to speak in Court about the fairness of the settlement.