In a class action, one or more people, called Class Representatives or Named Plaintiffs (in this case, Patrick Kenny, Daniel Pipkin, Jennifer Patrick, Dao Phong, Ryan McKeen, Leron Levy, Luke Szulczewski, Michael Allan, Gary Cribbs, Shawn Grisham, Bobby Cline, Mark Laning, Clarissa Portales, Douglas White, Eric Thomas, Brian Sandstrom, and Colleen Fischer), sue on behalf of class of people who have similar claims. One court resolves the issues for all members of the class, except for those who timely exclude themselves from the class.Top
This lawsuit concerns software developed by Defendant Carrier iQ and deployed on millions of U.S. mobile devices. Plaintiffs allege that the software, in addition to gathering data about cellular service quality, intercepted private communications, content, and data on these devices. Plaintiffs allege that under certain circumstances, this private content has been, or could have been, transmitted off mobile devices without customers’ knowledge to third parties, including at least one device manufacturer and the author of the Android operating system. The lawsuit alleges violations of the Federal Wiretap Act, various state privacy and wiretap acts, various state consumer protection acts, the Magnuson-Moss Warranty Act, and the implied warranty of merchantability under various state laws. Defendants deny these allegations.
Defendants are Carrier iQ, Inc.; HTC America, Inc.; HTC Corporation; Huawei Device USA, Inc.; LG Electronics MobileComm U.S.A., Inc.; LG Electronics, Inc.; Motorola Mobility LLC; Pantech Wireless, Inc.; Samsung Electronics America, Inc.; and Samsung Electronics Co., Ltd.Top
The Court did not decide in favor of Plaintiffs or Defendants. Instead, both sides agreed to a settlement. That way, they avoid the cost of a trial, and the people affected will get compensation either directly or on their behalf. The Class Representatives and their attorneys think the settlement is in the best interests of the Plaintiffs and the Settlement Class Members (as defined below).Top
The Settlement Class has been defined as “All persons in the United States who, during the Class Period, purchased, owned, or were an Authorized User of any Covered Mobile Device.” Any person within the Settlement Class is a Settlement Class Member.
The Class Period is December 1, 2007 through March 1, 2016.
An Authorized User is a person authorized by name on the Wireless Provider account for a Covered Mobile Device during the Class Period.
A Covered Mobile Device is a telephone or tablet manufactured or marketed by any Manufacturer Defendant that was equipped with Carrier iQ software at the time of sale to end users of the Covered Mobile Device.
Manufacturer Defendants are HTC America, Inc.; HTC Corporation; Huawei Device USA, Inc.; LG Electronics MobileComm U.S.A., Inc.; LG Electronics, Inc.; Motorola Mobility LLC; Pantech Wireless, Inc.; Samsung Electronics America, Inc.; and Samsung Electronics Co., Ltd.
Wireless Provider means AT&T Mobility, Cricket, Sprint, or T-Mobile, as operator of, or in the case of Cricket, an entity providing services over, a wireless network in the United States.Top
If you are still not sure whether you are included, you can get more information at www.carrieriqsettlement.com. You may also call the Settlement Administrator at 1-877-368-7154 or send an email to email@example.com. In addition, you may contact Class Counsel at the address and phone number listed in the Notice.Top
i. Cash Payments
Defendants have agreed to create a $9 million Gross Settlement Fund which will cover payments to Settlement Class Members who file a timely and valid claim (“Eligible Class Members”). Subject to Court approval, the following amounts will be paid from the Gross Settlement Fund: (a) Service awards (up to $5,000 each) for each of the 17 Class Representatives and a former Named Plaintiff for their efforts in bringing and prosecuting this matter; (b) attorneys’ fees equal to 25% of the Gross Settlement Fund ($2.25 million), together with actual out of pocket costs and expenses of suit incurred by Class Counsel and members of the Court appointed Executive Committee; (c) the Settlement Administrator’s fees and costs, including the costs of notice to the Settlement Class per the plan appended to the Amended Settlement Agreement (currently estimated to be $999,855, subject to change based on the number of claims received); and (d) taxes, if any. The remaining amount (“Net Settlement Fund”) will be available for cash payments to Eligible Class Members on a pro rata basis.
ii. Potential Cy Pres Distribution
Please note: No one knows how many Settlement Class Members will submit claims for cash payments. If the volume of eligible claims make it economically infeasible to make cash distribution to eligible claimants, then, subject to Court approval, the Net Settlement Fund will be distributed equally to three cy pres recipients on behalf of the Settlement Class, each of which advocates on behalf of and/or performs research seeking to advance consumer electronic privacy: the Electronic Frontier Foundation, the Center for Democracy and Technology, and CyLab Usable Privacy and Security Laboratory at Carnegie Mellon University. If this cy pres distribution occurs, Eligible Class Members will not receive any monetary compensation directly.
iii. Injunctive Relief
In addition to the Gross Settlement fund, Defendant Carrier iQ agreed as part of the Amended Settlement Agreement to provide certain non-monetary relief, including the capability for wireless carriers to designate a port on a mobile device separate from the one used to send and receive SMS text messages for communicating instructions to the Carrier iQ software; privacy safeguards for URL metrics requested by Carrier iQ customers; and guidance to handset manufacturers on disabling logging functions that may be used during the debugging process before shipping devices for production. As part of the settlement, Carrier iQ represents and warrants that it implemented this relief prior to a sale of its assets to AT&T Mobility IP, LLC in 2015.
iv. Error Remediation
Carrier iQ also has fixed a software bug that had created the potential for the collection of data during error conditions, and prior to the 2015 sale of its assets to AT&T Mobility, it created testing protocols to prevent similar bugs in future deployments.Top
The Court has appointed the law firms of Hagens Berman Sobol Shapiro LLP and Pearson, Simon & Warshaw, LLP to represent you and other Settlement Class Members. Together, the lawyers are called Class Counsel. You will not be charged separately for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.Top
Class Counsel will ask the Court for attorneys’ fees equal to 25% of the Gross Settlement Fund ($2.25 million) and the actual out of pocket costs and expenses of litigation incurred by Class Counsel or the Court appointed Executive Committee not to exceed $160,000. These amounts are all subject to Court approval, and the Court may award less than these amounts. Defendants have agreed not to oppose these requests for fees, costs, and expenses.Top
To qualify for payment, you must submit a claim by June 4, 2016. You may file your claim online or via U.S. Mail, email, or fax.
If submitted online, your claim must be received no later than June 4, 2016.
By U.S. Mail, email, or fax:
If mailed, claim forms must be postmarked no later than June 4, 2016. If submitted by email or fax, claim forms must be received by June 4, 2016.
Remember, you must submit your claim by June 4, 2016 to be eligible for a payment.Top
The Court will hold a hearing on July 28, 2016 to decide whether to approve the settlement. If Judge Chen, the judge in this matter, approves the settlement, after that, there may be appeals. It’s always uncertain whether these appeals can be resolved, and resolving them can take time, likely more than a year. Everyone who sends in a claim form will be informed of the progress of the settlement by way of information posted on the settlement website. Please be patient.Top
Unless you exclude yourself, you are staying in the Settlement Class, and that means that you can’t sue, continue to sue, or be part of any other lawsuit against Defendants about the legal issues in this case. It also means that all of the Court’s orders will apply to you and legally bind you. If you stay in the class, regardless of whether you file a claim for payment, you will release all legal claims you may have against Defendants as to the facts, activities, or circumstances alleged in this Action. In brief, these are the legal claims that relate to the Carrier iQ software’s alleged interception and transmission of private data on certain mobile devices during the Class Period. These include legal claims under the Federal Wiretap Act, various state privacy and wiretap acts, various state consumer protection acts, the Magnuson-Moss Warranty Act, and the implied warranty of merchantability under various state laws. The “Release of Claims,” included in the Claim Form, describes exactly the legal claims that you give up if you stay in the class. If you sign the claim form, you will agree to a "Release of Claims" attached to the claim form, which describes exactly the legal claims that you give up if you get settlement benefits, whether by direct cash payment or by way of contribution to the three cy pres recipients listed in Section 7.ii of the Notice. If you don’t want to claim a payment from this settlement, but you want keep the right to sue or continue to sue Defendants on your own about the legal issues in this case, then you must take steps to get out. This is called excluding yourself from the Settlement Class—sometimes referred to as opting out of the Settlement Class.Top
No. Unless you exclude yourself, you give up the right to sue Defendants for the claims that this settlement resolves. If you have a pending lawsuit, speak to your lawyer in that lawsuit immediately. You must exclude yourself from this Settlement Class to continue your own lawsuit. Remember, the exclusion deadline is June 4, 2016.Top
No. If you exclude yourself, do not send in a claim form to ask for any money. But, you may sue, continue to sue, or be part of a different lawsuit against Defendants.Top
If you’re a Settlement Class Member, you can object to the settlement if you don’t like any part of it. You can give reasons why you think the Court should not approve it. The Court will consider your views. To object, you must send a letter to the Court saying that you object to the settlement in In re Carrier IQ, Inc. Consumer Privacy Litigation. You must state the basis for your objection and include any supporting papers. Be sure to include your name, address, telephone number, email address, and your signature.
To be considered, your objection must be sent to the Court by June 4, 2016. If you are represented by counsel, your objection must be filed through the court’s Case Management/Electronic Case Filing (CM/ECF) system. Otherwise, mail your objection to the address below:
Clerk of Court
Office of the Clerk
United States District Court
450 Golden Gate Avenue
San Francisco, CA 94102-3489
In-Person Alternative: Instead of mailing your objection, you may file your objection with the court in person at any location of the United States District Court for the Northern District of California.
You can ask the Court to deny approval by filing an objection. You can’t ask the Court to order a larger settlement; the Court can only approve or deny the settlement. If the Court denies approval, no settlement payments will be sent out, and the lawsuit will continue.
The Court will consider objections at the Fairness Hearing described in Question 19 of the Notice. You may appear at the hearing and ask to speak about the fairness of the settlement by following the instructions in Question 21 of the Notice. If you want to remain eligible to receive a payment from the settlement, even if you file an objection, you must also file a claim form. If you don’t file a valid claim, you will not be eligible to receive a cash payment if the settlement is approved.Top
Objecting is simply telling the Court that you don’t like something about the settlement. You can object only if you stay in the Settlement Class. Excluding yourself is telling the Court that you don’t want to be part of the Settlement Class. If you exclude yourself, you have no basis to object because the case no longer affects you.Top
If you do nothing, you won’t be able to claim money from this settlement. But, unless you exclude yourself, you won’t be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against any Defendants about the legal issues in this case, ever again.Top
The Court will hold a Fairness Hearing at 1:30 p.m. on July 28, 2016, at the United States District Court for the Northern District of California, 450 Golden Gate Avenue, Courtroom 5 – 17th Floor, San Francisco, CA 94102. At this hearing the Court will consider whether the settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. Judge Chen will listen to people who have asked to speak at the hearing. However, if you wish to speak, you must file a “Notice of Intention to Appear” as explained in response to Question 21 of the Notice. The Court may also decide how much to pay Class Counsel. After the hearing, the Court will decide whether to approve the settlement. We do not know how long these decisions will take.Top
No. Class Counsel will answer questions Judge Chen may have. But, you are welcome to come at your own expense. If you send an objection, you don’t have to come to Court to talk about it. As long as you filed your written objection with the Court on time, the Court will consider it. You may also pay your own lawyer to attend, but it’s not necessary.Top
You may ask the Court for permission to speak at the Fairness Hearing. To do so, you must send a letter saying that it is your “Notice of Intention to Appear in In re Carrier IQ, Inc. Consumer Privacy Litigation.” Be sure to include your name, address, telephone number, and your signature. Your Notice of Intention to Appear must be postmarked no later than June 4, 2016, and be sent to Class Counsel, Defendants' Counsel, and the Clerk of the Court at the three addresses below. You cannot speak at the hearing if you excluded yourself.
Daniel L. Warshaw
PEARSON SIMON &
WARSHAW, LLP 15165 Ventura Boulevard
Sherman Oaks, CA 91403
Fenwick & West LLP
555 California Street
San Francisco, CA 94104
Clerk of the Court
Office of the Clerk
United States District Court
450 Golden Gate Avenue
San Francisco, CA 94102-3489
In-Person Alternative: Instead of mailing your letter, you may file it in person at any location of the United States District Court for the Northern District of California.Top
The notice summarizes the proposed settlement. For the precise terms and conditions of the settlement, please see the Amended Settlement Agreement available by clicking here. You may also review the Amended Settlement Agreement and other court documents by accessing the Court docket in this case through the Court’s Public Access to Court Electronic Records (PACER) system at https://ecf.cand.uscourts.gov, or by visiting the office of the Clerk of the Court for the United States District Court for the Northern District of California, 450 Golden Gate Avenue, San Francisco, CA 94102, between 9:00 a.m. and 4:00 p.m., Monday through Friday, excluding Court holidays.
For questions about the settlement or the claims process, you may contact the Settlement Administrator at 1-877-368-7154, firstname.lastname@example.org, www.carrieriqsettlement.com.
PLEASE DO NOT TELEPHONE THE COURT OR THE COURT CLERK’S OFFICE TO INQUIRE ABOUT THIS SETTLEMENT OR THE CLAIM PROCESS.Top