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Order Approving Varnum Settlement

This order approves a settlement between the plaintiffs and a group of objectors called the Varnum Group. Under the settlement, the Varnum Group withdraws its objections to the class action settlement and the plaintiffs agree to pay the Varnum Group's attorneys $300,000 from the attorneys' fees awarded to class counsel. The order also requires Blue Cross Blue Shield of Michigan to process any claims submitted by January 29, 2021 as timely and provide claims data to help the Varnum Group submit claims.

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106 views4 pages

Order Approving Varnum Settlement

This order approves a settlement between the plaintiffs and a group of objectors called the Varnum Group. Under the settlement, the Varnum Group withdraws its objections to the class action settlement and the plaintiffs agree to pay the Varnum Group's attorneys $300,000 from the attorneys' fees awarded to class counsel. The order also requires Blue Cross Blue Shield of Michigan to process any claims submitted by January 29, 2021 as timely and provide claims data to help the Varnum Group submit claims.

Uploaded by

caaloa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Case 2:10-cv-14360-DPH-MKM ECF No. 396, PageID.

19275 Filed 12/14/20 Page 1 of 4

UNITED STATES DISTRICT COURT


EASTERN DISTRICT OF MICHIGAN

THE SHANE GROUP, INC. ET AL.,


Civil Action No. 2:10-cv-14360-DPH-
Plaintiffs, on behalf of themselves MKM
and all others similarly situated,
vs.
Judge Denise Page Hood
BLUE CROSS BLUE SHIELD OF Magistrate Judge Mona K. Majzoub
MICHIGAN,
Defendant.

ORDER APPROVING SETTLEMENT WITH VARNUM GROUP PURSUANT TO


RULE 23(e)(5)(B)

WHEREAS, this matter has come before the Court by way of oral motion under Fed. R.

Civ. P. 23(e)(5)(B) for approval of the Plaintiffs’ settlement with objectors ADAC Automotive,

Baker College, Borroughs Corporation, Eagle Alloy Inc., Floracraft Corporation, Four Winds

Casino Resort, Frankenmuth Bavarian Inn Inc., Gemini Group Inc., GillRoy's Hardware/Morgan

Properties LLC, Grand Traverse Band of Ottawa and Chippewa Indians, Huizenga Group, Kent

Companies Inc., Magna International of America, Inc., Master Automatic Machine Company Inc.,

Petoskey Plastics Inc., SAF-Holland USA Inc., Terryberry Company LLC, Thelen Inc., Trillium

Staffing Solutions, Truss Technologies, and Wade Trim Group Inc., (collectively, the “Varnum

Group”);

WHEREAS, on September 30, 2019, this Court entered two orders (ECF 364 and 365) that

(a) granted Plaintiffs’ Motion for Final Approval of Settlement and Plan of Allocation (b) granted

Class Counsel’s Motion for Award of Attorneys’ Fees, Reimbursement of Expenses, and Payment

of Incentive Awards to Class Representatives, and (c) granted in part and denied in part the
Case 2:10-cv-14360-DPH-MKM ECF No. 396, PageID.19276 Filed 12/14/20 Page 2 of 4

Varnum Group’s Motion for Attorney Fees and Costs (collectively, the “Settlement Approval

Orders”);

WHEREAS, on October 28, 2019, the Varnum Group appealed the Settlement Approval

Orders to the United States Court of Appeals for the Sixth Circuit (ECF No. 371) (the “Varnum

Group Appeal”), and on November 8, 2019, Plaintiffs appealed the order granting in part attorney

fees to the Varnum Group (ECF No. 376) (the “Class Counsel Appeal”);

WHEREAS, on August 21, 2020, the United States Court of Appeals for the Sixth Circuit

entered an order dismissing both the Varnum Group Appeal and the Class Counsel Appeal for lack

of jurisdiction and remanded to this Court for purposes of determining an appropriate fee award to

counsel for the Varnum Group (ECF No. 389);

WHEREAS, on October 21, 2020, this Court entered the Stipulated Order Authorizing

Mediation of Varnum Group Objection and Motion for Attorney Fees before Paul Calico, Chief

Circuit Mediator, United States Court of Appeals for the Sixth Circuit (ECF No. 393);

WHEREAS, the parties and the Varnum Group also obtained the consent of the Honorable

Guy Cole, Chief Judge of the United States Court of Appeals for the Sixth Circuit, to continue

mediation with Mr. Calico;

WHEREAS, upon consideration of the appellate briefing, the Settlement Approval Orders,

and conferences with Class Counsel and Mr. Calico, the Varnum Group has concluded,

notwithstanding their objections, (a) that the Settlement is in their best interest, (b) that the Court’s

rulings in approving the Settlement are correct and without error, (c) that the Settlement should be

implemented in accordance with the Court’s Settlement Approval Orders, and (d) that further delay

in distributing compensation to the Class should be avoided to the extent possible;

2
Case 2:10-cv-14360-DPH-MKM ECF No. 396, PageID.19277 Filed 12/14/20 Page 3 of 4

WHEREAS, the Plaintiffs agree that the Varnum Group’s objections assisted in framing

the issues for consideration by the Court in connection with settlement approval under Fed. R. Civ.

P. 23(e) and improved the settlement approval process by causing the unsealing of court filings

which assisted class members in analyzing the merits of the Settlement.

WHEREAS, on December 10, 2020, this Court held a hearing by video conference

whereby Class Counsel informed the Court that a settlement had been reached wherein: (a) Class

Counsel and defendant Blue Cross Blue Shield of Michigan (“BCBSM”) agree that, subject to the

Court’s approval, all claims submitted by January 29, 2021 (unless extended for good cause) by

class members, including members of the Varnum Group, shall not be rejected on the grounds that

they are untimely; (b) BCBSM agrees to timely provide reasonably available claims data as needed

by members of the Varnum Group to submit claims by January 29, 2021 (unless extended for good

cause), and Class Counsel agree to assist class members as needed in submitting their claims; (c)

counsel for the Varnum Group has reduced their attorney fee request from in excess of $500,000

to $300,000, and Class Counsel will pay from their fee award $300,000 to counsel for the Varnum

Group within five business days of Class Counsel receiving their fee award; no amount will be

paid to counsel for the Varnum Group from the Settlement Fund to avoid reducing the Class

recovery or otherwise affecting class members; and (d) the Varnum Group will withdraw all of

their objections with prejudice within five business days of entry of this Order (the “Varnum

Settlement”); and

WHEREAS, the Court has considered the Varnum Settlement and is fully advised of its

terms and premises, and has considered the record of these proceedings, the representations,

arguments, and recommendations of counsel for the parties, and the requirements of law.

IT IS HEREBY ORDERED THAT:

3
Case 2:10-cv-14360-DPH-MKM ECF No. 396, PageID.19278 Filed 12/14/20 Page 4 of 4

A. The parties’ oral motion at the December 10, 2020 hearing for approval of the

Varnum Settlement, including the payment of $300,000 in attorney fees to the Varnum Group’s

counsel to be paid from Class Counsel’s fee award, is GRANTED.

B. Class Counsel shall pay counsel for the Varnum’s Group $300,000 within five

business days of Class Counsel’s receipt of their fee award in this case.

C. The Varnum Group’s motion for attorney fees and costs (ECF No. 342) is DENIED

as moot.

D. Within five days of entry of this Order, the Varnum Group shall withdraw all of

their objections to the Settlement with prejudice.

E. Any claims submitted by class members on or before January 29, 2021 (unless

extended for good cause) shall be considered timely and processed in accordance with the court-

approved plan of allocation and claim form (ECF 269-2). Blue Cross Blue Shield of Michigan

shall timely provide reasonably available claims data as needed to assist members of the Varnum

Group in submitting claims. Class Counsel shall assist class members as needed in submitting

claims.

SO ORDERED this 14th day of December 2020.

s/Denise Page Hood


United States District Judge

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