Soto v. Banco Popular de Puerto Rico, No. 3:20-cv-01057 (D.P.R.

)
Orama Caraballo et al. v. Banco Popular de Puerto Rico, No. 3:22-cv-01107
(D.P.R.)

NOTICE OF PENDING CLASS ACTION AND PROPOSED SETTLEMENT

READ THIS NOTICE FULLY AND CAREFULLY; THE PROPOSED SETTLEMENT

MAY AFFECT YOUR RIGHTS!

IF YOU HAVE OR HAD A CHECKING ACCOUNT WITH BANCO

POPULAR DE PUERTO RICO (“DEFENDANT” OR “BPPR”) AND YOU
WERE CHARGED CERTAIN OVERDRAFT OR NSF FEES BETWEEN
FEBURARY 1, 2016 AND APRIL 1, 2022, THEN YOU MAY BE ENTITLED
TO A PAYMENT FROM A CLASS ACTION SETTLEMENT
The United States District Court for the District of Puerto Rico has authorized this
Notice; it is not a solicitation from a lawyer.
SUMMARY OF YOUR OPTIONS AND THE LEGAL EFFECT OF EACH OPTION

DO NOTHING If you don’t do anything, you will receive a payment from the
Settlement Fund so long as you do not opt-out of or exclude
yourself from the Settlement (described in the next box),
assuming the Settlement is finally approved.

EXCLUDE YOURSELF You can choose to exclude yourself from the settlement or “opt-
FROM THE out.” This means you choose not to participate in the Settlement.
SETTLEMENT; You will keep your individual claims against Defendant but you
RECEIVE NO PAYMENT will not receive a payment for Class Fees as defined in the
BUT RELEASE NO Settlement. If you exclude yourself from the Settlement but
CLAIMS want to recover against Defendant, you would have to file a
separate lawsuit or claim.

OBJECT TO THE You can file an objection with the Court explaining why you
SETTLEMENT believe the Court should reject the Settlement. If your objection
is overruled by the Court, then you may receive a payment and
you will not be able to sue Defendant for the claims asserted in
this litigation. If the Court agrees with your objection, then the
Settlement may not be approved.

These rights and options – and the deadlines to exercise them – along with the material terms of
the settlement are explained in this notice.

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 BASIC INFORMATION

1. What are these lawsuits about?

The lawsuits that are being settled are named Soto et al. v. Banco Popular de Puerto Rico, and Orama
Caraballo et al. v. Banco Popular de Puerto Rico. They are pending in the United States District Court
for the District of Puerto Rico, Case Nos. 3:20-cv-01057 and 3:22-cv-01107. The cases are “class
actions.” That means that the “Class Representatives” are individuals who are acting on behalf of
current and former customers who were assessed certain Class Fees between February 1, 2016 and
April 1, 2022. The Class Representatives have asserted a claim for breach of BPPR’s consumer
checking account agreement based on overdraft and insufficient funds fees charged in connection with
retried ACH payments and checks.

Defendant does not deny it charged fees of the type that the Class Representatives are complaining about,
but contends it did so properly and in accordance with the terms of its agreements and applicable law.
Defendant therefore denies that its practices give rise to claims for damages by the Class Representatives
or any Settlement Class Members.

2. Why did I receive this Notice of these lawsuits?

You received this notice because Defendant’s records indicate that you were charged one or more Class
Fees that are the subject of these Actions. The Court directed that this notice be sent to all Settlement
Class Members because each such member has a right to know about the proposed settlement and the
options available to him or her before the Court decides whether to approve the Settlement.

3. Why did the parties settle?

In any lawsuit, there are risks and potential benefits that come with a trial versus settling at an earlier
stage. It is the Class Representatives’ and their lawyers’ job to identify when a proposed settlement offer
is good enough that it justifies recommending settling the case instead of continuing to trial. In a class
action, the Class Representatives’ lawyers, known as Class Counsel, make this recommendation to the
Class Representatives. The Class Representatives have the duty to act in the best interests of the class as
a whole and, in this case, it is their belief, as well as Class Counsels’ opinion, that this Settlement is in
the best interest of all Settlement Class Members.

There is legal uncertainty about whether a judge or a jury will find that Defendant was contractually and
otherwise legally obligated not to assess the fees at issue. And even if it was contractually wrong to assess
these fees, there is uncertainty about whether the Class Representatives’ claims are subject to other defenses
that might result in no or less recovery to Settlement Class Members. Even if the Class Representatives
were to win at trial, there is no assurance that the Settlement Class Members would be awarded more than
the current settlement amount and it may take years of litigation before any payments would be made. By
settling, the Settlement Class Members will avoid these and other risks and the delays associated with
continued litigation.

While Defendant disputes the allegations in the lawsuit and denies any liability or wrongdoing, it enters
into the Settlement solely to avoid the expense, inconvenience, and distraction of further proceedings
in the litigation.

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 WHO IS IN THE SETTLEMENT

4. How do I know if I am part of the Settlement?

If you received this notice, then Defendant’s records indicate that you are a member of the Settlement
Class who is entitled to receive a payment or credit to your Account.

YOUR OPTIONS

5. What options do I have with respect to the Settlement?

You have three options: (1) do nothing and you will receive a payment according to the terms of this
Settlement; (2) exclude yourself from the settlement (“opt-out” of it); or (3) participate in the
Settlement but object to it. Each of these options is described in a separate section below.

6. What are the critical deadlines?

There is no deadline to receive a payment. If you do nothing, then you will get a payment if the
Settlement is finally approved.

The deadline for sending a letter to exclude yourself from or opt-out of the settlement is February 12,
2023.

The deadline to file an objection with the Court is also February 12, 2023.

7. How do I decide which option to choose?

If you do not like the Settlement and you believe that you could receive more money by pursuing your
claims on your own (with or without an attorney that you could hire) and you are comfortable with the
risk that you might lose your case or get less than you would in this Settlement, then you may want to
consider opting out.

If you believe the Settlement is unreasonable, unfair, or inadequate and the Court should reject the
Settlement, you can object to the Settlement. The Court will decide if your objection is valid. If the
Court agrees, then the Settlement may not be approved and no payments will be made to you or any
other member of the Class at this time. If your objection (and any other objection) is overruled, and
the Settlement is approved, then you may still get a payment, and will be bound by the Settlement.

If you want to participate in the Settlement, then you do not have to do anything; you will receive a
payment if the Settlement is approved by the Court and becomes final.

8. What has to happen for the Settlement to be approved?

The Court has to decide that the Settlement is fair, reasonable, and adequate before it will approve it.
The Court already has decided to provide Preliminary Approval of the Settlement, which is why you
received a notice. The Court will make a final decision regarding the Settlement at or after a “Fairness
Hearing” or “Final Approval Hearing,” which is currently scheduled for March 14, 2023.

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 THE SETTLEMENT PAYMENT

9. How much is the Settlement?

Defendant has agreed to create a Settlement Fund of $5,500,000.00.

As discussed separately below, Attorneys’ Fees and Costs, and the costs paid to a third-party Settlement
Administrator to administer the Settlement (including mailing and emailing notice) will be paid out of
the Settlement Fund. The Net Settlement Fund will be divided among all Settlement Class Members
entitled to Settlement Class Member Payments based on formulas described in the Settlement
Agreement.
10. How much of the Settlement Fund will be used to pay for attorney fees and costs?

Class Counsel will request the Court to approve Attorneys’ Fees of not more than 33% of the Settlement
Fund, and will request that it be reimbursed for litigation costs incurred in prosecuting the case. The
Court will decide the amount of the Attorneys’ Fees and Costs based on a number of factors, including
the risk associated with bringing the case on a contingency basis, the amount of time spent on the case,
the amount of costs incurred to prosecute the case, the quality of the work, and the outcome of the case.

11. How much of the Settlement Fund will be used to pay the Class Representative a
Service Award?

Class Counsel will request that the Class Representatives be paid a Service Award in the amount of
$10,000.00 each for their work in connection with this case. The Service Awards must be approved by
the Court.

12. How much will my payment be?

The balance of the Settlement Fund after Attorneys’ Fees and Costs, the Service Award and the
Settlement Administrator’s fees, also known as the Net Settlement Fund, will be divided among all
Settlement Class Members entitled to Settlement Class Member Payments in accordance with the
formulas outlined in the Settlement Agreement. Current customers of Defendant will receive a credit
to their Accounts for the amount they are entitled to receive. Former customers of Defendant will be
sent a check from the Settlement Administrator.

13. Do I have to do anything if I want to participate in the Settlement?

No. If you received this notice, then you may be entitled to receive a payment for a Class Fee without
having to make a claim, unless you choose to exclude yourself from the settlement, or “Opt-Out.”

14. When will I receive my payment?

The Court will hold a Final Approval Hearing on March 14, 2023, at 4:00 P.M. to consider whether the
Settlement should be approved. If the Court approves the Settlement, then payments should be made or
credits should be issued approximately 90 days later. Checks must be cashed within 90 days from the
date on the payment notice. However, if someone objects to the Settlement, and the objection is
sustained, then there is no Settlement. Even if all objections are overruled and the Court approves the
Settlement, an objector could appeal, and it might take months or even years to have the appeal resolved,
which would delay any payment.

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 EXCLUDING YOURSELF FROM THE SETTLEMENT

15. How do I exclude myself from the Settlement?

If you do not want to receive a payment or if you want to keep any right you may have to sue Defendant
for the claims alleged in this lawsuit, then you must exclude yourself, or “opt-out.”

To opt-out, you must send a letter to the Settlement Administrator that you want to be excluded. Your
letter can simply say “I hereby elect to be excluded from the settlement in the Soto et al. v. Banco Popular
de Puerto Rico class action. The request must include your signature, address, the last four digits of your
account number(s) or former account number(s) or other information to identify the relevant bank
account, and current contact information such as your address, telephone number, and email address.
Your exclusion or opt-out request must be postmarked by February 12, 2023, and sent to:
Soto et al. v. Banco Popular de Puerto Rico
Attn: Opt-Out Requests: BPPR Fee Class Action
Soto v. BPPR
c/o Kroll Settlement Administration
PO Box 225391
New York, NY 10150-5391

16. What happens if I opt-out of the Settlement?

If you opt-out of the Settlement, you will preserve and not give up any of your rights to sue Defendant
for the claims alleged in this case. However, you will not be entitled to receive a payment from the
Settlement.

OBJECTING TO THE SETTLEMENT

17. How do I notify the Court that I do not like the Settlement?

You can object to the Settlement or any part of it that you do not like IF you do not exclude yourself,
or opt-out, from the Settlement. (Settlement Class Members who exclude themselves from the
Settlement have no right to object to how other Settlement Class Members are treated.) To object, you
must send a written document by mail or private courier (e.g., Federal Express) to the Clerk of Court,
Settlement Administrator, Class Counsel, and Defendant’s Counsel at the addresses below. Your
objection must include the following information:

a. the name of the Action or other information to confirm Objector is a Class Member;

b. the objector’s full name, address, email address (if any), and telephone number;

c. all grounds for the objection, accompanied by any legal support for the objection known to
the objector or objector’s counsel;

d. the number of times the objector has objected to a class action settlement within the five years
preceding the date that the objector files the objection, the caption of each case in which the objector
has made such objection, and a copy of any orders related to or ruling upon the objector’s prior
objections that were issued by the trial and appellate courts in each listed case;

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 e. the identity of all counsel who represent the objector, including any former or current counsel
who may be entitled to compensation for any reason related to the objection to the Settlement or fee
application;

f. the number of times in which the objector’s counsel and/or counsel’s law firm have objected to a
class action settlement within the five years preceding the date that of the filed objection, the caption of
each case in which counsel or the firm has made such objection and a copy of any orders related to or
ruling upon counsel’s or the counsel’s law firm’s prior objections that were issued by the trial and appellate
courts in each listed case in which the objector’s counsel and/or counsel’s law firm have objected to a
class action settlement within the preceding five years;

g. any and all agreements that relate to the objection or the process of objecting—whether written
or oral—between objector or objector’s counsel and any other Person or entity;

h. the identity of all counsel (if any) representing the objector who will appear at the Final
Approval Hearing;

i. a list of all persons who will be called to testify at the Final Approval Hearing in support of
the objection;

j. a statement confirming whether the objector intends to personally appear and/or testify at the
Final Approval Hearing; and

k. the objector’s signature (an attorney’s signature is not sufficient).

l. If the objection is made by or through an attorney, the written objection must also include:
(a)the identity and number of the Settlement Class Members represented by objector’s counsel;
(b)the identity and number of such represented Settlement Class members who have opted out of the
Settlement Class; and (c) the identity and number of such represented Settlement Class Members who
have remained in the Settlement Class and have not objected. If the attorney intends to seek fees and
expenses from anyone other than the objectors he or she represents, the attorney shall also file with the
Court and serve upon Class Counsel and BPPR’s Counsel, not later than 15 days before the Final
Fairness Hearing or as the Court may otherwise direct, a document containing the following: (i) the
amount of fees sought by the attorney for representing the objector and the factual and legal justification
for the fees being sought; (ii) a statement regarding whether the fees being sought were calculated on
the basis of a lodestar, contingency, or other method; (iii) the number of hours already spent by the
attorney and an estimate of the hours to be spent in the future; and (iv) the attorney’s hourly rate.

All objections must be post-marked no later than February 12, 2023, and must be mailed to the
Settlement Administrator as follows:
Soto v. BPPR
c/o Kroll Settlement Administration
PO Box 225391
New York, NY 10150-5391

18. What is the difference between objecting and requesting exclusion from the settlement?

Objecting is telling the Court that you do not believe the Settlement is fair, reasonable, and adequate for
the Settlement Class, and asking the Court to reject it. You can object only if you do not opt-out of the
Settlement. If you object to the Settlement and do not opt-out, then you are entitled to a payment for a
Class Fee if the Settlement is approved, but you will release claims you might have against Defendant.

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Excluding yourself or opting-out is telling the Court that you do not want to be part of the Settlement,
and do not want to receive a payment under the Settlement or release claims you might have against
Defendant for the claims alleged in this lawsuit.

19. What happens if I object to the Settlement?

If the Court sustains your objection, or the objection of any other member of the Settlement Class, then
there is no Settlement. If you object, but the Court overrules your objection and any other objection(s),
then you will be part of the Settlement.

THE COURT’S FINAL APPROVAL HEARING

20. When and where will the Court decide whether to approve the Settlement?

The Court will hold a Final Approval or Fairness Hearing at 4:00 P.M. on March 14, 2023, in
Courtroom Four on the third floor of the United States District Court for the District of Puerto Rico,
which is located at Jose V. Toledo U.S. Courthouse, 300 Recinto Sur St., San Juan, Puerto Rico 00901.
At this hearing, the Court will consider whether the Settlement is fair, reasonable and adequate. If there
are objections, the Court will consider them. The Court may also decide how much to award Class
Counsel for Attorneys’ Fees and Costs and the amount of the Service Awards to the Class
Representatives. The hearing may be virtual, in which case the instructions to participate shall be posted
on the Settlement Website at www.PRBankFeeClassAction.com.

21. Do I have to come to the hearing?

No. Class Counsel will answer any questions the Court may have. You may attend if you desire to do
so.

22. May I speak at the hearing?

If you have objected, you may ask the Court for permission to speak at the Final Approval Hearing. To
do so, you must include with your objection, described in Question 17, above, the statement, “I hereby
give notice that I intend to appear at the Final Approval Hearing.”

THE LAWYERS REPRESENTING YOU

23. Do I have a lawyer in this case?

The Court ordered that the lawyers and their law firms referred to in this notice as “Class Counsel”
will represent you and the other Settlement Class Members.

David Indiano
Indiano & Williams, P.S.C.
207 Del Parque St.; 3rd Floor
San Juan, Puerto Rico 00912
787-641-4544
[email protected]

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Jeffrey Kaliel
Sophia Goren Gold
KalielGold PLLC
1100 15th St. NW
4th Floor
Washington, DC 20005
202-350-4783
[email protected]
[email protected]

24. Do I have to pay the lawyer for accomplishing this result?

No. Class Counsel will be paid directly from the Settlement Fund.

25. Who determines what the Attorneys’ fees will be?

The Court will be asked to approve the amount of Attorneys’ Fees at the Fairness Hearing. Class Counsel
will file an application for Attorneys’ Fees and Costs and will specify the amount being sought as
discussed above. You may review a copy of the fee application at the Settlement Website established by
the Settlement Administrator, or by requesting the court record online from the United States District
Court for the District of Puerto Rico at Jose V. Toledo U.S. Courthouse, 300 Recinto Sur St., San Juan,
Puerto Rico 00901.

GETTING MORE INFORMATION

This notice only summarizes the proposed Settlement. More details are contained in the
Settlement Agreement, which can be viewed/obtained online at www.PRBankFeeClassAction.com or
at the Office of the Clerk of the United States District Court for the District of Puerto Rico, which is
located at Jose V. Toledo U.S. Courthouse, 300 Recinto Sur St., San Juan, Puerto Rico 00901, by
asking for the Court file containing the Motion For Preliminary Approval of Class Settlement (the
Settlement Agreement is attached to the motion) or obtaining a copy online at
https://eservices.archives.gov/orderonline.

For additional information about the settlement and/or to obtain copies of the Settlement Agreement,
or to change your address for purposes of receiving a payment, you should contact the Settlement
Administrator as follows:

Soto v. BPPR
c/o Kroll Settlement Administration
PO Box 225391
New York, NY 10150-5391

For more information, you also can contact the Class Counsel as follows:
David Indiano
Indiano & Williams, P.S.C.
207 Del Parque St.; 3rd Floor
San Juan, Puerto Rico 00912
787-641-4544
[email protected]

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Jeffrey Kaliel
Sophia Goren Gold
KalielGold PLLC
1100 15th St. NW
4th Floor
Washington, DC 20005
202-350-4783
[email protected]
[email protected]

PLEASE DO NOT CONTACT THE COURT OR ANY REPRESENTATIVE OF DEFENDANT

CONCERNING THIS NOTICE OR THE SETTLEMENT.

Esta notificación está disponible en español en la siguiente página web:

w w w . P R B a n k F e e C l a s s A c t i o n . c o m o puede llamar a 833-709-0653 para pedir una
copia por correo.