Lubocki, et al. v. ZipRealty, Inc.

-- Please see below for update as of August 22nd --

Overview
A proposed settlement has been reached in a putative class action lawsuit against ZipRealty entitled Lubocki, et al. v. ZipRealty, Inc., Case No. CV 07 2959 SJO (JCX) (C.D. Cal.). The lawsuit sought damages, injunctive relief, and declaratory relief in connection with unlawful practices allegedly engaged in by ZipRealty in denying certain current and former real estate sales agents (1) reimbursement of business expenses and/or (2) commissions on sales that were pending but not yet final at the time the agents stopped working for ZipRealty. The original complaint alleged causes of action for Reimbursement of Business Expenses, Breach of Contract, Common Count, Unfair and Unlawful Business Practices, Unjust Enrichment, Quantum Meruit, Declaratory Relief, Failure to Pay Wages, Non-Payment of Minimum Wages, and Failure to Compensate for Hours Worked.

The Court has ruled that, for purposes of this settlement only, a class is conditionally certified as follows:

(A) All current and former ZipRealty real estate sales agents who worked for ZipRealty outside of the State of California, from whom ZipRealty deducted a CAO charge from May 4, 2003 through September 30, 2005; and

(B) All former ZipRealty real estate sales agents whose employment terminated in the period between May 4, 2003 and August 31, 2007, who had a pending transaction at the time their employment terminated that subsequently closed, but who were not paid the same commission on that pending transaction as they would have received had they remained employed at the time the pending transaction closed.

Together, these two categories of claimants are referred to as the “Settlement Class.”

Benefits to the Class
ZipRealty shall pay Three Million Five Hundred Fifty Thousand Dollars ($3,550,000) (hereinafter, “Settlement Payment”) to the proposed Settlement Class.

This Settlement Payment shall be the full extent of ZipRealty’s monetary obligations under the proposed Class Action Settlement Agreement. ZipRealty shall not be liable for any additional amounts including, but not limited to, any pre- or post-judgment interest, any attorneys’ fees, expenses, or costs incurred by counsel for the proposed settlement class (including any costs of Notice or administration of the proposed settlement), any expenses incurred by any third-party claims administrator, any expenses incurred by any member of the proposed Settlement Class in making a claim or otherwise participating in the proposed settlement (including any incentive awards to the Representative Plaintiffs), or any taxes or penalties (including any “employer” payroll tax contributions) owed by any person in connection with the proposed settlement.

Objections and Exclusions
If you remain in the Settlement Class and object to the Settlement, you have a right to ask the court to reject the Settlement. You also have a right to be heard in person or through Counsel at the hearing scheduled on March 10, 2008. You must file your objection in writing with the Clerk of the United States District Court, Central District of California postmarked no later than February 18, 2008. In order to have your objections considered, you must follow the instructions detailed in the full Notice.

If you wish to be excluded from the Settlement Class, you must submit a signed and dated request in writing to the Claims Administrator at Lubocki, et al. v. ZipRealty, Inc., c/o The Garden City Group, Inc., P.O. Box 9224, Dublin, OH 43017-4624. Your request for exclusion must identify the case name and state your full name, address and telephone number. In addition, it should include a statement that clearly sets out your intention to exclude yourself. Your request must be postmarked no later than February 18, 2008. Any Class Member who does not make a timely request for exclusion will be deemed to be subject to and bound by the Class Action Settlement Agreement.

Settlement Hearing
A hearing to determine whether the proposed settlement is fair and reasonable and should be finally approved will be held on March 10, 2008 at 10:00 a.m. in Court Room 880 of the U.S. District Court, Central District of California, unless the Court changes that date.

You are welcome to attend the hearing, but it is not necessary for you to be there. If you wish to be represented at the hearing by your own attorney at your own expense, your attorney must notify the Clerk of the Court, and Class Counsel and ZipRealty’s Counsel in writing at the addresses provided in the Notice, and such notification must be filed with the Court and mailed to all counsel, by February 18, 2008.

Update as of August 22, 2008: The distribution amounts should be finalized in the next 2-3 weeks. Once that process is completed, checks will mailed out to the addresses that class members stated on their claim forms. Because the status of a number of claims were pending, that delayed the entire process. The settlement is structured so that claimants receive a pro-rata share in the unclaimed funds instead of that money reverting to Zip Realty. This non-reversion settlement serves to benefit class members who submitted claims, so the distributions will be made once the final number of claimants is determined. Interest earned on the settlement fund, excluding legal fees and costs, will be added to the settlement fund for the benefit of the class. The distributions are expected to be made during the month of September. If you have further questions, please email class counsel, Sandeep Baweja, at sb@bawejalaw.com.

PLEASE NOTE THE FOLLOWING IMPORTANT DATES:

February 18, 2008	Request for Exclusion Deadline
February 18, 2008	Objection Deadline
March 10, 2008 at 10:00 a.m.	Settlement Hearing
March 24, 2008	Claim Form Deadline