Hours and wages lawsuit settled for $99 million

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http://www.marketwatch.com/story/pl...s-action-wage-and-hour-claims-2012-01-25-8000


. 25, 2012, 8:00 a.m. EST

Plaintiff Sales Representatives and Novartis Pharmaceuticals Corporation Resolve Class Action Wage and Hour Claims
--Company to resolve wage and hour claims with one-time payment of up to 99 million dollars for eligible class members --Novartis Pharmaceuticals Corporation remains committed to compensate all employees in accordance with US Fair Labor Standards Act (FLSA) and applicable state laws


EAST HANOVER, N.J., Jan. 25, 2012 /PRNewswire via COMTEX/ -- Novartis Pharmaceuticals Corporation (NPC) and Sanford Wittels & Heisler, LLP, Counsel to the Plaintiffs and the Class, today announced an agreement to resolve the nationwide Wage and Hour class action against NPC currently pending in the US District Court for the Southern District of New York.

NPC has agreed to end the ongoing proceedings and provide a payment of up to 99 million dollars for eligible class members. This settlement resolves the wage and hour claims brought in 2006, as well as additional wage and hour claims covering a more recent time period.
"We are pleased to have secured a 99 million dollar settlement wherein Novartis compensates it sales representatives for years of overtime pay," explained David Sanford, lead counsel for the Plaintiffs. "While we remain confident that the United States Supreme Court later this year will uphold the Department of Labor's interpretation of wage and hour law, the risks of further litigation are great. We are proud that over seven thousand current and former Novartis sales representatives will be able to participate in this settlement. It is a fair and equitable result and can serve as an exemplar for companies around the United States that face wage and hour litigation."

The agreement remains subject to final court approval, which may take several months.

About Novartis
 






























"Under the Settlement Agreement, five subclasses of Novartis’s current and former sales representatives may be entitled to recover overtime benefits. These classes consist of three previous subclasses certified by Judge Crotty in February 2007: (1) “California Settlement Sub Class I” consisting of sales representatives who worked for Novartis for at least one day during the period March 23, 2002 through April 7, 2007 and who did not timely opt out of the Civil Action in 2007; (2) the “New York Settlement Sub Class I” consisting of Novartis representatives who worked in the State of New York for at least one day during the period March 23, 2002 through April 7, 2007 and who did not timely opt-out of the Civil Action in 2007; and (3) the “FLSA Settlement Sub Class I” consisting of Novartis sales representatives who worked in that position for at least one day during the period March 23, 2003 through April 7, 2007 and who filed a consent to join form in the Civil Action in April 2007 and June 2008.

In addition to these three previously certified classes, the Settlement covers two additional classes. The “FLSA Settlement Sub Class II" (4) is comprised of persons who worked for Novartis in the position of sales representative for at least one day during the period January 25, 2009 through January 25, 2012 in certain designated states, and who timely opt-into the settlement by submitting an opt-in and release form and who are not members of any of the three classes certified in 2007.* The “Remaining States Settlement Sub Class”* (5) consists of Novartis sales representatives who worked in that position in certain designated states during varied periods beginning in 2005 and who are not part of the three previously-certified classes.

In late February 2012, notices will be mailed that will provide a more detailed explanation of the settlement benefits and a description of who is entitled to receive settlement benefits."

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Courtesy of google
 












Anonymous said:
Are we all automatically opted in? Does anyone remember getting something that asked us to opt out?
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You had to be in New York or California to opt out, because in those states you were automatically in. In other states you had to opt in. I bet some reps do not remember one way or the other if they opted in (in the other 48 states).

The 5th section of the above post also implies that reps that don't fit the first 4 sections will be included. In addition, either this post or one other recent post does say something about the settlement affecting 7,000 reps, so maybe all employees who worked during the specified time period will be entitled to something.

It is unclear if the 99 million is before the attorney cut is taken out. If indeed 7000 would get some compensation and that compensation would be the same for all and it would be taken from a 99 million dollar pool, each of 7000 would get something like $14,000 each. If there are attorney fees taken from 99 million, figure about $8000 each. If let's say it is only California and New York reps plus those that opted in, maybe only about 20% of reps (out of the 7000) will get a check, about 1400 people, so checks could be about 5x higher per person vs. 7000 getting settlement checks or about a max of $70,000 per rep.

Perhaps it can be even more accurate with compensation being based upon total time worked during the period looked at. If that were the case and only about 1400 reps are looked at (California, NY, and "opt-in" reps) some would be getting checks well into 6 figures.
 












Anonymous said:
You had to be in New York or California to opt out, because in those states you were automatically in. In other states you had to opt in. I bet some reps do not remember one way or the other if they opted in (in the other 48 states).

The 5th section of the above post also implies that reps that don't fit the first 4 sections will be included. In addition, either this post or one other recent post does say something about the settlement affecting 7,000 reps, so maybe all employees who worked during the specified time period will be entitled to something.

It is unclear if the 99 million is before the attorney cut is taken out. If indeed 7000 would get some compensation and that compensation would be the same for all and it would be taken from a 99 million dollar pool, each of 7000 would get something like $14,000 each. If there are attorney fees taken from 99 million, figure about $8000 each. If let's say it is only California and New York reps plus those that opted in, maybe only about 20% of reps (out of the 7000) will get a check, about 1400 people, so checks could be about 5x higher per person vs. 7000 getting settlement checks or about a max of $70,000 per rep.

Perhaps it can be even more accurate with compensation being based upon total time worked during the period looked at. If that were the case and only about 1400 reps are looked at (California, NY, and "opt-in" reps) some would be getting checks well into 6 figures.
Click to expand...


Trust me reps will not be getting $70,000. They will probably get more in the line of $8,000
Attorneys will take their cut before anything is paid out.
For those layed off anything will be good
 






























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