Charter Foods’ records show that you are a member of the proposed Settlement Class as defined in the Notice. As a member of the proposed Settlement Class, you have a right to know about the settlement of a class action lawsuit that affects your rights. The Notice explains the lawsuit, the settlement, and your rights and options. The Court supervising this case is the U.S. District Court for the Eastern District of Tennessee. The lawsuit is known as Davis et al. v. Charter Foods, et al., Case No. 2:20-cv-00159-CEA-CRW (the “Litigation”).

In the Complaint, the Named Plaintiffs alleged that Charter Foods violated the Fair Labor Standards Act, the Pennsylvania Minimum Wage Act, and the Pennsylvania Wage Payment and Collection Law by failing to pay its Pennsylvania  and certain other Assistant Managers overtime for all hours worked over forty (40) in a single workweek because it misclassified them as exempt and ineligible to receive overtime. Charter Foods denies all the claims asserted in the Complaint and maintains that all of their respective employees were paid, and have always been paid, correctly and in accordance with the law.

The Court did not decide in favor of the Named Plaintiffs or Defendants, and no Party prevailed. The Parties agreed to a settlement to avoid further disputes and the risk, expense, and inconvenience of litigation.

On September 3, 2024, the Court granted preliminary approval of the proposed settlement. The Court will decide whether to give final approval to the proposed settlement in a hearing scheduled for December 17, 2024 (“Final Approval Hearing”). See Section 12 below for details.

The Named Plaintiffs and their attorneys believe that this settlement is a good outcome for all individuals covered by the proposed settlement. But if you believe the settlement on behalf of Class Members is not in your interests, you may opt out of the Class Settlement. See Section 8 below for details.

The Maximum Settlement Amount, $600,000 in total, fully resolves and satisfies the attorneys’ fees and costs approved by the Court, all amounts to be paid to individuals covered by the Settlement, the Court-approved service payments to the Named Plaintiffs, and the Settlement Administrator’s fees and costs. The Settlement funds are being divided among the individuals covered by the Settlement according to an allocation formula.

If you do not request exclusion from the settlement, you will receive a gross pre-tax settlement in the amount identified above. This amount represents your pro rata share based on the number of weeks you worked as an exempt AM between July 21, 2017 and January 1, 2020. The settlement check you will receive will be in a net amount subject to deductions for applicable taxes and withholdings on the portion of your settlement considered wages. Half of your gross settlement amount will be considered wages subject to deductions and reported on an IRS Form W-2. The other half will be considered ordinary income, not subject to deductions, and will be reported on an IRS Form 1099. Neither Plaintiffs’ Counsel nor Charter Foods or its counsel make any representations concerning the tax obligations of your settlement payment.

To receive proceeds from the Settlement, you do not have to do anything in response to the Notice.

If the Court grants final approval of the Settlement and you do not opt out of the settlement (described in Section 8 below), you will be bound by the release of the Released State Claims described in Section 7 below, and you will receive a Settlement Check in the mail representing your share of the settlement fund.

If you choose to cash or deposit the Settlement Check, you will further be bound by the release of the Released Federal Claims described in Section 7 below.

In addition, if you also cash or deposit your forthcoming Settlement Check, you will be deemed to have further waived, released, and forever discharged any and all federal wage and hour claims that were or could have been asserted related to the facts or causes of action alleged in the Complaint, including any claim for penalties or liquidated damages (“Released Federal Claims”).

The Released Federal Claims and the Released State Claims include all claims described or identified herein through the date of Final Approval.

A copy of the claims asserted in the Complaint is available on the settlement website in Important Case Documents.

Charter Foods FLSA Case
P.O. Box 2002
Chanhassen, MN 55317-2002
844-731-3421

In your letter to the Settlement Administrator requesting to be excluded from the Settlement, you must include: the name of the litigation; your name, telephone number, and address; your employee ID (if known); a statement that you do not want to participate in the Settlement and that you want to be excluded; and your signature and the date of your letter.

In order to be valid, your completed letter requesting to be excluded must be postmarked no later than November 25, 2024. If you timely request to be excluded, you will not be eligible to receive any of the benefits under the Class Settlement or receive a Settlement Check. You will, however, retain whatever legal rights you may have with respect to the Released State Claims described above in Section 7.

If you do not request exclusion from the Settlement but believe the proposed Settlement is unfair or inadequate in any respect, you may object to the Settlement by mailing a copy of your written objection to the Settlement Administrator at the address listed above.

All objections must be signed and include your address, telephone number, and the name of the Litigation. Your objection should clearly explain why you object to the proposed Settlement and must state whether you or someone on your behalf intends to appear at the Final Approval Hearing. All objections must be filed with the Court or received by the Settlement Administrator and postmarked by no later than November 25, 2024. If you submit a timely objection, you may appear, at your own expense, at the Final Approval Hearing, discussed below.

Any Settlement Class Member who does not object in the manner described above shall be deemed to have waived any objections and shall forever be foreclosed from objecting to the fairness or adequacy of the proposed Settlement, the payment of attorneys’ fees, litigation costs, the service payments to the Named Plaintiffs, the claims process, and any and all other aspects of the Settlement. Likewise, regardless of whether you attempt to file an objection, you will be deemed to have released all the Released State Claims as set forth above in Section 7 unless you request exclusion from the Settlement in accordance with Section 8 above.

The Court has determined that the lawyers at the law firms of Stueve Siegel Hanson LLP, Weisberg Cummings, P.C., and Jennifer Morton Law, PLLC are qualified to represent you and all individuals covered by this settlement. These lawyers are called “Class Counsel.” You will not be charged for these attorneys. You do not need to retain your own attorney to participate as a member of this class action. However, you may consult with any attorney you choose at your own expense before deciding whether to opt out of this settlement.

Separate from the settlement amounts allocated to Class Members, Class Counsel will ask the Court to award an amount not to exceed $400,000 for payment of litigation costs (including paying the settlement administrator), service payments to Named Plaintiffs and attorneys’ fees all to be paid from the Maximum Settlement Amount. Class Counsel has represented that the amount they will be seeking as payment of fees is a significant discount from the value of their time expended in this Litigation. The requested service payments will not exceed $7,500 each to the two Named Plaintiffs to recognize the risks they took and their services to the beneficiaries of this Settlement.

The Court will hold a Final Approval Hearing on the fairness and adequacy of the proposed Settlement, the plan of distribution, Class Counsel’s request for attorneys’ fees and costs, and the service payments to the Named Plaintiffs on December 17, 2024 at 2:00 p.m. before Judge Charles E. Atchley of the U.S. District Court for the Eastern District of Tennessee, located at 220 West Depot Street, Greeneville, Tennessee. The Final Approval Hearing may be continued without further notice to Class Members. You are not required to appear at the hearing to participate in or to opt-out of the Settlement.

The Notice summarizes the proposed settlement. More details are in the Settlement Agreement, which is posted on the settlement website in Important Case Documents. You are encouraged to read it. To the extent there is any inconsistency between the Notice and the Settlement Agreement, the provisions in the Settlement Agreement control. You may also obtain a copy of the Settlement Agreement by sending a request, in writing, to:

Charter Foods FLSA Case
P.O. Box 2002
Chanhassen, MN 55317-2002
Email: CharterFoodsFLSACase@noticeadministrator.com

The settlement website contains more information about the settlement, including copies of the Complaint and the Settlement Agreement in Important Case Documents, and important deadlines.

If you have other questions about the settlement, you can contact the Settlement Administrator. The Settlement Administrator can answer any questions related to updating addresses, pertinent deadlines, and timing. If you would like to speak with Class Counsel, you can contact them at (816) 714-7100 or wagner@stuevesiegel.com. You may also write to Class Counsel at:

If, for future reference and mailings from the Court or Settlement Administrator, you wish to change the name or address listed on the envelope in which the Class Notice was first mailed to you, then you must contact the Settlement Administrator at Charter Foods FLSA Case, P.O. Box 2002, Chanhassen, MN 55317-2002, 844-731-3421.

PLEASE DO NOT CALL OR WRITE THE COURT ABOUT THE NOTICE.