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LoJack Settles 2 California Wage and Hour Class Actions for $8.1M

This is a settlement for the California Employment lawsuit.

Los Angeles, CA: A class action settlement agreement has been reached between LoJack Corportation and plaintiffs in two California wage-and-hour class action lawsuits. The settlement, which is subject to final approval, stipulates that LoJack will pay up to $8.1 million, including plaintiffs' attorneys' potential fees and costs, to resolve all remaining California state class action claims.

As previously disclosed, in the related California federal wage-and-hour case, the Company paid the class action plaintiffs $115,000 in 2011 to settle the federal claims. During 2011, the Company also recorded a $1.1 million accrual with respect to plaintiffs' attorneys' fee application in the federal case. In early August 2012, the federal court awarded plaintiffs' attorneys' fees and costs of $900,518 related to those claims. Although the Company filed a notice of appeal with respect to the attorneys' fee award in the federal case, the Company has agreed to waive that appeal as part of this settlement.

The settlement agreement involves no admission of wrongdoing, liability or violation of the law by the Company. In addition, the agreement bars the named plaintiffs in the California state class action from pursuing further claims against the Company.

The Company expects the Court to issue a decision shortly regarding preliminary approval of the proposed settlement. Should the Court grant preliminary approval, California class members would be sent a notice of the settlement and given the opportunity to decide whether to participate. LoJack could pay less than $8.1 million in settlement of the state court case depending on the level of participation by class members in the settlement. Following the notice period, the parties may move for final approval of the settlement. LoJack anticipates that the Court would be in a position to rule on final approval of the proposed settlement by the first or second quarter of 2013. LoJack does not anticipate paying any portion of the settlement of the California state case until the Court has granted final approval.

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Published on Oct-22-12


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