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HomeMy WebLinkAboutContracts & Agreements_15-2020Wayne T. Lamprey Anne Hayes Hartman Ari Ynrripolsky 415-639-4001 City of Redlands Atte David McHugh City Attorney 35 Cajon St Redlands, CA 92373 Re. Dear Sir or Madam CONSTANTINE j CANNON SAN FRANCISCO : NEW YORE. I WASHINGTON 1 LONDON November 26, 2019 State of California ex t el OnTheGo Wireless, LLC v Cellco Panne/ ship d/b/a Yet gone Wireless, et al , Case No 34-2012-00127517 (Sacramento Superior Court) Settlement with Sprint Action Required The enclosed Notice of Settlement is directed to City of Redlands as a non -intervening real party in interest ("Non -Intervenor") in State of California ex rel OnTlteGo Wireless, LLC v Cellco Partnetslitp debia Verizon Wireless, et al , Case No 34-2012-00127517 in the form required by the order of the Court preliminary approving a settlement between Plaintiffs and Defendants Nextel of California, Inc. d/b/a Sprint Nextel and Nextel Communications and Sprint Solutions, Inc ("Sprint") YOUR RESPONSE TO THIS NOTICE WILL DETERMINE THE AMOUNT OF MONEY THAT CITY OF REDLANDS WILL RECEIVE AS A RESULT OF THIS SETTLEMENT, The settlement payment to City of Redlands can be calculated from information in the enclosed pleadings For your convenience, we outline the calculations here Total settlement amount for California government $9,220,391 entities Sprint revenue from City of Redlands during relevant $445562 time period74 ' Share of Sprint revenue and settlement for City of 0 29% Redlands 74 As part of the settlement, Sprint provided a sworn statement regarding its relevant sales during the applicable time period ("Spent Revenue Statement") If you would like to review the Sprint Revenue Statement, please contact us The Sprint Revenue Statement is subject to a court confidentiality order which you must review and acknowledge T14 DOCS 440927% I 150 CALIFORNIA STRFFT SUITE 1600 SAN FnANCIScO CA 94111 TELEFHpNF' 415-639-4001 FACSIMILE 41S-639-1002 HTT: J/WEvw CONSTAhti'INEcwNON.COM A LIMIT -1] L1AB;LITY PAR- NFASHIF CONSTANTINE CANNON City of Redlands November 26, 2019 Page 2 Gross settlement allocation to City of Redlands (0 29% $26777 29 of $9,220,39I) ' Relator's share of Non -Intervenor recoveries as 42% preliminarily approved by court Net settlement allocation to City of Redlands after S15530.83 Relator's Share ' In order to receive the entire Net Settlement Allocation, City of Redlands must execute the Consent Page, as set forth in the attached, and return it to Plaintiffs' counsel by February 18, 2020 Pursuant to the terms of the settlement as preliminarily approved by the court, if City of Redlands does not return an executed Consent Page by that date, its settlement allocation will be reduced by 10%. We encourage you to contact us directly with any questions about the T -Mobile Settlement or the enclosed notification and documents You can reach Wayne Lamprey, Anne Hartman, or Ari Yampolsky at (415) 639-4001 2 Sincerely, CONSTANTINE C4NNON LLP Wayne T Lamprey Anne Hayes Hartman Ari Yampolsky Attorneys for Plaintiffs Regents of the University of California, et al and Plaintiff- Relator laintiffRelator OnTheGo Wireless, LLC NYDOCS 440927, 1 Wayne T. Lamprey Anne Hayes Hartman An Yampa!sky 415-639-4001 City of Redlands Attn David McHugh City Attorney 35 Cajon St Redlands, CA 92373 Re Dear Sir or Madam CONSTANTINE CANNON SAN FRANCISCO NEW Yon. ; WA5i1NGTON LONDON November 26, 2019 Notice of settlement with Defendants Nextel of California, Inc d/b/a Sprint Nextel and Nextel Communications and Sprint Solutions, Inc and distribution of settlement proceeds in State of California ex rel. OnTheGo Wireless, LLC v Cellca Partnership d/b/a Verizon Wireless, et al, Case No 34-2012-00127517 (Sacramento Superior Court) You are receiving this letter because City ofRedlands is a non -intervening real party in interest ( `Non -Intervenor") in State of California ex rel. OnTheGo Wireless, LLC v Cellco Partner ship d/bia Verizon Wireless et al . Case No. 34-2012-00127517, which is pending in the Superior Court for Sacramento County Plaintiffs and defendants Nextel of California, Inc d/b/a Sprint Nextel and Nextel Communications, and Sprint Solutions, Inc (collectively- "Sprint") have entered into a Settlement Agreement in the case, and City of Redlands has been identified as a party that will receive a share of the Sprint settlement payment The Lawsuit The lawsuit was filed by Relator OnTheGo Wireless, LLC on July 5, 2012, pursuant to the California False Claims Act ("CFCA"), on behalf of real parties in interest the State of California and political subdivisions identified therein The lawsuit, which named several defendants, including Sprint, generally alleged that Defendants faded to comply with the terms of cooperative purchasing agreements, including the California Wireless Contract ("CWC") and the Western States Contracting Alliance ("WSCA") contracts awarded to Defendants to provide wireless equipment and services to California government entities As relevant here, Plaintiffs allege that the CWC and WSCA agreements, and other agreements related to them, required Sprint to provide its California government customers purchasing wireless services pursuant to those agreements with "rate plan optimization reports" and wireless services at the lowest cost available Sprint's alleged failure to comply with these provisions resulted in overcharges to those California government customers NI DOCS 4409271. 1 150 CALIFORNIA STRF FT 51717E loop SAN FRANCISCO CA 94111 TFLEFHONE 4I5•639.40o1 FACSIMILE 415-639-4052 HTTP:11WWW.CONSTANTINFCANNON COM A LIMIT) LiA6111TY 1'AATN-11S141P CONSTANTINE f CANNON City of Redlands November 26, 2019 Page 2 The Settlement The parties have agreed to settle this case with respect to Sprint only Copies of documents filed with the Court in support of the settlement, which include the Settlement Agreement, are included herewith To receive the full amount of the share allocated to a Non -Intervenor in the Proposed Allocation, if any, the Non -Intervenor must execute a Consent Page in the form attached hereto and return the executed Consent Page to Plaintiffs' counsel by February 18, 20211 By doing so, a Non -Intervenor affirmatively consents to the terms of the Settlement Agreement, including the general release contained therein. Original signatures are not required The executed Consent Page may be returned to Plaintiffs' counsel by the following methods Mail to. Anne Hartman Constantine Cannon LLP 150 California Street, Suite 1600 San Francisco, CA 94111 Fax to (4I5) 639-4002 E-mail to ahartman@constantinecannon com If a Non -Intervenor does not execute the Consent Page, and therefore does not agree to be bound by the Terms of the Settlement Agreement, then the Non -Intervenor will a) receive only 90% of the amount allocated to it in the Proposed Allocation and b) release only the specific claims Plaintiffs asserted under Government Code section 12651(a) in this litigation In addition, Plaintiffs will apply to the Court for a Relator's share pursuant to California Government Code section 12652(g)(3) and attorney fees pursuant to California Government Code section 12652(g)(8) As set for in the Settlement Agreement and Proposed Allocation, Plaintiffs requested a Relator's share of 42% with respect to any amounts allocated to Non - Intervenors, and attorney fees in the amount of $2,000,000 Hearing The Court has set a hearing for final approval of the Settlement Agreement for March 17, 2020 at 1:30 p.m., to be held in Department 92 of the Sacramento Superior Court, located at 9605 Kiefer Boulevard in Sacramento, California The purpose of the hearing is to determine whether the terms of the Settlement Agreement — including but not Iimited to the dismissal of the Civil Action with prejudice as to Sprint, the releases, and the Proposed Allocation among the Parties, Relator, and Plaintiffs' counsel -- are in all respects fair, adequate, and reasonable, and in the best interests of the parties involved, serve the public purposes behind the CFCA, and should be finally approved 2 NYROCS 440927v 1 CONSTANTINE I CANNON City of Redlands November 26, 2019 Page 3 How to object The Court has ordered that any Non -Intervenor who objects to the approval of the proposed settlement may appear at the Hearing to show cause why the proposed settlement should not be approved Pursuant to the Court's order, objections to the settlement shall be heard, and any papers or briefs submitted in support of said objections shall be considered by the Court only if, on or before March 4, 2020, a Non -Intervenor files written notice of the intention to object, together with supporting papers stating specifically the factual basis and legal grounds of the objection, and shall serve copies thereof, together with proof of service, on or before said date upon counsel for Plaintiffs and Sprint Additional information If you have any questions about this notification and settlement payment, or the terms of the settlement agreement, please contact Anne Hartman at (415) 766-3532 If the recipient of this letter is not an attorney who represents City of Redlands in civil legal proceedings, you may want to consult with such counsel Sincerely, CONSTANTINE CANNON LLP Wayne T. Lamprey Anne Hayes Hartman An Yampolsky Attorneys for Plaintiffs Regents of the University of California, et al. and Plaintiff - Relator OnTheGo Wireless, LLC Enclosures - * Consent and Release for Non -Intervenors • Order Preliminarily Approving Settlement with Sprint Defendants and Notice Procedures, November 12, 2019 • Notice of Motion and Motion for Preliminary Approval of Settlement with Sprint Defendants, Memorandum of Points and Authorities, filed by Plaintiffs Regents of the University of California et al and Plaintiff Relator OnTheGo Wireless, LLC ("Plaintiffs"), September 27, 2019 a Declaration of Anne H Hartman in Support of Motion for Preliminary Approval of Settlement with Sprint Defendants, filed by Plaintiffs, September 27, 2019 3 NYDOCS 440927% 1 Consent and Release for Non -Intervenors 1 The undersigned has received and reviewed a copy of the Settlement and Release Agreement executed by and between Defendants Nextel of California, Inc d/b/a Sprint Nextel and Nextel Communications and Sprint Solutions, Inc (collectively, "Sprint"), Relator OnTheGo Wireless, LLC, and the political subdivisions that intervened in State of California ex rel OnTheGo Wireless, LLC v Cellco Partnership d/b/a Verzzon Wireless, et aL, Case No 34-2012- 00127517, which is pending in the Superior Court for Sacramento County ("Settlement Agreement"), the Notice of Proposed Settlement, and the Court's Preliminary Approval Order 2 The undersigned hereby represents and warrants that he or she is fully authorized to provide binding consent on behalf of the Non -Intervenor identified below 3 By signing below and returning this document to Plaintiffs' counsel pursuant to the terms of and by the deadline set forth in the Court's Preliminary Approval Order, the identified Non -Intervenor hereby agrees to be bound by the terms of the Settlement Agreement, including specifically the releases contained therein, and to be treated as a Party to the Settlement Agreement for all relevant purposes Dated /' -Qg.ct Print Name, Ad On behalf of CS ? Non -Intervenor Name NYDDCS 440927v 1