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
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150 CALIFORNIA STRFFT SUITE 1600 SAN FnANCIScO CA 94111 TELEFHpNF' 415-639-4001 FACSIMILE 41S-639-1002 HTT: J/WEvw CONSTAhti'INEcwNON.COM
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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
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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
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