FREQUENTLY ASKED QUESTIONS
WHAT IS THIS LAWSUIT ABOUT?
The class action claims that were certified in this lawsuit allege that Defendants operated an Advance Talent Fee Representation Service (“AFTRS”) by receiving payments for artists to participate in a Showcase, and that such Showcase purportedly provided, or attempted to provide an artist, in addition to talent training, counseling, lessons and the like, with one or more of the following prohibited services described below:
(1) Procuring or attempting to procure an employment opportunity or an engagement as an artist; or
(2) Procuring or attempting to procure an audition for an artist; or
(3) Procuring or attempting to procure a talent agent or talent manager, including an associate, representative, or designee of a talent agent or talent manager.
You can get a copy of the Plaintiff’s Fifth Amended Class Action Complaint at the Superior Court of California, County of San Francisco on the Settlement Documents page of the website or through Class Counsel, who can be reached at (510) 817-2711
WHY DID I RECEIVE A NOTICE?
A proposed class action settlement (the “Settlement”) has been reached between plaintiff Angelica Cosio (“Plaintiff”) and International Performing Arts Academy, LLC, Lion Management Group, Inc., and Larry and Lena Lionetti (collectively, “Defendants”) in the class action pending in San Francisco Superior Court, case number CGC-16-551337 (the “Action”), brought on behalf of the following individuals (the “Class”):
All natural persons who were California citizens at the time Cosio’s original complaint was filed (April 5, 2016) who (a) signed a contract so that the Class member, the Class member’s child (or other beneficiary) could participate in a showcase operated by International Performing Arts Showcase (IPAS); (b) paid IPAS for such contract; and (c) such payment was made on or after April 5, 2012; (d) excluding any such payments that were (i) a percentage of the income earned by the Class member’s beneficiary in the entertainment industry; or (ii) consisted entirely of reimbursement for out-of-pocket costs actually incurred by IPAS on behalf of the Class member’s beneficiary for services rendered by an independent third party.
Judge Anne-Christine Massullo of the Superior Court of California in and for the City and County of San Francisco (the “Court”) has preliminarily approved the Settlement. You have received a notice because Defendants’ records indicate that you are a member of the Class. The notice is designed to provide you with a brief description of the Action, inform you of the terms of the proposed Settlement, and discuss your rights and options in connection with the Action and the Settlement, including how you can object to the Settlement or elect not to participate in the Settlement. Unless you submit a timely and valid Request for Exclusion, if the Settlement is finally approved by the Court, it will be binding upon you.
WHAT IS A CLASS ACTION AND WHO IS INVOLVED?
In a class action lawsuit, one or more people called “Class Representatives” (in this case Angelica Cosio) sue on behalf of other people who have similar claims. The people together are a “Class” or “Class Members.” The person who sued is called Plaintiff. The companies and individuals sued (in this case, International Performing Arts Academy, LLC, Lion Management Group, Inc., and Larry and Lena Lionetti) are called Defendants. One court resolves the issues for everyone in the Class—except for those people who choose to exclude themselves from the Class.
HAS THE JUDGE DECIDED WHO IS RIGHT?
The Court did not reach the merits of Plaintiff’s complaint, or Defendants’ answer, has not decided whether Plaintiff or Defendants are correct, and under the Settlement, the Court will not decide who was right.
Defendants denied each and every allegation of Plaintiff’s complaint, assert that they did nothing wrong, and say that they complied with California law which permits talent services that comply with California Labor Code section 1701 et. seq. Specifically, Defendants maintain that they do not operate an AFTRS, but instead, offer talent training/counseling and host talent competitions that are not auditions, work opportunities, or agent signings. You can get a copy of Defendants’ Answer to the Class Action Complaint at the Superior Court of California, County of San Francisco, or by downloading a copy from the Settlement Documents page or through Class Counsel Aiman-Smith & Marcy, who can be reached at (510) 817-2711 or by email at hvr@asmlawyers.com, or Preston Law Offices, who can be reached by email at ep@eplaw.us, and/or at the following website: http://eplaw.us/.
WHAT WOULD I RECEIVE AS PART OF THE SETTLEMENT?
The total settlement amount: Defendants have promised to pay a total of $720,000 plus interest.
When Defendants’ will pay the settlement amount: Defendants have deposited $200,000 of the total settlement amount. Defendants will make payments in monthly installments until the total settlement amount is funded. However, the period of time for these payments is extended due to the effects of the Covid-19 pandemic on Defendants’ business. Defendants shall not be required to make monthly payments to the Settlement Fund until the later of: (i) January 5, 2021; or (ii) 6 months after the Termination of Shelter in Place Orders. Thereafter, Defendants shall continue to make monthly payments of $20,000 on the 5th day of each successive month for nine months. Thereafter, Defendants shall continue to make monthly payments of $40,000 on the 5th day of each successive month. Defendants’ monthly payments shall be prorated, if necessary, due to financial hardships as set forth in the Amendment to Settlement Agreement. Defendants shall continue making monthly payments until they have paid all sums required under Section 6.1 of the Settlement Agreement.
What expenses the settlement amount will cover: From the total settlement amount, Defendants will pay to each participating Class Member an equal share after deducting the costs of settlement administration, the Plaintiff’s Class Representative Enhancement Payment, Class Counsel’s reasonable attorneys’ fees and reasonable litigation costs incurred on behalf of the Class, and additional specified third-party litigation costs. (However, if sufficient information is available, each participating Class Member will instead receive a share in proportion to the amount they paid to Defendants within the Class Period, after the previously-listed deductions are made.)
In addition to participating in the Settlement as a Class Member, the Plaintiff will seek approval from the Court for a payment of $10,000 in recognition of her efforts and hard work in prosecuting the Action on behalf of Class Members, undertaking the risk of liability for attorneys’ fees and expenses in the event she was unsuccessful in the prosecution of the Action, and for her Complete and General Release she is granting as part of the Settlement. If awarded by the Court, this payment, which will be paid in addition to Plaintiff’s individual share of the settlement, will be made out of the total paid to the Class by Defendants under the Settlement.
Class Counsel have represented and continue to represent the Class on a contingency-fee basis. That means that attorneys’ fees are paid only if money is recovered for the Class. It is common to award attorneys’ fees as a percentage of the settlement amount negotiated by the attorneys for the Class. As part of the final approval hearing, Class Counsel will request up to $240,000 for their attorneys’ fees (representing one-third of the Total Settlement Amount) and up to $60,000.00 for their costs incurred in connection with their work in the Action. Defendants have agreed to not oppose these payments. Class Members will not be required to pay Class Counsel for any other attorneys’ fees, costs or expenses out of their own pockets if the Settlement Agreement and the fee request are finally approved by the Court. Payments of Class Counsel’s attorneys’ fees and litigation costs, as approved by the Court, will be made out of the total paid to the Class by Defendants under the Settlement.
In addition to the reasonable litigation costs payable to Class Counsel, the Court will be asked to consider the potential payment of additional litigation costs associated with a third-party’s compliance with subpoenas. Specifically, third-party Realize CPA, LLC, intends to make a motion for costs, which if granted, would be deducted from the total settlement amount. The hearing on the motion for costs by Realize CPA, LLC, is currently set for August 18, 2020, at 9:15 a.m., in Dept. 304, of the San Francisco County Superior Court.
Payments for the reasonable costs of administering the Settlement, including the Settlement Administrator’s fees and expenses, of approximately $22,921, will also be made out of the total paid to the Class by Defendants under the Settlement.
How the amount payable to class members will be apportioned:
The amount each Class Member receives will depend on whether any Class Members elect not to participate in the Settlement; and the amounts awarded by the Court for the payment to Plaintiff for the Class Representative Enhancement Payment, to Class Counsel for their reasonable attorneys’ fees and litigation costs, to the Settlement Administrator for the costs of administering the Settlement, and to Realize CPA, LLC for litigation costs associated with their compliance with Class Counsel’s subpoenas. The precise amounts will be calculable once all timely and valid Requests for Exclusion are received, and the number of Participating Class Members is identified.
By way of example only, assume that no Class Member elected not to participate in the Settlement, that all payment amounts sought were awarded, that the Settlement Administrator’s costs of administration are $22,921, and that Realize CPA, LLC received nothing for its litigation costs, this leaves a net distribution fund of approximately $387,079. Assuming there are 860 participating Class Members, this would result in each Class Member receiving a total claim amount of approximately $450.
When the amount payable to class members will be apportioned:
Class Members who participate in the Settlement will receive their share of the settlement after final Court approval of the Settlement. There is expected to be three distributions. With each distribution, Class Members who fail to cash their checks within 90 days will be excluded from subsequent distributions, and any funds they would have otherwise received will be distributed to the rest of the Class in the following distributions. The first distribution will occur 21 days after the Settlement receives final approval, a final judgment is entered, and all rights to appeal or review are exhausted or after any appeal or review has been resolved in favor of the Settlement. If the final approval hearing is held as scheduled on October 19, 2020, this means the first distribution would occur in approximately January, 2021. A second distribution will be made 12 months after Defendants resume making monthly payments into the Settlement Fund. A third distribution shall be made 21 days after the last Payment is received in the Settlement Fund.
What will be done with residual funds:
After the third distribution is made, assuming there are insufficient funds to make any further distributions of at least one dollar ($1.00) per class member, any remaining funds will be donated to the BizParentz Foundation, a non-profit corporation providing education, advocacy, and charitable support to parents and children engaged in the entertainment industry. The Court will decide whether to approve BizParentz Foundation as the cy pres beneficiary at final approval.
What other relief will be provided through the settlement:
In addition to paying money to the Class, Defendants have agreed that after the Showcase scheduled for October 2019, Defendants will not operate Showcase or any other Advance Fee Talent Representation Service as defined in California Labor Code § 1702 et seq.
WHY ISN’T THERE MORE MONEY?
Defendants claim they lack sufficient funds or assets to pay more than what is required in this proposed Settlement. After two years of efforts to test and investigate that claim, Plaintiff and Class Counsel have concluded that the proposed Settlement is the best possible outcome given Defendants’ financial condition and the Defendants’ defenses. As part of the Settlement, Defendants are required to submit comprehensive financial disclosures under penalty of perjury to the Court, and have guaranteed that those financial disclosures will be truthful, accurate, and complete.
HOW DO I EXCLUDE MYSELF FROM THE SETTLEMENT?
To ask to be excluded, you must either (1) email your request to be excluded to CosiovIPAAsettlement@atticusadmin.com, or (2) send an “Exclusion Request” in the form of a letter sent by mail to: Cosio v. IPAA c/o Atticus Administration, PO Box 64053, St. Paul, MN 55164, stating that you want to be excluded from Cosio v. International Performing Arts Academy, LLC, et al. Be sure to include your name, address, telephone number, email address, and a statement you wish to be excluded, and sign the letter. You must email or postmark your opt out by September 22, 2020.
IF I EXCLUDE MYSELF CAN I SUE THE DEFENDANTS LATER?
No. Unless you exclude yourself from the Settlement, you give up the right to sue Defendants for the following claims:
As of the Effective Date of the Agreement, each Settlement Class Member shall be deemed to have fully, finally and forever released the Defendants from all claims for remedies or relief actually alleged in the Action by Plaintiff, on behalf of herself and the Settlement Class, as of the Effective Date, including but not limited to: all remedies or relief available for violations of California Labor Code section 1702 as alleged, and all remedies or relief available for violations of California Business and Professions Code section 17200 as alleged.
HOW DO I OBJECT TO THIS SETTLEMENT?
If you are a Class Member, you may object to the proposed Settlement in writing if you do not like any part of it. You must give reasons why you think the Court should not approve it. You can also object to the Class Representative Enhancement Payment. You can also object to Class Counsel’s request for attorneys’ fees and costs. The Court will consider your views.
To object, you must either (1) email your objection to CosiovIPAAsettlement@atticusadmin.com, or (2) send your objection by mail to Cosio v. IPAA c/o Atticus Administration, PO Box 64053, St. Paul, MN 55164, stating that you want to object to the proposed settlement in Cosio v. International Performing Arts Academy, LLC, et al. Be sure to include your name, address, telephone number, email address, and a statement describing their objections to the proposed settlement, and sign the letter. You must email or postmark your objection by September 22, 2020.
You may also ask the Court for permission to speak at the Fairness Hearing. To do so, you must either (1) email your request to CosiovIPAAsettlement@atticusadmin.com, or (2) send an ““Notice of Intention to Appear in Cosio v. IPAA.” in the form of a letter sent by mail to: Cosio v. IPAA c/o Atticus Administration, PO Box 64053, St. Paul, MN 55164, stating that you want to address the Court regarding the proposed settlement in Cosio v. International Performing Arts Academy, LLC, et al. Be sure to include your name, address, telephone number, email address, and a statement that you wish to address the Court regarding the proposed settlement in Cosio v. International Performing Arts Academy, LLC, et al., and sign the letter. You must email or postmark your request by September 22, 2020.
If the Court overrules your objection, you will be bound by the terms of the Settlement.
WHAT IS THE DIFFERENCE BETWEEN EXCLUDING AND OBJECTING?
Objecting tells the Court that you do not like the Settlement and it should not be approved. You can only object if you stay in the Class. If the Court rejects or overrules your objection, you cannot thereafter exclude yourself from the Class but you will be mailed a settlement payment if the settlement is approved. Excluding yourself is telling the Court that you do not want to be part of the Class. If you exclude yourself, you have no basis to object, because the case no longer affects you.
WHO IS CLASS COUNSEL?
The Court decided that the law firms of Aiman-Smith & Marcy, of Oakland, California, and Preston Law Offices, of Dallas, Texas, are qualified to represent you and all Class Members. The law firms are called “Class Counsel.” The lawyers at Aiman-Smith & Marcy and Preston Law Office are experienced in handling similar cases against other companies.
WHEN WILL THE COURT DECIDE TO FINALLY APPROVE THE SETTLEMENT?
The Court will hold a final approval hearing on October 19, 2020, at 9:15 A.M., in Department 304 of the California Superior Court in and for the City and County of San Francisco, 400 McAllister Street, San Francisco, California 94102, to determine whether the Settlement should be finally approved as fair, reasonable, and adequate. The Court will also be asked to approve the requests for the Class Representative Enhancement Payment, the payments for the Class Counsel’s Attorney Fees and Class Counsel’s Costs, and the Settlement Administration Costs.
The hearing may be postponed without further notice to the Class. It is not necessary for you to appear at this hearing. If you have submitted an objection and indicated that you intend to appear in the manner set forth above, you may appear at the hearing and be heard. Class Members are advised to contact the Settlement Administrator or check the Court’s online docket at https://sfsuperiorcourt.org/online-services to confirm the date has not been changed.
DO I HAVE TO ATTEND THE HEARING?
No. Class Counsel will answer any questions the Court may have, but you may attend at your own expense. If you send an objection, you do not have to go to court to talk about it. As long as you emailed or mailed your written objection on time, the Court will consider it. You may also have your own lawyer attend at your expense, but it is not necessary to hire a lawyer.
If you want to attend the hearing and address the Court, you should follow the instructions above in the section “How Do I Object to this Settlement.”