FILED
CLERK, U.S. DISTRICT COURT
SEP – 2 2005
CENTRAL DISTRICT OF CALIFORNIA
BY DEPUTY
Douglas M. Brooks
Edward L. Manchur
GILMAN AND PASTOR, LLP
60 State Street – 37th Floor
Boston, MA 02109
Telephone: (617) 742-9700
Facsimile: (617) 742-9701
Robert C. Schubert (# 62684)
Juden Justice Reed (# 1573748)
Aaron H. Darsky (# 21229)
SCHUBERT & REED LLP
Two Embarcadero Center, Suite 1660
San Francisco, CA 94111
Telephone: (415) 788-4220
Facsimile: (415) 788-0161
Settlement Class Counsel
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
No. CV-02-01431 SJO (RCx)
DECLARATION OF MICHAEL ROSENBAUM IN SUPPORT OF APPLICATION FOR AN ORDER AUTHORIZING DISTRIBUTION OF NET SETTLEMENT FUND
NANCY JACOBS and ANNETTE M. SANCHEZ, Individually On Behalf of Themselves and All Others Similarly Situated, and on Behalf of the General Public,
Plaintiffs,
v.
HERBALIFE INTERNATIONAL, INC., HERBALIFE INTERNATIONAL OF AMERICA, INC., DREAM BUILDERS & ASSOCIATES INTERNATIONAL, INC., H.B. INTERNATIONAL GROUP, INC., ANTHONY POWELL, DORAN ANDRY, CRAIG M. TSUTAKAWA, CAROLINE TSUTAKAWA, TARUN JUNEJA, JOHN BEALL, BRETT BARTHOLOMEW, LEAH SINGLETON, STEPHEN COMBS AND DEBRA COMBS,
Defendants.
DOCKETED ON CM
SEP 13 2005
BY _____ 022
243
NO. CV-02-01431 SJO (RCX) DECLARATION OF MICHAEL ROSENBAUM IN SUPPORT OF APPLICATION FOR AN ORDER AUTHORIZING DISTRIBUTION OF NET SETTLEMENT FUND
I, MICHAEL ROSENBAUM, declare:
1. I am over 21 years of age and am not a party to this action. I have personal knowledge of the facts set forth herein and, if called as a witness, could and would testify competently thereto. I submit this declaration in order to provide the Court and the parties to the above-captioned action with information regarding the administration and processing of proofs of claim in connection with this action.
2. I am Managing Director of Berdon Claims Administration LLC (“Berdon”), Claims Administrator for the above-captioned action. I am and have been the person at Berdon primarily responsible for administering the settlement and have worked with and under the direction of Settlement Class Counsel (“Counsel”) in effecting the claims administration process regarding this matter.
3. I make this declaration in support of Plaintiffs’ application for an Order authorizing the distribution of the Net Settlement Fund, to describe the claims administration process that Berdon has provided in this matter, and to request that the Court approve the payment of Berdon’s fees and expenses in the total amount of $381,011.14.
4. Berdon was appointed Claims Administrator to arrange for the printing and mailing of the Notice of Proposed Settlement of Class Action, and Proof of Claim (the “Notice”), to arrange for publication of the Court-Ordered Legal Notice (the “Summary Notice”), to maintain a file in connection with requests for exclusion, to submit periodic reports to Counsel in connection therewith, and to administer the processing of Proof of Claim forms (“Proof(s) of Claim,” “claim form(s)”) and the distribution of the Net Settlement Fund to all persons who, during the period of February 15, 1998 through May 2, 2003, had a valid agreement of distributorship with Herbalife International, Inc. and Herbalife International of America, Inc. (“Herbalife”) to sell Herbalife products as independent distributors, had attained the level of Supervisor, who purchased Newest Way to Wealth (“NWTW”) materials or devices (“Settlement Class Members”) and who filed valid Proofs of Claim.
5. Berdon was primarily responsible for arranging the printing and mailing of the Notice to Settlement Class Members, on July 15, 2004. Berdon was also primarily responsible for the publication of the Summary Notice in USA Today on July 22, 2004.
6. In performing these tasks on behalf of Counsel, this office dealt directly with a financial printer with regard to the Notice, and with an advertising agency in connection with the Summary Notice, made formatting suggestions to counsel, and compiled counsel’s comments on the galley proofs of the Notice and Summary Notice. In addition, Berdon prepared mailing labels for Settlement Class Members from the names and addresses in a data file furnished to us by the Defendants and from the names and addresses provided to this office by one of the Counsel. These labels were utilized in the initial mailing of the Notice on July 15, 2004, and subsequently, up to and including June 16, 2005, the Notice was also mailed to 84 other Settlement Class Members and potential Settlement Class Members who contacted Berdon to request copies thereof.
7. Pursuant to instructions from Counsel, Berdon created a separate letter, into which was merged the purchase/commissions information furnished in the Defen-dants’ data file, and mailed concurrently with the Notice to those identified by the data file as Former Supervisors. Those Former Supervisors who did not retain all the documentation necessary to determine their income and expenses as part of the Method A claim calculation were able to file their claims under the Method B option. Berdon has reviewed and analyzed, individually and in great detail, all the claim forms received from potential Settlement Class Members. We have also answered any questions regarding the action, the Settlement and procedures for filling out the Proof of Claim and were in contact with Counsel to review the status of the claims administration process and to address concerns regarding claims that Berdon had deemed either questionable or problematic. Our final report (the “Summary of the Claims Administration Process”), which is described in detail below, is annexed hereto as Schedule 1.”