A proposed settlement (the “Settlement”) has been reached to resolve a class action lawsuit against Hollister Co. (“Hollister”) regarding $25 promotion cards issued by Hollister retail stores in California to those customers who made qualifying purchases of Hollister’s merchandise as part of the 2009 Holiday promotion by Hollister (the “Promotion Cards”). The Promotion Cards expired on January 30, 2010; however, certain consumers attempted to redeem their Promotion Card after the expiration date.

The representative plaintiff (“Class Representative”) claims that Hollister did not properly disclose the expiration date of the Promotion Cards (collectively, with any related claim including but not limited to consumer claims, the “Settled Claims”).

Hollister strongly denies the Class Representative’s claims of any wrongdoing and claims that it fully disclosed the expiration date of the Promotion Cards to its customers. Hollister nonetheless has agreed to settle to reduce and avoid further expense, inconvenience, and the distraction of protracted litigation.

You may be a member of the class (“Class Member”) if you (1) received from a California Hollister store a Promotion Card that you did not fully redeem before January 30, 2010; and (2) attempted to redeem the Promotion Card from January 31, 2010 (after the January 30, 2010 expiration date) up to and including August 25, 2010 (the date of filing of the complaint in this case) but were told your card had expired or had a zero balance. Defined terms used in this Notice other than those defined in this Notice shall have the same meaning as set forth in the Settlement.

A SUMMARY OF YOUR RIGHTS AND OPTIONS
You May: Summary: Due Date:
Submit a Claim The only way to receive a payment under the Settlement is to submit a claim. However, your claim must be approved to receive payment. You will be bound by the terms of the Settlement and give up your right to sue on your own regarding any claims that are part of the Settlement. October 3, 2014
Ask to Be Excluded You can opt out of the Settlement and will not be eligible for compensation from the Settlement. But you keep your right to sue on your own regarding any Settled Claim. October 3, 2014
Submit an Objection You write to the class counsel and explain why you do not like the Settlement. You may appear and speak at the fairness hearing on your own or through your own lawyer to object to or comment on the Settlement. You will be bound by the terms of the Settlement, and you give up your right to sue on your own regarding any claims that are part of the Settlement. October 3, 2014
Do Nothing You receive no compensation. You give up your right to sue on your own regarding any Settled Claim. N/A

A. BASIC INFORMATION

1. Why is there a Notice?

2. What is a class action and who is involved?

3. What lawsuit is involved in this Settlement?

4. What is the Class Action about?

5. Why is there a Settlement?

B. WHO IS IN THE SETTLEMENT?

6. Am I a Class Member?

C. THE TERMS OF THE PROPOSED SETTLEMENT

7. What benefits does the Settlement Agreement provide?

8. Is there any money available now?

D. YOUR RIGHTS AND OPTIONS

9. What happens if I do nothing?

10. If I remain in the Settlement Class, what claims am I giving up?

11. Why would I ask to be excluded?

12. How do I exclude myself from the Promotion Card Class?

13. Can I object to the Settlement?

14. When is the fairness hearing?

15. Do I have to attend the fairness hearing?

16. May I speak at the fairness hearing?

E. THE LAWYERS REPRESENTING YOU

17. Does the Promotion Card Class have a lawyer?

18. Should I get my own lawyer?

19. How will Class Counsel be paid?

20. Will the Class Representative request any payments in addition to the benefits under the Settlement?

F. GETTING MORE INFORMATION

21. Where can I get more information?

22. May I contact Hollister directly?

A. BASIC INFORMATION

1. What is a class action and who is involved?

In a class action lawsuit, one or more people called class representatives sue on behalf of other people who have similar claims. The people together are called the “Class” or “Class Members.” The person who initiated the lawsuit, Kerry White (the “Class Representative”), and the company being sued, Hollister, have reached a proposed Settlement of the lawsuit. The Court that is considering whether to approve the Settlement has allowed, or “certified,” the class action for purposes of settlement, and all decisions that the Court makes concerning the Settlement will affect everyone in the Class.

2. Why is there a Notice?

Because the case is a class action, the court must approve the proposed Settlement. Before the court approves the Settlement, the parties are providing this Notice to inform potential Class Members about the proposed Settlement. This Notice explains:

  • What the lawsuit and the Settlement are about.
  • Who the Settlement affects.
  • Who represents the Class Members in the lawsuit.
  • What your legal rights and choices are.
  • How and by when you need to act.

3. What lawsuits are involved in this Settlement?

The class action case involved in this Settlement is Kerry White v. Hollister Co., Case No. BC444368 (California Superior Court for the County of Los Angeles). Judge Strobel in Dept. 32 (the “Court”), will consider whether to approve the Settlement.

4. What is the Class Action about?

During a Holiday 2009 promotion, Hollister provided the Promotion Cards to consumers who made qualifying purchases of Hollister’s merchandise. The Promotion Cards had a value of $25, which was redeemable for merchandise at Hollister stores. The Class Action alleges that Hollister did not properly disclose the expiration date of the Promotion Cards pursuant to California Civil Code 1749.5. Hollister denies the Class Representative’s claims of any wrongdoing and claims that it fully disclosed the expiration date of the Promotion Cards to its customers, but has agreed to settle to reduce and avoid further expense, inconvenience, and the distraction of protracted litigation.

5. Why is there a Settlement?

The Class Representative and Class Counsel (listed below) believe that the claims asserted in the Class Action have merit, but that the Settlement is in the best interests of the Class Members. Class Counsel have evaluated information made available in the course of the Class Action and settlement negotiations and have taken into account the risks and uncertainties of proceeding with the Class Action. Those risks include the uncertainty of prevailing on the merits, proving damages at trial, and prevailing on post-trial motions and likely appeals. Based upon their consideration of these factors, and on the substantial time and expense that will be incurred, Class Counsel believe it is in the best interests of the Promotion Card Class to settle the Class Action on the terms described below.

Hollister strongly denies any wrongdoing and does not believe that it has any liability to the Class Representative or the Promotion Card Class. However, Hollister believes that it is in its best interest to settle the Class Action under the terms of the Settlement Agreement and obtain closure on these matters to avoid the uncertainty, expense, and diversion of business resources resulting from further litigation. The parties conducted discovery and exchanged significant amounts of information about the Class Action. After engaging in settlement negotiations, the parties agreed to the Settlement, which resolves the Class Action.

This Notice does not imply that any court has found or would have found that Hollister violated the law or that the Promotion Card Class would have recovered any amount of damages if the Class Action was not settled.

B. WHO IS IN THE SETTLEMENT?

6. Am I a Class Member?

You are a member of the Promotion Card Class if:

  • You received a Promotion Card from a Hollister store in California and did not fully redeem that Promotion Card on or before January 30, 2010;
  • You attempted to redeem the Promotion Card from January 31, 2010 (after the January 30, 2010 expiration date) up to and including August 25, 2010 (the date of filing of the complaint in this case) but were told your card had expired or had a zero balance;

C. THE TERMS OF THE PROPOSED SETTLEMENT

This Notice provides a summary of some, but not all, of the terms of the Settlement. To take effect, the Settlement must be approved by the Court.

7. What benefits does the Settlement provide?

Hollister agrees that in any future promotions in which it issues promotional cards, it will ensure the practices of its California stores comply with California law regarding card expiration dates, including the disclosure of same.

In addition, each Class Member who submits a completed Claim Form that is approved, and the Promotion Card they attempted to redeem from January 31, 2010 up to and including August 25, 2010, will receive a card with a value of $20 that is redeemable for merchandise at Hollister stores. This card has not been “sold” pursuant to Civil Code § 1749.5, and thus cannot be redeemed for cash regardless of the value remaining on the card.

8. Is there any money available now?

No. No money or benefits are available now because the Court has not yet decided whether to approve the Settlement. There is no guarantee that money or benefits ever will be distributed; however, if you want to participate in the Settlement, you must submit a Claim Form and the Promotion Card you attempted to redeem from January 31, 2010 up to and including August 25, 2010. Claim Forms are available at www.hollisterco.com/classaction. The deadline to submit Claim Forms and Promotion Cards is October 3, 2014.

D. YOUR RIGHTS AND OPTIONS

You need to decide whether or not to participate in the Settlement.

9. What happens if I do nothing?

If you do nothing, you will automatically be considered part of the Promotion Card Class, and all of the Court’s orders will apply to you and legally bind you. Therefore, in order to receive any benefit from the Settlement, you must submit a valid Claim Form by October 3, 2014. Claim Forms are available at www.hollisterco.com/classaction or by calling (213) 683-5331.

10. If I remain in the Settlement Class, what claims am I giving up?

If you remain in the Promotion Card Class, you give up your right, if any, to sue or be part of any other lawsuit or arbitration against Hollister regarding any issues related to the Settled Claims, including the White v. Hollister case (“Released Claims”). In particular, you will release any and all claims, demands, rights, damages, obligations, suits, and causes of action of every nature and description whatsoever, ascertained or unascertained, suspected or unsuspected, existing or claimed to exist, including both known and unknown claims, of the Plaintiff and all Class Members that were or could have been brought in the Complaint, including but not limited to zeroing out and not honoring Promotion Cards after the January 30, 2010 expiration date. Additionally, all of the Court’s orders will apply to you and legally bind you.

11. Why would I ask to be excluded?

You may want to exclude yourself from the Promotion Card Class if you already have filed (or intend to file) a lawsuit against Hollister for the Settled Claims and want to continue that lawsuit or arbitration individually, on your own behalf. If you do not exclude yourself, you will be legally bound by all orders of the Court in the above case regarding the Promotion Card Class, the Settlement Agreement and Release, and the Settled Claims. If the Court approves the Settlement Agreement and Release, all of the Settled Claims by all Class Members who do not ask to be excluded will be released. As a result, all Class Members who do not ask to be excluded will be forever barred from asserting against Hollister any and all claims, demands, rights, damages, obligations, suits, and causes of action of every nature and description whatsoever, ascertained or unascertained, suspected or unsuspected, existing or claimed to exist, including both known and unknown claims, of the Plaintiff and all Class Members that were or could have been brought in the Complaint, including but not limited to zeroing out and not honoring Promotion Cards after the January 30, 2010 expiration date.

12. How do I exclude myself from the Promotion Card Class?

You may exclude yourself (“opt out”) from the Promotion Card Class by sending a written request to class counsel postmarked no later than October 3, 2014. Your request must include your name, your address, your telephone number, and your signature. Your request must also include the following language:

I want to opt out of this Class Action Settlement concerning Hollister’s redemption of expired Promotion Cards.

Mail your request to:

Melvin Neal

Law Offices of Melvin Neal

500 South Grand St., 19th Floor

Los Angeles, CA 90071

(213) 683-5331

If you exclude yourself from the Settlement, you will not receive any money or other benefits from the Settlement. However, if you exclude yourself, you will keep your right, to the extent that one exists, to sue Hollister in a separate case on an individual basis on your own behalf on any issues that are part of the Settled Claims.

13. Can I object to the Settlement?

Yes, but only if you do not exclude yourself from the Promotion Card Class. Objecting is simply telling the Court that you do not like something about the Settlement. You will still be bound by all Court orders, even if your objection is rejected. To object to the Settlement, you must sign and mail a written objection to class counsel by the deadline of October 3, 2014. All objections that are sent to Class Counsel by the deadline of October 3, 2014 will be considered at the fairness hearing on November 14, 2014. If you do not provide Class Counsel with an objection, you waive your right to appeal any Court order or judgment related to the Settlement.

To object to the Settlement, you must sign and mail a written objection to Class Counsel. Your objection must include:

  • Your name and current address.
  • Your contact telephone number.
  • Your or your representative’s signature.
  • The reasons for your objection.
  • If you would like to appear at the fairness hearing, a statement indicating your intent to appear.

Mail your objection and/or request to appear to:

Melvin Neal

Law Offices of Melvin Neal

500 South Grand St., 19th Floor

Los Angeles, CA 90071

(213) 683-5331

14. When is the fairness hearing?

The Court will hold a fairness hearing on November 14, 2014 at the California Superior Court for the County of Los Angeles at the Stanley Mosk Courthouse, 111 N. Hill St., Los Angeles CA 90012. The Court will consider if:

  • The Settlement is fair, reasonable, and adequate;
  • The Settlement should be approved; and
  • There are any objections to the Settlement.

15. Do I have to attend the fairness hearing?

No. Your attendance at the fairness hearing is not required even if you submit a written objection or comment. However, you or your attorney may attend the hearing at your own expense.

16. May I speak at the fairness hearing?

Yes. You may speak at the fairness hearing to object to the proposed Settlement, but only if you provided a written objection as described above. Your objection must include a statement that you intend to appear and be heard at the fairness hearing. You may also enter an appearance through an attorney hired at your own expense. Until the Court makes a decision on whether the Settlement should be approved, neither you nor your representatives can pursue or file a lawsuit against Hollister that relates to the Settled Claims.

E. THE LAWYERS REPRESENTING YOU

17. Does the Promotion Card Class have a lawyer?

Yes. Melvin Neal of the Law Offices of Melvin Neal in Los Angeles, CA, and Loyst P. Fletcher of the Law Offices of Loyst P. Fletcher in Los Angeles, California, represent you and the other Class Members. They are called “Class Counsel.”

18. Should I get my own lawyer?

You do not need to hire your own lawyer because Class Counsel is working on your behalf. However, you may hire an attorney at your own expense to represent you and speak on your behalf.

19. How will Class Counsel be paid?

Class Counsel will request that the Court award to Class Counsel reasonable attorneys’ fees and reimbursement of expenses incurred as a result of the Class Action. The motion(s) by Class Counsel for attorneys’ fees, for reimbursement of expenses and for incentive awards for the Class Representative will be filed with the Court on or before October 17, 2014. If you wish to review them, you may request a copy by contacting Class Counsel.

Hollister has agreed to pay Class Counsel reasonable attorneys’ fees and expenses that the Court awards, subject to an agreed upon maximum. The money for attorneys’ fees and expenses will not be paid by the Class Members or from the benefits provided to Class Members.

20. Will the Class Representative request any payments in addition to the benefits under the Settlement?

Yes. Class Representative Kerry White will receive a card with a value of $25 (as opposed to $20) redeemable for Hollister merchandise.

F. GETTING MORE INFORMATION

21. Where can I get more information?

If you have further questions, you may contact Class Counsel:

Melvin Neal

Law Offices of Melvin Neal

500 South Grand St., 19th Floor

Los Angeles, CA 90071

(213) 683-5331

22. May I contact Hollister directly?

No. Please do not contact the Court or Hollister’s attorneys. They are not in a position to give you any advice.

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