Plaintiffs Submit Revised OfficeMax ZIP Code Class Action Settlement

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Plaintiffs in a putative class action lawsuit accusing OfficeMax North America Inc. of illegally collecting customers’ ZIP codes have agreed to a revised $600,000 class action settlement. The plaintiffs say the new deal addresses the concerns of a California federal judge who refused to grant preliminary approval to the original settlement agreement.

Under the terms of the revised OfficeMax ZIP code settlement, customers whose information was improperly collected will be sent a $5 voucher, which can be used for OfficeMax purchases in California. Class Members also have the opportunity to make direct claims for a $10 OfficeMax voucher. The parties estimated that the total class action settlement agreement would total $600,000.

Class Members include all customers who used a credit card to purchase items at a California OfficeMax store and whose ZIP code information was requested and collected by the cashier between March 1, 2010 and February 22, 2011.

In their revised settlement agreement, entered on September 13, plaintiffs Nancy Dardarian and Nathan Thoms addressed U.S. District Judge Yvonne Gonzalez Rogers’ concerns about the settlement terms, clarifying that the court may calculate attorneys’ fees based on the number of OfficeMax vouchers that are cashed in by Class Members. Both parties have agreed that the total attorneys’ fees will be between $200,000 and $500,000.

The class action lawsuit consolidated two separate actions in February 2011. The plaintiffs alleged that OfficeMax’s policy of requiring cahiers to request personal information from customers who paid with a credit card violated California’s Song-Beverly Credit Card Act. The parties reached a class action settlement in May.

On July 12, Judge Rogers refused to approve the original proposed class action settlement, based on a May ruling from the Ninth Circuit which held that attorneys’ fees in a class action lawsuit against Hewlett-Packard Co. were improperly calculated under the Class Action Fairness Act (CAFA) because they were calculated based on the value of vouchers which may or may not ever be redeemed.

Under the terms of CAFA, attorneys’ fees in cases in which Class Members are awarded merchandise vouchers must be based on the value of the vouchers that are actually redeemed, not on the number that are distributed. “Based on the current record, the court cannot determine the extent to which the proposed relief, including issuing merchandise vouchers to consumers who are not members of the class, is adequate or reasonable for the class,” Judge Gonzalez Rogers said in her decision to reject the proposed class action settlement.

In their revised class action settlement agreement, the plaintiffs reassured Judge Rogers, stating that the “amount of attorneys’ fees and costs will be determined by the court after the redemption period for the merchandise vouchers has ended and the redemption rate has been determined.”

Details on how to file a claim for the OfficeMax ZIP Code Class Action Lawsuit were not immediately available. Notices of the class action settlement will be posted in stores and emailed to MaxPerks members within 42 days after the Court grants preliminary approval of the settlement, according to court documents. A settlement website will be launched within 14 days after preliminary approval. Top Class Actions will notify our readers as soon as claim filing instructions are announced. Sign up for our free weekly e-newsletter below to receive updates on this class action settlement and other consumer class action lawsuits.

The plaintiffs are represented by Gene Stonebarger and Jeffrey D. Neumeyer of Stonebarger Law APC and H. Tim Hoffman and Chad A. Saunders of Hoffman Libenson Saunders & Barba.

The case is Dardarian v. OfficeMax Inc., Case No. 4:11-cv-00947, in the U.S. District Court for the Northern District of California.

Have you been asked to provide your ZIP code during a debit or credit card transaction at a California or Massachusetts store? You may be eligible to participate in a class action lawsuit and pursue compensation. See if you qualify for free at the Merchant ZIP Code Class Action Lawsuit Investigation.

UPDATE 1: A federal judge granted preliminary approval to the revised OfficeMax ZIP Code Class Action Settlement on Nov. 14, 2013. Keep checking Top Class Actions for claim filing instructions or sign up for our free weekly e-newsletter below.

UPDATE 2: Detailed claim filing instructions for the OfficeMax ZIP Code Class Action Settlement can be found here. The deadline to file a claim if Feb. 10, 2014.