Judge OKs Revised OfficeMax ZIP Code Class Action Settlement

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A California federal judge yesterday preliminarily approved a revised $600,000 class action settlement over claims that OfficeMax North America Inc. illegally collected customers’ ZIP codes during debit and credit card transactions.

The parties initially reached a class action settlement in April 2013 which would resolve two class action lawsuits that accused OfficeMax of requiring cashiers to ask for ZIP codes from customers who pay with credit cards in violation of California’s Song-Beverly Credit Card Act. U.S. District Judge Yvonne Gonzales Rogers rejected the settlement in July, taking issue with the decision to pay Class Members entirely in $5 and $10 OfficeMax vouchers. The parties entered a revised class action settlement in September.

Judge Rogers based her decision to reject the OfficeMax class action settlement 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 based on the value of vouchers that may never be redeemed.

According to CAFA, attorneys’ fees in class action lawsuits in which Class Members are awarded merchandise vouchers must be calculated from the value of the vouchers that are actually redeemed, not on the number distributed.

In the revised OfficeMax ZIP code settlement, the plaintiffs made it clear that the court could use the actual number of vouchers that are redeemed when calculating attorneys’ fees. They also extended the notice period for Class Members to make claims to 42 days and agreed to publish notice of the class action settlement in USA Today newspapers in the Los Angeles and San Francisco markets.

Under the terms of the new class action settlement agreement, class counsel can apply for attorneys’ fees and costs between $200,000 and $500,000. However, OfficeMax retains the right to contest any request for more than $200,000 in attorneys’ fees.

Class Members of the OfficeMax settlement include anyone who used a credit card to make a purchase from a California OfficeMax store and whose ZIP code information was requested at the time of purchase between March 1, 2010 and Feb. 22, 2011. Under the terms of the class action settlement, $600,000 in $5 merchandise vouchers will be distributed to potential Class Members. Class Members who submit a valid, timely claim will receive a $10 OfficeMax voucher.

Details on how to file a claim for the OfficeMax Zip Code Class Action Settlement were not immediately available. According to court documents, a settlement website will be launched within 14 days after the preliminary approval, which occurred Nov. 14. Notice will be posted in stores and emailed to MaxPerks members within 42 days.

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A Final Fairness has been scheduled for March 25, 2014.

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

The OfficeMax Zip Code Class Action Lawsuit is Dardarian, et al. v. OfficeMax North America 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: 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.