Key Laws at Issue

• • CA False Advertising Law: Prohibits false/misleading ads. Says former prices must be true prevailing prices in last 3 months.
  • CA Unfair Competition Law: Bans unlawful, unfair, fraudulent biz practices like fake pricing and phony sales.
  • CA Consumer Legal Remedies Act: Makes false ads and fake price reduction claims unlawful.
  • OR Unlawful Trade Practices Act: Bans false claims about sales, discounts, former prices, amounts of price cuts.
  • Consumer Protection Law Elements: Laws prohibit deceptive ads likely to mislead a reasonable consumer and either cause them to buy or pay more.

Examples from Complaint

• • Website showed queen mattress with $1,795 “regular” price and a sale price 12% lower for a “limited time sale” until 12/16/22.
  • But plaintiffs allege regular prices weren’t real as mattress was always “on sale” for $1,595 or less at that time.
  • Sitewide sales with urgent countdown timers like “15% OFF ORDER $1K+ | 11:59 PM ET TONIGHT!” allegedly reset day after day.
  • Complaint says website archives show 100% of days sampled from 2021-23 had a purportedly time-limited discount advertised.
  • Plaintiffs argue this means reference prices weren’t honest former prices and “discounts” weren’t really a limited sale.

FAQs About the Allegations

• • Why are reference prices important? They tell consumers what a “good deal” looks like compared to the purported “regular” price.
  • What’s wrong with Saatva’s “regular” prices? Complaint says they weren’t the actual prices mattresses usually sold at recently.
  • How did the allegedly fake sales mislead people? Urgent “limited time” offers pressured people to buy now or miss out on a deal.
  • What if I thought I was getting a real discount? If proven, phantom markdowns could violate the law even if you felt you saved money.
  • Does Saatva admit doing anything wrong? No – it denies liability but settled to end the litigation. Court did not rule either way.

Why a Class Action?

• • Named plaintiffs sue representing a “class” of similarly situated people harmed in same or similar way by defendant’s conduct.
  • Allows resolving many individual claims re: same issues in a single case. More efficient than hundreds of separate lawsuits.
  • Settlement (if approved) resolves claims of all class members at once. Individuals have chance to opt out if they prefer.
  • Class actions help people recover when individual suits would be impractical. Deters companies from misconduct that harms many.
  • Court must certify case as proper class action. Here, certified CA and OR subclasses solely for purposes of proposed settlement.

Examples of Class Members

• • Zack bought a queen Saatva Classic mattress for his LA home in June 2022 after seeing a 10% off limited time offer on the site.
  • Marissa, who lives in Bend, purchased a California king Loom & Leaf memory foam bed from Saatva.com in October 2023.
  • Hotel owner Sanjay bought 30 twin Saatva mattresses for his Newport inn in early 2021. Those purchases aren’t part of the class.
  • Denise got a Saatva mattress in 2018 and another in March 2024 while living in San Diego. Only her 2024 buy would be included.
  • Unhappy with his settlement options, Brian opted out of the class action so he could preserve his right to sue Saatva separately.

FAQs About Class Membership

• • What if I’m not sure when I bought my mattress? Check your purchase records/emails. Settlement administrator may have order data too.
  • I bought a bed and a mattress – does that count as one or two? A bundled mattress/base set would likely count as one purchase.
  • Are purchases as a gift included? Yes, as long as the purchaser (not recipient) was in CA or OR at the time as specified.
  • Do I have to submit proof of purchase to get a settlement benefit? No, claimants just sign a statement attesting they’re class members.
  • Why are the Oregon dates so much shorter? OR consumer law has a one-year statute of limitations, versus four years under CA law.

How Settlement Compares to Damages

• • Plaintiffs argued class members suffered two types of damages: 1) they paid more than they would have absent the fake discounts, and 2) they received mattresses worth less than the advertised “regular” price value.
  • So say someone bought a $2,000 mattress advertised as “20% off” a $2,500 reference price. But Saatva never really sold it for $2,500.
  • Class member damages could be the $400 they thought they “saved” or the difference in value between the $2,500 advertised and $2,000 actual regular price.
  • The $115 per mattress settlement benefit aligns more with the “overpayment” damage theory than the “diminished value” model.
  • But it provides all class members the same relief regardless of their specific mattress price point or purported “regular” price.

Illustrative Examples

• • Avery bought a $1,000 Saatva mattress advertised as 10% off its regular $1,110 price. He’d get the same $115 settlement benefit as…
  • Mateo, who spent $3,000 on a Saatva HD mattress purportedly marked down 15% from $3,530. Neither has to show the “sale” price was inflated.
  • Chloe purchased 2 twin XL Saatva latex mattresses for $3,500 total in 2021. She can get 2 x $115 = $230 cash or credit.
  • If Jaden bought his Saatva mattress at 20% off in June 2023 and another at 12% off in Feb. 2024, he’d get $115 x 2 = $230 as well.
  • Leah got an adjustable Solaire mattress for 10% off in 2020, then a Traditional innerspring for 15% off in 2023. She’d get one $115 payment.

FAQs Re: Settlement Benefits

• • How much will I get if I do nothing? If you don’t file a claim, you’ll automatically get a $115 gift card code for each class purchase.
  • What if I bought more than one mattress? You can get $115 cash or credit for each qualifying purchase, but only need to file one claim form.
  • Is the voucher only good for mattresses? No, it can be used on any Saatva site purchase in the 3 years after issuance.
  • Will this affect my right to return a mattress? No, the settlement doesn’t alter the terms of Saatva’s trial period/return policy.
  • Do I give up warranty rights if I participate? The settlement doesn’t impact any existing product warranty you may have.

Factors to Weigh in Your Decision

• • Do you prefer the ease of a voucher or the flexibility of cash? Consider if you’re likely to buy from Saatva again in the next 3 years.
  • How strong do you think the class claims are? The more merit you feel they have, the less favorably you may view the settlement.
  • Are you willing to invest the time/hassle to sue individually? Opting out means no settlement benefits and going it alone in court.
  • Do you have specific objections to the settlement terms? If so, consider filing a written objection or speaking at the final approval hearing.
  • How significant is $115 per mattress to you? The more meaningful the amount, the more it favors participating in the settlement.

Examples of Class Member Choices

• • Shana thinks $115 cash for her lone Saatva mattress order is worth giving up her right to sue later, so she files a claim online.
  • Derek has no interest in a small cash payout. He files an objection arguing class members should get a full refund instead.
  • Aisha plans to buy a Saatva adjustable bed base next year anyway, so getting an automatic $115 promo code sounds good to her.
  • Convinced he could prove Saatva broke the law and owes him more, Michael opts out to preserve his individual lawsuit rights.
  • Anita doesn’t care for the settlement but knows suing on her own is a long shot, so she does nothing and will use her voucher.

FAQs About Your Class Options

• • What happens if I don’t do anything at all? Class members who neither file a claim nor opt out will be bound by the settlement and get an automatic voucher.
  • Do I have to show proof of purchase to file a claim? No, just check the box on the claim form affirming you’re a class member.
  • Can I object to the settlement but still get money? Yes – filing an objection doesn’t waive your right to class relief if it’s still approved.
  • What exactly am I giving up if I file a claim or do nothing? You’re releasing Saatva from liability for the legal claims in this lawsuit.
  • How likely is it the court approves the settlement as is? Fairly likely given the terms reflect arms-length negotiation and provide real class benefits.

Other Claim Filing Facts and Tips

• • You can also file a claim by mail if you got a long form notice with a paper claim form – it must be postmarked by 10/27/24.
  • Claim forms take just a couple minutes to fill out. There’s no requirement to dig up old order numbers or Saatva account info.
  • You can file a single claim listing all your eligible mattress purchases on it. Just state how many you bought in the class period.
  • The online claim site is mobile friendly so you can easily file from your smartphone. No need to print, sign and mail the form.
  • Mark your calendar for the 10/27/24 claim deadline and don’t wait until the last minute in case you have questions or tech issues.

Claim Form Walkthrough

• • Claimant Information: Shanda Robertson, [email protected], (555) 123-4567, 123 Main St., Anytown, CA 90210
  • Payment Method: Venmo to @shanda-robertson or Check mailed to address above
  • Purchase Verification: Yes, I am a Class Member. I purchased 1 mattress from Saatva.com between 5/23/20 and 5/23/24 while residing in California.
  • Attestation: I affirm under penalty of perjury the foregoing is true and correct. Signed, Shanda Robertson. Dated, 8/30/24.

FAQs About Filing a Claim

• • What’s the deadline to file a claim? You must submit your completed claim online or postmark a paper form by October 27, 2024.
  • How will I be notified of claim approval? You’ll get an email at the address provided when you filed letting you know if it’s valid or deficient.
  • When will I get my claim payment? Cash benefits will be sent within 30 days after the settlement receives final court approval.
  • What if I have problems filing online? Contact the Settlement Administrator for assistance.
  • Can I appeal if my claim is denied? No, but contact the Settlement Administrator to find out why and see if you can cure any deficiencies.

Legal Fees in Context

• • Attorneys’ fees and costs up to $2,075,000, if approved by the court, represent about 18% of the total estimated $11.5 million settlement value.
  • That’s in line with or lower than fee percentages in many consumer class actions, which often range from 20-30%.
  • Courts consider factors like time invested, quality of work, result obtained and litigation risk when deciding what legal fee is reasonable.
  • Here, the funds allocated for legal costs and fees are proportional to class benefits and don’t reduce money paid to class members.
  • The $2,500 plaintiff awards compensate named plaintiffs for their extra efforts in bringing the case and representing class interests.

Key Facts About Class Counsel

• • Class attorneys Simon Franzini and Grace Bennett work for the law firm of Dovel & Luner LLP based in Santa Monica, CA.
  • Dovel & Luner specializes in complex litigation on behalf of plaintiffs, including consumer fraud and unfair business practice cases.
  • You can learn more about the firm and lawyers’ qualifications at www.dovel.com or by calling them at 310-656-7066.
  • The class counsel appointment reflects the court’s belief they will fairly and adequately represent the class’s interests.

FAQs About Counsel and Fees

• • Can I hire my own lawyer? Yes, at your own expense, but it’s not required and most people just rely on the appointed class counsel.
  • How are attorneys’ fees determined? Class counsel will file a motion detailing their lodestar fees and costs for the court to review and approve.
  • What if the court awards less than counsel request? Any difference between the max fees available and the amount awarded will go to class members.
  • Do I have a say in the legal fees and plaintiff awards? Yes, you can object to the fee and incentive requests by writing the court before 9/27/24.
  • How can I find out what fees the court approves? The final approved amounts will be posted on the settlement website after the 11/13/24 hearing.

Detailed Settlement Timeline

• • 5/24/24 – Plaintiffs filed consolidated class action complaint in Oregon court.
  • 7/29/24 – Court granted preliminary approval of class action settlement.
  • 8/28/24 – Settlement administrator began mailing and emailing class notices.
  • 9/27/24 – Opt-out and objection filing deadline.
  • 10/27/24 – Claim form submission deadline.
  • 11/13/24 – Final fairness hearing on class settlement.
  • 12/13/24 – Deadline for settlement payments/vouchers if no appeals after final approval.

Real-World Settlement Examples

• • Vijay bought a queen Saatva mattress in July 2020. When he gets the settlement email notice, he files an online claim that same day.
  • Lynn thinks the settlement is too small and files a written objection with her reasons by the 9/27/24 deadline, which the judge will review.
  • Dave doesn’t want to be bound by the class settlement, so he mails back the exclusion request form postmarked 9/26/24 to opt out.
  • Marcia bought a king Saatva mattress on 2/14/22. She misses the claim deadline, so she’ll automatically get a $115 voucher around 12/13/24.
  • Shaun attends the final approval hearing on 11/13/24 and waits for the judge’s ruling to see if class payments will start being issued in December.

FAQs About Settlement Process

• • How will I know if I’m a class member? If Saatva’s records show you’re eligible, you should get an email or postcard notice.
  • What happens if I do nothing? You’ll be bound by the settlement terms and automatically get a $115 voucher emailed within 30 days of final approval.
  • Can the final approval hearing date change? Yes, continue to check the settlement website for any updated dates and details.
  • How soon after final approval will I get my payment? The goal is within 30 days, but it may take longer if there are any appeals.
  • What if the court doesn’t approve the settlement? The case would resume litigation unless the parties negotiate a revised settlement.