Case Document 36-1 Filed 05/20/15 Page 75 of 184 UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF If you live in the United States or its territories and purchased MacKeeper Software on or before [date of preliminary approval], a class action settlement may affect your rights. A Federal Court authorized this notice. You are n_ot being sued. This is n_ot a solicitation from a lawyer. A settlement has been reached in a class action lawsuit against software developer LLC. The class action lawsuit involves whether or not MacKeeper software performed certain functions as advertised. 0 You are included if you live in the United States or its territories and purchased MacKeeper software 011 or before [date of preliminary approval]. 0 If you are included in the settlement, you are eligible to submit a claim to receive a payment of up to $39.95 from a $2,000,000 settlement fund, after the payment of the costs of administering the settlement, the attorneys? fee award, and any incentive award to the plaintiff. The amount of the payment will depend on the mnnber of claims received. 0 Please read this notice carefully. Your legal rights are affected whether you act or don?t act. YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT SUBMIT A CLAIM FORM The only way to receive a payment. BY EXCLUDE YOURSELF BY You will receive no payment, but you will retain any rights you crurently have to sue about the claims in this case. OBJECT BY Write to the Court explaining why you don?t like the Settlement. ATTEND A HEARING Ask to speak in Court about the fairness of the settlement. DO NOTHING You won?t get a share of the settlement bene?ts and will give up yoru? rights to sue about the claims in this case. These rights and options?and the deadlines to exercise them?are explained in this notice. The 01111 in charge of this case still has to decide whether to approve the settlement. Payments will be provided only after any issues with the settlement are resolved. Please be patient. BASIC INFORMATION I 1. What is this notice? I A corut authorized this notice to let you know about a proposed settlement of a class action lawsuit with LLC. You have legal rights and options that you may act on before the orut decides CALL 1-877-315-1 149 TOLL FREE. OR VISIT Case Document 36-1 Filed 05/20/15 Page 76 of 184 whether to approve the proposed settlement. This notice explains the lawsuit, the settlement, and yoru' legal rights. Judge Joy Flowers Conti of the US. District Corut for the Western District of is overseeing this class action. The case is known as Yencha v. LLC, No. 14-cv-00578 (the ?Action?). The person who sued is called the ?Plaintiff.? The company she sued, LLC, is called the ?Defendant.? You need not live in to participate. I 2. What is a class action lawsuit? I In a class action, one or more people called ?Class Representatives? sue on behalf of a group of people who have similar claims. Together, these people are called a ?Class? or ?Class Members.? In a class action, the corut resolves the issues for all Class Members, except for those who exclude themselves from the Class. After the parties reached an agreement to settle this case, the Corut recognized it as a case that should be treated as a class action for settlement pruposes. THE CLAIMS IN THE LAWSUIT AND THE SETTLEMENT I 3. What is this lawsuit about? I The lawsuit alleges that deceptively advertised and sold MacKeeper software as capable of enhancing an Apple Macintosh computer?s speed, performance, and secru?ity by detecting and eliminating harmful errors and threats, but that it does not and cannot perform all of the functions advertised. The lawsuit seeks damages for breach of contract and ruijust em?ichinent. denies Plaintiff?s claims of wrongdoing or liability against it and asserts that its conduct was lawful. More information about Plaintiffs complaint and Defendant?s answer to the claim are available in the ?Court Docrunents? section of the settlement website at I 4. Why is there a Settlement? I The Court has not decided whether the Plaintiff or the Defendant should win this case. Instead, the parties have agreed to settle the claims against Defendant?that is, reach a compromise?by entering into a written settlement agreement. That way, they avoid the rmcertainties and expenses associated with ongoing litigation, and Class Members will get compensation now rather than, if at all, years from now. The Class Representative and her attorneys (?Class Counsel?) believe that the settlement is in the best interest of the Class Members. INCLUDED know if I am in the Settlement Class? I The Court decided that everyone who ?ts this description is a member of the Settlement Class: All Persons in the United States and its territories who purchased MacKeeper on or before [the date of entry of the Preliminary Approval Order]. CALL 1-877-315-1 149 TOLL FREE, OR VISIT 2 Case Document 36-1 Filed 05/20/15 Page 77 of 184 If you meet that de?nition, you are a member of the Settlement Class. THE SETTLEMENT BENEFITS I 6. What does the Settlement provide? I Defendant has agreed to create a $2,000,000 Settlement Fund. Settlement Class Members can submit a claim for 11p to $39.95 for their purchase of MacKeeper. In addition to paying for valid claims of Class Members, the Settlement Fund will be used to pay the costs to administer the settlement, any ourt-ordered award to Class Counsel for reasonable fees and expenses, and any incentive award to the Class Representative. The amormt each claimant will be paid depends upon the number of valid claims submitted. There are approximately 513,000 individuals in the Settlement Class. Based upon class member participation in other similar settlements, the Parties anticipate that each Settlement Class Member that submits an approved claim in this case will receive a payment of $39.95. If the amount required to pay each class member with a valid claim exceeds the amount of the Settlement (after paying fees and expenses), then each Settlement Class Member who ?led a valid claim will receive a proportionally reduced share of the Settlement Fund. On the other hand, if there is still money left in the Settlement after providing payments to every Settlement Class Member with a valid claim, paying the costs to administer the Settlement, the award of attorneys? fees and expenses, and any incentive award to the Class Representative, the remaining money will be donated to the following nonpro?t organizations: 0 Carnegie Mellon CyLab: Carnegie Mellon University?s CyLab establishes public?private partnerships to develop new technologies for measru?able, available, secm'e, trustworthy, and sustainable computing and commrmications systems, as well as to educate individuals at all levels equipping them to meet the demands and challenges of being responsible computer users and cybercitizens. For more information visit 0 National Consruner Law Center: The NCLC has dedicated itself to consumer justice issues since its formding in 1969 and has taken a leadership role in the development of laws aimed at protecting consumers, such as the Credit CARD Act of 2009. The NCLC also works closely with nonpro?t organizations, legal service organizations, attorneys, policymakers, and state and federal governments to stop exploitive consumer practices, help consumers build and retain wealth, and advance economic fairness. The NC LC ?5 expertise has focused on a broad range of consumer issues, including deceptive acts and practices, and privacy rights. For more information visit HOW TO GET BENEFITS I 7. How do I get bene?ts? I If you are a Class Member and you want to participate in the settlement, you must complete and submit a Claim Form online or by mail postmarked by [claims deadline]. You can submit an electronic Claim Form online at, or obtain a copy of the Claim Form by downloading it by writing to the Settlement Administrator at MacKeeper Settlement Administrator, c/o Rust Consulting, Inc., PO Box 2242, CALL 1-877-315-1 149 TOLL FREE. OR VISIT 3 Case Document 36-1 Filed 05/20/15 Page 78 of 184 Faribault, MN 55021-1642, or by calling toll-free 1-877-315-1149. You cannot submit a claim if you ah?eady received a reflmd for the MacKeeper software you pru?chased. If you submit a Claim Form, you won?t be able to sue in a futlu?e lawsuit about the claims addressed in the Settlement. For a more detailed description of the claims that you will be releasing if you do not request to be excluded from the Settlement, see provision 1.24 on pages 7?8 of the Settlement Agreement. I 8. When will I get my payment? I If you submitted a valid and approved claim, you should receive a check from the Settlement Administrator within approximately 60-90 days after the Settlement has been fmally approved and/or after any appeals have been resolved in favor of the Settlement. The hearing to consider the ?nal fairness of the Settlement is scheduled for [Fairness Hearing Date]. All checks will expire and become void 90 days after they are issued. Please also note that if, prior to the fairness hearing, more than 1,000 Class Members exclude themselves from the settlement, shall have the option to terminate the settlement. If terminates the settlement, you will not receive a payment. THE LAWYERS REPRESENTING YOU I 9. Do I have a lawyer in this case? I Yes, the orut has appointed lawyers Rafey S. Balabanian, Benjamin H. Richman, and Courtney C. Booth of Edelson PC as Class Counsel. You will not be separately charged for these lawyers. If you want to be represented by your own lawyer, you may hire one at yom? own expense. I 10. How will the lawyers be paid? I Class Cormsel will ask the Corut for attorneys? fees and expenses of up to one-third of the Settlement Fund. The orut will determine the proper amount of any attorneys? fees and expenses to award Class ormsel. The orut may award less than the amount requested. Class Counsel will also request a service award (also known as an ?incentive? award) for the Class Representative of 11p to $1,000 from the Settlement for her services as Class Representative and her efforts in bringing this case. The Court will determine what amount will be paid to the Class Representative. The Court may award less than the amormt requested. Class ormsel will file with the orut and post on the settlement website their request for attorneys? fees and expenses and request for an incentive award to the Class Representative two weeks before the objection deadline of [date 2 weeks before objection deadline]. YOUR RIGHTS AND OPTIONS I 11. What happens if I do nothing at all? I If you do nothing, you will receive no payment under the Settlement, you will be in the Settlement Class, and if the orut approves the Settlement, you will also be bound by all orders and judgments CALL 1-877-315-1 149 TOLL FREE, OR VISIT 4 Case Document 36-1 Filed 05/20/15 Page 79 of 184 of the orut. Also, unless you exclude yoru?self, you won?t be able to start a lawsuit or be part of any other lawsuit against the Defendant for the claims being resolved by this Settlement. I 12. What happens if I ask to be excluded? I If you exclude yoru?self ??om the Settlement, you can?t claim any money or receive any bene?ts as a result of the Settlement. You will keep yoru? right to start yoru? own lawsuit against Defendant for the same legal claims made in this lawsuit. You will not be legally bormd by the Corut?s judgments related to the Settlement Class and Defendant in this class actionexcluded? I To exclude yoru?self from the Settlement Class, you must send a letter or email saying that you want to be excluded from the Settlement Class in Yenclla v. LLC, Case No., 14-cv-00578. Yoru' letter or email must also include yoru? name, address, the e-mail address you used in connection with your pru'chase of MacKeeper, your phone number, and yoru' signature. If you choose to exclude yourself by mail, your request for exclusion be postmarked no later than [objection exclusion deadline], and sent to: MacKeeper Settlement Administrator c/o Rust Consulting, Inc. PO Box 2242 Faribault, MN 5502 l- 1642 If you choose to exclude yoru'self by email, yoru' request for exclusion must be sent to no later than [objection exclusion deadline]. You cannot exclude yorn?self by phone. I 14. If I don?t exclude myself, can I sue the Defendant for the same thing later? I No. Unless you exclude yourself, you give up any right to sue the Defendant for the claims being resolved by this Settlement. For a more detailed description of the claims that you will be releasing if you do not request to be excluded from the Settlement, see paragraph 1.24 on pages 7?8 of the Settlement Agreement. I 15. If I exclude myself, can I get anything from this Settlement? I No, if you exclude yourself, do not submit a Claim Form to ask for a payment. I 16. How do I object to the Settlement? I If you do not exclude yoru?self from the Settlement Class, you can object to the Settlement if you like or don?t like any part of it. You can give reasons why you think the Court should not approve it by ?ling an objection. The Court will consider your Views. Yoru? objection must be ?led with the orut or postmarked to the orut?s address below no later than [date]. You must also send a copy to attorneys for the Parties at the addresses below. If you are represented by an attorney, yoru? objection be ?led through the Court?s Case Management/Electronic Case Filing (C F) system. CALL 1-877-315-1 149 TOLL FREE. OR VISIT 5 Case Document 36-1 Filed 05/20/15 Page 80 of 184 Court Class Counsel Defendant?s Counsel Clerk of the Court Benjamin H. Richman Matthew D. Brown United States Courthouse EDELSON PC Cooley LLP W.D. of 350 North LaSalle, Suite 1300 101 California Street, 5th Floor Division Chicago, Illinois 60654 San Francisco, California 941 11 700 Grant Street 1 52 19 The objection must be in writing and include the case name Yencha v. LLC, Case No. 14?cv- 00578. It must also include your name, yoru' address, the e-mail address that you used in connection with yoru? plu?chase of MacKeeper, yoru? phone number, an explanation of the basis upon which you claim to be a Settlement Class Member, the speci?c grounds for the objection (including all arguments, citations, and evidence supporting the objection), the name and contact information of any and all attorneys representing, advising, or in any way assisting you in connection with the preparation or submission of your objection or who may pro?t from the pru'suit of your objection, and your physical signature. The Court will consider all properly ?led objections from Settlement Class Members. I 17. What?s the difference between objecting and excluding myself from the Settlement? I Objecting simply means telling the Court that you don?t like something about the settlement. You can object only if you stay in the Settlement Class. Excluding yourself from the Settlement Class is telling the Court that you don?t want to be part of the Settlement Class. If you exclude yoru'self, you have no basis to object because the case no longer affects you. THE FAIRNESS HEARING I 18. When and where will the Court hold a hearing on the fairness of the Settlement? I A hearing has been set for [date] at [time], before The Honorable Joy Flowers Conti at the United States Courthouse, Pittsburgh Division, 700 Grant Street, Pittsburgh, 15219 in Courtroom 5A. At the hearing, the Court will hear any objections and arguments concerning the fairness of the proposed settlement, including the amount requested by Class Counsel for attorneys? fees and expenses and the incentive award to the Class Representative. You do not need to attend this hearing. You also do not need to attend to have an objection considered by the orut. Note: The date and time of the fairness hearing are subject to change by orut Order, but any changes will be posted at or through the Court?s Public Access to orut Electronic Records (PACER) system. I 19. Do I have to come to the hearing? I No. Class Counsel will answer any questions the Court may have, but you are welcome to come at yoru? own expense. If you send an objection, you don?t have to come to Court to talk about it. As long as yoru' written objection was ?led and mailed on time and meets the other criteria described in the Settlement, the orut will consider it. You may also pay another lawyer to attend, but you don?t have to. CALL 1-877-315-1 149 TOLL FREE, OR VISIT 6 Case Document 36-1 Filed 05/20/15 Page speak at the hearing? I If you do not exclude yourself from the Settlement Class, you may speak at the hearing. GETTING MORE INFORMATION I 21. Where can I get additional information? I This notice suimnarizes the proposed Settlement. For the precise terms and conditions of the Settlement, please see the Settlement Agreement available at by contacting Class Cormsel at 1-866-354-3015, by accessing the Corut docket in this case through the Comt?s PACER system, or by writing to the Settlement Administrator at MacKeeper Settlement Administrator, c/o Rust Consulting, Inc., PO Box 2242, Faribault, MN 55021-1642 or calling toll- free 1-877-315-1149. The Settlement Agreement and all other pleadings and papers ?led in the case are available for inspection and copying during regular business hom?s at the of?ce of the Clerk of the US. District Comt of the Westem District of Pittsburgh Division, located at the United States omthouse, 700 Grant Street, 15219. PLEASE Do NOT CONTACT THE COURT, THE JUDGE, OR THE DEFENDANT WITH QUESTIONS ABOUT THE SETTLEMENT OR CLAIMS PROCESS. CALL 1-877-315-1 149 TOLL FREE, OR VISIT 7