Bingollu v. One Source Technology, LLC

U.S. District Court, District of Minnesota

Bingollu v. One Source Technology, LLC

Trial Court Opinion

             UNITED STATES DISTRICT COURT                            
                 DISTRICT OF MINNESOTA                               


Burak C. Bingollu,                 Case No. 22-cv-77 (DTS)                
on behalf of himself and                                                  
all others similarly situated,                                            

Plaintiff,                                                           

ORDER

v.                                                                        

One Source Technology, LLC                                                
d/b/a Asurint,                                                            

Defendant.                                                           


Plaintiff Burak C. Bingollu moves for the approval of a class action settlement, Dkt. 
No. 78, and for attorneys’ fees, costs, and a class representative service award, Dkt. No. 
71. A hearing on these unopposed motions was held September 11, 2024. Plaintiff’s 
submissions and the record establish that: (1) class certification is appropriate under 
Federal Rules of Civil Procedure 23(a) and 23(b)(3); (2) the proposed settlement is fair, 
reasonable, and adequate under Rule 23(e)(2); and (3) the requested attorneys’ fees, 
costs, and class-representative payment are reasonable. Therefore, the motions are 
granted.                                                                  
                     BACKGROUND                                      
Plaintiff brought this class action in 2022,1 alleging that Defendant One Source 
Technology,  LLC  (One  Source)  violated  the  Fair  Credit  Reporting  Act  (FCRA), 

1 Former named plaintiff Sharon Dekontee Wright originally brought this class action. See 
Compl., Dkt. No. 1-1. During the mediation process, Ms. Wright decided to pursue her 
claims against One Source individually. See Pl.’s Mem. in Supp. Mot. Prelim. Approval 
3–4, Dkt. No. 65. Mr. Bingollu was added as a named plaintiff in the Amended Complaint. 
Am. Compl., Dkt. No. 41.                                                  
15 U.S.C. § 1681
, et. seq. Compl., Dkt. No. 1-1. According to the Amended Complaint, 
One  Source  is  a  background  check  company  that  creates  reports  for  employers. 
Am. Compl.  ¶  10,  Dkt.  No.  41.  These  reports  help  employers  validate  candidate 
information, including candidates’ social security numbers. 
Id. ¶ 12
. At some point, One 
Source adopted a common policy of reporting that any social security numbers issued 

after June 24, 2011, were incapable of being validated. 
Id. ¶ 13
. This resulted in One 
Source inaccurately reporting that relatively new social security numbers were incapable 
of  verification.  
Id. ¶ 15
.  Plaintiff  alleged  that  One  Source’s  policy  willfully  violated 
15 U.S.C. § 1681e(b), a provision of the FCRA requiring consumer reporting agencies to 
“follow reasonable procedures to assure maximum possible accuracy of the information 
concerning the individual about whom the report relates.” 15 U.S.C. § 1681e(b).2 
Plaintiff engaged in discovery to evaluate the strength of his § 1681e(b) claim. See 
Albanese Decl. in Supp. Mot. Prelim. Approval ¶¶ 4–6, Dkt. No. 66. After an initial round 
of mediation in 2023, the parties reached a settlement in February 2024. See Notice of 

Settlement, Dkt. No. 59; Albanese Decl. in Supp. Mot. Prelim. Approval Ex. A, Dkt. No. 
66-1 (Settlement Agreement). The settlement class is defined as follows:  
     All  individuals  who  were  the  subject  of  consumer  reports 
     prepared by Defendant from December 27, 2019 to May 1,          
     2023 about whom Defendant reported: (1) through the SSN         
     Trace  Level  2  product,  “unable  to  validate”  and/or  “not 
     verified”; or (2) individuals who disputed information in the   
     SSN Trace section of their background reports, which was        
     then revised.                                                   

Settlement Agreement ¶ 1.43. Based on this definition, 60,405 class members were 
identified. Jenkins Decl. ¶ 4, Dkt. No. 75. On April 4, 2024, this Court entered an order 

2 One Source disputes these allegations.                                  
granting preliminary approval of the proposed class action settlement. Dkt. No. 70. 
A declaration  of  compliance  with  the  provisions  of  the  settlement  agreement  and 
preliminary approval order relating to notice was filed with the Court. See Jenkins Decl., 
Dkt. No. 75. As of the objection deadline, no settlement class member had filed an 
objection. Id. ¶ 13. On September 11, 2024, a final fairness hearing was held. See Min. 

Entry, Dkt. No. 82. No class members appeared at the final fairness hearing. 
                       ANALYSIS                                      
I.   Class Certification                                                  
To certify a class for settlement purposes, “the Court must conclude that the four 
prerequisites of Rule 23(a) and at least one of the provisions of Rule 23(b) are satisfied.” 
Kruger v. Lely N. Am., Inc., No. 20-cv-629, 
2023 WL 5665215
, at *2 (D. Minn. Sept. 1, 
2023). The four prerequisites of Rule 23(a) are numerosity, commonality, typicality, and 
adequacy. See Morrison v. Entrust Corp., No. 23-cv-415, 
2024 WL 2207563
, at *3–4 
(D. Minn. May 14, 2024). Rule 23(b)(3) requires a plaintiff to demonstrate predominance 

and superiority. 
Id. at *5
. Take each requirement in turn.                
Numerosity requires the class to be “so numerous that joinder of all members is 
impracticable.” Fed. R. Civ. P. 23(a)(1). The size of the class is an important factor, and 
courts in the Eighth Circuit often find that classes exceeding 40 members meet the 
numerosity requirement. Murphy v. Piper, No. 16-cv-2623, 
2017 WL 4355970
, at *3 
(D. Minn. Sept. 29, 2017). Numerosity is satisfied in this case because joinder of the more 
than 60,000 class members would plainly be impracticable. See, e.g., Kruger, 
2023 WL 5665215
, at *2 (concluding that joining 400 class members would be impracticable). 
Commonality requires there to be “questions of law or fact common to the class.” 
Fed. R. Civ. P. 23(a)(2). To satisfy commonality, class members’ claims must be “capable 
of classwide resolution—which means that determination of its truth or falsity will resolve 
an issue that is central to the validity of each one of the claims in one stroke.” Wal-Mart 
Stores,  Inc.  v.  Dukes,  
564 U.S. 338, 350
  (2011).  That’s  the  case  here.  Plaintiff’s 

§ 1681e(b) claim challenges procedures common to the class—One Source’s reporting 
of social security numbers issued after June 24, 2011, as incapable of being validated. 
Whether One Source’s procedures were reasonable and whether it willfully violated the 
FCRA by implementing that procedure are issues which could be resolved in a single 
stroke. See Soutter v. Equifax Info. Servs., LLC, 
307 F.R.D. 183
, 199–208 (E.D. Va. 2015) 
(finding commonality satisfied by a § 1681e(b) claim).                    
Typicality requires “the claims or defenses of the representative parties [to be] 
typical of the claims or defenses of the class.” Fed. R. Civ. P. 23(a)(3). This requirement 
“is fairly easily met so long as other class members have claims similar to the named 

plaintiff.” DeBoer v. Mellon Mortg. Co., 
64 F.3d 1171
, 1174 (8th Cir. 1995). Mr. Bingollu’s 
§ 1681e(b) claim is typical of the class. He received his social security number after June 
24, 2011, and One Source reported his social security number as incapable of being 
validated within the class definition’s date range. Am. Compl. ¶¶ 31, 35–41.  
Adequacy requires the representative parties to “fairly and adequately protect the 
interests of the class.” Fed. R. Civ. P. 23(a)(4). To satisfy adequacy of representation, 
“Plaintiff must show that: (1) the representative and its attorneys are able and willing to 
prosecute the action competently and vigorously; and (2) the representative’s interests 
are sufficiently similar to those of the class that it is unlikely that their goals and viewpoints 
will diverge.” City of Farmington Hills Emps. Ret. Sys. v. Wells Fargo Bank, 
281 F.R.D. 347, 353
 (D. Minn. 2012). Mr. Bingollu has played an active role in litigation by assisting 
in investigation of the case, reviewing and approving pleadings, and remaining in contact 
with class counsel. See Albanese Decl. in Supp. Mot. Att’ys Fees ¶ 18, Dkt. No. 73. Class 
counsel are experienced in prosecuting consumer protection class actions. Id. ¶ 9. And 

no information suggests that Mr. Bingollu has any conflicts with his class members. That’s 
enough to satisfy adequacy.                                               
Predominance and superiority require Plaintiff to demonstrate that (1) “questions 
of law or fact common to class members predominate over any questions affecting only 
individual members and [(2)] that a class action is superior to other available methods for 
fairly and efficiently adjudicating the controversy.” Fed. R. Civ. P. 23(b)(3). Predominance 
is satisfied here because whether One Source used reasonable procedures and whether 
its alleged violations were willful are common issues that predominate over individualized 
concerns.  See  Soutter,  307  F.R.D.  at  215–16  (finding  similar  claim  to  satisfy 

predominance); Martinez v. Avantus, LLC, 
343 F.R.D. 254
, 267 (D. Conn. 2023) (same). 
Superiority is satisfied by the large class size but small value of each class member’s 
claim, meaning most class members “would not realistically have a day in court” absent 
class certification. In re Pork Antitrust Litig., 
665 F. Supp. 3d 967
, 1009 (D. Minn. 2023). 
Rules 23(a) and 23(b)(3) satisfied, certification of the settlement class is appropriate. 
II.  Settlement Approval                                             
A court may only approve a class-action settlement after “finding that it is fair, 
reasonable, and adequate.” Fed. R. Civ. P. 23(e)(2). Courts must consider four factors: 
“(1) the merits of the plaintiff’s case weighed against the terms of the settlement, (2) the 
defendant’s financial condition, (3) the complexity and expense of further litigation, and 
(4)  the  amount  of  opposition  to  the  settlement.”  Marshall  v.  Nat’l  Football  League, 
787 F.3d 502, 508
 (8th Cir. 2015) (quoting Van Horn v. Trickey, 
840 F.2d 604, 607
 
(8th Cir. 1988)). The first factor is the most important. 
Id.
             
Having considered the relevant factors, the Court finds the terms of the settlement 

agreement to be fair, reasonable, and adequate. One Source will pay $2,400,000 as a 
common settlement fund. Settlement Agreement ¶ 1.45. Based on the number of claim 
forms  submitted,  class  counsel  estimate  that  this  settlement  fund  will  result  in  net 
payments of $510 per class member who submits a claim. Pl.’s Mem. in Supp. Mot. Final 
Approval 7, Dkt. No. 80. In no circumstance will any portion of the settlement fund revert 
to One Source. Settlement Agreement ¶ 4.2. And One Source has made process changes 
to how it reports results for the social security number trace section of its background 
reports. Id. ¶ 2.6. This $510-per-member result compares favorably to other FCRA 
settlements and the FCRA’s statutory damages range. See Pl.’s Mem. in Supp. Mot. Final 

Approval 12 n.4, Dkt. No. 80 (collecting cases); 15 U.S.C. § 1681n. Moreover, Plaintiff 
was not guaranteed to prevail on the merits—One Source contested the reasonableness 
of its procedures and willfulness. See Settlement Agreement ¶ 2.4. The settlement, 
reached at an early stage of litigation, allows the parties to avoid substantial expense and 
provides relief to the class members sooner. Plaintiff reasonably predicts that the parties 
would  engage  in  expert discovery, class  certification,  summary judgment,  trial,  and 
perhaps appeals if this case continues. Pl.’s Mem. in Supp. Mot. Final Approval 16–17, 
Dkt. No. 80. No party disagrees that One Source is in good financial standing, capable of 
paying for its settlement obligations. No class member has opposed the settlement. And 
finally,  the  settlement  was  the  product  of  arm’s  length  negotiations,  including  an 
independent mediator. See Albanese Decl. in Supp. Mot. Att’ys Fees ¶ 14, Dkt. No. 73. 
III.  Attorneys’ Fees, Costs, and Service Award                      
“In a certified class action, the court may award reasonable attorney’s fees and 
nontaxable costs that are authorized by law or by the parties’ agreement.” Fed. R. Civ. P. 

23(h). When a class action leads to a common fund for the class, courts may award fees 
from that common fund. Boeing Co. v. Van Gemert, 
444 U.S. 472, 478
 (1980). Under the 
common-fund doctrine, fees are awarded based on a percentage of the common fund 
recovered. In re Xcel Energy, Inc., Sec., Derivative & ‘‘ERISA’’ Litig., 
364 F. Supp. 2d 980, 991
 (D. Minn. 2005). “In the Eighth Circuit, use of a percentage method of awarding 
attorney fees in a common-fund case is not only approved, but also well established.” 
Kruger, 
2023 WL 5665215
, at *5 (quoting In re Xcel, 
364 F. Supp. 2d at 991
). To 
determine the reasonableness of a fee award under the common-fund approach, courts 
may consider several relevant factors. See In re Target Corp. Customer Data Sec. Breach 

Litig., 
892 F.3d 968
, 977 n.7 (8th Cir. 2018) (listing twelve factors).   
Having considered these factors, Plaintiff’s request for one-third of the settlement 
fund—$800,000—is reasonable: (1) the 377.2 hours class counsel expended on this case 
is  not  insignificant;  (2)  continued  litigation  of  this  case  would  be  time  consuming, 
expensive, and reasonably complicated; (3) the lawyers in this case are highly skilled and 
experienced; (4) class counsel have pursued this case on a fully contingent basis; (5) the 
benefits for the class are substantial; (6) Plaintiff’s lodestar computation results in a 
multiplier  slightly  over  3,  which  is  reasonable  given  the  results  obtained  and  early 
settlement; and (7) the request for one-third of the settlement fund is within the typical 
range approved in the Eighth Circuit. Huyer v. Buckley, 
849 F.3d 395, 399
 (8th Cir. 2017). 
The requests for $16,969.63 in costs and a $5,000 service award for Mr. Bingollu are also 
reasonable.                                                               

ORDER

For the reasons set forth above, IT IS HEREBY ORDERED:               

1.   Plaintiff’s Motion for Final Approval of Class Action Settlement [Dkt. No. 78] 
is GRANTED;                                                               
2.   Final certification of the settlement class is GRANTED;         
3.   Plaintiff’s  Motion  for  Award  of  Attorneys’  Fees,  Costs,  and  Class 
Representative Award [Dkt. No. 71] is GRANTED;                            
4.   Class counsel are awarded $816,969.63 in fees and costs;        
5.   Class representative Burak C. Bingollu is awarded a service award of 
$5,000;                                                                   
6.   Final  approval  of  the  methods  and  forms  of  notice  provided  to  class 

members is GRANTED; and                                                   
7.   The Court shall retain jurisdiction over the subject matter and the parties 
with respect to the interpretation and implementation of the settlement agreement for all 
purposes.                                                                 
LET JUDGMENT BE ENTERED ACCORDINGLY.                                 

Dated: September 20, 2024          s/David T. Schultz_____                
                              DAVID T. SCHULTZ                       
                              U.S. Magistrate Judge                  

Trial Court Opinion

             UNITED STATES DISTRICT COURT                            
                 DISTRICT OF MINNESOTA                               


Burak C. Bingollu,                 Case No. 22-cv-77 (DTS)                
on behalf of himself and                                                  
all others similarly situated,                                            

Plaintiff,                                                           

ORDER

v.                                                                        

One Source Technology, LLC                                                
d/b/a Asurint,                                                            

Defendant.                                                           


Plaintiff Burak C. Bingollu moves for the approval of a class action settlement, Dkt. 
No. 78, and for attorneys’ fees, costs, and a class representative service award, Dkt. No. 
71. A hearing on these unopposed motions was held September 11, 2024. Plaintiff’s 
submissions and the record establish that: (1) class certification is appropriate under 
Federal Rules of Civil Procedure 23(a) and 23(b)(3); (2) the proposed settlement is fair, 
reasonable, and adequate under Rule 23(e)(2); and (3) the requested attorneys’ fees, 
costs, and class-representative payment are reasonable. Therefore, the motions are 
granted.                                                                  
                     BACKGROUND                                      
Plaintiff brought this class action in 2022,1 alleging that Defendant One Source 
Technology,  LLC  (One  Source)  violated  the  Fair  Credit  Reporting  Act  (FCRA), 

1 Former named plaintiff Sharon Dekontee Wright originally brought this class action. See 
Compl., Dkt. No. 1-1. During the mediation process, Ms. Wright decided to pursue her 
claims against One Source individually. See Pl.’s Mem. in Supp. Mot. Prelim. Approval 
3–4, Dkt. No. 65. Mr. Bingollu was added as a named plaintiff in the Amended Complaint. 
Am. Compl., Dkt. No. 41.                                                  
15 U.S.C. § 1681
, et. seq. Compl., Dkt. No. 1-1. According to the Amended Complaint, 
One  Source  is  a  background  check  company  that  creates  reports  for  employers. 
Am. Compl.  ¶  10,  Dkt.  No.  41.  These  reports  help  employers  validate  candidate 
information, including candidates’ social security numbers. 
Id. ¶ 12
. At some point, One 
Source adopted a common policy of reporting that any social security numbers issued 

after June 24, 2011, were incapable of being validated. 
Id. ¶ 13
. This resulted in One 
Source inaccurately reporting that relatively new social security numbers were incapable 
of  verification.  
Id. ¶ 15
.  Plaintiff  alleged  that  One  Source’s  policy  willfully  violated 
15 U.S.C. § 1681e(b), a provision of the FCRA requiring consumer reporting agencies to 
“follow reasonable procedures to assure maximum possible accuracy of the information 
concerning the individual about whom the report relates.” 15 U.S.C. § 1681e(b).2 
Plaintiff engaged in discovery to evaluate the strength of his § 1681e(b) claim. See 
Albanese Decl. in Supp. Mot. Prelim. Approval ¶¶ 4–6, Dkt. No. 66. After an initial round 
of mediation in 2023, the parties reached a settlement in February 2024. See Notice of 

Settlement, Dkt. No. 59; Albanese Decl. in Supp. Mot. Prelim. Approval Ex. A, Dkt. No. 
66-1 (Settlement Agreement). The settlement class is defined as follows:  
     All  individuals  who  were  the  subject  of  consumer  reports 
     prepared by Defendant from December 27, 2019 to May 1,          
     2023 about whom Defendant reported: (1) through the SSN         
     Trace  Level  2  product,  “unable  to  validate”  and/or  “not 
     verified”; or (2) individuals who disputed information in the   
     SSN Trace section of their background reports, which was        
     then revised.                                                   

Settlement Agreement ¶ 1.43. Based on this definition, 60,405 class members were 
identified. Jenkins Decl. ¶ 4, Dkt. No. 75. On April 4, 2024, this Court entered an order 

2 One Source disputes these allegations.                                  
granting preliminary approval of the proposed class action settlement. Dkt. No. 70. 
A declaration  of  compliance  with  the  provisions  of  the  settlement  agreement  and 
preliminary approval order relating to notice was filed with the Court. See Jenkins Decl., 
Dkt. No. 75. As of the objection deadline, no settlement class member had filed an 
objection. Id. ¶ 13. On September 11, 2024, a final fairness hearing was held. See Min. 

Entry, Dkt. No. 82. No class members appeared at the final fairness hearing. 
                       ANALYSIS                                      
I.   Class Certification                                                  
To certify a class for settlement purposes, “the Court must conclude that the four 
prerequisites of Rule 23(a) and at least one of the provisions of Rule 23(b) are satisfied.” 
Kruger v. Lely N. Am., Inc., No. 20-cv-629, 
2023 WL 5665215
, at *2 (D. Minn. Sept. 1, 
2023). The four prerequisites of Rule 23(a) are numerosity, commonality, typicality, and 
adequacy. See Morrison v. Entrust Corp., No. 23-cv-415, 
2024 WL 2207563
, at *3–4 
(D. Minn. May 14, 2024). Rule 23(b)(3) requires a plaintiff to demonstrate predominance 

and superiority. 
Id. at *5
. Take each requirement in turn.                
Numerosity requires the class to be “so numerous that joinder of all members is 
impracticable.” Fed. R. Civ. P. 23(a)(1). The size of the class is an important factor, and 
courts in the Eighth Circuit often find that classes exceeding 40 members meet the 
numerosity requirement. Murphy v. Piper, No. 16-cv-2623, 
2017 WL 4355970
, at *3 
(D. Minn. Sept. 29, 2017). Numerosity is satisfied in this case because joinder of the more 
than 60,000 class members would plainly be impracticable. See, e.g., Kruger, 
2023 WL 5665215
, at *2 (concluding that joining 400 class members would be impracticable). 
Commonality requires there to be “questions of law or fact common to the class.” 
Fed. R. Civ. P. 23(a)(2). To satisfy commonality, class members’ claims must be “capable 
of classwide resolution—which means that determination of its truth or falsity will resolve 
an issue that is central to the validity of each one of the claims in one stroke.” Wal-Mart 
Stores,  Inc.  v.  Dukes,  
564 U.S. 338, 350
  (2011).  That’s  the  case  here.  Plaintiff’s 

§ 1681e(b) claim challenges procedures common to the class—One Source’s reporting 
of social security numbers issued after June 24, 2011, as incapable of being validated. 
Whether One Source’s procedures were reasonable and whether it willfully violated the 
FCRA by implementing that procedure are issues which could be resolved in a single 
stroke. See Soutter v. Equifax Info. Servs., LLC, 
307 F.R.D. 183
, 199–208 (E.D. Va. 2015) 
(finding commonality satisfied by a § 1681e(b) claim).                    
Typicality requires “the claims or defenses of the representative parties [to be] 
typical of the claims or defenses of the class.” Fed. R. Civ. P. 23(a)(3). This requirement 
“is fairly easily met so long as other class members have claims similar to the named 

plaintiff.” DeBoer v. Mellon Mortg. Co., 
64 F.3d 1171
, 1174 (8th Cir. 1995). Mr. Bingollu’s 
§ 1681e(b) claim is typical of the class. He received his social security number after June 
24, 2011, and One Source reported his social security number as incapable of being 
validated within the class definition’s date range. Am. Compl. ¶¶ 31, 35–41.  
Adequacy requires the representative parties to “fairly and adequately protect the 
interests of the class.” Fed. R. Civ. P. 23(a)(4). To satisfy adequacy of representation, 
“Plaintiff must show that: (1) the representative and its attorneys are able and willing to 
prosecute the action competently and vigorously; and (2) the representative’s interests 
are sufficiently similar to those of the class that it is unlikely that their goals and viewpoints 
will diverge.” City of Farmington Hills Emps. Ret. Sys. v. Wells Fargo Bank, 
281 F.R.D. 347, 353
 (D. Minn. 2012). Mr. Bingollu has played an active role in litigation by assisting 
in investigation of the case, reviewing and approving pleadings, and remaining in contact 
with class counsel. See Albanese Decl. in Supp. Mot. Att’ys Fees ¶ 18, Dkt. No. 73. Class 
counsel are experienced in prosecuting consumer protection class actions. Id. ¶ 9. And 

no information suggests that Mr. Bingollu has any conflicts with his class members. That’s 
enough to satisfy adequacy.                                               
Predominance and superiority require Plaintiff to demonstrate that (1) “questions 
of law or fact common to class members predominate over any questions affecting only 
individual members and [(2)] that a class action is superior to other available methods for 
fairly and efficiently adjudicating the controversy.” Fed. R. Civ. P. 23(b)(3). Predominance 
is satisfied here because whether One Source used reasonable procedures and whether 
its alleged violations were willful are common issues that predominate over individualized 
concerns.  See  Soutter,  307  F.R.D.  at  215–16  (finding  similar  claim  to  satisfy 

predominance); Martinez v. Avantus, LLC, 
343 F.R.D. 254
, 267 (D. Conn. 2023) (same). 
Superiority is satisfied by the large class size but small value of each class member’s 
claim, meaning most class members “would not realistically have a day in court” absent 
class certification. In re Pork Antitrust Litig., 
665 F. Supp. 3d 967
, 1009 (D. Minn. 2023). 
Rules 23(a) and 23(b)(3) satisfied, certification of the settlement class is appropriate. 
II.  Settlement Approval                                             
A court may only approve a class-action settlement after “finding that it is fair, 
reasonable, and adequate.” Fed. R. Civ. P. 23(e)(2). Courts must consider four factors: 
“(1) the merits of the plaintiff’s case weighed against the terms of the settlement, (2) the 
defendant’s financial condition, (3) the complexity and expense of further litigation, and 
(4)  the  amount  of  opposition  to  the  settlement.”  Marshall  v.  Nat’l  Football  League, 
787 F.3d 502, 508
 (8th Cir. 2015) (quoting Van Horn v. Trickey, 
840 F.2d 604, 607
 
(8th Cir. 1988)). The first factor is the most important. 
Id.
             
Having considered the relevant factors, the Court finds the terms of the settlement 

agreement to be fair, reasonable, and adequate. One Source will pay $2,400,000 as a 
common settlement fund. Settlement Agreement ¶ 1.45. Based on the number of claim 
forms  submitted,  class  counsel  estimate  that  this  settlement  fund  will  result  in  net 
payments of $510 per class member who submits a claim. Pl.’s Mem. in Supp. Mot. Final 
Approval 7, Dkt. No. 80. In no circumstance will any portion of the settlement fund revert 
to One Source. Settlement Agreement ¶ 4.2. And One Source has made process changes 
to how it reports results for the social security number trace section of its background 
reports. Id. ¶ 2.6. This $510-per-member result compares favorably to other FCRA 
settlements and the FCRA’s statutory damages range. See Pl.’s Mem. in Supp. Mot. Final 

Approval 12 n.4, Dkt. No. 80 (collecting cases); 15 U.S.C. § 1681n. Moreover, Plaintiff 
was not guaranteed to prevail on the merits—One Source contested the reasonableness 
of its procedures and willfulness. See Settlement Agreement ¶ 2.4. The settlement, 
reached at an early stage of litigation, allows the parties to avoid substantial expense and 
provides relief to the class members sooner. Plaintiff reasonably predicts that the parties 
would  engage  in  expert discovery, class  certification,  summary judgment,  trial,  and 
perhaps appeals if this case continues. Pl.’s Mem. in Supp. Mot. Final Approval 16–17, 
Dkt. No. 80. No party disagrees that One Source is in good financial standing, capable of 
paying for its settlement obligations. No class member has opposed the settlement. And 
finally,  the  settlement  was  the  product  of  arm’s  length  negotiations,  including  an 
independent mediator. See Albanese Decl. in Supp. Mot. Att’ys Fees ¶ 14, Dkt. No. 73. 
III.  Attorneys’ Fees, Costs, and Service Award                      
“In a certified class action, the court may award reasonable attorney’s fees and 
nontaxable costs that are authorized by law or by the parties’ agreement.” Fed. R. Civ. P. 

23(h). When a class action leads to a common fund for the class, courts may award fees 
from that common fund. Boeing Co. v. Van Gemert, 
444 U.S. 472, 478
 (1980). Under the 
common-fund doctrine, fees are awarded based on a percentage of the common fund 
recovered. In re Xcel Energy, Inc., Sec., Derivative & ‘‘ERISA’’ Litig., 
364 F. Supp. 2d 980, 991
 (D. Minn. 2005). “In the Eighth Circuit, use of a percentage method of awarding 
attorney fees in a common-fund case is not only approved, but also well established.” 
Kruger, 
2023 WL 5665215
, at *5 (quoting In re Xcel, 
364 F. Supp. 2d at 991
). To 
determine the reasonableness of a fee award under the common-fund approach, courts 
may consider several relevant factors. See In re Target Corp. Customer Data Sec. Breach 

Litig., 
892 F.3d 968
, 977 n.7 (8th Cir. 2018) (listing twelve factors).   
Having considered these factors, Plaintiff’s request for one-third of the settlement 
fund—$800,000—is reasonable: (1) the 377.2 hours class counsel expended on this case 
is  not  insignificant;  (2)  continued  litigation  of  this  case  would  be  time  consuming, 
expensive, and reasonably complicated; (3) the lawyers in this case are highly skilled and 
experienced; (4) class counsel have pursued this case on a fully contingent basis; (5) the 
benefits for the class are substantial; (6) Plaintiff’s lodestar computation results in a 
multiplier  slightly  over  3,  which  is  reasonable  given  the  results  obtained  and  early 
settlement; and (7) the request for one-third of the settlement fund is within the typical 
range approved in the Eighth Circuit. Huyer v. Buckley, 
849 F.3d 395, 399
 (8th Cir. 2017). 
The requests for $16,969.63 in costs and a $5,000 service award for Mr. Bingollu are also 
reasonable.                                                               

ORDER

For the reasons set forth above, IT IS HEREBY ORDERED:               

1.   Plaintiff’s Motion for Final Approval of Class Action Settlement [Dkt. No. 78] 
is GRANTED;                                                               
2.   Final certification of the settlement class is GRANTED;         
3.   Plaintiff’s  Motion  for  Award  of  Attorneys’  Fees,  Costs,  and  Class 
Representative Award [Dkt. No. 71] is GRANTED;                            
4.   Class counsel are awarded $816,969.63 in fees and costs;        
5.   Class representative Burak C. Bingollu is awarded a service award of 
$5,000;                                                                   
6.   Final  approval  of  the  methods  and  forms  of  notice  provided  to  class 

members is GRANTED; and                                                   
7.   The Court shall retain jurisdiction over the subject matter and the parties 
with respect to the interpretation and implementation of the settlement agreement for all 
purposes.                                                                 
LET JUDGMENT BE ENTERED ACCORDINGLY.                                 

Dated: September 20, 2024          s/David T. Schultz_____                
                              DAVID T. SCHULTZ                       
                              U.S. Magistrate Judge                  

Reference

Status
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