Razavi v. GreenState Credit Union

The lawsuit being settled is entitled Catherine Razavi v. GreenState Credit Union, Case No. LACV081674 in the Iowa Business Specialty Court, Johnson County. This case is a “class action.” That means that the "Named Plaintiff," Catherine Razavi, is an individual who is acting on behalf of current and former members of Defendant who were assessed overdraft fees on certain transactions. The Named Plaintiff has asserted claims for breach of the Account Agreement.

The Named Plaintiff’s Petition will be posted here and contains the claim asserted against Defendant. Defendant does not deny it charged the fees the Named Plaintiff is complaining about but contends it did so properly and in accordance with the terms of its agreements and applicable law. Defendant therefore denies that its practices give rise to claims for damages by the Named Plaintiff or any Class Member.

You received the notice because Defendant’s records indicate that you were charged one or more of the fees that are the subject of this action. The Court directed that the notice be sent to all Class Members because each Class Member has a right to know about the proposed settlement and the options available to him or her before the Court decides whether to approve the Settlement.

In any lawsuit, there are risks and potential benefits that come with a trial versus settling at an earlier stage. It is the Named Plaintiff’s and their lawyers’ job to identify when a proposed settlement offer is good enough that it justifies recommending settling the case instead of continuing to trial. In a class action, the Named Plaintiff’s lawyers, known as Class Counsel, make this recommendation to the Named Plaintiff. The Named Plaintiff has the duty to act in the best interests of the class as a whole and, in this case, it is their belief, as well as Class Counsels’ opinion, that this Settlement is in the best interest of all Class Members.

There is legal uncertainty about whether a judge or a jury will find that Defendant was contractually and otherwise legally obligated not to assess the fees that are being challenged in this case. Even if it was contractually wrong to assess these fees, there is uncertainty about whether the Named Plaintiff’s claims are subject to other defenses that might result in no or less recovery to Class Members. On December 7, 2020, the District Court dismissed all claims against the Defendant, which if affirmed would mean the case ended. The Named Plaintiff appealed that ruling to the Iowa Supreme Court, but there is no guarantee the Iowa Supreme Court will reverse the District Court’s ruling and allow the case to proceed. Even if the Named Plaintiff were to proceed to trial and win, there is no assurance that the Class Members would be awarded more than the current Settlement amount, and it may take years of litigation before any payments would be made. By settling, the Class Members will avoid these and other risks and delays associated with continued litigation.

While Defendant disputes the allegations in the lawsuit and denies any liability or wrongdoing, it enters into the Settlement solely to avoid the expense, inconvenience, and distraction of further proceedings in the litigation.

If you received the notice, then Defendant’s records indicate that you are a Class Member who is entitled to receive a payment or credit to your account.

You have three options:

1. Do nothing and you will receive a payment according to the terms of this Settlement;
2. Exclude yourself from the Settlement (“opt out” of it); or
3. Participate in the Settlement but object to it.

Each of these options is described in a separate section below.

There is no deadline to receive a payment. If you do nothing, then you will get a payment.

The deadline for sending a letter to exclude yourself from or opt out of the Settlement is December 14, 2021.

The deadline to file an objection with the Court is also December 14, 2021.

If you do not like the Settlement and you believe that you could receive more money by pursuing your claims on your own (with or without an attorney that you could hire) and you are comfortable with the risk that you might lose your case or get less than you would in this Settlement, then you may want to consider opting out.

If you believe the Settlement is unreasonable, unfair, or inadequate and the Court should reject the Settlement, you can object to the Settlement terms. The Court will decide if your objection is valid. If the Court agrees, then the Settlement will not be approved, and no payments will be made to you or any other Class Member. If your objection (and any other objection) is overruled, and the Settlement is approved, then you will still get a payment.

If you want to participate in the Settlement, then you don’t have to do anything; you will receive a payment if the Settlement is approved by the Court.

The Court has to decide that the Settlement is fair, reasonable, and adequate before it will approve it. The Court already has decided to provide preliminary approval of the Settlement, which is why you received the notice. The Court will make a final decision regarding the Settlement at a “Fairness Hearing” or “Final Approval Hearing,” which is currently scheduled for February 17, 2022.

Defendant has agreed to create a Settlement Fund of $1,137,000. In addition, Defendant has agreed to forgive certain Uncollected Fees, as defined in the Settlement Agreement, in an approximate amount of $542,000.

As discussed separately below, attorneys’ fees, litigation costs, and the costs paid to a third-party Settlement Administrator to administer the Settlement (including mailing and emailing the notice) will be paid out of the Settlement Fund. The balance of the Settlement Fund will be divided among all Class Members as described in the Settlement Agreement.

Class Counsel will request the Court to award attorneys’ fees of no more than one-third of the Value of the Settlement. Class Counsel will also request that it be reimbursed for litigation costs incurred in prosecuting the case. The Court will decide the amount of the attorneys’ fees and costs based on a number of factors, including the risk associated with bringing the case on a contingency basis, the amount of time spent on the case, the amount of costs incurred to prosecute the case, the quality of the work, and the outcome of the case.

Class Counsel will request that the Named Plaintiff be paid a service award in the amount of $10,000 for her work in connection with this case. The service award must be approved by the Court.

The balance of the Settlement Fund after attorneys’ fees and costs, the service award, and the Settlement Administrator’s fees will be divided among all Class Members in accordance with the formulas outlined in the Settlement Agreement. Current members of Defendant will receive a credit to their accounts for the amount they are entitled to receive, without having to take any action. Former members of Defendant will receive a check from the Settlement Administrator, without having to take any action. Current and former members of Defendant who incurred Uncollected Fee shall automatically have such fees waived and forgiven.

No. If you received the notice, then you will be entitled to receive a payment without having to make a claim, unless you choose to exclude yourself from the Settlement, or “opt out.”

The Court will hold a Final Approval Hearing on February 17, 2022, at 1:00 p.m. to consider whether the Settlement should be approved. If the Court approves the Settlement, then payments should be made, or credits should be issued within about 40 to 60 days after the Settlement is approved. However, if someone objects to the Settlement, and the objection is sustained, there is no Settlement. Even if all objections are overruled and the Court approves the Settlement, an objector could appeal, and it might take months or even years to have the appeal resolved, which would delay any payment.

If you do not want to receive a payment, or if you want to keep any right you may have to sue Defendant for the claims alleged in this lawsuit, then you must exclude yourself, or “opt out.”

To opt out, you must send a letter to the Settlement Administrator stating you want to be excluded. Your letter can simply say, “I hereby elect to be excluded from the Settlement in the Catherine Razavi v. GreenState Credit Union class action.” Be sure to include your name, the last four digits of your account number(s) or former account number(s), address, telephone number, and email address. Your exclusion or opt out request must be postmarked by December 14, 2021, and sent to the following address:

Catherine Razavi v. GreenState Credit Union
Settlement Administrator
P.O. Box 4436
Portland, OR 97208-4436

If you opt out of the Settlement, you will preserve and not give up any of your rights to sue Defendant for the claims alleged in this case. However, you will not be entitled to receive a payment from this Settlement.

No. If you exclude yourself, you will not be entitled to a payment.

You can object to the Settlement or any part of it that you do not like IF you do not exclude yourself from—or opt out of—the Settlement. Class Members who exclude themselves from the Settlement have no right to object to how other Class Members are treated.

To object, you must send a written document to the Settlement Administrator at the address below. Your objection should state that you are a Class Member and object to the Settlement, the factual and legal reasons why you object, and whether you intend to appear at the Final Approval Hearing. Your objection must include your name, address, telephone number, email address (if applicable), and signature. If you wish to speak at the Final Approval Hearing, you must include with your objection the statement, “I hereby give notice that I intend to appear at the Final Approval Hearing.”

All objections must be postmarked no later than December 14, 2021, and must be mailed to the Settlement Administrator as follows:

Catherine Razavi v. GreenState Credit Union
Settlement Administrator
P.O. Box 4436
Portland, OR 97208-4436

Objecting is telling the Court that you do not believe the Settlement is fair, reasonable, and adequate for the class and asking the Court to reject it. You can object only if you do not opt out of the Settlement. If you object to the Settlement and do not opt out, then you are entitled to a payment if the Settlement is approved, but you will release claims you might have against Defendant. Excluding yourself or opting out is telling the Court that you do not want to be part of the Settlement, and do not want to receive a payment or release claims you might have against Defendant for the claims alleged in this lawsuit.

If the Court sustains your objection, or the objection of any other Class Member, then there is no Settlement. If you object, but the Court overrules your objection and any other objection(s), then you will be part of the Settlement.

The Court will hold a Final Approval or Final Approval Hearing at 1:00 p.m. on February 17, 2022, at 417 South Clinton Street, Iowa City, IA 52240. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court may also decide how much to award Class Counsel for attorneys’ fees and expenses.

No. Class Counsel will answer any questions the Court may have. You may attend if you desire to do so. If you have submitted an objection, then you may want to attend.

If you have objected, you may ask the Court for permission to speak at the Final Approval Hearing. To do so, you must include with your objection—described in FAQ 19—the statement, “I hereby give notice that I intend to appear at the Final Approval Hearing.”

The Court ordered that the lawyers and their law firms referred to in the notice as “Class Counsel” will represent you and the other Class Members.

No. Class Counsel will be paid directly from the Settlement Fund.

The Court will be asked to approve the amount of attorneys’ fees and costs at the Final Approval Hearing. Class Counsel will file an application for fees and costs and will specify the amount being sought as discussed above. You may review a physical copy of the fee application here when it is available or by reviewing it at the Johnson County Courthouse, which is located at 417 South Clinton Street, Iowa City, IA 52240.

The deadline to request reissue of an award check passed on September 25, 2022. It is no longer possible to request a payment reissue.