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1 Bill Lann Lee (SBN 108452)

blee@lewisfeinberg.com

2 Julie Wilensky (SBN 271765)

jwilensky@lewisfeinberg.com

3 Shira Wakschlag (SBN 273548)

swakschlag@lewisfeinberg.com

4 LEWIS, FEINBERG, LEE,

RENAKER & JACKSON, P.C.

5 476 9th Street

Oakland, CA 94607

6 Telephone: (510) 839-6824

Facsimile: (510) 839-7839

7

Nancy DeMis* (SBN (inactive) 114770)

8 ncd@gsscd.com

Susan R. Fiorentino*

9 sfiorentino@gsscd.com

GALLAGHER, SCHOENFELD, SURKIN, CHUPEIN & DEMIS, P.C.

10 25 West Second Street

Media, PA 19053

11 Telephone: (610) 565-4600

Facsimile: (610) 566-8257

12

Elise Boddie*

13 eboddie@naacpldf.org

ReNika C. Moore*

14 rmoore@naacpldf.org

Ria Tabacco Mar*

15 rtabacco@naacpldf.org

NAACP LEGAL DEFENSE & EDUCATIONAL FUND, INC.

16 99 Hudson Street, Suite 1600

New York, NY 10013

17 Telephone: (212) 965-2200

Facsimile: (202) 226-7592

18

* Admitted Pro Hac Vice

19

Attorneys for Plaintiffs and the Proposed Class

20 UNITED STATES DISTRICT COURT

21

CENTRAL DISTRICT OF CALIFORNIA

22

NICOLE COGDELL, et al., 23

CASE NO. SACV 12-01138 AG (ANx)

Plaintiffs,

SETTLEMENT AGREEMENT AND

24

JOINT STIPULATION

v. 25

26 THE WET SEAL, INC., et al.,

Complaint filed: July 12, 2012 Judge: Hon. Andrew J. Guilford

27

Defendants.

Hearing Date: June 10, 2013

Time: 10:00 a.m.

28

Courtroom: 10D – Judge Guilford

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1 NANCY L. ABELL (SB# 088785) nancyabell@paulhastings.com
2 LISA M. PAEZ (SB# 269164) lisapaez@paulhastings.com
3 HILLARY J. BACA (SB# 288068) hillarybaca@paulhastings.com
4 PAUL HASTINGS LLP 515 South Flower Street
5 Twenty-Fifth Floor Los Angeles, CA 90071-2228
6 Telephone: (213) 683-6000 Facsimile: (213) 627-0705
7 JAMES P. CARTER (SB# 150052)
8 jamescarter@paulhastings.com PAUL HASTINGS LLP
9 695 Town Center Drive Seventeenth Floor
10 Costa Mesa, CA 92626 Telephone: (714) 668-6200
11 Facsimile: (714) 979-1921 12 Attorneys for Defendants
The Wet Seal, Inc., The Wet Seal Retail, Inc., 13 Wet Seal GC, Inc., and Wet Seal GC, LLC 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
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1

Plaintiffs Nicole Cogdell, Kai Hawkins, Myriam Saint-Hilaire, and

2 Michelle Guider, individually and on behalf of all others similarly situated

3 (“Plaintiffs”), and Defendants The Wet Seal, Inc., The Wet Seal Retail, Inc., Wet

4 Seal GC, Inc., and Wet Seal GC, LLC (“Defendants,” “Wet Seal,” or “the

5 Company”), by and through their respective Counsel of record, agree to resolve the

6 above-captioned case on a class basis through this Settlement Agreement and Joint

7 Stipulation (“Settlement Agreement”). The proposal was negotiated at arm’s length

8 by experienced Counsel, and, in the opinion of the Parties’ Counsel, fairly and

9 adequately addresses the claims of systemic employment discrimination raised by

10 Plaintiffs’ Complaint and Amended Complaint. The injunctive provisions contain

11 many best practices that will benefit the Class and future African-American

12 employees for years to come. The monetary relief represents a reasonable

13 compromise under all the circumstances. It should also be noted that this

14 Settlement Agreement has been negotiated under the leadership of Wet Seal’s new

15 Board of Directors and new Chief Executive Officer to resolve matters whose

16 genesis preceded his arrival and the constitution of the new Board. The proposed

17 Settlement Agreement reflects Wet Seal’s commitment to its updated policies and

18 practices that promote equal employment opportunity, prohibit discrimination and

19 harassment based upon race and color in all employment practices, and prohibit

20 retaliation against any current or former employee of Wet Seal.

21

22

I.

23

DEFINITIONS

24

25

1. “Action” means the civil action entitled Nicole Cogdell et al. v.

26 The Wet Seal, Inc. et al., Case No. SACV 12-01138 AG (ANx), pending before the

27 United States District Court for the Central District of California.

28

2. “Claims Administrator” shall mean Settlement Services, Inc.

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1 (“SSI”), a division of Garden City Group, Inc. (or an administrator mutually agreed 2 to by the Parties and approved by the Court if SSI for some reason cannot serve), 3 which shall perform the duties of: (i) using the data provided by Wet Seal to 4 prepare the Claim Forms with the dates and number of Work Weeks for each Class 5 Member in each Covered Position during the Covered Time Frame; (ii) mailing to 6 Class Members the Notice attached as Exhibit “1,” Claim Form attached as Exhibit 7 “2,” and Wet Seal Letter attached as Exhibit “3”; (iii) tracking returned Claim 8 Forms, Exclusion Statements and Objections; (iv) establishing and operating a 9 website designed to provide information to and communication with Class 10 Members; (v) maintaining a toll-free number for communicating with Class 11 Members and responding to questions from Class Members; (vi) providing timely 12 reminder postcards to Class Members who have not submitted Claim Forms or 13 Exclusion Statements; (vii) receiving and evaluating Claim Forms for timeliness 14 and validity and notifying the Parties of untimely and/or invalid claims; 15 (viii) considering the evidence submitted by Class Members and Class Counsel in 16 support of their claims, and considering the evidence of Wet Seal in support and in 17 opposition to claims in implementing the allocation plan set forth in Paragraphs 18 38(d) and 39(b) to determine whether and how much each Participating Class 19 Member should recover from the Settlement Fund; (ix) calculating the amounts due 20 to each Class Member pursuant to the Settlement; (x) notifying the Parties of and 21 resolving any disputes regarding claims by Class Members; (ix) providing 22 payments, along with IRS Forms W-2 and 1099-MISC, to the Class Members who 23 submit timely and valid Claim Forms; (x) utilizing the National Change of Address 24 Database maintained by the United States Postal Service and/or mail forwarding 25 information and/or skip tracing methods as reasonable to update the mailing list and 26 take steps to send notice to current mailing addresses; (xi) filing tax returns and 27 paying all required taxes on the settlement; and (xii) performing any other duties as 28 are described herein or necessary to carry out its responsibilities set forth in this

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1 Settlement Agreement.

2

3. “Claim Form” shall mean Exhibit “2,” the form approved by the

3 Parties and subject to Court approval that each Class Member must submit to

4 recover a portion of the Settlement proceeds.

5

4. “Class” or “Class Members” shall mean all African-American

6 and/or Black persons who worked in Wet Seal and Arden B. stores in a Covered

7 Position at any time from May 8, 2008 through the date of Preliminary Approval of

8 the Settlement by the Court (“Class Members”), except those individuals who

9 previously signed a general release of claims. The names of those individuals will

10 be provided to Class Counsel and the Claims Administrator with a request that they

11 be kept confidential.

12

5. “Class Counsel” shall mean Bill Lann Lee, Julie Wilensky,

13 Shira Wakschlag, and Lewis, Feinberg, Lee, Renaker & Jackson, P.C.; Nancy C.

14 DeMis, Susan R. Fiorentino, and Gallagher, Schoenfeld, Surkin, Chupein & DeMis,

15 P.C.; Elise Boddie, ReNika C. Moore, Ria Tabacco Mar, and NAACP Legal

16 Defense & Educational Fund, Inc.

17

6. “Court” shall mean the United States District Court for the

18 Central District of California.

19

7. “Covered Position” shall mean Store Assistant Manager, Co-

20 Manager, Acting Store Manager and Store Manager in a Wet Seal or Arden B.

21 store.

22

8. “Covered Time Frame” shall mean May 8, 2008 through the

23 date of Preliminary Approval of the Settlement.

24

9. “Enhanced Pay Fund,” “Enhanced Promotion Fund” and

25 “Discretionary Termination/Other Fund” shall mean the funds associated with the

26 Enhanced Pay Fund, the Enhanced Promotion Fund and the Discretionary

27 Termination/Other Fund, as described in Paragraphs 39(b)(i)(2), (b)(ii)(2) and

28 (b)(iii)(3), respectively.

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1

10. “Employer Payroll Taxes” shall mean the legally required

2 employer contributions to Social Security taxes, Medicare taxes, Federal

3 unemployment taxes and State unemployment taxes.

4

11. “Exclusion Statement” refers to the statement specified in

5 Paragraph 66 that a Class Member must submit to exclude himself or herself from

6 the release of claims pursuant to this Settlement.

7

12. “Final” means that the Settlement has been finally approved by

8 the District Court without material modification unless a Class Member objects or

9 Class Counsel appeals a reduction in their fees or costs awarded, in which case

10 “Final” means (i) the applicable date for seeking appellate review of the Court’s

11 final approval of the Settlement has passed without a timely appeal or request for

12 review having been made; or (ii) the United States Court of Appeals for the Ninth

13 Circuit or the United States Supreme Court has rendered a final judgment affirming

14 the District Court’s final approval without material modification, and the time for

15 any further appeal has expired.

16

13. “Final Approval Hearing” means the hearing to be conducted by

17 the Court to determine whether to finally approve and implement the terms of this

18 Settlement.

19

14. “Maximum Payment” shall mean the Seven Million Five

20 Hundred Thousand Dollars ($7,500,000) amount to be paid by The Wet Seal on

21 behalf of itself and all Defendants pursuant to this Settlement.

22

15. “Notice” shall mean the Notice of Pendency of Class Action

23 Settlement attached as Exhibit “1.” It is the Notice approved by the Parties and

24 subject to Court approval which the Claims Administrator shall mail to each Class

25 Member explaining the terms of the Settlement and the claims process.

26

16. “Participating Class Members” shall mean those eligible Class

27 Members who submit timely and valid Claim Forms.

28

17. “Parties” shall mean Plaintiffs and Defendants.

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1

18. “Pay Fund” shall mean a total of One Million Dollars

2 ($1,000,000), which sum shall include Employer Payroll Taxes, allocated for the

3 settlement of pay claims.

4

19. “Plaintiffs” and “Class Representatives” shall mean Plaintiffs

5 Nicole Cogdell, Kai Hawkins, Myriam Saint-Hilaire and Michelle Guider.

6

20. “Preliminary Approval” shall mean the order issued by the

7 Court granting preliminary approval of the Settlement, Notice, Claim Form and

8 Wet Seal Letter.

9

21. “Promotion Fund” shall a mean a total of One Million Dollars

10 ($1,000,000), which sum shall include Employer Payroll Taxes, allocated for the

11 settlement of promotion and job assignment claims.

12

22. “Settlement” shall mean the settlement of this Action as

13 embodied in this Settlement Agreement and Joint Stipulation between Plaintiffs and

14 Defendants.

15

23. “Settlement Fund” shall mean the fund created by SSI from the

16 Maximum Payment to provide individual monetary awards to eligible Class

17 Members and fund settlement administration expenses and Class Counsel’s

18 reasonable attorneys’ fees and costs, in accordance with the provisions of this

19 Settlement Agreement.

20

24. “Settlement Fund Account” shall mean the interest-bearing

21 account into which the Claims Administrator shall deposit the Settlement Fund.

22

25. “Termination/Other Fund” shall mean a total of Three Million

23 Five Hundred Eighty Thousand Dollars ($3,580,000), which sum shall include

24 Employer Payroll Taxes, allocated to settle claims of discriminatory termination,

25 demotion, or discipline (resulting in loss of pay) based upon race or color; hostile

26 work environment based upon race or color; retaliation for complaining of race or

27 color discrimination or for complaining of harassment/hostile work environment

28 based upon race or color; and emotional distress and damage to reputation resulting

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1 from the foregoing.

2

26. “The Wet Seal” or “Defendants” shall mean The Wet Seal, Inc.,

3 The Wet Seal Retail, Inc., Wet Seal GC, Inc., and Wet Seal GC, LLC.

4

27. “Wet Seal Letter” shall mean the letter attached as Exhibit “3”

5 from the Chief Executive Officer of The Wet Seal that the Claims Administrator

6 shall mail to Class Members with the Notice and Claim Form to reflect the fact that

7 the Company encourages Class Members to file Claim Forms.

8

28. “Work Weeks” shall be all weeks worked by Class Members in

9 a Covered Position at any time from May 8, 2008 through the date of Preliminary

10 Approval of the Settlement. Weeks worked consist of those weeks wherein The

11 Wet Seal’s records reflect that the Class Member received pay for work performed.

12

13

II.

14

RECITALS

15

16

29. This Settlement resolves the class action Complaint against

17 Defendants, captioned “Nicole Cogdell, et al. v. The Wet Seal, Inc., et al., United

18 States District Court for the Central District of California, Case No. SACV 12-

19 01138 AG (ANx),” filed on July 12, 2012. This is a putative class action filed by

20 Plaintiffs Cogdell, Hawkins, and Saint-Hilaire on behalf of current and former

21 African-American retail store management employees of The Wet Seal alleging

22 that it has a policy and practice of intentionally discriminating against African-

23 American employees in store management positions with respect to pay, promotion,

24 job assignments, discipline, demotion, termination (actual or constructive), and

25 other terms and conditions of employment. Plaintiffs Cogdell, Hawkins, and Saint-

26 Hilaire further contend that they were retaliated against for opposing practices they

27 believed to be unlawful, and Plaintiff Cogdell contends that she was subjected to a

28 hostile work environment. Plaintiffs’ First Amended Complaint contains causes of

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1 action for: (1) violations of 42 U.S.C. § 1981; and (2) violations of Title VII of the

2 Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq.). The First Amended

3 Complaint makes similar allegations, adds another named Plaintiff Michelle

4 Guider, and seeks an order reinstating Plaintiffs and Class Members to their rightful

5 positions; other injunctive relief; all lost pay and benefits sustained by Plaintiffs and

6 the Class as a result of The Wet Seal’s conduct according to proof; compensatory

7 damages for emotional distress; front pay; punitive damages; costs incurred,

8 including reasonable attorneys’ fees; and pre-judgment and post-judgment interest.

9

30. Plaintiffs believe the allegations of violations of 42 U.S.C.

10 § 1981 and Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq.) are

11 meritorious, and that the Action is appropriate for class action treatment.

12

31. Defendants deny any liability or wrongdoing of any kind

13 associated with the claims alleged, and contend that, for any purpose other than this

14 Settlement, this Action is not appropriate for class action treatment. Defendants

15 further contend that they have not violated 42 U.S.C. § 1981, Title VII of the Civil

16 Rights Act of 1964 (42 U.S.C. § 2000e et seq.) or any other law or regulation.

17

32. The Parties exchanged disclosures required by Federal Rule of

18 Civil Procedure 26, as well as both formal and informal discovery. Defendants

19 produced electronic data from its human resources information and payroll

20 databases, as well as 100,000 pages of responsive documents, including policies,

21 personnel records, statistical data, loss prevention documents, emails and arbitration

22 agreements. Class Counsel conducted an in-depth investigation of the claims, both

23 before and after the filing of the Action, by interviewing numerous current and

24 former Wet Seal managers and employees, creating a comprehensive litigation data

25 base of tagged discovery documents; analyzing employment records of Class

26 Members and comparator white employees, retaining expert analysts to review Wet

27 Seal personnel and statistical data, and preparing expert statistical analyses of

28 trends in promotions, compensation, demotions, and terminations, and damage

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1 calculations. Class Counsel also assisted the EEOC in compiling its investigative

2 file of documents and identifying witnesses, and reviewed the determination of the

3 EEOC and the investigative file the EEOC compiled, including depositions of Wet

4 Seal officials and personnel documents. Class Counsel also investigated the

5 suitability of the named Plaintiffs’ claims for class treatment; the adequacy of the

6 named Plaintiffs to represent the proposed Class; and other class certification

7 requirements. The Parties’ Counsel exchanged their expert statistical analyses and

8 other evidence. Class Counsel also conducted many interviews by phone and in

9 person with potential Class Members and witnesses, and represented individual

10 Plaintiffs and Class Members before the EEOC. Class Counsel therefore had an

11 adequate basis to assess the claims advanced.

12

33. After good-faith, arm’s-length negotiations over five months,

13 the Parties reached an agreement to settle the Action pursuant to the terms and

14 conditions set forth below. Lead Counsel for all Parties have decades of experience

15 litigating employment discrimination actions and class actions. Based on their own

16 independent investigation and evaluation, Class Counsel believe that the Settlement

17 is fair, reasonable, and adequate and is in the best interests of the Class Members in

18 light of all known facts and circumstances, including the risk of significant delay.

19 It should also be noted that a substantial number of Class Members might be

20 required to commence individual arbitrations to assert their claims in the absence of

21 this Settlement because of Mutual Agreements to Arbitrate Claims. The

22 prosecution and defense of these cases might impose a substantial burden on the

23 Parties because these arbitrations could be filed anywhere in the United States

24 where Wet Seal operates stores. Defendants and Defendants’ Counsel also agree

25 that the Settlement is fair, reasonable, and adequate.

26

34. The Parties agree that the Court shall certify the Class solely for

27 the purpose of implementing the terms of this Settlement. The Parties agree that

28 certification for settlement purposes under the more lenient standard courts have

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1 applied to settlements (e.g., manageability is not an issue) is in no way an

2 admission that class certification is proper under the more stringent standard

3 applied for litigation purposes and that evidence of this limited stipulation for

4 settlement purposes only shall not be deemed admissible in this or any other

5 proceeding. It is Defendants’ position that if the Action were to be litigated, class

6 certification would be inappropriate, inter alia, because individual issues

7 predominate. Plaintiffs believe that the requirements of Rule 23 are met under

8 either standard.

9

10

III.

11

TERMS OF SETTLEMENT

12

13

35. Injunctive Relief Provisions:

14

(a) General Non-Discrimination Provisions:

15

(i) Wet Seal shall continue to maintain and implement

16 non-discrimination policies and practices designed to afford equal employment

17 opportunity.

18

(ii) Wet Seal reaffirms its commitment and

19 acknowledges its legal obligation not to retaliate against persons who participate in

20 the Action; oppose, file a charge or assert claims of retaliation or unlawful

21 discrimination or harassment based on race or color against Wet Seal; testify,

22 furnish information, or participate in any manner in any investigation, proceeding

23 or hearing in connection with any charge or complaint of discrimination on the

24 basis of race and/or color; testify, furnish information, or participate in any manner

25 in connection with the monitoring or implementation of this Settlement Agreement;

26 or seek and/or receive any monetary and/or non-monetary relief pursuant to this

27 Settlement Agreement, or assist others in doing so.

28 //

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1

(iii) Isolated incidents or allegations of discrimination

2 or harassment based upon race or color, or retaliation for complaints of

3 discrimination or harassment based upon race or color, shall not give rise to a claim

4 for breach of this Agreement, nor shall discrimination, harassment and retaliation

5 on which Wet Seal takes prompt corrective action.

6

(b) Communications:

7

(i) Wet Seal, Inc. shall maintain on its external website

8 a page or pages expressing its commitment to non-discrimination, diversity, and

9 inclusion.

10

(ii) Wet Seal shall make available its non-

11 discrimination policies to all employees upon hire and shall continuously post these

12 policies together with a message in support thereof from its CEO, updated annually,

13 on its intranet website and at its stores. Wet Seal employees shall record in writing

14 or electronically their receipt of these documents.

15

(iii) Wet Seal shall incorporate its commitment to non-

16 discrimination, diversity, and inclusion, as well as its complaint procedure, in its

17 Employee Handbook and distribute the revised Employee Handbook to all

18 employees no later than July 1, 2013. The revised Employee Handbook shall be

19 provided to new employees upon hire and shall be available continuously on the

20 Company’s intranet website.

21

(c) Marketing: Wet Seal shall include African-Americans of

22 various skin tones to reflect diversity in its marketing materials, provided that no

23 single marketing or advertising piece need include persons of all races and skin

24 tones.

25

(d) Partnerships: To further its commitment to diversity

26 among its employees, Wet Seal shall consult and partner with organizations

27 dedicated to the advancement and well-being of African Americans and other

28 minority groups, including but not limited to the NAACP, and shall notify them

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1 that Wet Seal’s job openings are posted on its careers website.

2

(e) Non-Discrimination and Diversity Training: All training

3 required by Paragraph 35(e)(i) through (iii) below may be delivered on an

4 individual or group basis by computer program, live “discussion” format, video

5 format, written materials, or any combination of these or other formats tailored to

6 be effective in communicating the material.

7

(i) Sales associates who work more than 480 hours (or

8 3 months) in a 12-month period shall participate in: (1) at least one-half (1/2) hour

9 of training on non-discrimination, diversity, and inclusion (a) within nine (9)

10 months preceding or three (3) months following the date of Preliminary Approval,

11 or (b) within three (3) months following the individual’s hire as a sales associate,

12 whichever occurs later; and (2) at least one-half (1/2) hour of additional training

13 described above every twelve (12) months after the participant last received such

14 training.

15

(ii) Corporate executives; salaried employees in the

16 departments of Store Operations, Loss Prevention, Human Resources, Merchandise,

17 and Marketing; and Regional Directors, District Directors, Store Managers, Co-

18 Managers, and Assistant Managers shall participate in: (1) at least one (1) hour of

19 training on non-discrimination, diversity, and inclusion (a) within nine (9) months

20 preceding or three (3) months following the date of Preliminary Approval, or (b)

21 within three (3) months following the individual’s hire into, or promotion to, one of

22 the positions listed herein, whichever occurs later; and (2) at least one (1) hour of

23 additional training described above every twelve (12) months after the participant

24 last received such training.

25

(iii) Corporate executives; salaried managers of people

26 in the departments of Store Operations, Loss Prevention, Human Resources,

27 Merchandise, and Marketing; and Regional Directors, District Directors, Store

28 Managers, Co-Managers, and Assistant Managers shall participate in at least one

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1 (1) hour of training on Wet Seal’s job posting; hiring and promotion; compensation;

2 performance evaluation; corrective action; and internal complaint procedure

3 policies and practices within nine (9) months preceding or three (3) months

4 following the date of Preliminary Approval, or within three (3) months following

5 the individual’s hire into, or promotion to, one of the positions listed herein,

6 whichever occurs later.

7

(iv) Wet Seal shall produce to Class Counsel copies of

8 the training under this Paragraph 35(e).

9

(f) Investigations Training: Salaried employees in the

10 departments of Loss Prevention and Human Resources, as well as Regional

11 Directors and Store Operations’ management in the chain of command over store

12 personnel, shall participate in: (1) at least one (1) hour of training on how to

13 conduct effective and non-discriminatory investigations of suspected misconduct of

14 employees and/or customers, including proper procedures and documentation, (a)

15 within nine (9) months preceding or three (3) months following the date of

16 Preliminary Approval, or (b) within three (3) months following the individual’s hire

17 into, or promotion to, one of the positions listed herein, whichever occurs later; and

18 (2) at least one (1) hour of additional training described above every twelve (12)

19 months after the participant last received such training.

20

(g) Diversity and Inclusion Council: Wet Seal shall maintain

21 a Diversity and Inclusion Council of at least twelve (12) members, who shall be

22 responsible for advising the Company on topics including but not limited to: non-

23 discrimination, diversity, and inclusion; how the Company can encourage equal

24 employment in recruiting, hiring, compensating, assigning, and promoting;

25 succession planning including mentoring and professional development; and

26 retention of African-American and other employees belonging to protected groups.

27 The Council members shall include no fewer than three (3) individuals who are

28 African American or Black, including at least two (2) from retail management

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1 positions.

2

(h) New Human Resources Compliance Team: Wet Seal

3 shall employ four (4) Regional Human Resources Managers and two (2) Human

4 Resources Coordinators (or equivalent programmatic positions) who shall be

5 responsible for investigating complaints; compliance with hiring and promotion

6 processes; and performance management, including corrective action measures, as

7 further set forth below in Paragraph 35 (j) through (p).

8

(i) Equal Employment Opportunity Data: Between May 15,

9 2013 and fifteen (15) calendar days following Preliminary Approval of the

10 Settlement Agreement, Wet Seal shall issue a voluntary survey to every employee

11 who is actively employed by Defendants on the day the survey is issued, requesting

12 that the employee furnish his or her current home address and gender and

13 race/ethnic group as defined on the EEO-1 form. Thereafter, Wet Seal shall ask

14 new employees to self-identify race/ethnic group and gender upon hire for the

15 duration of the Settlement Agreement. The survey shall ask respondents to list all

16 races/ethnic groups with which the employee identifies.

17

(j) Internal Complaint Procedure:

18

(i) Wet Seal shall maintain an Internal Complaint

19 Procedure to provide for the filing, investigation and, if appropriate, remedying of

20 complaints of discrimination, retaliation, or hostile work environment by

21 employees or applicants for employment. Wet Seal shall maintain a practice of

22 investigating such complaints through Regional Human Resources Managers,

23 Human Resources Coordinators, corporate Human Resources personnel and/or one

24 or more external compliance services providers or legal counsel. Wet Seal’s policy

25 shall provide that persons who engage in discriminatory conduct shall be subject to

26 appropriate discipline, up to and including discharge.

27

(ii) Wet Seal shall continuously post the procedure for

28 filing internal complaints and its policy prohibiting retaliation on Wet Seal’s

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1 intranet website. Wet Seal shall communicate the complaint process and policy

2 against retaliation to new employees upon hire. In addition, on at least an annual

3 basis, Wet Seal shall display information about its complaint process and policy

4 against retaliation on the home page of its intranet website for at least seven (7)

5 consecutive days.

6

(iii) Wet Seal shall maintain the files of investigations

7 of complaints of discrimination, harassment and retaliation and shall track the

8 filing, investigation completion, and remedying of internal complaints.

9

(iv) The Vice President of Human Resources and each

10 Regional Human Resources Manager shall have access to the case investigation

11 files and the log reflecting the filing, investigation completion and remedying of

12 internal complaints and shall monitor activity associated with internal complaints

13 within the scope of their respective responsibilities as complaints are made and

14 processed.

15

(k) Job Analysis and Job Criteria:

16

(i) Wet Seal has retained Development Dimensions

17 International (“DDI”), a human resource training and consulting company, to

18 conduct and document a job analysis and to develop selection criteria for each in-

19 store position that are job-related, reliable, and consistent with business necessity.

20 No later than August 1, 2013, in consultation with DDI, Wet Seal shall implement

21 these selection criteria for store management and District Director positions.

22

(ii) Wet Seal shall permit Class Counsel to monitor

23 Wet Seal’s compliance with its obligations under this Paragraph 35(k), including

24 making available to Class Counsel the job analyses and job-related criteria.

25

(l) Job Posting:

26

(i) Commencing no later than June 1, 2013 and

27 continuing thereafter, Wet Seal shall post all open store management and District

28 Director positions, including promotional opportunities, through an online applicant

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1 tracking system (ATS) accessible to all Wet Seal store-level employees. The ATS

2 shall also be accessible to external applicants for store management and District

3 Director positions. Open positions shall be posted for no less than three (3)

4 business days before being filled. Wet Seal is not required to post: (a) openings

5 that must be filled on an emergency basis, (b) positions filled by a current employee

6 who is being displaced due to a store closure or other reduction in work force or is

7 returning from a leave of absence, or (c) positions filled by an internal rotation (not

8 a promotion) of a manager from a store of the same or higher classification.

9

(ii) Each job posting shall contain the open position

10 title, location, description of the job, and job-related criteria and requirements.

11 While the job requirements may include time-in-position requirements before

12 posting, no managerial sign-off shall be required for an employee to submit an

13 internal job posting application.

14

(m) Selection Procedures:

15

(i) Wet Seal has retained DDI to develop selection

16 procedures and processes, including screening and interview guides (“Selection

17 Procedures”), that are job-related, reliable, and consistent with business necessity

18 for the selection of personnel for all store management and District Director

19 positions, including those filled by promotion. Wet Seal shall require the use of the

20 Selection Procedures in selecting individuals for store management and District

21 Director positions. These Selection Procedures shall reiterate Wet Seal’s

22 commitment to diversity with respect to all protected groups, including race and

23 color, and encourage the hiring and promotion of qualified diverse candidates.

24

(ii) Wet Seal shall conduct training for staff involved in

25 the use of the Selection Procedures on their proper use (including the conduct of

26 structured interviews, the selection of qualified candidates using the structured

27 interviews and interview guides, and other elements of the hiring process), and on

28 the Company’s interest in hiring and promoting qualified African-American

CASE NO. SACV 12-01138 AG (ANx)

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1 candidates (as well as men and women of all races) into all open store management

2 and District Director positions for which they are qualified. This training may be

3 included in the training provided in Paragraph 35(e)(iii).

4

(iii) Regional Human Resources Managers shall review

5 proposed selections to District Director, Store Manager, Acting Store Manager and

6 Co-Manager before they are finalized in order to assure compliance with the

7 Selection Procedures. Wet Seal shall regularly, and no less frequently than every

8 six (6) months, monitor the impact of the Selection Procedures. In any Region in

9 which there is statistically significant adverse impact in selection rates, Wet Seal

10 shall review the documentation for a sample of the decisions, evaluate the likely

11 reasons for the impact, and implement proactive steps that it reasonably believes

12 shall eliminate or at least reduce the impact.

13

(iv) All Wet Seal Human Resources personnel

14 responsible for recruiting for store management and District Director openings shall

15 be responsible for good faith efforts to source and recruit qualified African-

16 American management candidates, among other candidates.

17

(n) Compensation:

18

(i) Wet Seal shall retain an outside compensation

19 specialist to review its compensation structure for store employees and provide

20 recommendations regarding that compensation structure. Wet Seal shall provide

21 Class Counsel with confirmation of the professional qualifications of the

22 compensation specialist, if DDI is not retained.

23

(ii) Wet Seal shall train its managers in how to set

24 compensation using the tools developed by the compensation specialist.

25

(iii) Wet Seal shall annually review the compensation of

26 store management employees by position, store, store classification, district, and

27 tenure in the job and with Wet Seal, along with the employees’ race/ethnic group

28 and gender, to determine whether there has been compliance with Wet Seal’s

CASE NO. SACV 12-01138 AG (ANx)

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1 policies against discrimination.

2

(o) Performance Management System and Corrective Action:

3

(i) Wet Seal has retained DDI to develop a

4 performance assessment system for store management positions that is job-related,

5 reliable, and consistent with business necessity for the evaluation of the

6 performance of store employees and District Directors.

7

(ii) Wet Seal shall develop and adopt criteria for taking

8 corrective action that are job-related, reliable, and consistent with business

9 necessity to provide for consistent and non-discriminatory application of

10 disciplinary measures, including but not limited to demotion and termination.

11

(iii) Wet Seal shall train managers responsible for

12 conducting performance reviews and discipline in how to conduct a performance

13 assessment using the tools developed by DDI and how to apply corrective action

14 measures in a non-discriminatory manner.

15

(iv) Wet Seal shall regularly, and no less frequently

16 than every six (6) months, monitor the impact of the performance appraisals. In

17 any Region, if there is statistically significant adverse impact in performance

18 appraisals, Wet Seal shall evaluate the likely reasons for it and implement proactive

19 steps that it reasonably believes shall eliminate or at least reduce the impact in the

20 future.

21

(p) Manager Assessment: All Regional Directors, District

22 Directors, Corporate executives, and salaried employees in the departments of

23 Human Resources, Store Operations and Loss Prevention shall be evaluated

24 annually on their ability to manage a diverse workforce, including in decisions

25 involving hiring, compensation, promotions, demotions, and terminations. An I/O

26 psychologist shall advise Wet Seal on how best to conduct and weigh this

27 evaluation.

28

(q) Implementation Period: Wet Seal shall use best efforts to

CASE NO. SACV 12-01138 AG (ANx)

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1 implement the programmatic relief set forth in the Settlement Agreement as soon as

2 reasonably practicable.

3

(r) Monitor:

4

(i) Wet Seal has designated Jennifer Ehrhardt, Vice

5 President and Corporate Controller, to monitor and ensure implementation of this

6 Settlement Agreement (“Monitor”). If at any time Ms. Ehrhardt is unable to serve

7 as the Monitor, Wet Seal shall designate another officer to replace her.

8

(ii) Wet Seal shall provide Class Counsel with the

9 Monitor’s qualifications and title.

10

(iii) The Monitor shall be authorized and empowered to

11 direct Human Resources and/or other employees with supervisory authority over

12 store management employees to take specific actions in furtherance of the

13 Settlement Agreement.

14

(iv) Wet Seal shall regularly provide the Monitor with

15 available quantitative data, separated by race, on the following with respect to store

16 management and District Director positions: the numbers of applicants, the number

17 considered for each job title, the number hired into each job title, the number

18 promoted into each job title (including the number of openings filled on an

19 emergency basis and positions filled by current employees who are displaced due to

20 a store closure or other reduction in work force), the number of unposted positions

21 in each job title filled by an internal rotation (not a promotion) of a manager from a

22 store of the same or higher classification, the numbers of employees hired into full-

23 time vs. part-time jobs in each job title, the relative placement of employees in

24 various categories of stores by job title, the relative compensation of employees by

25 job title, and the number voluntarily and involuntarily terminated from each job

26 title.

27

(v) The Monitor shall report at least twice annually to

28 Wet Seal’s Board of Directors regarding the implementation of this Settlement

CASE NO. SACV 12-01138 AG (ANx)

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1 Agreement.

2

(vi) The Monitor shall file a Certificate of Compliance

3 with the Court six (6) months after the Effective Date of this Settlement Agreement,

4 twelve (12) months after the Effective Date of this Settlement Agreement and

5 annually thereafter over the term of this Settlement Agreement. The Certificate of

6 Compliance shall inform the Court of when Wet Seal has implemented each of the

7 terms of the Settlement Agreement or, if some term has not been fully

8 implemented, Wet Seal’s progress in implementing that term. The Certificate of

9 Compliance shall also confirm that the Monitor has conducted all audits required as

10 set forth in Paragraphs 35(m)(iii), (n)(iii), (o)(iv), and (r)(iv) and (v) of the

11 Settlement Agreement, the date of each audit, and either that the results of the audit

12 were satisfactory or that corrective action is in the process of being, or has been,

13 taken. In addition, the Certificate of Compliance shall also confirm that the

14 Monitor has undertaken those tasks set forth for the Monitor in this Paragraph 35(r)

15 of the Settlement Agreement, the Monitor has investigated Wet Seal’s compliance

16 with the Settlement Agreement, and the Monitor is satisfied that Wet Seal is

17 complying with the Settlement Agreement and/or has taken or is in the process of

18 taking corrective action to assure future compliance.

19

(s) Dispute Resolution: The Parties shall promptly give

20 written notice to Counsel for the other Party (at Counsel’s address of record on file

21 with the California State Bar) if any dispute arises under the Settlement Agreement.

22 The notice shall set forth the facts that relate to the dispute. Thereafter, upon the

23 request of any Party, the Parties shall meet in a good faith effort to resolve the

24 dispute. If they are unsuccessful, the Parties shall mediate the dispute before any

25 mediator to which they mutually agree at the time. In the absence of mutual

26 agreement, the Party against whom the dispute was asserted may select retired

27 United States District Court Judges Lourdes Baird or Gary Taylor to mediate the

28 dispute. Wet Seal shall pay the cost of the mediation.

CASE NO. SACV 12-01138 AG (ANx)

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1

(t) Employment Verification: Wet Seal shall maintain a

2 telephone line dedicated to employment verification. In response to inquiries to the

3 employment verification line from a prospective employer seeking a reference, Wet

4 Seal shall provide dates of employment and last position held. If the request is in

5 writing and authorizes disclosure, Wet Seal also shall verify last rate of base

6 compensation. In response to calls to the employment verification telephone line,

7 Wet Seal shall not provide substantive information regarding the employee’s

8 performance, record of discipline, eligibility for rehire, or reason for separation

9 (except to prospective employers who are inquiring about law enforcement or

10 national security positions or as otherwise required by law). The Wet Seal Letter

11 shall inform Class Members of the existence and number of the employment

12 verification line and the information provided upon inquiry to the employment

13 verification line.

14

36. Recordkeeping and Reporting:

15

(a) Recordkeeping:

16

(i) Wet Seal shall retain the following employment-

17 related records for the Term of the Settlement Agreement or as required by state or

18 federal law, whichever is longer:

19

(1) Final marketing documents described in

20 Paragraph 35(c);

21

(2) Employment training program content and

22 handouts;

23

(3) Internal complaint procedure;

24

(4) Job analyses and job criteria;

25

(5) Performance assessment system;

26

(6) Corrective action process; and

27

(7) Monitor’s Certificates of Compliance.

28

(ii) Wet Seal shall retain the following documents

CASE NO. SACV 12-01138 AG (ANx)

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1 related to the employment of District Directors, Store Assistant Managers, Co-

2 Managers, Acting Store Managers and Store Managers for two (2) years from the

3 date the document is created, or as required by state or federal law, whichever is

4 longer:

5

(1) Job postings;

6

(2) Job applications, including applications from

7 both internal and external applicants;

8

(3) Performance assessments;

9

(4) Corrective action notices;

10

(5) Race and ethnicity data by job category

11 required for the Employer Information Report (“EEO-1 Report”), including, for

12 employees who identify as Two or More Races, the specific races with which the

13 employee identifies; and

14

(6) Internal complaints of discrimination.

15

(iii) Wet Seal shall retain the following documents

16 related to applicants for the positions of Assistant Store Manager, Co-Manager,

17 Acting Store Manager, Store Manager, and District Director: Race and ethnicity

18 data by job category that would be required for the EEO-1 Report if the applicant

19 were hired, including, for applicants who identify as Two or More Races, the

20 specific races with which the applicant identifies.

21

(iv) Class Counsel shall, upon reasonable notice, be

22 entitled to review all documents, including electronic data in machine-readable

23 form, created or maintained pursuant to the provisions of this Settlement

24 Agreement, except, however, that Class Counsel shall not be entitled to review any

25 such documents that are protected by attorney-client privilege or attorney work

26 product doctrine (“privileged documents”).

27

(b) Reporting:

28

(i) At six (6)-month intervals through the Term of the

CASE NO. SACV 12-01138 AG (ANx)

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1 Settlement Agreement, Wet Seal shall provide Semi-Annual Progress Reports to

2 Class Counsel on Wet Seal’s compliance with the Settlement Agreement’s

3 requirements.

4

(ii) The Semi-Annual Progress Reports shall include

5 the following information reported for African-American men (including those who

6 report Two or More Races), African-American women (including those who report

7 Two or More Races), white men, white women, all men other than African-

8 American men, and all women other than African-American women:

9

(1) Composition (number and percent) of

10 incumbent employees by Covered Position in each store, district, region and

11 company-wide, and by store classification, at the end of the six-month period;

12

(2) Composition (number and percent) of

13 persons in each store classification and in each district, region, state and company-

14 wide, in the preceding six (6) months who were extended a good faith offer, hired,

15 or promoted (each of which shall be separately reported) into District Director,

16 Store Manager, Acting Store Manager, or Co-Manager;

17

(3) Composition (number and percent) of

18 persons in each store classification and in each district, region, state and company-

19 wide, in the preceding six (6) months who were demoted, involuntarily terminated

20 or voluntarily separated (each of which shall be separately reported) from Store

21 Manager, Acting Store Manager, Co-Manager, and Store Assistant Manager

22 positions; and

23

(4) Compensation rate paid to incumbent Store

24 Managers, Acting Store Managers, Co-Managers, and Store Assistant Managers in

25 each store, district, region, state, company-wide, and in each store classification, at

26 the end of the six-month period.

27

37. Maximum Payment: The Maximum Payment under the

28 Settlement is Seven Million Five Hundred Thousand Dollars ($7,500,000).

CASE NO. SACV 12-01138 AG (ANx)

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1

38. Establishment of a Settlement Fund:

2

(a) No later than five (5) business days after the Court’s

3 Preliminary Approval of this Settlement Agreement, The Wet Seal, on behalf of all

4 Defendants, shall transmit the Maximum Payment to the Claims Administrator for

5 the formation of a Settlement Fund.

6

(b) The Claims Administrator shall deposit the Maximum

7 Payment made by The Wet Seal into a Settlement Fund Account.

8

(c) Once the Claims Administrator receives the Maximum

9 Payment in good standing, Wet Seal shall have no responsibilities or liabilities with

10 respect to the Settlement Fund or Settlement Fund Account (or its administration or

11 distribution), and shall have no further monetary obligation hereunder to Class

12 Representatives, Participating Class Members, Class Counsel, the Claims

13 Administrator or other Class Members who do not file timely and valid Exclusion

14 Statements, with respect to this Action.

15

(d) The Settlement Fund Account shall be used for the sole

16 purpose of paying the timely and valid claims of the eligible Class Members,

17 including the Employer Payroll Taxes associated with those payments, Class

18 Counsel’s reasonable attorneys’ fees and costs as awarded by the Court (in an

19 amount not to exceed $1,800,000), and all settlement administration expenses

20 incurred by the Claims Administrator (in an amount not to exceed $120,000), in

21 accordance with the provisions of this Settlement Agreement. The Settlement Fund

22 consists of:

23

(i) Pay Fund: a total of One Million Dollars

24 ($1,000,000) shall be paid in settlement of pay claims (“Pay Fund”), which sum

25 shall include Employer Payroll Taxes;

26

(ii) Promotion Fund: a total of One Million Dollars

27 ($1,000,000) shall be paid in settlement of promotion claims (including claims of

28 discriminatory job assignments) (“Promotion Fund”), which sum shall include

CASE NO. SACV 12-01138 AG (ANx)

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1 Employer Payroll Taxes;

2

(iii) Termination/Demotion/Retaliation/Hostile Work

3 Environment/Emotional Distress Fund: a total of Three Million Five Hundred

4 Eighty Thousand Dollars ($3,580,000) shall be paid in settlement of claims of

5 discriminatory termination, demotion, or discipline (resulting in loss of pay) based

6 upon race or color; harassment or hostile work environment based upon race or

7 color; retaliation for complaining of race or color discrimination or

8 harassment/hostile work environment; and emotional distress and damage to

9 reputation resulting from the foregoing (“Termination/Other Fund”), which sum

10 shall include Employer Payroll Taxes;

11

(iv) Claims Administration Fund: a total of One

12 Hundred Twenty Thousand Dollars ($120,000) to cover all fees and expenses of the

13 Claims Administrator; and

14

(v) Class Counsel’s Attorneys’ Fees and Costs Fund: a

15 total of One Million Eight Hundred Thousand Dollars ($1,800,000) to cover Class

16 Counsel’s reasonable attorneys’ fees and costs, or such lower amount ordered by

17 the Court as described in Paragraph 41(c).

18

39. Distribution to Participating Class Members:

19

(a) Submission of Claim Forms: The Claims Administrator

20 shall pay only those Class Members who submit timely and valid Claim Forms (the

21 “Participating Class Members”). To be timely, the Claim Forms must be

22 postmarked by the deadline indicated on the Notice and Claim Forms. To be valid,

23 Claim Forms must be completed in full, signed under penalty of perjury, attest that

24 the signatory is “African American” or “Black,” and returned to the Claims

25 Administrator, postmarked by the deadline.

26

(b) Allocation Plan:

27

(i) Pay Fund: The disbursement of the Pay Fund

28 portion of the Settlement Fund Account to eligible Class Members shall follow the

CASE NO. SACV 12-01138 AG (ANx)

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1 allocation plan described in this Paragraph 39(b)(i) and its subparagraphs. Each

2 Class Member who seeks to receive a monetary award must fill out the Claim

3 Form.

4

(1) Baseline Pay Fund Award: $750,000 will be

5 allocated to the Baseline Pay Fund Award. Each Class Member who submits a

6 timely, valid claim for recovery shall receive a Baseline Pay Fund Award. The

7 Claims Administrator shall have discretion to add the amounts from any unclaimed

8 shares to the Enhanced Pay Fund or the Termination/Other Fund. In allocating the

9 Baseline Pay Fund Awards, the Claims Administrator shall determine a specific

10 dollar amount that each eligible Class Member will receive for each Work Week

11 that he or she worked for Defendants during the Covered Time Frame as a Store

12 Manager or Acting Store Manager, Co-Manager, and/or Store Assistant Manager.

13

(2) Enhanced Pay Fund Award: The Claims

14 Administrator, after considering information supplied by the Class Members, Class

15 Counsel and Wet Seal, may, in its discretion, allocate some or all of the remaining

16 Pay Fund to those eligible Class Members as to whom the Claims Administrator

17 has received specific facts in support of their claims under the Pay Fund, after

18 considering, assigning points to and weighting: (i) length of service as a retail

19 manager at Wet Seal; (ii) the Class Member’s communications with Class Counsel

20 prior to May 8, 2013 concerning claims of discrimination based on race or color in

21 compensation; and (iii) the Class Member’s complaints or claims of discrimination

22 based on race or color in compensation submitted to the EEOC or state agencies

23 prior to May 8, 2013. The Claims Administrator shall total the points applicable to

24 each eligible Class Member who fills out the Pay Fund section of the Claim Form

25 and supplies information related to his or her claim to the Pay Fund, determine each

26 eligible Class Member’s proportionate share of the total points, and allocate each

27 eligible Class Member’s proportionate share of the Pay Fund. For example, if the

28 amount available for distribution from the Pay Fund to eligible Class Members after

CASE NO. SACV 12-01138 AG (ANx)

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1 the Baseline Pay Fund Awards are calculated equals $250,000, and if the Claims

2 Administrator awarded a total of 10,000 points to eligible Class Members

3 collectively and 20 points to a particular eligible Class Member, then that Class

4 Member would receive an award of $500, since each point would be worth $25

5 ($250,000 divided by 10,000).

6

(ii) Promotion Fund: The disbursement of the

7 Promotion Fund portion of the Settlement Fund Account to eligible Class Members

8 shall follow the allocation plan described in this Paragraph 39(b)(ii) and its

9 subparagraphs. Each Class Member who seeks to receive a monetary award must

10 fill out the Claim Form.

11

(1) Baseline Promotion Fund Award: $500,000

12 will be allocated to the Baseline Promotion Fund Award. Each Class Member who

13 submits a timely, valid claim for recovery shall receive a Baseline Promotion Fund

14 Award, and the Claims Administrator shall have discretion to add the amounts from

15 any unclaimed shares to the Enhanced Promotion Fund or the Termination/Other

16 Fund. In allocating the Baseline Promotion Fund Awards, the Claims

17 Administrator shall determine a specific dollar amount that each eligible Class

18 Member will receive for each Work Week that he or she worked for Defendants

19 during the Covered Time Frame as a Store Manager or Acting Store Manager, Co-

20 Manager, and/or Store Assistant Manager.

21

(2) Enhanced Promotion Fund Award: The

22 Claims Administrator, after considering information supplied by the Class

23 Members, Class Counsel and Wet Seal, may, in its discretion, allocate some or all

24 of the remaining Promotion Fund to those eligible Class Members as to whom the

25 Claims Administrator has received specific facts in support of their claims under

26 the Promotion Fund, after considering, assigning points to and weighting: (i) length

27 of service with Wet Seal up to a maximum of ten (10) years; (ii) length of service as

28 a manager in each Covered Position at Wet Seal; (iii) length of service as a manager

CASE NO. SACV 12-01138 AG (ANx)

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1 at other employers up to a maximum of five (5) years; (iv) evidence of expressions

2 of interest in promotion made to a supervisor regarding Co-Manager, Acting Store

3 Manager, Store Manager, or District Director positions; (v) communications with

4 Class Counsel prior to May 8, 2013 concerning claims of discrimination against the

5 Class Member based on race or color in promotions or job assignment;

6 (vi) complaints or claims of discrimination against the Class Member based on race

7 or color in job assignments in the Covered Positions, or promotion to Co-Manager,

8 Acting Store Manager, Store Manager, or District Director submitted to the EEOC

9 or state agencies prior to May 8, 2013; and (vii) the facts and documentary evidence

10 submitted to demonstrate discrimination against the Class Member based on race or

11 color with respect to job assignment in the Covered Positions or promotion to Co-

12 Manager, Acting Store Manager, Store Manager or District Director. The Claims

13 Administrator shall total the points applicable to each eligible Class Member who

14 fills out the Promotion Fund section of the Claim Form and supplies information

15 related to his or her claim to the Promotion Fund, determine each eligible Class

16 Member’s proportionate share of the total points, and allocate each eligible Class

17 Member’s proportionate share of the Promotion Fund. For example, if the amount

18 available for distribution from the Promotion Fund to eligible Class Members after

19 the Baseline Promotion Fund Awards are calculated equals $500,000, the Claims

20 Administrator awarded a total of 10,000 points to eligible Class Members

21 collectively, and 30 points to a particular eligible Class Member, then that Class

22 Member would receive an award of $1500, since each point would be worth $50

23 ($500,000 divided by 10,000).

24

(iii) Termination/Demotion/Retaliation/Hostile Work

25 Environment Fund/Emotional Distress Fund (“Termination/Other Fund”): The

26 disbursement of the Termination/Other Fund portion of the Settlement Fund

27 Account to eligible Class members shall follow the allocation plan described in this

28 Paragraph 39(b)(iii) and its subparagraphs. Each Class Member who seeks to

CASE NO. SACV 12-01138 AG (ANx)

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1 receive a monetary award must fill out the Termination/Other Fund section of the

2 Claim Form.

3

(1) Eligibility for Awards: Each Class Member

4 who was involuntarily terminated during the Covered Time Frame is eligible to

5 submit a claim for a Baseline Termination/Other Fund Award. That individual is

6 also eligible for a Discretionary Termination/Other Fund Award. Each Class

7 Member with a claim solely of discriminatory constructive discharge, demotion,

8 discipline resulting in loss of pay, retaliation, hostile environment, damage to

9 reputation, or emotional distress during the Covered time Frame shall not be

10 eligible for a Baseline Termination/Other Fund Award, but shall be eligible for a

11 Discretionary Termination/Other Fund Award.

12

(2) Baseline Termination/Other Fund Award:

13 $500,000 will be allocated to the Baseline Termination/Other Fund Award. Each

14 Class Member who was involuntarily terminated, and submits a timely, valid claim

15 for recovery shall receive a baseline award. In allocating the Baseline

16 Termination/Other Fund Awards, the Claims Administrator shall determine a

17 specific dollar amount that each eligible Class Member who was involuntarily

18 terminated will receive depending on whether the Class Member was involuntarily

19 terminated by Defendants during the Covered Time Frame from a Store Manager or

20 Acting Store Manager position, a Co-Manager position, or a Store Assistant

21 Manager position. Any unclaimed shares shall be added to the Discretionary

22 Termination/Other Fund Award.

23

(3) Discretionary Termination/Other Fund

24 Award: The Claims Administrator, after considering information supplied by the

25 Class Members, Class Counsel and Wet Seal, may, in its discretion, allocate some

26 or all of the remaining Discretionary Termination/Other Fund to eligible Class

27 Members, after considering, assigning points to and weighting: (i) length of service

28 with Wet Seal; (ii) length of service as a manager at Wet Seal; (iii) facts and

CASE NO. SACV 12-01138 AG (ANx)

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1 documentary evidence that the Class Member was subject to discrimination based 2 on race or color in termination, demotion, or discipline (resulting in loss of pay), or 3 was subject to harassment/hostile work environment based on race or color; 4 (iv) facts and documentary evidence that the Class Member was subject to 5 retaliation for opposing discrimination based on race or color; (v) communications 6 by the Class Member with Class Counsel prior to May 8, 2013 concerning claims 7 of discrimination based on race or color in termination, demotion, or discipline 8 resulting in loss of pay, harassment/hostile work environment based on race or 9 color, or retaliation for opposing discrimination based on race or color; 10 (v) complaints or claims that the Class Member submitted to the EEOC or state 11 agencies prior to May 8, 2013 that he or she was subject to discrimination based on 12 race or color in termination, demotion, or discipline (resulting in loss of pay), 13 harassment or hostile work environment based on race or color, or retaliation for 14 opposing discrimination based on race or color; (vi) Class Member’s knowledge 15 that he or she was targeted for termination, demotion or discipline (resulting in loss 16 of pay) because of race or color; (vii) emotional distress; (viii) damage to the Class 17 Member’s reputation because the Class Member made complaints of 18 discrimination, harassment, termination, or hostile work environment based on race 19 or color, or was retaliated against for opposing discrimination based on race or 20 color; (ix) a period of unemployment during which the Class Member was making 21 reasonable efforts to find other employment and the length of that period; and (x) a 22 finding by the EEOC or state agency that a violation of Title VII or state 23 antidiscrimination law occurred with respect to the Class Member. No Class 24 Member who was terminated for unauthorized taking of Wet Seal’s property, fraud, 25 falsification, assault/battery or other violence, harassment or discrimination based 26 upon protected group status, or retaliation against another for exercising protected 27 rights shall be eligible for a Discretionary Termination/Other Fund Award. The 28 Claims Administrator shall total the points applicable to all eligible Class Members

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1 who fill out the Termination/Other Fund section of the Claim Form and supply

2 information related to his or her claim to the Termination/Other Fund, determine

3 each eligible Class Member’s proportionate share of the total points, and allocate

4 each eligible Class Member’s proportionate share of the Termination/Other Fund.

5 For example, if the amount available for distribution from the Termination/Other

6 Fund to eligible Class Members after the Baseline Termination/Other Fund Awards

7 are calculated equals $3,080,000, the Claims Administrator awarded a total of

8 100,000 points to eligible Class Members collectively, and 400 points to a

9 particular eligible Class Member, then that Class Member would receive an award

10 of $12,320, since each point would be worth $30.80 ($3,080,000 divided by

11 100,000).

12

(c) Tax Allocation: The monetary awards under the Pay

13 Fund and Promotion Fund shall be allocated Eighty Percent (80%) to lost wages

14 and Twenty Percent (20%) to interest. The monetary awards under the

15 Termination/Other Fund shall be allocated Fifteen Percent (15%) to lost wages and

16 Eighty-Five Percent (85%) to compensatory damages and interest.

17

(d) Payment of Taxes and Tax Reporting by the Claims

18 Administrator: The Claims Administrator shall be responsible for calculating and

19 withholding all required state and federal taxes and all tax reporting on payments

20 made under the Settlement. The Claims Administrator shall report all payments for

21 lost wages on an IRS Form W-2 as payments in settlement of claims for wages.

22 Therefore, the Claims Administrator shall deduct federal and state income taxes, the

23 employee’s share of Social Security and Medicare tax, and any local income or

24 payroll tax that applies, pursuant to state and federal law, and remit them to the

25 taxing authorities. The Claims Administrator shall report on an IRS Form 1099-

26 MISC all payments made in settlement of claims for interest, emotional distress and

27 damage to reputation, and no payroll or tax withholdings shall be made from these

28 payments. The Participating Class Members and the Class Representatives shall be

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1 responsible for correctly characterizing the settlement payments for tax purposes

2 and paying any taxes owing on said amounts. However, the Claims Administrator

3 shall calculate the Employer Payroll Taxes, pay them from the Settlement Fund and

4 file the appropriate returns with federal, state and local taxing authorities.

5

(e) Due Date for and Details of Settlement Payments: Within

6 fifteen (15) calendar days after the Settlement becomes Final, the Claims

7 Administrator shall send the settlement payments to the Participating Class

8 Members via first class mail and shall issue the payments due to the federal, state

9 and local taxing authorities. The Claims Administrator shall only issue the checks

10 in the name of the Participating Class Members or their estates, if applicable. The

11 Claims Administrator shall include with each check a statement showing the gross

12 amount of the payment and an itemized statement of all deductions made, including

13 those for federal and state income taxes, the employee’s share of unemployment,

14 Social Security and Medicare tax, and any local income or payroll tax that applies.

15

(f) Uncashed Checks: If a Participating Class Member’s

16 check is returned to the Claims Administrator, the Claims Administrator shall make

17 a reasonable effort to re-mail it to the Participating Class Member at his or her

18 correct address. It is expressly understood and agreed that the checks for the

19 individual Settlement payments shall become void and no longer available if not

20 cashed within 90 days after the initial mailing. The Parties intend to completely

21 distribute the funds in the Settlement Fund Account. Thus, on the one hundredth

22 and twentieth (120th) day following the initial mailing of the Settlement payments,

23 the Claims Administrator shall issue a check in the amount of uncashed checks to 24 the NAACP1 and the National Congress of Black Women for scholarships to

25 students studying retail business management.

26

27

1 The NAACP is an organization separate from and unaffiliated with the NAACP Legal Defense and Educational Fund, Inc. (LDF), which serves as one of Plaintiffs’

28 Counsel in this case.

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1

(g) Final Accounting to the Court: Within thirty (30) days of

2 the distribution of the monies from the Settlement Fund, the Claims Administrator

3 shall furnish an accounting of all distributions from the Settlement Fund, including

4 the range of awards, median average award, and mean average award for each

5 specific Fund, to the Court with copies to Class Counsel and Wet Seal.

6

40. Claims Administrator: The Parties have selected Settlement

7 Services Inc. to serve as the Claims Administrator. The Claims Administrator shall

8 open and administer a Settlement Fund Account, an interest-bearing account with a

9 unique Taxpayer Identification Number. If the Court does not grant final approval

10 of the Settlement Agreement, the Claims Administrator shall return to The Wet Seal

11 (i) the sum of Five Million Five Hundred Eighty Thousand Dollars ($5,580,000),

12 representing the full deposit of the Pay Fund, Promotion Fund and

13 Termination/Other Fund and the sum of One Million Eight Hundred Thousand

14 Dollars ($1,800,000) representing the full deposit of Class Counsel’s attorneys’ fees

15 and costs, as well as interest that has accrued on the two amounts; and (ii) the

16 unspent portion of the Claims Administration Fund, as well as interest that has

17 accrued on that sum. The Claims Administrator shall perform the duties set forth in

18 this Settlement Agreement.

19

41. Class Counsel’s Attorneys’ Fees and Costs

20

(a) Plaintiffs will request, and Defendants do not oppose, an

21 award of attorneys’ fees and costs in the amount of One Million Eight Hundred

22 Thousand Dollars ($1,800,000), which is twenty-four percent (24%) of the

23 Maximum Payment, to compensate Class Counsel for all work already performed

24 in this Action to investigate, prepare, litigate and settle this Action, as well as all

25 work remaining to be performed in documenting the Settlement, securing Court

26 approval of the Settlement, administering the Settlement, ensuring that the

27 Settlement is fairly administered and implemented, monitoring Defendants’

28 performance under the Settlement Agreement, and obtaining dismissal of the

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1 Action. These fees and costs are included in the Maximum Payment.

2

(b) Class Counsel shall file with the Court their application

3 for an award of attorneys’ fees and costs no later than thirty (30) days following the

4 Court’s Order Granting Preliminary Approval. The application shall be posted

5 simultaneously on the website established by the Claims Administrator designed to

6 provide information and communications with Class members as provided in

7 Paragraph 52 in order to permit Class Members to timely object.

8

(c) In the event that the Court approves an award of fees and

9 costs for an amount less than One Million Eight Hundred Thousand Dollars

10 ($1,800,000), then the difference between $1,800,000 and the approved award shall

11 be allocated to the Pay Fund, Promotion Fund, and Termination/Other Fund in the

12 same proportions provided in Paragraph 38 above; that is, 18% to the Pay Fund

13 (Paragraph 38(d)(i) above), 18% to the Promotion Fund (Paragraph 38(d)(ii)

14 above), and 64% to the Termination/Other Fund (Paragraph 38(d)(iii) above).

15

(d) The Parties agree that a reduction by the Court in the

16 attorneys’ fees and costs awarded Class Counsel is not a basis for rendering the

17 entire Settlement voidable or unenforceable. Class Counsel agree to give written

18 notification within fifteen (15) calendar days of approval by the Court if they will

19 appeal a reduction in fees and costs awarded.

20

(e) Upon Final Approval, the Claims Administrator shall pay

21 the attorneys’ fees and costs awarded by the Court to Class Counsel and issue Class

22 Counsel an IRS Form 1099-MISC to reflect that payment.

23

24

IV.

25

MOTION FOR PRELIMINARY APPROVAL

26

27

42. Promptly upon the execution of this Settlement, Plaintiffs shall

28 file a motion for preliminary approval of the Settlement, applying to the Court for

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1 the entry of an Order:

2

(a) Scheduling a Final Approval Hearing on the question

3 whether the proposed Settlement should be approved as fair, reasonable, and

4 adequate as to the Class;

5

(b) Approving as to form and content the proposed Notice to

6 the Class;

7

(c) Approving as to form and content the proposed Claim

8 Form and instructions for Class Members;

9

(d) Approving as to form and content the proposed Wet Seal

10 Letter;

11

(e) Approving as to form and content the proposed Exclusion

12 Statement;

13

(f) Directing the mailing of the Notice, the Claim Form, and

14 the Wet Seal Letter by first-class mail to the Class Members;

15

(g) Preliminarily approving the Settlement;

16

(h) Preliminarily certifying the Class for purposes of

17 Settlement only; and

18

(i) Approving Bill Lann Lee, Esq., Julie Wilensky, Esq.,

19 Shira Wakschlag, Esq. and Lewis, Feinberg, Lee, Renaker & Jackson, P.C.; Nancy

20 C. DeMis, Esq., Susan R. Fiorentino, Esq. and Gallagher, Schoenfeld, Surkin,

21 Chupein & DeMis, P.C.; Elise Boddie, Esq., ReNika C. Moore, Esq., Ria Tabacco

22 Mar, Esq., and NAACP Legal Defense & Educational Fund, Inc. as Class Counsel;

23

(j) Approving Nicole Cogdell, Kai Hawkins, Myriam Saint-

24 Hilaire, and Michelle Guider as Class Representatives; and

25

(k) Approving Settlement Services, Inc. as the Claims

26 Administrator.

27 //

28 //

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1

V.

2

NOTICE TO THE CLASS MEMBERS

3

4

43. Within ten (10) calendar days after the Court’s entry of the

5 Order Granting Preliminary Approval of the Settlement, Wet Seal shall provide the

6 Claims Administrator (either by uploading to an FTP site or on a computer disk)

7 with: the (i) names, (ii) last known addresses, (iii) last known telephone numbers

8 (if any), and (iv) Social Security numbers of the potential Class Members (i.e.,

9 those who are designated in Wet Seal’s human resource information system as

10 “Black or African American” or “Two of More Races” or are otherwise known by

11 Wet Seal to fall within that definition, along with, for each potential Class Member,

12 (v) the date of hire and, if applicable, most recent date of rehire by Wet Seal, (vi)

13 the date of termination from Wet Seal, (vii) the reason code for termination, (viii)

14 all positions held at Wet Seal since 2007, including job title and location, as well as

15 the dates worked in each position; (ix) the number of Work Weeks worked in each

16 Covered Position at a Wet Seal or Arden B. store during the Covered Time Frame,

17 (x) the dates worked in each Covered Position during the Covered Time Frame, and

18 (xi) the Class Member’s pay rate as of December 31 of each year from 2008

19 through 2012, as reflected in Wet Seal’s records. The Class list shall be retained by

20 the Claims Administrator and shall not be shared with Class Counsel. Wet Seal

21 shall also provide to the Claims Administrator for all other employees in Covered

22 Positions during the Covered Time Frame with: (i) the date of hire or most recent

23 date of rehire, (ii) the date of termination from Wet Seal, (iii) the reason code for

24 termination, (iv) the date of promotion from each store management position, and

25 (v) the employee’s pay rate as of December 31 of each year from 2008 through

26 2012.

27

44. Within twenty (20) calendar days after receipt of the Class

28 Member information from Wet Seal, to the extent practicable, the Claims

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1 Administrator shall perform reasonably diligent skip tracing, and mail to all Class

2 Members, by regular first-class U.S. mail, the Notice, the Claim Form and

3 instructions, the Wet Seal Letter, and a pre-addressed, postage-paid envelope (“the

4 Notice Packet”). The Notice, Claim Form, and Wet Seal Letter shall be provided in

5 the same form as Exhibits “1,” “2,” and “3,” respectively attached hereto, subject to

6 the Court’s approval. These documents shall be placed in an envelope which states

7 on the front: “IMPORTANT: DO NOT DISCARD. Please review the enclosed

8 materials. You may be eligible for payment under a proposed settlement with Wet

9 Seal.”

10

45. The Claims Administrator shall make Claim Forms available to

11 potential Class Members who submit oral, e-mail or written requests for Claim

12 Forms. The Claims Administrator shall mail the requested Claim Form via first-

13 class U.S. mail within two (2) business days after receiving a request.

14

46. If Wet Seal, or its Counsel, receives requests for Claim Forms or

15 for information regarding the Settlement, it shall refer such requestors to the toll-

16 free number and website address established by the Claims Administrator for the

17 purpose of administering this Settlement and inform the requestors that any

18 requests for Claim Forms or information should be directed to the Claims

19 Administrator.

20

47. The Claims Administrator shall retain copies of all written

21 requests for Claim Forms and all records of oral or e-mail requests for Claim Forms

22 until such time as it has completed its duties and responsibilities under this

23 Settlement Agreement.

24

25

VI.

26

CLAIM PROCESS

27

28

48. Class Members shall have ninety (90) calendar days from the

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1 mailing of the Notice Packet to mail their Claim Form to the Claims Administrator.

2 Class Members shall have forty-five (45) calendar days from the mailing of the

3 Notice Packet to mail their Exclusion Statement. No Claim Forms shall be honored

4 if postmarked after the deadline to submit claims, except as otherwise mutually

5 agreed by the Parties or ordered by the Court.

6

49. All Claim Forms must be signed under penalty of perjury to be

7 considered and must attest that the Class Member is “African American” or

8 “Black.” Failure to file a timely, valid Claim Form, for any reason whatsoever,

9 shall bar the potential Class Member from having his or her claim considered and

10 from receiving monetary compensation from the Settlement Fund Account.

11

50. Claims may be filed on behalf of deceased Class Members

12 through representatives of their estates if legally sufficient documentation is

13 provided. Any claims paid to a deceased Class Member shall be made payable to

14 the estate of the deceased Class Member.

15

51. Class Members who file a Claim Form must notify the Claims

16 Administrator of any change of address. A failure to notify the Claims

17 Administrator of a change of address may result in the forfeiture of a monetary

18 award.

19

52. The Claims Administrator shall be available through its toll-free

20 line and via e-mail through the Claims Website it will establish to provide

21 information on the settlement and respond to requests from Class Members for

22 assistance in completing and filing Claim Forms.

23

53. The Claims Administrator shall make the determination as to

24 whether a Claim Form is timely and complete. If a Class Member submits a timely

25 Claim Form that is rejected by the Claims Administrator as deficient in some

26 material respect (for example, the Class Member failed to sign it), the Claims

27 Administrator shall notify the Class Member in writing of the basis for the

28 deficiency and shall specify the additional information necessary to complete the

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1 Claim Form, if it appears that such additional information would complete it. The

2 notice of deficiency and request for information shall be sent via first class mail and

3 inform the Class Member that a response must be returned no later than fifteen (15)

4 days from the date the request for information was mailed, or until the end of the

5 ninety (90)-day claims period, whichever comes later. The Claims Administrator

6 shall also provide the Class Member with Class Counsel’s contact information in

7 case the Class Member wishes to seek Class Counsel’s assistance. The Class

8 Member must provide the requested information, signed under penalty of perjury,

9 to the Claims Administrator by mail with a postmark no later than the deadline

10 specified in the notice of deficiency. Such additional information shall be

11 considered part of the original Claim Form and shall relate back to the original

12 filing date. The failure of a Class Member to timely respond to the request for

13 information may result in the denial of the Claim.

14

54. The Claims Administrator shall send postcard reminders and

15 second postcard reminders to Class Members who have not submitted claim forms

16 within forty-five (45) days and seventy (70) days, respectively, after the Claims

17 Administrator initially mails the Notice Packet.

18

55. The Claims Administrator shall provide Counsel for all Parties

19 with a weekly report showing the number of Claim Forms and Exclusion

20 Statements received, and any objections.

21

56. For Claim Forms post-marked and received after the filing

22 deadline, the Claims Administrator shall notify late-filing Class Members that their

23 Claims are untimely and that they are not eligible for any monetary award. The

24 Claims Administrator shall also inform late-filing Class Members that they may

25 seek a reconsideration of the determination that they filed untimely by requesting

26 the Claims Administrator to reconsider its determination. The Claims

27 Administrator may reverse its determination that a Claim Form was not timely filed

28 only if the Class Member proves that the Claim Form was deposited in the United

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1 States Mail on or before the filing deadline and that the untimeliness determination

2 is erroneous.

3

57. The Claims Administrator shall make the determination as to

4 whether a Class Member is eligible for a monetary award and the amount of such

5 award. Within ten (10) days of the close of the Claims filing period, the Claims

6 Administrator shall send all ineligible claimants written notice of their ineligibility

7 for monetary relief. Any claimants wishing to seek reconsideration of their

8 ineligibility determinations must do so by returning a written request for

9 reconsideration to the Claims Administrator by mail with a postmark no later than

10 twenty-one (21) calendar days from the date of the notice of claim ineligibility.

11 Failure to file a timely request for reconsideration shall bar a claimant from

12 challenging a determination of ineligibility. The Claims Administrator shall

13 resolve the requests for reconsideration based on the written requests for review and

14 any other documentation or written information submitted by the claimant, or

15 deemed necessary by the Claims Administrator. The Claims Administrator may

16 seek further written information from the claimant, Wet Seal or Class Counsel. The

17 Claims Administrator shall attempt to expeditiously resolve any requests for

18 reconsideration within thirty (30) calendar days after the filing of the request for

19 review. The Claims Administrator’s decisions shall be communicated to the

20 claimant in writing and shall be final and non-appealable.

21

58. Class Counsel may provide the Claims Administrator with

22 evidence that has a bearing on the awards, and Wet Seal shall provide the Claims

23 Administrator with the following: (i) evidence that Wet Seal believes substantiates

24 any Class Member’s Claim; and (ii) evidence that Wet Seal believes reflects a

25 termination for unauthorized taking of Wet Seal’s property, fraud, falsification,

26 assault/battery or other violence, harassment or discrimination based upon protected

27 group status, or retaliation against another for exercising protected rights. Wet Seal

28 shall provide any such information to Class Counsel at least fifteen (15) calendar

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1 days before Wet Seal submits it to the Claims Administrator, shall give Class

2 Counsel the opportunity to refute or otherwise comment on it, and shall re-consider

3 its submission in whole or in part in light of any contrary evidence that Class

4 Counsel shares with Wet Seal.

5

59. Class Counsel and Wet Seal shall reasonably cooperate in

6 providing information which the Claims Administrator deems reasonably necessary

7 to assist in determining the eligibility of any Class Member for monetary relief.

8 Wet Seal or Class Counsel shall attempt to provide such information within

9 fourteen (14) calendar days after receiving any written request for information from

10 the Claims Administrator.

11

60. Wet Seal agrees that no term of a settlement agreement to which

12 it is a party with any current or former employee shall operate to limit or preclude a

13 signatory to such an agreement from providing to the Claims Administrator

14 pertinent information related to any Class Member’s claim. Any such submission

15 of information by a signatory should be marked “Confidential” and sent directly to

16 the Claims Administrator or through the signatory’s private legal counsel to the

17 Claims Administrator. Except as expressly provided in this Paragraph, Wet Seal

18 does not waive the confidentiality term or any other term of any settlement

19 agreement to which it is a party.

20

61. The determinations of the Claims Administrator on whether a

21 Class Member or claimant is eligible for an award and the amount of any award

22 shall be final and non-appealable.

23

24

VII.

25

RESOLUTION OF CLAIM DISPUTES

26

27

62. Each Claim Form shall list: (i) the time period during the

28 Covered Time Frame that Wet Seal’s records show that the Class Member worked

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1 in each Covered Position; and (ii) the Class Member’s total number of Work Weeks

2 in each Covered Position during the Covered Time Frame. If a Class Member who

3 receives a Claim Form wishes to dispute the time period(s) listed on the Claim

4 Form and/or their total number of Work Weeks, he or she may so notify the Claims

5 Administrator and produce evidence to the Claims Administrator indicating the

6 dates and/or number of Work Weeks he or she contends to have worked in a

7 Covered Position during the Covered Time Frame. Wet Seal shall review its

8 records and provide information to the Claims Administrator in response to any

9 such disputed claims. Wet Seal’s records shall be presumed to be accurate. The

10 Claims Administrator shall evaluate the evidence submitted by the Class Member

11 and make the final decision as to which dates and/or number of Work Weeks in

12 each Covered Position should be applied. The determination by the Claims

13 Administrator shall be final and not subject to further review.

14

63. The dispute-resolution procedure described in the preceding

15 Paragraph shall also apply in cases, if any, in which a person believes that he or she

16 was wrongly excluded from the Class list.

17

18

VIII.

19

OBJECTIONS TO THE SETTLEMENT

20

21

64. Class Members who wish to object to the Settlement must

22 submit to the Claims Administrator, not later than forty-five (45) days after the date

23 that the Claims Administrator first mails the Notice Packet, a written statement

24 objecting to the Settlement and setting forth the grounds for the objection. This

25 statement also must indicate whether the Class Member intends to appear and

26 object to the Settlement at the Final Approval Hearing. The failure to so indicate

27 shall constitute a waiver of the right to appear at the hearing, unless the Court rules

28 otherwise. A Class Member who does not submit an objection in the manner and

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1 by the deadline specified above shall be deemed to have waived all objections and

2 shall be foreclosed from making any objection to the Settlement, whether by appeal

3 or otherwise, absent a contrary order of the Court. Class Members who wish to

4 object to Class Counsel’s request for attorneys’ fees and costs may do so by

5 following the same procedure as described above.

6

65. The Claims Administrator shall record the date of receipt of the

7 objection and forward it to both Wet Seal and Class Counsel within two (2)

8 business days following receipt. The Claims Administrator shall also file the

9 original objections with the Clerk of the Court no later than five (5) days prior to

10 the scheduled Final Approval Hearing date. The Claims Administrator shall retain

11 copies of all written objections until such time as it has completed its duties and

12 responsibilities under this Settlement Agreement.

13

14

IX.

15

REQUESTS TO BE EXCLUDED FROM SETTLEMENT

16

17

66. Eligible Class Members who wish to exclude themselves from

18 the Settlement (“opt out” of the Settlement) must submit to the Claims

19 Administrator, not later than forty-five (45) days after the date that the Claims

20 Administrator first mails the Notice Packet, a written, signed, dated “Exclusion

21 Statement,” which includes the following language:

22

I understand that I am requesting to be excluded from the

23

class monetary settlement and that I shall receive no

24

money from the Settlement Fund created under the

25

Settlement Agreement entered into by Wet Seal. I

26

understand that if I am excluded from the class monetary

27

settlement, I may bring a separate legal action seeking

28

damages, but may receive nothing or less than what I

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1

would have received if I had filed a Claim under the class

2

monetary settlement procedure in this Action. I also

3

understand that I may not seek exclusion from the class

4

for injunctive relief and that I am bound by the injunctive

5

provisions of the Settlement Agreement entered into by

6

Wet Seal.

7

67. Exclusion Statements may be submitted to the Claims

8 Administrator via U.S. Mail.

9

68. Named Plaintiffs may not submit an Exclusion Statement.

10

69. A Class Member who does not complete and submit a timely

11 Exclusion Statement in the manner and by the deadline specified above shall, if the

12 Court approves the Settlement, be bound by all terms and conditions of the

13 Settlement and by the Judgment, regardless of whether he or she submits a Claim

14 Form. An eligible Class Member who timely submits an Exclusion Statement shall

15 not participate in, or be bound by, the Settlement or the Judgment in any respect.

16 Persons who submit an Exclusion Statement shall not be permitted to file objections

17 to the Settlement or appear at the Final Approval Hearing to voice any objections to

18 the Settlement

19

70. The Claims Administrator shall date stamp the original of any

20 Exclusion Statement and serve copies on both Wet Seal and Class Counsel within

21 two (2) business days of receipt of such statement. The Claims Administrator shall

22 also file the original Exclusion Statements with the Clerk of the Court no later than

23 five (5) days prior to the date of the Final Approval Hearing scheduled by the

24 Court. The Claims Administrator shall retain copies of all Exclusion Statements

25 until such time as it has completed its duties and responsibilities under this

26 Settlement Agreement.

27

71. If an eligible Class Member completes and submits both a Claim

28 Form and an Exclusion Statement, the Claims Administrator shall contact the Class

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1 Member to obtain clarification of the Class Member’s intent. In the event that the

2 Claims Administrator is unable to obtain clarification of the Class Member’s intent

3 by the time of the Final Approval Hearing, it shall be presumed that the Claim

4 Form is controlling, and such Class Member shall remain a member of the Class, be

5 paid a settlement payment pursuant to the Claim Form, and be bound by the terms

6 of the Settlement.

7

72. Eligible Class Members who do not submit either a valid and

8 timely Claim Form or a valid and timely Exclusion Statement shall be bound by all

9 of the terms of the Settlement and the release set forth herein.

10

11

X.

12

RESCISSION OF CLASS MEMBER EXCLUSION STATEMENTS

13

14

73. The Parties recognize that some Class Members who initially

15 submit an Exclusion Statement may, upon further reflection, wish to withdraw or

16 rescind such Exclusion Statement. The Parties agree that Class Members shall be

17 permitted to withdraw or rescind their Exclusion Statements by submitting a

18 “Rescission of Exclusion Statement” to the Claims Administrator. The Rescission

19 of Exclusion Statement shall include the following language:

20

I previously submitted an Exclusion Statement seeking

21

exclusion from the class monetary settlement. I have

22

reconsidered and wish to withdraw my Exclusion

23

Statement. I understand that by rescinding my Exclusion

24

Statement, I may be eligible to receive an award from the

25

Settlement Fund and may not bring a separate legal action

26

against Wet Seal seeking damages.

27

74. A Class Member submitting such a Rescission of Exclusion

28 Statement shall sign and date the Statement and cause it to be delivered to the

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1 Claims Administrator no later than the deadline for filing a Claim Form specified in

2 the Preliminary Approval Order. The Claims Administrator shall stamp the date

3 received on the original of any Rescission of Exclusion Statement and serve copies

4 on Counsel for Wet Seal and Class Counsel no later than (2) business days after

5 receipt thereof and shall file the date-stamped originals with the Clerk of the Court

6 no later than five (5) business days prior to the date of the Final Approval Hearing

7 scheduled by the Court. The Claims Administrator shall retain copies of all

8 Rescissions of Exclusion Statements until such time as the Claims Administrator is

9 relieved of its duties and responsibilities under this Settlement Agreement.

10

11

XI.

12

RIGHT OF REVOCATION

13

14

75. If eighty (80) or more of the Class Members validly elect not to

15 participate in the Settlement by filing an Exclusion Statement, Defendants shall

16 have the right to rescind the Settlement and all actions taken in its furtherance will

17 be null and void. Defendants must exercise this right within ten (10) days after the

18 Claims Administrator notifies the Parties of the valid elections not to participate

19 received, which the Claims Administrator shall do within ten (10) days after the

20 deadline for submission of the Exclusion Statements. The Parties agree that neither

21 side shall solicit or encourage opt-outs or exclusions from the Settlement.

22

23

XII.

24

ADDITIONAL BRIEFING AND FINAL APPROVAL

25

26

76. As soon as practicable following the deadline for the filing of

27 Claim Forms, Class Counsel shall file with the Court a motion for final approval of

28 the Settlement and a memorandum in support of their motion. Plaintiffs’ Counsel

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1 shall prepare the motion for final approval and provide Defendants’ Counsel the

2 opportunity to review and comment on the motion before it is filed.

3

77. At the time that Plaintiffs file their motion for final approval of

4 the Settlement, Class Counsel shall provide the Court with a declaration executed

5 by the Claims Administrator, specifying the due diligence the Claims Administrator

6 has undertaken with regard to the mailing of the Notice; verifying its settlement

7 administration costs; and reporting on the number of claims, objections, disputes

8 (and status), Exclusion Statements submitted, median claim value, and amounts to

9 be paid to each Class Member who is receiving funds from the Settlement Fund.

10

78. Not later than five (5) court days before the Final Approval

11 Hearing, the Parties may file, jointly or separately, a reply in support of the motion

12 for final approval of the Settlement, in the event any opposition to the motion for

13 final approval has been filed. Likewise, Plaintiffs and Class Counsel may file a

14 supplemental memorandum in support of their motion for attorneys’ fees and costs

15 reflecting any additional fees and costs incurred after the filing of the motion, or a

16 reply in support of their motion in the event that any opposition to their motion for

17 fees and costs has been filed. Defendants will not oppose this supplemental or

18 reply memorandum.

19

79. At or before the Final Approval Hearing, the parties shall

20 present a Judgment for the Court’s entry in accordance with the terms of the

21 Settlement. After entry of the Judgment, the Court will have continuing jurisdiction

22 over the Action and the Settlement solely for purposes of enforcing the Settlement,

23 addressing settlement administration matters, and addressing such post-Judgment

24 matters as may be appropriate under court rules or applicable law.

25

80. Upon filing Plaintiffs’ motion for final approval of the

26 Settlement, Plaintiffs shall submit a proposed Order or Orders:

27

(a) Approving the Settlement, adjudging the terms thereof to

28 be fair, reasonable, and adequate, and directing consummation of its terms and

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1 provisions;

2

(b) Approving Class Counsel’s application for an award of

3 attorneys’ fees and reimbursement of costs;

4

(c) Certifying the Class for settlement purposes only; and

5

(d) Permanently enjoining all Class Representatives and

6 Class Members (other than those who timely filed Exclusion Statements) from

7 prosecuting against the Released Parties any and all Released Claims as defined in

8 Paragraph 81 below.

9

10

XIII.

11

RELEASE OF CLAIMS

12

13

81. Claims Released by Class Representatives and Class Members:

14 Upon the Court’s final approval of the Settlement, and except as to such rights or

15 claims as may be created by the Settlement, the Class Representatives and the Class

16 Members (other than those who file Exclusion Statements) hereby release and

17 discharge all known and unknown “Released Claims” against the “Released

18 Parties.” The “Released Parties” are: (i) the Defendants, (ii) all of their former and

19 present parents, subsidiaries, and affiliates, and (iii) the current and former officers,

20 directors, employees, partners, shareholders, agents, insurers, predecessors,

21 successors, assigns, and legal representatives of all entities and individuals listed in

22 (i) and (ii). The “Released Claims” are any and all claims that are asserted in or

23 could have been asserted in Plaintiffs’ First Amended Complaint, to the fullest

24 extent permitted by law, during the period from May 8, 2008 through the date of

25 Preliminary Approval, including those related to: (i) allegations of discrimination

26 and harassment against African-American and Black store management employees

27 based on race and/or color with respect to compensation, selection, promotion, job

28 assignments, demotion, discipline, actual and constructive termination, and other

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1 terms and conditions of employment; and/or (ii) allegations of retaliation against

2 African-American and Black store management employees for opposition to

3 discrimination or harassment based on race or color. The Released Claims include

4 claims for damages and equitable relief of every nature, including but not limited to

5 back pay, front pay, reinstatement, instatement, benefits, emotional distress, and

6 other compensatory damages, damage to reputation, liquidated damages, penalties,

7 interest, and punitive damages. The Released Claims may have arisen under 42

8 U.S.C. § 1981, Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e et

9 seq.), and all other federal, state and local laws.

10

82. Waiver of Unknown Claims: As to the Released Claims against

11 the Released Parties, the Class Representatives and Class Members each waive all

12 rights and benefits afforded by Section 1542 of the Civil Code of the State of

13 California, and do so understanding the significance of that waiver. Section 1542

14 provides:

15

A GENERAL RELEASE DOES NOT EXTEND TO

16

CLAIMS WHICH THE CREDITOR DOES NOT

17

KNOW OR SUSPECT TO EXIST IN HIS OR HER

18

FAVOR AT THE TIME OF EXECUTING THE

19

RELEASE, WHICH IF KNOWN BY HIM OR HER

20

MUST HAVE MATERIALLY AFFECTED HIS OR

21

HER SETTLEMENT WITH THE DEBTOR.

22

23

XIV.

24

EFFECT OF DENIAL OF COURT APPROVAL

25

26

83. If the Court does not grant final approval of the Settlement, or if

27 the Court’s final approval of the Settlement is reversed or materially modified on

28 appellate review, then this Settlement will become null and void. In such case, the

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1 Settlement shall not be used or be admissible in any subsequent proceedings, either

2 in this Court or in any other Court or forum.

3

4

XV.

5

PARTIES’ AUTHORITY

6

7

84. The respective signatories to the Settlement represent that they

8 are fully authorized to enter into this Settlement and bind the respective Parties to

9 its terms and conditions.

10

11

XVI.

12

MUTUAL FULL COOPERATION

13

14

85. The Parties agree to cooperate fully with each other to

15 accomplish the terms of this Settlement, including but not limited to executing such

16 documents and taking such other actions as may reasonably be necessary to

17 implement the terms of the Settlement. The Parties shall use their best efforts,

18 including all efforts contemplated by this Settlement and any other efforts that may

19 become necessary by order of the Court, or otherwise, to effectuate the terms of the

20 Settlement.

21

86. The Parties agree that they will not discourage Class Members

22 from submitting Claim Forms or encourage Class Members to submit Exclusion

23 Statements or to file objections to the Settlement.

24

25

XVII.

26

NO PRIOR ASSIGNMENTS

27

28

87. The Parties represent, covenant, and warrant that they have not

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1 directly or indirectly assigned, transferred, encumbered, or purported to assign,

2 transfer, or encumber to any person or entity any portion of any liability, claim,

3 demand, action, cause of action, or right released and discharged in this Settlement.

4

5

XVIII.

6

NO ADMISSION OF LIABILITY

7

8

88. Nothing contained in this Settlement shall be construed or

9 deemed an admission of liability, culpability, negligence, or wrongdoing on the part

10 of Defendants. All of the Parties entered into this Settlement with the intention to

11 avoid further disputes and litigation, and the attendant inconvenience and expense.

12 This Settlement shall be inadmissible in evidence in any proceeding, except an

13 action or proceeding to approve, interpret, or enforce its terms.

14

15

XIX.

16 NO WAIVER OF ENFORCEMENT OF ARBITRATION AGREEMENTS

17

18

89. Nothing contained in this Settlement Agreement constitutes a

19 waiver of any term of or application of any Mutual Agreement to Arbitrate or other

20 arbitration agreement to which a current or former employee of Defendants is a

21 party, other than that signing a Mutual Agreement to Arbitrate does not preclude

22 anyone from being included in the Class for purposes of this Settlement or

23 enforcement of its provisions.

24

25

XX.

26

ENFORCEMENT ACTIONS

27

28

90. In the event that one or more of the Parties institute any legal

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1 action or arbitration (not including the dispute resolution process described in

2 Paragraph 35(s)) against any other Party or Parties to enforce the provisions of this

3 Settlement, or to declare rights and/or obligations under this Settlement, the

4 successful Party or Parties shall be entitled to seek an order providing that the

5 unsuccessful Party or Parties pay the successful Party or Parties’ reasonable

6 attorneys’ fees and costs, including expert witness fees incurred in connection with

7 any enforcement actions, on the basis that the enforcement action is objectively

8 frivolous, unreasonable, or without foundation.

9

10

XXI.

11

NOTICES

12

13

91. Unless otherwise specifically provided herein, all notices,

14 demands, or other communications given hereunder shall be in writing and shall be

15 deemed to have been duly given as of the third (3rd) business day after mailing by

16 United States first-class mail, return receipt requested, addressed as follows:

17

To the Class:

18

19

Bill Lann Lee LEWIS, FEINBERG, LEE, RENAKER & JACKSON, P.C.

20

476 9th Street

21

Oakland, CA 94607

22

To Defendants:

23

Nancy L. Abell

24

PAUL HASTINGS LLP

25

515 South Flower Street, 25th Floor

Los Angeles, CA 90071

26

27

28

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1

XXII.

2

CONSTRUCTION

3

4

92. The Parties agree that the terms and conditions of this

5 Settlement Agreement are the result of lengthy, intensive, arm’s-length negotiations

6 between the Parties, and that this Settlement Agreement shall not be construed in

7 favor of or against any Party by reason of the extent to which any Party or his, her,

8 or its Counsel participated in its drafting.

9

10

XXIII.

11

CAPTIONS AND INTERPRETATIONS

12

13

93. Paragraph titles or captions contained in this Settlement

14 Agreement are a matter of convenience and for reference, and in no way define,

15 limit, extend, or describe the scope of this Settlement Agreement or any provision.

16

17

XXIV.

18

MODIFICATION

19

20

94. This Settlement Agreement may not be changed, altered, or

21 modified, except in writing and signed by the Parties, and approved by the Court.

22 This Settlement Agreement may not be discharged except by performance in

23 accordance with its terms or by a writing signed by the Parties.

24

25

XXV.

26

INTEGRATION CLAUSE

27

28

95. This Settlement Agreement contains the entire agreement

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1 between the Parties relating to the resolution of the Action. All prior or

2 contemporaneous agreements, understandings, representations, and statements,

3 whether oral or written and whether by a Party or such Party’s legal counsel, are

4 merged in this Settlement Agreement. No rights under this Settlement Agreement

5 may be waived except in writing.

6

7

XXVI.

8

BINDING ON ASSIGNS

9

10

96. This Settlement Agreement shall be binding upon and inure to

11 the benefit of the Parties and their respective heirs, trustees, executors,

12 administrators, successors, and assigns.

13

14

XXVII.

15

CLASS COUNSEL SIGNATORIES

16

17

97. It is agreed that because the members of the Class are so

18 numerous, it is impossible or impractical to have each Class Member execute this

19 Settlement Agreement. The Notice, Exhibit “1,” shall advise all Class Members of

20 the binding nature of the release. Excepting only the Class Members who timely

21 submit an Exclusion Form, this Settlement Agreement shall have the same force

22 and effect as if it were executed by each Class Member.

23

24

XXVIII.

25

COUNTERPARTS

26

27

98. This Settlement Agreement may be executed in counterparts,

28 and when each Party has signed and delivered at least one such counterpart, each

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1 counterpart shall be deemed an original, and, when taken together with other signed

2 counterparts, shall constitute one Settlement Agreement, which shall be binding

3 upon and effective as to all Parties.

4

5

XXIX.

6

WAIVER OF APPEALS

7

8

99. The Parties agree to waive all appeals from the Court’s final

9 approval of this Settlement, unless the Court materially modifies the Settlement

10 Agreement; provided, however, that Plaintiffs may appeal any reduction in the

11 attorneys’ fee award. Any reduction in the award of attorney’s fees and costs will

12 not, however, constitute a material modification of the Settlement Agreement and

13 will not be grounds to void the Settlement.

14

15

XXX.

16

CLASS CERTIFICATION

17

18

100. The Parties agree that the stipulation for Class Certification is

19 for settlement purposes only, and if for any reason the Settlement is not approved,

20 the stipulation will be of no force or effect. The Parties agree that certification for

21 settlement purposes under the lenient standard applied to settlements is in no way

22 an admission that class certification is proper under the more stringent standard

23 applied for litigation purposes, and that evidence of this limited stipulation for

24 settlement purposes only will not be deemed admissible in this or any other

25 proceeding.

26 //

27 //

28 //

CASE NO. SACV 12-01138 AG (ANx)

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1

XXXI.

2

NO TAX ADVICE

3

4

101. Neither Class Counsel nor Counsel for Defendants intend

5 anything contained herein to constitute legal advice regarding the taxability of any

6 amount paid hereunder, nor shall it be relied upon as such.

7

8

XXXII.

9

COMMUNICATIONS

10

11

102. If Counsel for any of the Parties receives an inquiry about the

12 Settlement from the media, Counsel may respond only after the motion for

13 preliminary approval has been filed and may only discuss the terms of the

14 Settlement or information contained in documents filed in this case. If Wet Seal

15 receives an inquiry about the Settlement from the media, its representative(s) may

16 respond to the inquiry with information about its diversity and inclusion initiatives

17 or by reference to the Preliminary Approval Motion and Settlement Agreement on

18 file with the Court. Before the date on which the Parties file their motion for

19 preliminary approval of the Settlement, the Parties and their Counsel shall not

20 initiate any contact with Class Members about the Settlement, except that Class

21 Counsel, if contacted by a Class Member, may respond that a settlement has been

22 reached and that the details shall be communicated in a forthcoming Court-

23 approved notice. This Paragraph does not apply to communications between Class

24 Counsel and the Named Plaintiffs or other individuals with whom they have entered

25 into a retention agreement.

26

27

28

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1

XXXIII.

2

TERM OF SETTLEMENT AGREEMENT

3

4

103. The Term of the Settlement Agreement shall be three (3) years

5 from the date of Preliminary Approval.

6

7

XXXIV.

8

COURT’S RETENTION OF JURISDICTION

9

10

104. The Settlement Agreement shall be entered as an order of the

11 Court. The Court shall retain jurisdiction during the term of the Settlement

12 Agreement to enforce its provisions and to resolve disputes under the Settlement

13 Agreement.

14

15

XXXV.

16

NOTICE OF SATISFACTION OF JUDGMENT

17

18

105. Class Counsel shall file with the Court a notice of satisfaction of

19 judgment in a form acceptable to Defendants within ten (10) days after the last of

20 the following occurs: Wet Seal deposits with the Claims Administrator the

21 Maximum Payment required to fulfill its obligation under this Settlement

22 Agreement and the Claims Administrator submits its final accounting to the parties

23 reflecting that checks were issued and mailed to all Class Members who submitted

24 timely and valid Claim Forms pursuant to this Settlement.

25 //

26 //

27 //

28 //

CASE NO. SACV 12-01138 AG (ANx)

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1

XXXVI.

2

NO ADMISSION OF LIABILITY

3

4

106. Nothing contained in this Settlement shall be construed or

5 deemed an admission of liability, culpability, negligence, or wrongdoing on the part

6 of Defendants. All of the Parties entered into this Settlement Agreement with the

7 intention to avoid further disputes and litigation, and the attendant inconvenience

8 and expense. This Settlement Agreement shall be inadmissible in evidence in any

9 proceeding, except an action or proceeding to approve, interpret, or enforce its

10 terms.

11

12

13

14

15 [Remainder of page intentionally left blank.]

16

17

18

19

20

21

22

23

24

25

26

27

28

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 </s> Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 1 of 18 Page ID #:537
EXHIBIT 1

Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 2 of 18 Page ID #:538

IN THE UNITED STATES DISTRICT COURT

FOR THE CENTRAL DISTRICT OF CALIFORNIA

____________________________________

)

NICOLE COGDELL, et al.,

)

)

Plaintiffs,

)

)

v.

)

)

THE WET SEAL, INC., et al.,

)

)

Defendants.

)

____________________________________)

Case No. SACV 12-01138 AG (ANx) Honorable Andrew J. Guilford

NOTICE OF PROPOSED SETTLEMENT OF EMPLOYMENT DISCRIMINATION CLASS
ACTION

TO: All African-American and/or Black persons who worked in Wet Seal and Arden B. stores as Store Assistant Managers, Co-Managers, Acting Store Managers, and Store Managers at any time from May 8, 2008 to [DATE], 2013.

A FEDERAL COURT HAS AUTHORIZED THIS NOTICE. PLEASE READ IT CAREFULLY. IT CONTAINS IMPORTANT INFORMATION THAT
MIGHT AFFECT YOUR LEGAL RIGHTS. THIS IS NOT A SOLICITATION FROM A LAWYER. YOU HAVE NOT BEEN SUED.

Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 3 of 18 Page ID #:539
NOTICE SUMMARY
The Court has preliminarily approved a proposed Settlement of an employment discrimination class action lawsuit against The Wet Seal, Inc. (“Wet Seal” or “Defendants”). The Class consists of all African-American and/or Black persons who worked as store management employees (Store Assistant Managers, Co-Managers, Acting Store Managers, and Store Managers) at Wet Seal and Arden B. stores at any time from May 8, 2008 to [DATE], 2013. What the Settlement will provide if approved by the court is summarized in this Notice.
What is the Lawsuit about?
Four Named Plaintiffs brought this class action lawsuit on behalf of themselves and a class of similarly situated current and former Wet Seal employees, alleging that Wet Seal discriminated against African-American store management employees. The Named Plaintiffs are Nicole Cogdell, Kai Hawkins, Myriam Saint-Hilaire, and Michelle Guider; they are all African Americans who worked as store management employees at Wet Seal or Arden B. stores. The Plaintiffs claim that Wet Seal had a policy and practice of discriminating against African-American store management employees who worked at Wet Seal and Arden B. stores, in violation of 42 U.S.C. § 1981 and Title VII of the Civil Rights Act of 1964. They allege that a policy of discrimination was adopted by the then-senior executives of the company, and resulted in targeting of African-American employees for demotion or termination, creation of a hostile work environment and denial of pay and promotions for African Americans because of their race and/or color.
Why did I get this Notice package?
Wet Seal’s records indicate that you may be African American and/or Black and worked as a store management employee (Store Assistant Manager, Co-Manager, Acting Store Manager, or Store Manager) in a Wet Seal or Arden B. store at some time from May 8, 2008 to [DATE], 2013.
The Court approved this Notice to be sent to you because, if you fall within that group, you have a right to know about the Settlement and about all of your options before the Court decides whether to approve the Settlement. You can decide to object to the Settlement, or to object to the award of attorneys’ fees and costs, or to “opt out” of the Settlement entirely in order to bring your own case. If the Court approves the Settlement, and after any appeals are resolved, the settlement will be implemented. This Notice package describes the lawsuit, the Settlement, your legal rights, what monetary relief is available, who is eligible for such relief, and how to get it.
What is the Proposed Settlement?
The Settlement provides injunctive relief and money damages. Wet Seal, through its new Chief Executive Officer and new Board of Directors, has collaborated on this mutually beneficial settlement as a reflection of its commitment to diversity and inclusion. Injunctive relief means that Wet Seal’s commitment to changes and enhancements to its policies and practices ensure that its policy of equal employment opportunity is available to all and that African-American and other store management employees are not discriminated against on the basis of race and/or color. These include: creating and implementing new job selection criteria and procedures for store management and district director positions, posting store management and district director positions, providing all employees with regular non-discrimination training, partnering with organizations dedicated to
i

Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 4 of 18 Page ID #:540
the advancement and well-being of African Americans and other groups, and implementing a new Human Resources field compliance team. Wet Seal has implemented many of these actions during 2013. The Diversity and Inclusion Council that it formed and commits to continue is expected to play an important role in Wet Seal’s diversity initiatives. Wet Seal will designate an officer to monitor and ensure proper implementation of the Settlement, will maintain records relating to the terms of the Settlement, and will provide semi-annual Progress Reports to Class Counsel for three years.
The Settlement also provides that Wet Seal will pay monetary relief totaling $7,500,000. A total of approximately $5,580,000 will be divided among eligible Class Members who file claims with the Claims Administrator and whose claims are approved. Subject to Court approval, the costs of administering the distribution of monetary awards to Class Members and attorneys’ fees and costs for the prosecution of the case will be paid out of the remainder.
What happens next?
The Court has scheduled a hearing on final approval of the Settlement and on the motion for attorneys’ fees and expenses. The hearing, before United States District Judge Andrew J. Guilford, has been scheduled for November 18, 2013, at 10:00 AM, at the United States District Court for the Central District of California, 411 West Fourth Street, Room 1053, Santa Ana, CA 92701-4516, in Courtroom 10D, or in the courtroom then occupied by Judge Guilford.
Any objections to the Settlement or to the motion for attorneys’ fees and costs must be sent in writing to the Court, Class Counsel, and Wet Seal’s Counsel. Section V of the Notice describes how to object.
How do I find out more about the Settlement?
Additional information regarding the Settlement, including the full Settlement Agreement and Joint Stipulation (the “Settlement”), briefs filed regarding the Settlement, and the Class Counsel’s motion for attorneys’ fees and costs, is available at Class Counsel’s website: www.lewisfeinberg.com and the case website: http://wetsealdiscrimination.com.
Further information may be obtained by contacting Class Counsel at (866) 276-5221.
PLEASE READ THIS NOTICE CAREFULLY AND COMPLETELY. IF YOU ARE A MEMBER OF THE CLASS TO WHOM THIS NOTICE IS ADDRESSED,
THE SETTLEMENT WILL AFFECT YOUR RIGHTS.
IF YOU ARE IN FAVOR OF THE SETTLEMENT AND SEEK COMPENSATION, YOU MUST SUBMIT A CLAIM FORM. IF YOU ARE NOT IN FAVOR OF THE
SETTLEMENT, YOU MAY OBJECT TO AND/OR OPT OUT OF THE SETTLEMENT.
ii

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Your Legal Rights and Options in the Settlement:

You Can Submit a Claim Form
(must be postmarked by October 8, 2013)

If you wish to recover monetary damages, you must fill out, sign, and submit a claim form (included with this Notice) to the Claims Administrator.

You Can Object
(must be postmarked by August 25, 2013)

If you wish to object to any part of the Settlement, you may write to the Court, Class Counsel, and Defendants’ Counsel about why the Settlement should not be approved. If you object, you can still submit a Claim Form.
Objections are discussed further below.

You Can Opt Out
(must be postmarked by August 25, 2013)

If you wish to opt out of the monetary relief provisions of the Settlement in order to bring your own case, you must fill out, sign, and submit an opt-out statement to the Claims Administrator. If you opt out, you cannot submit a Claim Form.

You Can Rescind Your Opt Out
(must be postmarked by October 8, 2013)

If you change your mind about opting out of the monetary relief provisions of the Settlement, you must fill out, sign, and submit a Rescission statement to the Claims Administrator. If you rescind your opt out, you can submit a Claim Form

You Can Attend the Final Approval Hearing for the Court to Decide Whether to Approve the Settlement
(to be held on November 18, 2013 at 10:00 AM)

If you have submitted a written objection to the Settlement to the Court, Class Counsel, and Wet Seal’s Counsel, you may (but do not have to) attend the Final Approval Hearing at which the Court will decide whether to approve the Settlement and present your objections to the Court. You may attend the Final Approval Hearing even if you do not file a written objection, but you will only be allowed to speak at the hearing if you file written comments in advance, except by leave of the Court.

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Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 6 of 18 Page ID #:542
These rights and options—and the deadlines to exercise them—are explained in this Notice.  The Court in charge of this case still has to decide whether to approve the Settlement. Payments will be made only if the Court approves the Settlement, unless someone appeals the approval order. If that happens, payment will only be made if the appellate court approves the Settlement.  Further information regarding the lawsuit and this Notice may be obtained by contacting Class Counsel at the number listed above.  Additional information regarding the Settlement, including the briefs filed regarding the Settlement and the motions for attorneys’ fees and costs, is available at Class Counsel’s website: www.lewisfeinberg.com and the case website: http://wetsealdiscrimination.com.
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Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 7 of 18 Page ID #:543
TABLE OF CONTENTS I. INTRODUCTION .............................................................................................................. 1
1. Potential Outcome of the Action............................................................................. 1 2. Attorneys’ Fees and Costs Sought in the Action .................................................... 2 II. INJUNCTIVE RELIEF – HOW WILL WET SEAL CHANGE? ...................................... 2 3. What injunctive relief does the Settlement provide? .............................................. 2 4. Can I get out of the injunctive relief provisions of the settlement? ........................ 3 III. MONETARY RELIEF – WHAT YOU GET ..................................................................... 3 5. What monetary relief does the Settlement provide? ............................................... 3 6. How much will my payment be? ............................................................................ 4 7. How can I get a payment?....................................................................................... 6 8. When would I get my payment? ............................................................................. 6 9. What happens if the Settlement is terminated?....................................................... 6 10. Can I get out of the monetary provisions of the Settlement?.................................. 7 IV. THE LAWYERS REPRESENTING YOU ........................................................................ 8 11. Do I have a lawyer in the case? .............................................................................. 8 12. How will the lawyers be paid?................................................................................ 8 V. OBJECTING TO THE SETTLEMENT ............................................................................. 8 13. How do I tell the Court that I don’t like the Settlement?........................................ 8 VI. THE COURT’S FINAL APPROVAL HEARING............................................................. 9 14. When and where will the Court decide whether to approve the Settlement? ......... 9 15. Do I have to come to the hearing? .......................................................................... 9 16. May I speak at the hearing? .................................................................................. 10 VII. IF YOU DO NOTHING ................................................................................................... 10 17. What happens if I do nothing at all? ..................................................................... 10 VIII. GETTING MORE INFORMATION................................................................................ 10 18. Are there more details about the Settlement? ....................................................... 10
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Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 8 of 18 Page ID #:544 19. How do I get more information?........................................................................... 10
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Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 9 of 18 Page ID #:545
I. INTRODUCTION
In this lawsuit (the “Action”), Plaintiffs allege that Wet Seal engaged in a policy and practice of discriminating against African-American store management employees (Store Assistant Managers, Co-Managers, Acting Store Managers, and Store Managers) at Wet Seal and Arden B. stores from May 8, 2008 to [DATE], 2013, in violation of 42 U.S.C. § 1981 and Title VII of the Civil Rights Act of 1964. The Plaintiffs allege that this policy was adopted by thensenior executives of the company and resulted in the targeting of African-American store management employees for termination because of their race and/or color. Plaintiffs also alleged African-American store managers were denied equal pay and promotions. Wet Seal disputes the allegations of the Complaint and has vigorously defended the Action. Copies of the Complaint and other documents filed in the Action are available online at www.lewisfeinberg.com and http://wetsealdiscrimination.com.
You are receiving this Notice because Wet Seal’s records indicate that you may be a Class Member. As explained more fully below, as a Class Member, you will give up your right to bring your own lawsuit regarding claims that are or could have been alleged in this action unless you opt out of this case. If you opt out, however, you will not be able to receive any money from the Settlement in this case. Therefore it is very important that you carefully read this Notice. You cannot opt out of the injunctive relief provisions of this Settlement if it is approved by the Court.
The purpose of this Notice is to inform you of the injunctive and monetary relief provided in the Settlement; the claims procedure you need to follow to receive your award; the rights you are releasing by submitting a claim for a monetary award; your right to exclude yourself or “opt-out” from the damages portion of the Settlement; and your right to object to the Settlement.
The injunctive relief provided in the Settlement is intended to benefit Class Members and future African-American and Black employees of Wet Seal. Monetary relief is only available to those Class Members who submit claim forms and whom the Claims Administrator determines are eligible for an award of monetary relief. In order to benefit from the injunctive relief, you do not need to take any action.
1. Potential Outcome of the Action
If the case is not settled, then the litigation against Wet Seal will continue. The possible result ranges from no relief at all to a judgment or verdict against Wet Seal, which could be more or less than the relief under the Settlement. Throughout this lawsuit, the Plaintiffs and Wet Seal have disagreed on both liability and damages, whether the case should proceed as a class action, and the appropriate injunctive and/or monetary relief.
Wet Seal has denied and continues to deny the claims and contentions alleged by the Plaintiffs, that they are liable at all to the Class, and that the Class has suffered any damages for which Wet Seal is be legally responsible. Nevertheless, Wet Seal has taken into account the desirability of resolving pending claims, along with the uncertainty and risks inherent in any litigation, and has concluded that it is desirable that the case be fully and finally settled on the terms and conditions set forth in the Settlement, particularly because the events at issue predate
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Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 10 of 18 Page ID #:546
the arrival of Wet Seal’s new Chief Executive Officer and Board of Directors and the injunctive relief aligns with the Company’s current diversity initiatives.
The Plaintiffs and their attorneys, who are experienced in litigating employment discrimination class actions, believe that they have strong claims against Wet Seal. However, they recognize that there is uncertainty, delay, and risk in any litigation. In addition, they understand that even if they win the case, they could recover less than the Settlement amount or the scope of injunctive relief set forth in the Settlement, and that any recovery could be delayed for as much as several years. As a result, the Plaintiffs and their attorneys have concluded that it is desirable to settle the case on the terms set forth in the Settlement.
2. Attorneys’ Fees and Costs Sought in the Action
Wet Seal will not oppose Class Counsel’s application for attorneys’ fees and costs of up to $1,800,000. This includes all fees and costs for the investigation, preparation, litigation, and settlement of this Action, including future monitoring of the Settlement. Class Counsel will file with the Court an application for attorneys’ fees and costs no later than July 10, 2013. The application will be posted on the website established by the Claims Administrator so that Class Members can timely object if they wish.
II. INJUNCTIVE RELIEF – HOW WILL WET SEAL CHANGE?
3. What injunctive relief does the Settlement provide?
As part of the Settlement, Wet Seal will make certain changes to its employment practices to enhance equal employment opportunity at Wet Seal. Wet Seal will use best efforts to implement the relief described below as soon as reasonably possible. The Court will enforce the provisions of the Settlement for the Term of the Settlement, which is three years.
The summary below does not include all of the changes that the Settlement will require Wet Seal to make. The full version of the Settlement is available at Class Counsel’s website: www.lewisfeinberg.com and the case website: http://wetsealdiscrimination.com.
Among the key changes that Wet Seal has agreed to make or continue as part of the Settlement are the following:
 Post store management and District Director openings and track applications to ensure diversity in applications and hiring;
 Expand Wet Seal’s human resources department and enhance its internal complaint process to effectively investigate complaints of discrimination;
 Retain and work with experts to develop updated job-related hiring, promotion, and compensation policies and practices;
 Retain and work with experts to develop performance evaluation tools for store management employees;
 Ensure that marketing materials include African Americans, of various skin tones, to reflect diversity in its marketing materials; and
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Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 11 of 18 Page ID #:547
 Maintain a Diversity and Inclusion Council made up of a diverse group of current employees that will advise the company on topics including equal employment in recruiting, hiring, and compensation.
4. Can I get out of the injunctive relief provisions of the settlement?
No. You may not “opt out” of the injunctive relief provisions of the Settlement if it is approved by the Court. This means that a Class Member cannot bring a separate class action for injunctive relief, but could bring a claim for individual injunctive relief, such as reinstatement for wrongful termination. However, you may opt out of the monetary relief provisions of the Settlement, as described in Section III below.
III. MONETARY RELIEF – WHAT YOU GET
5. What monetary relief does the Settlement provide?
The Settlement provides a total of $7,500,000 for monetary relief that the Court will distribute for three purposes: damages awards for Class Members who file claims and whose claims are approved; money paid to the Claims Administrator to give Notice to the Class and for administering the claims process; and an award of fees and costs to Class Counsel. The amount of damages for the Class will be at least $5,580,000 and may be higher. The Claims Administrator has estimated that the cost of administration should not exceed $120,000. The parties have agreed that attorneys’ fees and costs should not exceed $1,800,000.
Class Members who do not opt out of the monetary provisions of the Settlement will be bound by those provisions and will release their rights to independently bring their own lawsuits for damages pertaining to the claims in this Action against Wet Seal. As a result, any Class Member who does not opt out will be barred from seeking damages from (i) Wet Seal, (ii) its former and present parents, subsidiaries, and affiliates, and (iii) the current and former officers, directors, employees, partners, shareholders, agents, insurers, predecessors, successors, assigns, and legal representatives of all entities and individuals listed in (i) and (ii) for any of the claims released by this Settlement. The claims you will release are any and all claims that are asserted in or could have been asserted in Plaintiffs’ First Amended Complaint, to the fullest extent permitted by law, during the period from May 8, 2008 through [DATE], 2013, including those related to: (i) allegations of discrimination and harassment against African-American and Black store management employees based on race and/or color with respect to compensation, selection, promotion, job assignments, demotion, discipline, actual and constructive termination, and other terms and conditions of employment; and/or (ii) allegations of retaliation against AfricanAmerican and Black store management employees for opposition to discrimination or harassment based on race or color. The Released Claims include claims for damages and equitable relief of every nature, including but not limited to back pay, front pay, reinstatement, instatement, benefits, emotional distress, and other compensatory damages, damage to reputation, liquidated damages, penalties, interest, and punitive damages. The Released Claims may have arisen under 42 U.S.C. § 1981, Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq.), and all other federal, state and local laws.
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Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 12 of 18 Page ID #:548

If the Settlement is finally approved by the Court, the releases described above will apply to all claims for racial discrimination arising from or attributable to any conduct of Wet Seal and other released parties listed above, whether known or unknown, and any and all rights granted to Class Members under Section 1542 of the California Civil Code or any analogous state or federal law or regulations, will be waived, if applicable. In addition, Class Members who do not opt out will release their damages claims against Wet Seal up until the date of the Settlement.

6. How much will my payment be?

All Class Members may file a claim for a monetary award. The Claims Administrator will review and verify the information that you provide, and will determine whether you are eligible for a monetary award and how much you will receive. You are not responsible for calculating the amount you may be entitled to receive under the Settlement. This calculation will be made as part of the implementation of the Settlement.

Monetary awards for eligible claimants will be paid from three funds: (1) a $1,000,000 Pay Fund for settlement of pay claims, (2) a $1,000,000 Promotion Fund for settlement of promotion claims (including claims of discriminatory job assignments), and (3) a $3,580,000 Termination/Demotion/Retaliation/Hostile Work Environment/Emotional Distress Fund for settlement of claims of discriminatory termination, demotion, or discipline (resulting in loss of pay) based upon race or color; harassment or hostile work environment based upon race or color; retaliation for complaining of race or color discrimination or harassment/hostile work environment; and emotional distress and damage to reputation resulting from the foregoing.

Up to $1.25 million from the Promotion and Pay Funds will be allocated among all eligible Class Members based on the amount of time each Class Member worked in each Covered Position (Store Assistant Manager, Co-Manager, and Acting Store Manager/Store Manager) during the class period. Up to $500,000 from the Terminations/Other Fund will be allocated among all Class Members who were involuntarily terminated from Covered Positions during the class period.

The remaining amount, of up to $3.83 million, will be distributed from all three Funds according to the criteria described in the Claim Form and with further information and documentary support from Class Members. In allocating these remaining funds, the Claims Administrator will specifically consider the following:

(1)

Pay Fund: (i) length of service as a retail manager at Wet Seal; (ii) the Class

Member’s communications with Class Counsel prior to May 8, 2013

concerning claims of discrimination based on race or color in compensation;

and (iii) the Class Member’s complaints or claims of discrimination based on

race or color in compensation submitted to the EEOC or state agencies prior to

May 8, 2013.

(2)

Promotion Fund: (i) length of service with Wet Seal up to a maximum of ten

years; (ii) length of service as a manager in each Covered Position at Wet

Seal; (iii) length of service as a manager at other employers up to a maximum

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Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 13 of 18 Page ID #:549

of five years; (iv) evidence of expressions of interest in promotion made to a supervisor regarding Co-Manager, Acting Store Manager, Store Manager, or District Director positions; (v) communications with Class Counsel prior to May 8, 2013 concerning claims of discrimination against the Class Member based on race or color in promotions or job assignment; (vi) complaints or claims of discrimination against the Class Member based on race or color in job assignments in the Covered Positions, or promotion to Co-Manager, Acting Store Manager, Store Manager, or District Director submitted to the EEOC or state agencies prior to May 8, 2013; and (vii) the facts and documentary evidence submitted to demonstrate discrimination against the Class Member based on race or color with respect to job assignment in the Covered Positions or promotion to Co-Manager, Acting Store Manager, Store Manager or District Director.

(3)

Terminations/Other Fund: (i) length of service with Wet Seal; (ii) length of

service as a manager at Wet Seal; (iii) facts and documentary evidence that the

Class Member was subject to discrimination based on race or color in

termination, demotion, or discipline (resulting in loss of pay), or was subject

to harassment/hostile work environment based on race or color; (iv) facts and

documentary evidence that the Class Member was subject to retaliation for

opposing discrimination based on race or color; (v) communications by the

Class Member with Class Counsel prior to May 8, 2013 concerning claims of

discrimination based on race or color in termination, demotion, or discipline

resulting in loss of pay, harassment/hostile work environment based on race or

color, or retaliation for opposing discrimination based on race or color;

(v) complaints or claims that the Class Member submitted to the EEOC or

state agencies prior to May 8, 2013 that he or she was subject to

discrimination based on race or color in termination, demotion, or discipline

(resulting in loss of pay), harassment or hostile work environment based on

race or color, or retaliation for opposing discrimination based on race or color;

(vi) Class Member’s knowledge that he or she was targeted for termination,

demotion or discipline (resulting in loss of pay) because of race or color;

(vii) emotional distress; (viii) damage to the Class Member’s reputation

because the Class Member made complaints of discrimination, harassment,

termination, or hostile work environment based on race or color, or was

retaliated against for opposing discrimination based on race or color; (ix) a

period of unemployment during which the Class Member was making

reasonable efforts to find other employment and the length of that period; and

(x) a finding by the EEOC or state agency that a violation of Title VII or state

antidiscrimination law occurred with respect to the Class Member.

The Court has approved the following process for the Claims Administrator to determine who is eligible to receive a monetary award. In order to be eligible to receive money from the Settlement, each Claimant must satisfy all of the prerequisites set forth in the attached claim form. In summary, these are as follows:

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Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 14 of 18 Page ID #:550
1) Sign and submit a claim form verifying that you are African American and/or Black and have worked at a Wet Seal or Arden B. store as a store management employee at some point between May 8, 2008 and [DATE], 2013;
2) Return a completed claim form no later than October 8, 2013; and 3) Cooperate with the efforts of the Administrator to process and verify the claim.
If the Court approves the Settlement, the Claims Administrator—not the Court and not the Parties or Class Counsel—has the final authority to determine eligible claims and the amounts, in accordance with the terms of the Settlement that the parties have proposed to the Court for approval. The Claims Administrator may require additional documentation in support of your claim.
Monetary awards obtained from this Lawsuit are subject to taxation and may impact eligibility for various government benefits, such as Supplemental Security Income, and/or other government-sponsored benefits. You may also be required to report your receipt of settlement funds to government agencies. If you receive government benefits you are strongly advised to consult an independent tax advisor or your local legal aid office, in order to obtain advice.
If you have questions regarding the Settlement, please contact Class Counsel at the number listed above.
7. How can I get a payment?
A Class Member who wishes to recover must complete and timely submit a signed claim form to the Claims Administrator at the address provided on the claim form. TO BE VALID, A CLAIM FORM MUST BE POSTMARKED NO LATER THAN October 8, 2013. The claim form and instructions are enclosed with this Notice. All Claims will be subject to review by the Claims Administrator.
8. When would I get my payment?
It is not possible to say precisely when payment will be made, because it depends on when the Court approves the Settlement and that approval becoming final and no longer subject to any appeals to any court. Once that happens, payment will be made to eligible Claimants as soon as possible after final approval has been obtained for the Settlement. If final approval is appealed, resolution of that appeal may take several years.
9. What happens if the Settlement is terminated?
The Settlement may be terminated on several grounds, including if the Court does not approve the Settlement or if the Settlement does not become final. Should the Settlement be terminated, the Action will proceed as if the Settlement had not been entered into.
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Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 15 of 18 Page ID #:551
10. Can I get out of the monetary provisions of the Settlement?
You may exclude yourself, or “opt out,” of the monetary provisions of the Settlement. To do so, you must file a written “opt out” statement with the Claims Administrator using the address:
Cogdell v. Wet Seal Claims Administrator P.O. Box [#]
Tallahassee, FL 32302-[#]
Your “opt out” statement must be POSTMARKED AND MAILED to the Claims Administrator on or before August 25, 2013.
If you opt out of the monetary provisions of the Settlement: (1) you will have no right to file a claim or receive any monetary award under this Settlement; (2) you will not be bound by the monetary settlement in this Action; and (3) your right to bring a separate lawsuit against Wet Seal for damages or individual injunctive relief will not be affected. However, if you opt out of the monetary relief in this Action and bring a separate lawsuit or other legal proceeding, you may lose your case and receive nothing, your claims may be time-barred, it may take several years to obtain any money, or you may obtain less money than you will receive under this Settlement.
To opt out of the monetary provisions of the Settlement, you must submit your full name, address and a signed and dated copy of the following opt-out statement:
I UNDERSTAND THAT I AM REQUESTING TO BE EXCLUDED FROM THE CLASS MONETARY SETTLEMENT AND THAT I SHALL RECEIVE NO MONEY FROM THE SETTLEMENT FUND CREATED UNDER THE SETTLEMENT AGREEMENT ENTERED INTO BY WET SEAL. I UNDERSTAND THAT IF I AM EXCLUDED FROM THE CLASS MONETARY SETTLEMENT, I MAY BRING A SEPARATE LEGAL ACTION SEEKING DAMAGES, BUT MAY RECEIVE NOTHING OR LESS THAN WHAT I WOULD HAVE RECEIVED IF I HAD FILED A CLAIM UNDER THE CLASS MONETARY SETTLEMENT PROCEDURE IN THIS ACTION. I ALSO UNDERSTAND THAT I MAY NOT SEEK EXCLUSION FROM THE CLASS FOR INJUNCTIVE RELIEF AND THAT I AM BOUND BY THE INJUNCTIVE PROVISIONS OF THE SETTLEMENT AGREEMENT ENTERED INTO BY WET SEAL.
If you file a request to “opt out” of the monetary award provisions of the Settlement, you may later withdraw that request. To do so, you must submit a Rescission to the Claims Administrator at the address above no later than October 8, 2013, and must file the claim form
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Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 16 of 18 Page ID #:552
provided with this Notice. The Statement of Rescission must be signed and dated and at a minimum contain the following language:
I PREVIOUSLY SUBMITTED AN EXCLUSION STATEMENT SEEKING EXCLUSION FROM THE CLASS MONETARY SETTLEMENT. I HAVE RECONSIDERED AND WISH TO WITHDRAW MY EXCLUSION STATEMENT. I UNDERSTAND THAT BY RESCINDING MY EXCLUSION STATEMENT, I MAY BE ELIGIBLE TO RECEIVE AN AWARD FROM THE SETTLEMENT FUND AND MAY NOT BRING A SEPARATE LEGAL ACTION AGAINST WET SEAL SEEKING DAMAGES.
Please remember that if you submit a Rescission, you must complete the claim form provided with this Notice in order to obtain money under the Settlement.
IV. THE LAWYERS REPRESENTING YOU
11. Do I have a lawyer in the case?
The Court has appointed the law firms of Lewis, Feinberg, Lee, Renaker & Jackson, P.C., NAACP Legal Defense and Educational Fund, Inc., and Gallagher, Schoenfeld, Surkin, Chupein, & DeMis, P.C. as Class Counsel for the Class in the Action. You will not be charged any fees by these lawyers. The Court will determine whether and how much an award of attorneys’ fees and costs will be paid to Class Counsel. If you want to be represented by your own lawyer, you may hire one at your own expense.
12. How will the lawyers be paid?
Class Counsel will file or have filed a motion for an award of attorneys’ fees and costs. This motion will be available for your review on Class Counsel’s website: www.lewisfeinberg.com or the case website at: http://wetsealdiscrimination.com, and will be considered at the Final Approval Hearing. You can object to the award in a written objection. As previously described, Class Counsel’s fees and costs will not exceed $1,800,000. If the Court awards less than this amount to Class Counsel, the remainder will be distributed to eligible Claimants. The Court will examine the application of Class Counsel and determine the amount to award.
V. OBJECTING TO THE SETTLEMENT
13. How do I tell the Court that I don’t like the Settlement?
If you are a Class Member, you can object to the Settlement if you do not like any part of it. You can give reasons why you think the Court should not approve it. To object, you must send a letter or other written statement saying that you object to the Settlement in Cogdell, et al.
8

Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 17 of 18 Page ID #:553
v. The Wet Seal, Inc., et al., No. SACV 12-01138 AG. Be sure to include your name, address, telephone number, signature, and a full explanation of all reasons you object to the Settlement. Copies of your written objection must be sent to Class Counsel and Wet Seal’s Counsel at the following addresses, in an envelope labeled on its face “Cogdell v. The Wet Seal, Inc. Objection,” and must be postmarked no later than August 25, 2013.
Class Counsel:
Bill Lann Lee Lewis, Feinberg, Lee, Renaker, & Jackson, P.C. 476 9th Street Oakland, CA 94607
Defendants’ Counsel:
Nancy Abell Paul Hastings LLP 515 South Flower Street, 25th Floor Los Angeles, CA 90071
You must also send your objection to the Clerk of the United States District Court for the Central District of California, 411 West Fourth Street, Room 1053, Santa Ana, CA 92701-4516.
VI. THE COURT’S FINAL APPROVAL HEARING
14. When and where will the Court decide whether to approve the Settlement?
The Court will hold the Final Approval Hearing at 10:00 AM on November 18, 2013, at the United States District Court for the Central District of California, 411 West Fourth Street, Room 1053, Santa Ana, CA 92701-4516 in Courtroom 10D, or in the courtroom then occupied by Judge Guilford. At the hearing, the Judge will consider whether the Settlement is fair, adequate, and reasonable. If there are objections, the Judge will consider them. After the Final Approval Hearing, the Judge will decide whether to approve the Settlement. The Judge will also rule on the motions for attorneys’ fees and costs. We do not know how long after the Final Approval Hearing the Court will issue its decisions.
15. Do I have to come to the hearing?
No. Class Counsel will answer any questions Judge Guilford may have. But you are welcome to come at your own expense. If you send an objection, you do not have to come to Court to talk about it. As long as you mail your written objection on time, the Judge can consider it when deciding whether to approve the Settlement as fair, adequate, and reasonable. You also may have your own lawyer, retained at your expense, attend the Final Approval Hearing.
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Case 8:12-cv-01138-AG-AN Document 56-3 Filed 05/08/13 Page 18 of 18 Page ID #:554
16. May I speak at the hearing? If you are a Class Member, you may ask the Court for permission to speak at the Final
Approval Hearing when you send in your objection, by including the words “Notice of Intention to Appear” on your objection. Be sure to include your name, address, telephone number, and your signature. Your Notice of Intention to Appear must be sent to Class Counsel and Wet Seal’s Counsel and filed with the Clerk of the Court at the addresses listed in Section V, postmarked no later than August 25, 2013.
VII. IF YOU DO NOTHING 17. What happens if I do nothing at all?
The Settlement, if finally approved by the Court, will bind Wet Seal and all Class Members with respect to injunctive relief. You will not recover monetary damages if you do not submit a claim form, and you will waive your right to bring an independent lawsuit on the claims related to this Action.
VIII. GETTING MORE INFORMATION 18. Are there more details about the Settlement?
This Notice summarizes the Settlement. The complete Settlement is set forth in the written Settlement Agreement. You may obtain a copy of the Settlement Agreement by contacting Class Counsel. Copies of the Settlement Agreement, as well as Class Counsel’s motion for attorneys’ fees and costs, the motion seeking preliminary approval of the Settlement, and the Preliminary Approval Order, may be obtained online at www.lewisfeinberg.com or http://wetsealdiscrimination.com. The Settlement Agreement also was filed with the Clerk of the United States District Court for the Central District of California and may be reviewed at the Clerk’s office.
19. How do I get more information? You can contact Class Counsel at (866) 276-5221. You also may visit
www.lewisfeinberg.com or http://wetsealdiscrimination.com for more information regarding the Settlement.
10

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Bill Lann Lee (SBN 108452)
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Julie'Wilensky (SBN 271765) jwilensky(aJlewlsfeinberg.com

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LEWIS FEINBERG, LEE, RENARER & JACKSON, P.C.

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476 9th Street Oakland, CA 94607

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Telephone: (510) 839-6824 FacsImile: (510) 839-7839

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Debo P. Adegbile* dadegbile(a2naacpldf.org Elise -Bodrue* eboddie@naacpldf.org
ReNika C. Moore*
nnoore@naacpldf.org Ria A. Tabacco* rtabacco(aJnaacpldf.org NAACP LEGAL DEFENSE & EDUCATIONAL FUND, INC. 99 Hudson StreetbSuite 1600 New York, NY 1 013 Telephone: (212) 965-2200 FaCSImile: (202) 226-7592

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SusanX. Fiorentino*
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GALLAG SCHOENFELD, SURKIN), CH EIN & DEMIS, P.C

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25 West ~econd Street Media, PA 19053

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17 ProposedClass

UNITED STATES DISTRICT COURT

18

CENTRAL DISTRICT OF CALIFORNIA

19

20

l\.nrrn 1=< r{)nn1=<T T Y AT
21 iiAWKiNS~~dMYitIAM SAINT·

22

HILAIRE, on behalf of themselves and all others similarly situated,

23

24

Plaintiffs,

25

v.

COMPLAINT FOR DAMAGES: 42 U.S.c. § 1981 CLASS ACTION JURY TRIAL DEMANDED

26 THE WET SEA~ JNC., THE WET

27

SEAL RETAIL, U'IC., WET SEAL GC, INC., and WET SEAL GC, LLC,

28

Defendants.

COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 2 of 41 Page ID #:2

1

Plaintiffs bring this action on behalf of themselves and all others similarly

2 situated for race discrimination in employment by The Wet Seal, Inc., The Wet Seal

3 Retail, Inc., Wet Seal OC, Inc., and Wet Seal OC, LLC (collectively, "WET

4 SEAL"), and allege as follows:

5

INTRODUCTION

6

1. This action challenges WET SEAL's policy and practice of

7 discriminating against African-American store management employees at Wet Seal

8 and Arden B. stores from at least 2008 to the present, in violation of 42 U.S.C. §

9 1981. This policy was adopted by the most senior executives of the company, and

10 resulted in the targeting of African-American employees for termination because of

11 their race and color, and a denial of pay and promotions for African Americans on

12 the same basis as white store employees.

13

2. In addition to strong circumstantial evidence that WET SEAL enforced

14 an illegal policy of discrimination, direct evidence in the form of emails and

15 testimony of former managers also demonstrates that WET SEAL corporate

16 executives at the highest levels instructed managers to terminate African-American

17 employees, and to "diversify" their work forces by hiring and promoting white

18 employees who fit the WET SEAL "brand image." In one email, the second in

19 command of WET SEAL, the Senior Vice President of Store Operations, reporting

20 on a series of store visits, stated to the Vice President of Store Operations and a

21 district manager that, "African American dominate - huge issue.;; High-level WET

22 SEAL corporate executives also instructed a district manager to "clean the entire

23 store out" by firing all African-American employees at one or more stores, and they

24 threatened to terminate Store Managers if they did not staff more white employees

25 than African-American employees in their stores.

26

3. Plaintiffs bring this case as a class action on behalf of current and

27 former WET SEAL store management employees and seek back pay, general

28 damages, and punitive damages.

- 1-
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 3 of 41 Page ID #:3

1

PARTIES

2

4. Plaintiff Nicole Cogdell is an African-American woman who was

3 formerly employed by WET SEAL at its Springfield, Pennsylvania and King of

4 Prussia, Pennsylvania stores. She is a resident of Delaware County, Pennsylvania.

5

5. PlaintiffKai Hawkins is an African-American woman who was

6 formerly employed at WET SEAL stores in California, Pennsylvania and New

7 Jersey, and was last employed at the Cherry Hill, New Jersey store. She is a

8 resident of Delaware County, Pennsylvania.

9

6. PlaintiffMyriam Saint-Hilaire is an African-American woman who

10 was formerly employed by WET SEAL at its King of Prussia store. She is a

11 resident of Delaware County, Pennsylvania.

12

7. Defendant The Wet Seal, Inc. is a Delaware corporation headquartered

13 in Foothill Ranch, Orange County, California.

14

8. Defendant The Wet Seal Retail, Inc. is a subsidiary of The Wet Seal,

15 Inc. and is a Delaware corporation headquartered in Foothill Ranch, Orange

16 County, California.

17

9. Defendant Wet Seal GC, Inc. is a subsidiary of The Wet Seal, Inc. and

18 is a Virginia corporation headquartered in Foothill Ranch, Orange County,

19 California.

20

10. Defendant Wet Seal GC, LLC is a subsidiary of The Wet Seal, Inc.

21 and is a Virginia limited liability company headquartered in Foothill Ranch, Orange

22 County, California.

23

11. Defendants The Wet Seal, Inc., The Wet Seal Retail, Inc., Wet Seal

24 GC, Inc., and Wet Seal GC, LLC are collectively referred to as "WET SEAL."

25

12. WET SEAL sells women's clothing and accessories at its

26 approximately 550 stores under the Wet Seal and Arden B. store names

27 (collectively referred to as "WET SEAL stores"). It employs over 7,000

28 employees, including 2,000 full-time employees.

- 2-
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 4 of 41 Page ID #:4

1

CLASS ACTION ALLEGATIONS

2

13. Plaintiffs bring this action pursuant to Rule 23 of the Federal Rules of

3 Civil Procedure on behalf of current and former African-American store

4 management level employees of WET SEAL. "Store management level"

5 employees include current and former Assistant Managers, Co-Managers, and Store

6 Managers of WET SEAL.

7

14. The members of the class are sufficiently numerous that joinder of all

8 members is impracticable. On information and belief, the class includes over 250

9 class members.

10

15. There are questions of law and fact common to the class, and these

11 questions predominate over individual questions. Such questions include, among

12 others: (1) whether WET SEAL has a general policy of discrimination with regard

13 to pay, promotion, and termination of African-American store management level

14 employees; (2) whether WET SEAL has a pattern or practice of discrimination with

15 regard to pay, promotion, and termination of African-American store management

16 level employees; and (3) whether punitive damages are warranted.

17

16. The claims alleged by Plaintiffs are typical of the claims of the class.

18 All Plaintiffs were African-American store management level employees who have

19 been harmed by WET SEAL's discriminatory policies and practices.

20

17. Plaintiffs will fairly and adequately represent the interests of the class.

21

18. If the class is certified, Plaintiffs will provide the "best notice

22 practicable under the circumstances" to the class pursuant to Fed. R. Civ. P.

23 23(b)(c)(2)(B), including but not limited to mail, posting, and distribution to current

24 employees.

25

19. Class certification is appropriate pursuant to Fed. R. Civ. P. 23(b)(3)

26 because common questions of fact and law predominate over any questions

27 affecting only individual members of the class, and because a class action is

28 superior to other available methods for the fair and efficient adjudication of this

-3 -
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 5 of 41 Page ID #:5

1 litigation. The members of the class have been damaged and are entitled to

2 recovery as a result of WET SEAL's common and unfair discriminatory personnel

3 policies and practices.

4

20. Particular issue certification of class liability is also appropriate under

5 Rule 23(c)(4) because such claims present only common issues, the resolution of

6 which would benefit the parties and serve judicial economy.

7

JURISDICTION AND VENUE

8

21. This Court has jurisdiction over this action pursuant to 28 U.S.C. §§

9 1331 and 1343.

10

22. This Court has personal jurisdiction over this action because WET

11 SEAL corporate headquarters are located in Foothill Ranch, California, which is in

12 Orange County, and WET SEAL does business in stores throughout this district and

13 the State of California.

14

23. Venue is proper within this District pursuant to 28 U.S.C. § 1391(b),

15 because WET SEAL's headquarters are located in this District and WET SEAL

16 maintains branches throughout California and this District, and is subject to

17 personal jurisdiction in this District. Moreover, a substantial part of the events,

18 acts, and omissions giving rise to the claims of Plaintiffs and the proposed class

19 occurred in this District.

20

WET SEAL POLICIES AND PRACTICES

21

24. Each WET SEAL store employs Sales Associates, Assistant Managers,

22 and Store Managers. Larger stores also have a Co-Manager, an intermediate

23 position between Assistant Manager and Store Manager. Store Managers report to

24 a District Manager, who typically supervises ten to twelve stores. District

25 Managers report to Regional Managers. On infonnation and belief there are

26 currently four Regional Managers for WET SEAL, and during the relevant time

27 period, both Wet Seal and Arden B. stores moved from a separate reporting

28 structure to reporting to the same District and Regional Managers, and WET SEAL

- 4-
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 6 of 41 Page ID #:6

1 store management employees have been promoted between Wet Seal and Arden B.

2 stores. Regional Managers report to the Vice President of Store Operations, who in

3 tum reports to the Senior Vice President of Store Operations, who reports directly

4 to the CEO of WET SEAL.

5

25. While a Store Manager may hire Sales Associates within limited pay

6 ranges, all hiring of such personnel at rates above these pay ranges must be

7 approved by district and higher level management. On occasion, Store Managers

8 are directed or required by higher level managers, to hire, or not hire, specific

9 individuals for sales positions. All promotions to store management level positions

10 must be approved by District and Regional Managers. All store management pay

11 must be approved by District and Regional Managers, and, if pay exceeds company

12 pay ranges, the pay must be approved by the Vice President of Store Operations.

13 All terminations of store employees must be approved by District and Regional

14 Managers and the corporate Human Resources Department.

15

26. WET SEAL has no formal promotion policy or application procedure

16 for store management positions it fills internally, nor does it post such openings.

17 Other than minimal experience and age requirements, it has no written criteria to

18 determine which employees should be promoted. Store management pay is

19 supposed to be based on a pay scale tied to the size and profitability of each store.

20 In fact, frequent exceptions to this scale are granted by senior management. There

21 are no written criteria that guide the granting of such exceptions.

22

27. Although WET SEAL has a written non-discrimination policy, this

23 policy is neither enforced nor monitored for compliance. On information and

24 belief, WET SEAL does not collect or compile accurate data, including the race and

25 ethnicity of applicants for hire and employees regarding hiring, pay, promotions, or

26 terminations. On information and belief, for many years WET SEAL has not

27 prepared and filed accurate EEO-l reports with the United States Equal

28 Employment Opportunity Commission ("EEOC") showing the racial and ethnic

- 5-
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 7 of 41 Page ID #:7

1 demographics of its workforce as required by federal equal employment

2 regulations.

3

28. WET SEAL has a general policy and practice of discriminating against

4 its nonwhite employees, and particularly its African-American employees. This

5 policy and practice is manifested in the following ways:

6

a. Failing and refusing to promote African-American store

7

employees to store management positions on the same basis as white

8

employees are promoted;

9

b. Failing to pay African-American store management employees

10

at the same rates as similarly-situated white employees;

11

c. Limiting promotion opportunities for African-American

12

employees at stores with a significant white clientele;

13

d. Insisting on a "brand" or "image" of its employees that

14

predominantly reflects a white image, an image reinforced by WET SEAL's

15

advertising to the general public;

16

e. Holding African-American store management employees to

17

higher performance standards than white store management employees;

18

f. Terminating African-American store management employees on

19

the basis of their race and not performance; and

20

g. Failing and refusing to take adequate steps to eliminate the

21

effects of its past discriminatory practices.

22

29. The above-listed discriminatory policies and practices are and have

23 been devised, implemented, and enforced by a small group of the most senior 24 corporate managers, including WET SEAL's President and CEO, Senior Vice

25 President of Store Operations, Vice President of Store Operations, and corporate

26 Human Resources executives. These senior officials have enforced these policies

27 through store visits, management meetings, and electronic and telephonic

28 communications to lower level management employees. They have fired

- 6-
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 8 of 41 Page ID #:8

1 management employees who opposed these policies, and ignored or rejected

2 recommendations by lower level managers to hire, pay, and promote African-

3 American employees on the same basis as white employees. They have imposed

4 their own management and sales employee selections in stores. Examples of the

5 implementation of this general policy and practice of discrimination include:

6

a. Senior Vice President of Store Operations Barbara Bachman

7

("Bachman") instructed a District Manager to "clean the entire store out" by

8

firing all African-American store management employees in or around

9

August 2008:

10

b. After Bachman conducted a surprise store visit and realized that

11

the Store Manager she had previously approved was African-American, she

12

ordered the District Manager to terminate or demote the African-American

13

Store Manager, and replace her with a white manager. She threatened to

14

terminate the District Manager if she did not terminate African-American

15

employees, and ordered her to terminate Store Managers that did not

16

"diversify" (i.e., increase the number of white employees in) their store work

17

force;

18

c. Bachman instructed store management personnel of the WET

19

SEAL store at the King of Prussia Mall ("King of Prussia store") to hire more

20

employees who looked like a particular blond white sales associate;

21

d. On March 3, 2009, Bachman sent an email to a District

22

Manager, copying Vice President of Store Operations Barbara Harris

23

("Harris"), describing store visits she had conducted of twenty stores in the

24

Maryland and Philadelphia region. Bachman wrote: "Global Issues ...

25

Store teams - need diversity/African American dominate - huge issue." A

26

true and correct copy of this email is attached as Exhibit 1 and incorporated

27

by reference;

28

e. Bachman told a District Manager that the Regional Manager

- 7-
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 9 of 41 Page ID #:9

1

must have "lost her mind" putting a black person in charge of a particular

2

store. She instructed managers to "lighten up" their stores (i.e., terminate

3

African-American and hire white employees). She informed a Regional

4

Manager that there were "way too many" African-American store employees

5

in the Maryland market;

6

f. Bachman targeted stores with primarily African-American

7

employees to be "cleaned up" as an urgent priority, but did not target

8

similarly-situated stores with mostly non-minority employees with

9

comparable performance;

10

g. Director of Human Resources Patricia Sprowell made racially

11

derogatory comments about female African-American employees to a newly

12

hired Regional Manager, saying that such employees will get pregnant "if

13

they touch the counter." She also stated that African-American employees

14

were difficult to manage. On another occasion she instructed a Regional

15

Manager to "figure out a way to get rid" of two African-American employees

16

who had filed race discrimination complaints with the EEOC;

17

h. President and CEO Ed Thomas ("Thomas"), Senior Vice

18

President Bachman, and Vice President Harris frequently made store visits,

19

during or after which they instructed managers to "diversify" the work forces

20

in stores with largely African-American employees and to hire and promote

21

white employees who fit the "brand image." They made no such requests

22

regarding stores that were staffed predominantly by white employees; and

23

1. Vice President of Store Operations Harris required a Regional

24

Manager to provide photographs of her District Managers in a portfolio

25

which was used to discuss and evaluate them as candidates for advancement

26

within the company.

27

30. WET SEAL has relied on advertising that predominantly features

28 white models as a means of projecting a "brand image," which was understood in

-8-
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 10 of 41 Page ID #:10

1 the company to mean white females.

2

31. In order to protect African-American employees from discrimination,

3 managers have taken steps to ensure that African-American employees were not

4 working in the store front when a high level corporate executive made a store visit

5 by, for example, sending African-American employees to the back ofthe store or

6 on a lunch break when a visit by a corporate official was expected.

7

32. On information and belief, since 2008, senior management positions,

8 including senior corporate managers, Regional Managers, and District Managers,

9 have been held almost exclusively by white employees.

10

33. On information and belief, African-American store management level

11 employees are and have been paid less on average than similarly-situated white

12 employees, promoted at a lower rate and to less desirable stores, and fired at a

13 higher rate than white employees.

14

PLAINTIFF COGDELL

15

34. Plaintiff Nicole Cogdell ("Cogdell") was hired by WET SEAL on

16 November 20, 2008 as Store Manager for the WET SEAL retail store in the

17 Springfield Mall, Springfield, Pennsylvania ("Springfield Mall store"). Cogdell

18 had substantial prior retail management experience, including prior employment as

19 a Store Manager at WET SEAL approximately ten years earlier.

20

35. Prior to being hired in 2008, Cogdell was interviewed in person by the

21 WET SEAL Philadelphia District Manager and by telephone by the WET SEAL

22 Regional Manager assigned to the Northeast Region, Ms. Davey ("Davey").

23

36. While Cogdell was the Store Manager for the Springfield Mall store,

24 the objective and subjective performance metrics for that store improved

25 substantially, including:

26

a. Increased retail sales;

27

b. Decreased theft from the store; and

28

c. Significantly improved cleanliness and orderliness of the store.

- 9-
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 11 of 41 Page ID #:11

1

37. At or around the same time, the King of Prussia store was experiencing

2 significant problems in the following areas:

3

a. Sales below projective levels;

4

b. Significant shrinkage; and

5

c. Significant reported issues regarding cleanliness and

6 disorganization.

7

38. The Philadelphia District Manager recommended Cogdell for Store

8 Manager at the King of Prussia store, on or around January 2009. Because the

9 King of Prussia store was a busier store in a more lucrative market, and the pay for

10 its Store Manager was higher than that for the Springfield Store Manager, this move

11 was a promotion for Cogdell. Cogdell was promoted to Store Manager at the King

12 of Prussia store in January 2009. On information and belief, at the time this

13 promotion was approved, WET SEAL senior management was not aware that

14 Cogdell was African-American.

IS.

39. Under Cogdell's direction, the King of Prussia store improved

16 substantially according to both objective and subjective measures utilized by WET

17 SEAL to analyze store performance. On or about Friday, February 27,2009, at

18 mid-day, Bachman visited the King of Prussia store along with the Philadelphia

19 District Manager and other corporate officials.

20

40. Cogdell and two African-American Sales Associates overheard

21 Bachman express dismay to the Philadelphia District Manager that Cogdell was the

22 Store Manager, saying she wanted someone with "blond hair and blue eyes."

23

41. Cogdell reasonably felt betrayed, humiliated, and belittled by what she

24 felt were Bachman's obviously racist comments and their implications for her own

25 and her Sales Associates' value to WET SEAL.

26

42. On information and belief, Bachman also stated to the Philadelphia

27 District Manager that Regional Manager Davey "must be out of her mind" to have

28 placed an African American in the position of Store Manager at the King of Prussia

- 10 -
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 12 of 41 Page ID #:12

1 store, and that the African-American Cogdell was not the "brand image" WET

2 SEAL wanted to project.

3

43. On information and belief, later that same day (February 27,2009),

4 Davey called Harris to complain that Bachman was being unfair and was not

5 looking at the objective measures, which showed substantial improvement in the

6 store's performance. Harris assured Davey she would speak to Bachman about it.

7 Bachman terminated Davey from her position as Regional Manager on the

8 following Monday, March 2,2009. On information and belief, Davey was

9 terminated in retaliation for placing an African American, Cogdell, in the position

10 of Store Manager at the King of Prussia WET SEAL store, and for protesting

11 Bachman's criticisms of Cogdell as unfair.

12

44. On Tuesday, March 3, 2009, Bachman sent an email to the

13 Philadelphia District Manager and others which stated that African-American

14 predominance on store teams was a "huge issue."

15

45. On Tuesday March 3, 2009, Cogdell was advised by the Philadelphia

16 District Manager that her employment was being terminated. On information and

17 belief, Bachman ordered the termination of Cogdell's employment because of

18 Cogdell's race, and advised the Philadelphia District Manager that if the

19 Philadelphia District Manager did not terminate Cogdell, the Philadelphia District

20 Manager would be fired.

21

46. One day after she received notice of her termination, March 4,2009,

22 Cogdell contacted the EEOC and filed a charge of discrimination based on race, in

23 violation of Title VII and the Pennsylvania Human Relations Act. On information

24 and belief the EEOC's investigation in response to charges filed against WET

25 SEAL by Cogdell and others is ongoing.

26

47. On March 5, 2009, Cogdell contacted Barbara Arneklev ("Arneklev"),

27 WET SEAL's Vice President of Human Relations, to complain about

28 discriminatory comments and treatment and left a voice message requesting a call.

- 11 -
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 13 of 41 Page ID #:13

1

48. When Arneklev returned Cogdell's call on March 5, 2009, Cogdell

2 told Ameklev that she was going to her doctor the next day and preferred to

3 communicate in writing.

4

49. Cogdell was greatly distressed by these events and suffered loss of

5 sleep, headaches, and other physical and emotional distress.

6

50. Cogdell's physician ordered her out of work until March 16,2009.

7

51. Later on March 5, 2009, the Philadelphia District Manager

8 communicated via email to Cogdell that there was a "new career opportunity"

9 which she would secure in written form. Cogdell never received written

10 confirmation of a "new career opportunity."

11

52. On information and belief, the "opportunity" the Philadelphia District

12 Manager was authorized to offer Cogdell was a demotion back to the lower-paying

13 Springfield Store Manager position.

14

53. Cogdell viewed managing the Springfield store as both a demotion and

15 as part of WET SEAL's pattern of segregating African-American Store Managers

16 by assigning them to stores in mixed or largely African-American markets.

17

54. On March 6, 2009, Ameklev called Cogdell and told her "not to

18 worry" about the Springfield store and said that she could work in the King of

19 Prussia store.

20

55. Cogdell agreed to work at the King of Prussia store on the condition

21 and with the understanding that issues of racism in the workplace would be

22 addressed there before she returned. Cogdell's next day of work at the King of

23 Prussia store was on March 16, 2009.

24

56. Cogdell reasonably expected that while she was out, WET SEAL

25 would have at least initiated an investigation into racially motivated employment

26 practices under Bachman, and would have reassured employees that racial

27 discrimination in any form would not be tolerated by WET SEAL.

28

57. Instead, Cogdell learned that WET SEAL had taken no steps to

- 12 -
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 14 of 41 Page ID #:14

1 address employee concerns about racial discrimination by management when she

2 was approached, the same day, by African-American employees of WET SEAL

3 who had overheard Bachman's comments about Cogdell to the District Manager

4 and had received no follow up from WET SEAL about discrimination and racism in

5 the workplace.

6

58. Cogdell was shocked to learn that WET SEAL had taken no steps to

7 deal with issues of racism, which were clearly known to WET SEAL before her

8 termination and return to work. She advised Ameklev by telephone that she would

9 fmish out the day but would not continue to work for WET SEAL because the

10 company had done nothing to address employees' concerns about racism in the

11 workplace. Ameklev said she was "sorry" but made no offer to address the

12 situation.

13

59. Cogdell believed that employment under these conditions had become

14 intolerable. A reasonable African-American employee in the same circumstances

15 would have concluded that continued employment would be intolerable.

16 Accordingly, Plaintiff Cogdell was constructively terminated by WET SEAL.

17

60. After her constructive discharge by WET SEAL, Cogdell attempted to

18 fmd work in retail sales but was unable to secure a position despite her experience

19 and qualifications. On information and belief, WET SEAL discriminated and

20 retaliated against Cogdell because of her race and opposition to discriminatory

21 practices by failing to provide fair references to potential employers.

22

61. On information and belief, Cogdell was replaced as Store Manager at

23 the King of Prussia store by a white employee with a poor performance record and

24 less experience and who was paid more than Cogdell was.

25

62. On information and belief, WET SEAL routinely promoted white

26 females to store management and higher positions despite their being unqualified or

27 poor performers according to WET SEAL's internal standards, including, for

28 example, promoting the white manager of the Granite Run store to a high profile

- 13 -
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 15 of 41 Page ID #:15

1 store shortly after Bachman described that store as "embarrassing and totally

2 unacceptable-[one] of the worst stores I have seen in a long time!" (Exhibit 1.)

3

63. On information and belief, in or around June 2009, Bachman

4 complimented a Maryland District Manager for her rapid comprehension of the

5 "WET SEAL look," after Bachman toured a store that had previously been staffed

6 largely by African Americans but was then staffed entirely or mostly with white

7 employees. The District Manager understood this comment to refer to the racial

8 composition of the store employees.

9

64. Although as Store Manager she was charged with some hiring

10 responsibilities, at no time during her employment did Cogdell receive any training

11 regarding equal opportunity policies or procedures at WET SEAL.

12

PLAINTIFF HAWKINS

13

65. PlaintiffKai Hawkins ("Hawkins") first began working for WET

14 SEAL in or around July 2002 at the Plymouth Meeting Pennsylvania store. She

15 was promoted to Store Manager within several months. Hawkins was a successful

16 Store Manager who was particularly good at reducing "inventory shrink" in stores

17 she managed, and received commendation and a bonus for that success from WET

18 SEAL.

19

66. In 2003 and 2004, Hawkins was assigned to manage WET SEAL

20 stores in the Oak Ridge Mall in San Jose, California, and the Valley Mall in Santa

21 Clara, California. Both stores had high shrink before Hawkins took over as Store

22 Manager, and both had much improved numbers under Hawkins.

23

67. Hawkins returned to the Philadelphia region in 2004. Although she

24 had been promised a "high profile" store such as King of Prussia, Hawkins was

25 instead assigned to the Gallery Store at Market East in Philadelphia, a store with a

26 much larger percentage of minority shoppers. Hawkins asked repeatedly to be

27 transferred to the King of Prussia store, but was never given the opportunity to

28 manage this store, despite success in all her assignments.

- 14-
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 16 of 41 Page ID #:16

1

68. In 2008, Hawkins was transferred to the Cherry Hill New Jersey store,

2 which has a larger percentage of minority shoppers than King of Prussia. The

3 Cherry Hill store was visited by Thomas, Harris and Bachman at or around the end

4 of2008. In or around late February or early March, 2009, Hawkins was told by the

5 Philadelphia District Manager that the executive management of WET SEAL had

6 said that if Hawkins did not "diversify" the staff at the Cherry Hill store by hiring

7 more non-black employees within thirty days, she would be terminated. At that

8 time, the Cherry Hill store employees were Hawkins (African-American), one Co-

9 Manager (Asian-American), two Assistant Managers (one African-American and

10 one white), and approximately eight Sales Associates (four African-American, three

11 Latina, and one white).

12

69. On or about March 3, 2009, Hawkins saw the "huge issue" email from

13 Bachman (Exhibit 1). Hawkins was highly offended, but as a single mother she

14 did not feel she had alternatives but to keep working for WET SEAL. On

15 information and belief, WET SEAL executives were aware that Bachman's email

16 had been forwarded to WET SEAL employees, including Hawkins. In March 2009,

17 the Philadelphia District Manager told Hawkins that WET SEAL management

18 wanted to get rid of her and that she should "watch her back."

19

70. After both the Regional and District Managers to whom she reported

20 left the company, in March 2009, the new District Manager made hiring decisions

21 for the Cherry Hill store, and hired non-minority employees, rejecting without

22 explanation an African American recommended by Hawkins. This was contrary to

23 the usual WET SEAL practice, which was for Store Managers to make hiring

24 decisions for their store. On information and belief, these hiring decisions were

25 taken over by the new District Manager in order to assure that new hires at the

26 Cherry Hill store were white.

27

71. Shortly after the new District Manager assumed her duties, she gave

28 Hawkins a written discipline for shrink, despite the fact that the store audit upon

- 15 -
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 17 of 41 Page ID #:17

1 which the discipline was based included a period before Hawkins began to work in

2 her store, and WET SEAL senior management were aware that the sensor tags did

3 not work with the Cherry Hill equipment. Hawkins protested the discipline to HR

4 but never received a response. On information and belief, this discipline was

5 unwarranted, was out of proportion to what was imposed on similarly-situated

6 white Store Managers, and was a pretext to begin the process of terminating

7 Hawkins because of her race.

8

72. By 2010, Hawkins was one of only two African-American Store

9 Managers in the Philadelphia District; the other was assigned to the Gallery

10 location Hawkins had previously managed. Hawkins was advised by the

11 Philadelphia District Manager in February 2010 that she was terminated for having

12 low sales and high shrink results.

13

73. In fact, the Cherry Hill shrink figures had improved since Hawkins

14 took over as Store Manager and were continuing to improve, at the time of her

15 termination. Nor had Hawkins been afforded the benefit of mentoring or

16 progressive discipline, which, on information and belief, was routinely offered to

17 similarly-situated white Store Managers.

18

74. When she had sought transfer to other stores, Hawkins was told that it

19 was WET SEAL policy that Store Managers in high shrink stores are not eligible

20 for promotion or transfer; however, in or around November 2009, an Asian-

21 American Co-Manager from the Cherry Hill store was promoted to manage an

22 Arden B. store.

23

75. Although as Store Manager Hawkins was charged with hiring

24 subordinates, at no time during her employment with WET SEAL did Hawkins

25 receive any training regarding equal opportunity policies or procedures.

26

76. Hawkins observed that African-American employees were terminated

27 despite doing a good job and without any explanation. On information and belief,

28 an African-American employee she supervised, K. Benson, was singled out for

- 16 -
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 18 of 41 Page ID #:18

1 termination by Bachman because of her race, as she was a good worker who was

2 liked and respected by her colleagues and by the Philadelphia District Manager,

3 who cried as she terminated Benson.

4

77. On information and belief, during the last two years of her

5 employment at WET SEAL Hawkins' performance was as good as or better than

6 that of white Store Managers. Despite WET SEAL policy that employees receive

7 regular reviews, Hawkins received no performance reviews during her last two

8 years at WET SEAL, which made her ineligible to receive any raise. On

9 information and belief, similarly-situated white employees received performance

10 reviews and raises during this period.

11

78. On information and belief, similarly-situated white employees with

12 lesser qualifications were promoted to higher paying positions than Hawkins.

13

79. After her termination, Hawkins sought employment. Despite her

14 qualifications, she was unable to secure employment until November 2011. On

15 information and belief, WET SEAL discriminated against and retaliated against

16 Hawkins because of her race and opposition to discriminatory practices by failing

17 to provide a fair reference to potential employers.

18

PLAINTIFF SAINT-HILAIRE

19

80. PlaintiffMyriam Saint-Hilaire ("Saint-Hilaire") was hired by WET

20 SEAL in January 2007 as an Assistant Manager at WET SEAL's King of Prussia

21 store. She had retail loss prevention experience from her prior work at one of WET

22 SEAL's competitors.

23

81. Although she understood that she was going to be hired into the Co-

24 Manager position, Saint-Hilaire was given the title of Assistant Manager but

25 required to perform the duties of a Co-Manager.

26

82. According to WET SEAL policy, Saint-Hilaire should have received

27 periodic written performance reviews. Salary increases are provided as a result of

28 positive reviews. Saint-Hilaire never received a written performance review.

- 17 -
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 19 of 41 Page ID #:19

1 Every time she was due for a review, her Store Manager made an excuse to explain

2 why Saint-Hilaire would not receive a review. As a result, Saint-Hilaire never

3 received the pay increases that would have resulted from positive reviews. On

4 information and belief, similarly-situated white employees received performance

5 reviews and periodic raises.

6

83. Saint-Hilaire's performance at WET SEAL should have resulted in

7 positive performance reviews.

8

84. On one occasion in 2007, Saint-Hilaire was written up by her Store

9 Manager for being late (after working late the night before-hours past her

10 scheduled shift-because the store was understaffed), but white associates were

11 frequently late and not written up.

12

85. In or around December 2007, Thomas, then-President and CEO of

13· WET SEAL, visited the King of Prussia store. A few weeks after Thomas's visit to

14 the King of Prussia store, Saint-Hilaire heard from the Philadelphia District

15 Manager that she had been present with Thomas and three or four other high-level

16 corporate executives of WET SEAL when Thomas or his assistant said that they

17 were "not comfortable" with the staff at the King of Prussia store, and that while

18 the store had been doing well, it would do better if the employees had a "different

19 look" that would attract more customers. The Philadelphia District Manager was

20 told to hire an all-new management staff, keeping only the Store Manager (who

21 was white) and an African-American Assistant Manager with a very light

22 complexion. The District Manager later told Saint-Hilaire that Thomas and the

23 other high-level officials wanted her to fire the African-American employees, and

24 that she was under intense pressure to fire the African-American employees in the

25 King of Prussia store.

26

86. Saint-Hilaire was upset by what the Philadelphia District Manager told

27 her. The Philadelphia District Manager said that she would do her best to keep her,

28 and that Saint-Hilaire should "stay under the radar" by keeping the store as clean as

- 18 -
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 20 of 41 Page ID #:20

1 possible and not doing anything that would make her a target to be fired.

2

87. At around the same time, in late 2007 or early 2008, the King of

3 Prussia store was understaffed. One Associate said that she knew someone with

4 retail experience who could work in the store. The Store Manager, who was white,

5 asked, "Is she black?" and when the Associate said yes, the Store Manager said that

6 she had been told that they could not hire any more African-Americans, because

7 there were too many African-Americans and the company "needed diversity."

8

88. The Store Manager also told Saint Hilaire and other store employees

9 that they "need to hire more diversity," that they had a lot of African-American

10 employees, and that they should try to attract the kind of clientele that shopped at

11 their more upscale competitors, such as Abercrombie & Fitch.

12

89. In mid-2008, a white, tall, thin, blond Sales Associate named Leslie

13 was hired to work in the King of Prussia store. The Store Manager hired Leslie

14 because she thought she could "help them" with the "diversity issue" and because

15 she fit the "brand image," which was understood to mean white females. On

16 information and belief, Leslie was also approved for higher pay than the other

17 Associates. When Leslie later indicated that she might leave WET SEAL, she was

18 offered a raise because the management wanted to keep her in the store.

19

90. On information and belief, the Vice President for Store Operations told

20 the Philadelphia District Manager that they needed to hire "people like Leslie for

21 the WET SEAL look" to "be profitable in every way."

22

91. Saint-Hilaire went on maternity leave in late 2008. Several weeks

23 after she returned from leave, she was fired by the Philadelphia District Manager on

24 February 13,2009. The District Manager was crying when she fired Saint-Hilaire.

25

92. The District Manager told Saint-Hilaire that she was being fired

26 because she was not covering all the areas in the store while training a new

27 associate, and that she did not greet a manager who came into the store. White

28 employees were not disciplined for such conduct, and the store was too short-

- 19 -
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 21 of 41 Page ID #:21

1 staffed to allow full coverage of the store. On information and belief, these reasons

2 were a pretext for terminating Saint-Hilaire based on race.

3

93. On information and belief, the Philadelphia District Manager was

4 instructed by senior management to fire Saint-Hilaire because she was African-

5 American.

6

94. On information and belief, during Saint-Hilaire's employment at WET

7 SEAL, she was paid less than similarly-situated white employees, and was denied

8 promotions to better paying positions that less qualified white employees received.

9

95. On information and belief, all or nearly all of the current employees in

10 the King of Prussia store are white.

11

96. On March 9, 2009, Saint-Hilaire filed a race discrimination charge

12 with the EEOC alleging that her termination was discriminatory. Saint-Hilaire has

13 not received a determination from the EEOC. On information and belief, the EEOC

14 is still investigating her charge.

15

97. After her termination, Saint-Hilaire attempted to find employment.

16 WET SEAL refused to give her a reference or even verify her employment. On

17 information and belief, this refusal to verify employment or give a reference was in

18 retaliation to Saint-Hilaire's opposition to WET SEAL's discriminatory practices

19 and filing of an EEOC charge and was intended to and did interfere with Saint-

20 Hilaire's ability to find subsequent employment.

21

FIRST CLAIM FOR RELIEF: DISCRIMINATION IN

22

VIOLATION OF 42 U.S.C. § 1981

23

98. Paragraphs 1-97 are incorporated by reference. This claim is brought

24 on behalf of Plaintiffs and the class they represent. The foregoing conduct violates

25 42 U.S.C. § 1981 because such conduct discriminates against the Plaintiffs and

26 class on the basis of their color and race.

27

99. As a result of WET SEAL's discriminatory conduct, Plaintiffs and the

28 class they represent have been denied equal pay and have lost compensation and

- 20-
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 22 of 41 Page ID #:22

1 benefits they would have been entitled to in the absence of discrimination, and have

2 suffered emotional distress and consequential damages.

3

100. WET SEAL has performed the acts alleged with malice, fraud,

4 oppression, and/or reckless indifference to the protected rights of Plaintiffs and the

5 class. Plaintiffs and the class are thus entitled to recover punitive damages in an

6 amount according to proof.

7

SECOND CLAIM FOR RELIEF: RETALIATION IN

8

VIOLATION OF 42 U.S.C. § 1981

9

101. Paragraphs 1-97 are incorporated by reference. This claim is made on

10 behalf of Plaintiffs Cogdell, Hawkins, and Saint-Hilaire.

11

102. The foregoing conduct violates 42 U.S.c. § 1981 because such

12 conduct was in retaliation to the opposition by Cogdell, Hawkins, and Saint-Hilaire

13 of discrimination on the basis of race and color. As a result of WET SEAL's

14 discriminatory conduct, Plaintiffs Cogdell, Hawkins, and Saint-Hilaire have lost

15 compensation and benefits to which they would have been entitled in the absence of

16 discrimination, and have suffered emotional distress and consequential damages.

17

103. WET SEAL has performed the acts alleged with malice, fraud,

18 oppression, and/or reckless indifference to the protected rights of Cogdell,

19 Hawkins, and Saint-Hilaire. Cogdell, Hawkins, and Saint-Hilaire are thus entitled

20 to recover punitive damages in an amount according to proof.

21

PRAYER FOR RELIEF

22 WHEREFORE, Plaintiffs pray for relief as follows:

23

1. An order reinstating Plaintiffs and class members to their rightful

24 positions;

25

2. All lost pay and benefits sustained by Plaintiffs and the class as a result

26 of WET SEAL's conduct according to proof;

27

3. Compensatory damages for emotional distress;

28

4. Front pay for Plaintiffs and the class;

- 21 -
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 23 of 41 Page ID #:23

1

5. Punitive damages for Plaintiffs and the class;

2

6. Costs incurred, including reasonable attorneys' fees to the extent

3 allowable by law;

4

7. Pre-judgment and post-judgment interest, as provided by law; and

5

8. Such other and further legal and equitable relief as this Court deems

6 necessary, just, and proper.

7

JURY TRIAL DEMAND

8

Plaintiffs on behalf of themselves and all other similarly situated, demand a

9 jury trial in this action for all claims so triable.

10

11 Dated: July 12,2012 12

By: __~__~_____

13

Brad SeliglTIan (SBN 83838)

LEWIS FEINBERG, LEE,

14

RENAKER & JACKSON, P.C.

476 9th Street

15

Oakland, California 94607

Telephone: (510) 839-6824

16

FaCSImile: (510) 839-7839

bseligman@lewisfeinberg.com

17

18

Attorneys for Plaintiffs and the

19

ProposeaClass

20

21

22

23

24

25

26

27

28

- 22-
COMPLAINT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 24 of 41 Page ID #:24
EXHIBIT 1

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 25 of 41 Page ID #:25

.. ~--.--.-------------
~=--3-n--'II{!JJ1i£ldRJtl-b(Wtf&~

Co: Barb" . . , .
s.nt Mol' Mer0214:33*1008
$ubjact: fW: BIIrtJataIM.~drea Store VII/t Nota

Chrfdna.

c:a_h"lid Pl.... l'tYiaW and Wit
tnel geC1hII mllrktt tum..

tom1otr1rI1onwIIC!I1I1lrtaIVaU1 yInwemedcaynoyUotuo

v.lotk 'l'Ound the ctodt10 gattheBe IOm&lIme tomamM'l Thanal bi)

luu'lIl'8IOIved

.:;

• I.'
..•
." ;.. ;

I··

Store \IJaIIS .. MlIYIand, .il,f'hllldelpllla MarketJ

_tor. 20 (8 AD &14W,.::"··

"

store. VIII1ad:

WS Lake Forest AS Montgomery

WSOwtngM.

WSlAS TOWIIOn

. ,

we WhleMlirah

WS G.,,.,. at Harbor

we Arundel Mila

WS Annapolis

W(s~on'.

. .::

WSlABI<lnU af Prussia

WS Plymouth Mating

:"" ."

AS WIlloW GrOve

...

WSfAB,Cheny Hill

AS YlalnutStraet WS GaIhuy at Market

....
• 1

......',r u .,1101

II" _.'•~.",.••• I•••
...

..;:-. .

. .

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 26 of 41 Page ID #:26

0; "

WSPeptlbrd

We Sprlll9field
!
I .

GloballAuee:

lAck of L.ilCflWlhlp

DO'. nMd clartly Qf expaMona - DC'. mustwortt 1Iround the aIook and dQ whit It tlkaa to get this merkettumed

' 8IVund

.
,

.

,

Tum' ""''110 ,

1!P

-I!!td ••

Amedee? dornIrulta .. hull- iuue

' '

l .ri..m.•• . 1IW0mttO. ot Pf1ilflta. .woo.mDatIllIc.w.. ~ .~fIw" e ...a..n.dIt1thae1GonI'gII1lIlmIsl.lRJ un __ w.re

lng WId tclaUy unacceptable-

.

,

Majority d &toNI are ~ed In fcllIOWIng.martcetJng 1II'Id \flluaJ dlrectW$ -lrIocl1o do thelr OW" 'lhlng

-im stores are boI'roWkli . . . oth.r. . .(Gain- HarbOrPI8G8 bDrra~ acuefmm ~ria Secret

• Cherry HIlI ~ WS badI)';'

.

,

'

The mtljorJty of store.
Majarly of.stonIII had

~ do ~", n"d....arlCllr lconmdp,tlheete"d.hthoop"hcaonngcearpatI:wzallrhinigl1tbaaak&t;m'\.

WS~"PM" - .~:n k- {j;11Itd l tab ~~ Store ManagerIs not r1gJ(t"#lis...-Ibahi. bIteR

.-

'0 •

. 't'..

for II month! .,;;'
-,-

The new ftxtLre paclcageiK""l\ore ",,*ed farustlcll

, ",

,

:

'0

. "'~"'"i1
·~·-r

AB tang·of Prussia

" "

Staff appeared lrIanCSly

store ptUented 'MIl " '.:
I ·e
ws Pl~ MeeUng ..
M..... and 'ORa (M.r.~"ot Taplc Iqok)
Employee came to ¥lOr]( ~lnuteI.arty and .wtatd to watch II parwonar vlrfeo In U. b.ckroom w Complained ofAIr con"~ bellJl b~n - people ha'I8 ben sent fbl If MlDIt lind .UII not ftxed
Empt¥ wauufttt cannot ~ ~d .. It hee caulHld :z ftrq

" "

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 27 of 41 Page ID #:27

~Illi}

r".
t J

I)

AB WUlow Grove
SWf wee trtondly
'.
~gww.k-up30~~
N,ed 11;1 cbegk d.mllgetl· .';
"8ac:kroom Il\!Ipec&nw'ofl a'fIil pGe\ecl on ~rn door - No Il':Inger use

we Ch,rry HIlI

_om! we •Bien WIll YMiaU)' lIJI. .elllng •
OLoQnulgciInIIoltIlbaitt"l"hleidcaah . .. tltIno rooms - of 1M & IIttfng fQomt theY had • ~ne was hOWling 1Ixtures and

NordQ"om • aptnlng M~ • Mall renrMdkm looked ~ ~ • i-:. LOb O1''InIIIC • Zlwei XXI gO/I19 In
· '" . MINIng Clllhnc:a B1G1~ 1 CIl1t - fDmdlr ~ I\gned
Did nOl.x.oute V.J.....~,RJhe/1dMl markdown

Take down-maM8qtI/08""" high In 111. air • j:.

Mllril- Andrei. Matt an·"'.." "adopting"iNa store

Had not lIVen . , . . ~ ~ 111. hang.,.8ko Jinp

; 0'..'

,.

NIId to gill soma of the • mQrlnaqulna form Tyson~ .....

:~
.....

ABChanyHIIJ

Holiday Poller aJgnl W8~. PQII18d .t11»cash wrap

.
, .. ~",-:.'
.'... -';:-.'":.,.*'"

Kamal-Ant 'NOrlClng - ~ fd .ppaar frIeItdly

.J!,;to

Stara u.lng we bag8

,-
:

""

'i,'

.. ' :~ .
M W.lnut8het

Great I.yout Or ItOre

t,
: "
. , ....•'

Staff WIll friendly

..,

\.P"-.. DOcommunicated en

dod•

0"

Lea#&anatte j a g "

,

GoodtrafnC

. '-

•

~ r:~

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 28 of 41 Page ID #:28

\IVS G~UMY at M~

,

Good Managal' tor thl, ,.".. .•
a aElAarSmslystem h2I D'Jt WO..P, flrIYIn year( Ift11U thIOWttIe merclJindIP In thiairup high -IdiaE till!

Csndll!alG for Panty tables?
. . . LeasB does no~ eXpIre untl2013 - ~,..Is the artglnal oontempo 1Ite,IV with at .mall fllea 11ft
DD hel$ onlY ~.n fhant twice aJ~~Qvember
: ~.
.. Guard serYloa .. no' golld - 'MMi"., hasto tell him not to read the MWOP'P'" .t'"

"
WS DsPtrollf

stg(e IsAM. - bon:iorllnCl !tAM':' Il\ventory IovelanQ a.aorlmentwp. wen. then en A ~

statfWB.!t very frltndly -

Llksd ~.to~re

mattagar -

Stephanie -

1
8lotll

.:

-

...

. ... •, .,; ~

••• .:t.t-~

GrBnlla Feun

store had hung 11li'BA Peace a; I. ~ tile ~atfgrm

SttInl had no rnualc on • the ~·-..\ ., broktn till daY blfol'l

Shmt was vmbltnta.,ngl VIaUa"-'~d ~ looked IIdIQUlouaI

.~

-<:,
WSSpmgfield

. . New StOM MII".ger I.cked fast ~Cti..d ...tIII.leIa - bad hlra

· Stephania from 08ptfoM \Va$1n •·

..mJ91rBinfng her
. "

"
)
i 1
/.
I.

',' Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 29 of 41 Page ID #:29
UNITED l'I .. ATES DISTRICT COURT, CENTRAL DISTluCT OF CALIFORNIA
CIVIL COVER SHEET

I (a) PLAINTIFFS (Check box if you are representing yourself 0) NICOLE COGDELL, KAI, HAWKINS, and MYRIAM SAINT-HILAIRE, on behalf of themselves and all others similarly situated.

DEFENDANTS THE WET SEAL, INC., THE WET SEAL RETAIL, INC., WET SEAL GC, INC., and WET SEAL GC, LLC.

(b) Attorneys (Firm Name, Address and Telephone Number. Ifyou are representing

yourself, provide same.)

Brad Seligman, Bill Lann Lee. Julie Wilensky Lewis, Feinbetg. Lee, Renaker & Jackson, P.C. 4769thStreet Oakland, CA 94607 (510)839.6824

DeboP. Adegbile. Elise Boddie, R.e..~ika C. Moore, Ria A. Tabacco NAACP Legal Defense & Education Fund. Inc. 99 Hudson S1Jttl,. Suile 1600 New York, NY 10013 (212)965-2200

Nancy C. DeWs, Susan R. Fiorenlino
Gallagher, Schaerel, Surkin. Chupein & Demis, p,e.
25 West Second Street
Media. FA 19053
(610)565-4600

Attorneys (If Known)

II. BASIS OF JURISDICTION (place an X in one box only.)

III. CITIZENSHIP OF PRINCIPAL PARTIES - For Diversity Cases Only (Place an X in one box for plaintiff and one for defendant.)

o I U.S. Government Plaintiff

fi3 Federal Question (U.S.
Government Not a Party)

Citizen of This State

PTF DEF 01 01 Incorporated or Principal Place
of Business in this State

PTF DEF 04 04

o 2 U.S. Government Defendant 04 Diversity (Indicate Citizenship Citizen of Another State
of Parties in Item III)

02 02 Incorporated and Principal Place 05 05 ofBusiness in Another State

Citizen or Subject of a Foreign Country 0 3 0 3 Foreign Nation

06 06

IV. ORIGIN (Place an X in one box only.)

MI Original 0 2 Removed from 0 3 Remanded from

Proceeding

State Court

Appellate Court

04 Reinstated or Reopened

0 5 Transferred from another district (specifY):

06 Multi- o 7 Appeal to District

District

Judge from

Litigation

Magistrate Judge

V. REQUESTED IN COMPLAINT: JURY DEMAND: riYes 0 No (Check 'Yes' only if demanded in complaint.)

ri CLASS ACTION under F.R.C.P. 23: Yes 0 No

o MONEY DEMANDED IN COMPLAINT: $

VI. CAUSE OF ACTION (Cite the U.S. Civil Statute under which you are filing and write a brief statement of cause. Do not cite jurisdictional statutes unless diversity.) Discrimination and retaliation in violation of 42 U.S.C. § 1981.
VII. NATURE OF SUIT (Place an X in one box only.)

~~ o 400 State Reapportionment
0410 Antitrust 0430 Banks and Banking 0450 CommercelICC
Rates/etc. 0460 Deportation 0470 Racketeer Influenced
and Corrupt Organizations 0480 Consumer Credit 0490 Cable/Sat TV 0810 Selective Service 0850 Securities/Commodities/ Exchange 0875 Customer Challenge 12 USC 3410 0890 Other Statutory Actions 0891 Agricultural Act 0892 Economic Stabilization Act 0893 Environmental Matters 0894 Energy Allocation Act 0895 Freedom ofInfo. Act 0900 Appeal of Fee Determination Under Equal Access to Justice 0950 Constitutionality of State Statutes

110 Insurance

PERSONAL INJURY

120 Marine 130 Miller Act 140 Negotiable Instrument 150 Recovery of
Overpayment & Enforcement of Judgment 151 Medicare Act 152 Recovery of Defaulted Student Loan (Excl. Veterans) 153 Recovery of Overpayment of Veteran's Benefits 160 Stockholders' Suits 190 Other Contract 195 Contract Product

310 Airplane
o 315 Airplane Product
Liability
o 320 Assault, Libel &
Slander 0330 Fed. Employers'
Liability Marine Marine Product Liability Motor Vehicle Motor Vehicle Product Liability
Other Personal Injury Personal InjuryMed Malpractice Personal Injury-

Liability

Product Liability

m 196 Franchise

Asbestos Personal Injury Product

Land Condemnation

Foreclosure

Rent Lease & Ejectment

Torts to Land

Tort Product Liability

All Other Real Property

Other Immigration

Actions

PERSONAL PROPERTY 370 Other Fraud 371 Truth in Lending 380 Other Personal
Property Damage Property Damage Product

Vacate Sentence Habeas Corpus General Death Penalty Mandamus/ Other

American with Disabilities Employment American with Disabilities Other Other Civil Rights

610 Agriculture 620 Other Food &
Drug 625 Drug Related
Seizure of Property 21 USC 881
Airline Regs Occupational Safety !Health Other

Fair Labor Standards Act LaborlMgmt. Relations LaborlMgmt. Reporting & Disclosure Act Railway Labor Act Other Labor
Taxes (U.S. Plaintiff or Defendant) IRS-Third Party 26 USC 7609

FOR OFFICE USE ONLY: Case Number: _...::S:..::A.::,C..::........cV_12_-_0_1_1_3_8_A_G_{..:.._..AN_x}'--_ _ _ _ _ _ __
AFTER COMPLETING THE FRONT SIDE OF FORM CV-71, COMPLETE THE INFORMATION REQUESTED BELOW.

CV-71 (05/08)

CIVIL COVER SHEET

Page 1 of2

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 30 of 41 Page ID #:30

UNITED STATES DISTRICT COURT, CENTRAL DISTRICT OF CALIFORNIA
CIVIL COVER SHEET

~ VIII(a). IDENTICAL CASES: Has this action been previously filed in this court and dismissed, remanded or closed?

0 Yes

Ifyes, Iistcasenumber(s): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

VIII(b). RELATED CASES: Have any cases been previously filed in this court that are related to the present case? ~ 0 Yes
If yes, list case number(s): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _- - - - - - - - - -_ _ __

Civil cases are deemed related if a previously filed case and the present case:
(Check all boxes that apply) 0 A. Arise from the same or closely related transactions, happenings, or events; or
o B. Call for detennination ofthe same or suhstantially related or similar questions of law and fact; or
DC. For other reasons would entail substantial duplication oflabor if heard by different judges; or
o D. Involve the same patent, trademark or copyright, and one of the factors identified above in a, b or c also is present.

IX. VENUE: (When completing the following infonnation, use an additional sheet if necessary.)

(a) List the County in this District; California County outside of this District; State if other than California; or Foreign Country, in which EACH named plaintiffresides. 0 Check here ifthe government, its agencies or employees is a named plaintiff. If this box is checked, go to item (b).

County in this District:"

California Counly outside of tbis District; State, if otber than California; or Foreign Country

Nicole Cogdell - Pennsylvania Kai Hawkins - Pennsylvania Myriam Saint-Hilaire - Pennsylvania

(b) List the County in this District; California County outside oflhis District; State ifother than California; or Foreign Country, in which EACH named defendant resides. 0 Check bere if the government, its agencies or employees is a named defendant. If this box is checked. gO to item (e).

Counly in tbis District:'

California County outside of this District; State, if other than California; or Foreign Country

The Wet Seal, Inc. - Orange The Wet Seal Retail Inc. - Orange Wet Seal GC Inc. - Oranl!:e

Wet Seal GC, LLC - Orange

(c) List the COtrnty in this District; California County outside ofthis District; State if other than California; or Foreign Country, in which EACH claim arose.
Note' In land (ondemnation , (8ses use the location of the tract of land involved

County in this District:"

California Couoly outside of this District; State, if other than California; or Foreign Country

Orange

* Los Angeles, Orange, San Bernardino, Riverside, Ventu a ta Barbara, or San Luis Obispo Counties Note: In land condemnation cases use the location of the trac of I X. SIGNAnJRE OF ATTORNEY (OR PRO PER): ----,P-~---,f7£.----------- Dale _ _ _ _ _ _7/_ 12/_ 201_2 _ _ _ _ _ _ __
Notice to CounsellParties: The CV-71 (JS-44) Civi over Sheet and the information contained herein neither replace nor supplement the filing and service ofpleadings or other papers as required by law. This form. approved by the Judicial Conference ofthe United States in September 1974, is required pursuantto Local Rule 3-1 is not filed but is used by the Clerk ofthe Court for the purpose of statistics, venue and initiating the civil docket sheet. (For more detailed instructions, see separate instructions sheet.)
Key to Statistical codes relating to Social Security Cases:
Nature of Suit Code Abbreviation Substantive Statement of Cause of Action

861

UlA

All claims for health insurance benefits (Medicare) under Title 18, Part A, of the Social Security Act, as amended.

Also, include claims by hospitals, skilled nursing facilities, etc., for certification as providers of services under the

program. (42 U.S.c. 1935FF(b»

862

BL

All claims for "Black Lung" benefits under Title 4, Part B, ofthe Federal Coal Mine Health and Safety Act of 1969.

(30 U.S.C. 923)

863

DIWC

All claims filed by insured workers for disability insurance benefits under Title 2 of the Social Security Act, as

amended; plus all claims filed for child's insurance benefits based on disability. (42 U.S.C. 405(g»

863

D~

All claims filed for widows or widowers insurance benefits based on disability under Title 2 of the Social Security

Act, as amended. (42 U.S.C. 405(g»

864

SSID

All claims for supplemental security income payments based upon disability filed under Title 16 of the Social Security

Act, as amended.

865

RSI

All claims for retirement (old age) and survivors benefits under Title 2 of the Social Security Act, as amended. (42

U.SC. (g»

CV-71 (05/08)

CIVIL COVER SHEET

Page 2 of2

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 31 of 41 Page ID #:31

I IVIII.\JVl.41 l LIIII\ 'Ilv.

I "

VVV ""'T\I

V"ILILVIL. IL.IU

"t-V'" I • V V..., , V I"T

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA
NOTICE OF ASSIGNMENT TO UNITED STATES MAGISTRATE JUDGE FOR DISCOVERY
This case has been assigned to District Judge Andrew Guilford and the assigned discovery Magistrate Judge is Arthur Nakazato. The case number on all documents filed with the Court should read as follows:
SAC'\T12 - 1138 AG (ANx)
Pursuant to General Order 05-07 of the United States District Court for the Central District of California, the Magistrate Judge has been designated to hear discovery related motions.
All discovery related motions should be noticed on the calendar ofthe Magistrate Judge

- -- --- ------------_. _ -_. -_ _--- - - - - - - - - - - - - - - - - - - - - ___ ~ ___ .-..... _____ ---J_--'-" ____ '""'- _ _ _ _ __________ ~~_"""__ _ _ _ _ _ _ _ _ _ _ _ _ _ ,

-

--.~-

-

....

...

_._-- -.- -.

NOTICE TO COUNSEL

A copy of this notice must be 5eIVed with the summons and complaint on a/l defendants (if a removal action is filed, a copy of this notice must be salVed on 13/1 plaintiffs).

Subsequent documents must be filed at the following location:

U Western Division
312 N. Spring St., Rm. G·a Los Angeles, CA 90012

[X] Southern Division

U Eastern Division

411 West Fourth St., Rm. 1·053

3470 Twelfth St., Rm.134

Santa Ana, CA 92701-4516

Riverside, CA 92501

Failure to file at the proper location will result in your documents being returned to you.

CV·18 (03/06)

----------------------------------------------------NOTICE OF ASSIGNMENT TO UNITED STATES MAGISTRATE JUDGE FOR DISCOVERY

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 32 of 41 Page ID #:32

AO 440 (Rev. 06/12) Summons in a Civil Action
UNITED STATES DISTRICT COURT
for the Central District of California

NICOLE COGDELL, KAI HAWKINS, and MYRIAM SAINT-HILAIRE, on behalf of themselves and all
others similarly situated
PlaintifJ(s)
v.
THE WET SEAL, INC., THE WET SEAL RETAIL, INC., WET SEAL GC, INC., and WET SEAL GC, LLC
De/endant(s)

)

)

)

)

)

) )

Civil Action No.

)

SACV 12 - 01138 AG (ANx)

)

)

)

)

SUMMONS IN A CIVIL ACTION

To: (Defendant's name and address)

A lawsuit has been filed against you. Within 21 days after service ofthis summons on you (not counting the day you received it) - or 60 days if you are the United States or a United States agency, or an officer or employee of the United States described in Fed. R. Civ. P. 12 (a)(2) or (3) - you must serve on the plaintiff an answer to the attached complaint or a motion under Rule 12 of the Federal Rules of Civil Procedure. The answer or motion must be served on the plaintiff or plaintiff's attorney, whose name and address are:
If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint. You also must file your answer or motion with the court.
CLERK OF COURT
DENt~VO
Signature o/Clerk or Deputy

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 33 of 41 Page ID #:33

AO 440 (Rev. 06112) Summons in a Civil Action (Page 2)
Civil Action No.

PROOF OF SERVICE (This section should not be filed with the court unless required by Fed. R. Civ. P. 4 (/))

This summons for (name ofindividual and title, ifany) was received by me on (date)

o I personally served the summons on the individual at (place)

on (date)

; or

----------------------------------------------

o I left the summons at the individual's residence or usual place of abode with (name)

, a person of suitable age and discretion who resides there,
--------------------------------

on (date)

, and mailed a copy to the individual's last known address; or

----------------

o I served the summons on (name ofindividual) ------------------------------------ ,who is
designated by law to accept service of process on behalf of (name oforganization)

------------------------------------------ on (date) -------------- ; or

o I returned the summons unexecuted because

; or
------------------------------------------

o Other (specify):

My fees are $

for travel and $

for services, for a total of $

----------

0.00

I declare under penalty of perjury that this information is true.

Date:

Server's signature Printed name and title

Additional information regarding attempted service, etc:

Server's address

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 34 of 41 Page ID #:34

AO 440 (Rev. 06112) Sunlmons in 8 Civil Action
UNITED STATES DISTRICT COURT
for the Central District of California

NICOLE COGDELL, KAI HAWKINS, and MYRIAM SAINT·HILAIRE, on behalf of themselves and all
others similarly situated
PIQllllif/{S) V.
THE WET SEAL, INC., THE WET SEAL RETAll,INC., WET SEAL
GC, INC., and WET SEAL GC, LLC
D/ifelldanl(S)

)

)

)

)

)

) )

Civil Action No. SACV ll- 01138 AG (ANx)

)

)

)

)

)

SUMMONS IN A CIVIL ACTION

To: (Defendant's nome and address)

The Wet Seal, Inc. c/o CSC - Lawers Incorporating Service 2710 Gateway Oaks Dr. STE 150N Sacramento, CA 95833

A lawsuit has been filed against you.

Within 21 days after selVice ofthis summons on you (not counting the day you received it) - or 60 days ifyou
are Ihe United States or 8 United States agency. or an officer or employee ofllie United States described in Fed. R. Civ.
P. 12 (a)(2) or (3) --you must selve on the plaintiffan answer to the attached complaint or a motion under Rule 12 of
the Federal Rules of Civil Procedure. The answer or motion must be served on the plaintiff or plointiff's attorney,
whose name and address are: Brad Seligman Lewis, Feinberg, Lee, Renaker & Jackson, P.C. 476 9th Street Oakland, CA 94607

If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint. You also must file youI' answer or motion with the court.

Date: .J~t-L~Jv-

---------:-::--:-~ !I5I_fIIiI!~.

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 35 of 41 Page ID #:35

AD 440 (Rev. 06/12) Summons in a Civil Action (Page 2)
Civil Action No.

PROOF OF SERVICE (This section should not be filed with the court unless required by Fed. R. Civ. P. 4 (I))

This summons for (name ofindividual and title. ifan)') was received by me on (date)

o I personally served the summons on the individual at (place)

on (date)

; or

-------

o I left the summons at the individual's residence or usual place of abode with (name)

, a person of suitable age and discretion who resides there,

--------------------

on (date)

,and mailed a copy to the individual's last known address; or

--------

o I served the summons on (name o/individual)

, who is

designated by law to accept service of process on behalf of (name 0/organization)

on (date)

; or

-------------------------

---------

o I returned the summons unexecuted because

; or

o Other (specify):

My fees are $

for travel and $

for services, for a total of $

------

0.00

I declare under penalty of perjury that this information is true.

Date:

Server 's signallIre
------------- --------- ------------------------Printed name and title

Additional information regarding attempted service, etc:

Server's address

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 36 of 41 Page ID #:36

• IVIII.VVUI ... L I I I I \ I l i v .

I • .,. VvV "'T'"T\I

V I I ILl .... V.L.. ILo. IV

IILV"T I.VV\lIVI"'1'

AO 440 (Rev. 06112) Summon. in a Civil Action
UNITED STATES DrSTRICTCOURT
for the Central District of California

NICOLE COGDELL, KAI HAWKINS, and MYRIAM

)

SAINT-HILAIRE, on behalf of themselves and all

)

others similarly situated

)

)

Ploinlljf(s)

)

v.

) )

THE WET SEAL, INC., THE WET

)

SEAL RETAIL,INC., WeT SEAL

)

GC, INC., and WET SEAL GC. LLC

)

--------- _ _•.. --_._._-----_._- )

Dejendonl(s)

)

Civil Action No.
SACV 12 - 01138 AG (ANx)

SUMMONS IN A CIVIL ACTION

To: (Delendan"s name and address)

The Wet Seal Retail, Inc. c/o Ethel Jones 27972 Burbank
Foothill Ranch, CA 92610

A lawsuit has been filed against you.
Within 21 days after service of this summons on you (not counting the day you received it) - or 60 days ifyou are the United States or a United States agency, or an officer or employee ofilie United States described in Fed. R. Civ. P. 12 (8)(2) or (3) .- you must selve on the plaintiff an answer to !he attached complaint or a motion under Rule 12 of the Federal Rules ofCiviJ Procedure. The answer or motion must be served on the plaintiffor plaintiffs attorney. whose name and address are:
Brad Seligman Lewis, Feinberg, Lee, Renaker & Jackson, P.C. 476 9th Street Oakland, CA 94607
If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint You also must file your answer or motion with the court.

CLERK OF COURT

Signatllre olClerk

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 37 of 41 Page ID #:37

AO 440 (Rev. 06/12) Summons in a Civil Action (Page 2)
Civil Action No.

PROOF OF SERVICE (This section shollid not befiled with the COllrt IInless reqllired by Fed. R. Civ. P. 4 (I))

_._--- This summons for (name ofindividual and title, ifany) - - - - - - - - - - - - - - - - - _....
was received by me on (dale)

o I personally served the summons on the individual at (place)

on (date)

; or

---------------

o I left the summons at the individual's residence or usual place of abode with (name)

, a person of suitable age and discretion who resides there,
-----

on (dale)

, and mailed a copy to the individual's last known address; or

--------

o I served the summons on (name ofindividual)

,who is

designated by law to accept service of process on behalf of (name oforganization)

- - - - - - - - - - - - - - - - - - on (date) - - - - - - - - - - ; or

o I returned the summons unexecuted because

; or

o Other (specify):

My fees are $ - - - - - for travel and $

for services, for a total of $

0.00

I declare under penalty of perjury that this information is true.

Date:

Server's signature Printed name and title

Additional information regarding attempted service, etc:

Server's address

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 38 of 41 Page ID #:38

I IVlllwUUUI ... L i l i n " ' v ,

, •., '"''"''''' "T"T'"

VI' ,'-, LVI&.. IL.,\.I

II'-V' •• UVUIV,"T

AD 440 (Rev. 06112) Summon. in a Civil Aclion
UNITED STATES DISTRICT COURT
for the Central District of California

NICOLE COGDELL, KAI HAWKINS, and MYRIAM SAINT-HILAIRE, on behalf of themselves and all
others similarly situated
Plainllfl(s}
v_
THE WET SEAL, INC., THE WET SEAL RETAil, INC., WeT SEAL GC, INC., and WET SEAL GC, LLC
._-_._---_.
De!enrhnl(s)

)

)

)

)

)

) )

Civil Action No.
SACV 12- 01138 AG (ANx)

)

)

)

)

)

SUMMONS IN A CIVIL ACTION

To: (Defondanl's name and add,.ess)

Wet Seal GC, Inc. c/o CSC - Lawers Incorporating Service 2710 Gateway Oaks Dr. STE 150N Sacramento, CA 95833

A lawsuit has been filed against you.
Within 2] days after seIVice ofthis summons on you (not counting the day you received it) - or 60 days ifyou are the United States or a United States agency. or an officer or employee ofthe United States described in Fed. R. Civ. P. 12 (8)(2) or (3) - you must selve on the plaintiff an answer to the attached complaint or a motion under Rule] 2 of tlle Federal Rules of Civil Procedure. The answer or motion must be se!Ved on the plaintiff or plaintifr8 attorney. whose name and address are:
Brad Seligman
Lewis, Feinberg, Lee, Renaker &Jackson, P.C.
4769th Street Oakland, CA 94607

If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint You also must file your answer or motion with the court.

Date: .-1n.l.L~\ i z.--

CLERK OF COURT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 39 of 41 Page ID #:39

AO 440 (Rev. 06/12) Summons in a Civil Action (Page 2)
Civil Action No.

PROOF OF SERVICE (This section shollid not be filed with the COllrt lInless reqllired by Fed. R. Civ. P. 4 (I))

This summons for (name ofindividual and title, ifany) was received by me on (date)

o I personally served the summons on the individual at (place)

on (date)

; or

- - - - _ .. - - - -

o I left the summons at the individual's residence or usual place of abode with (name)

, a person of suitable age and discretion who resides there,

-----------------

on (date)

,and mailed a copy to the individual's last known address; or --------------

o I served the summons on (name ofindividual)

,who is

---------------------------

designated by Jaw to accept service of process on behalf of (name oforganization)

on (date)
._---------

- - - - - - - - ; or

o I returned the summons unexecuted because

; or

o Other (specifY):

My fees are $

for travel and $

for services, for a total of $

0.00

I declare under penalty of perjury that this information is true.

Date:

Server's signature

Printed name and title

Additional information regarding attempted service, etc:

Server's address

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 40 of 41 Page ID #:40

I IVIII.VVUI ...... 'III\. '.1\,,0.

I ,., VoJV ... .,.,'"

VI,I'-''-V.L IL. IV

Ill-V.., l.vvy,V''''

AO 440 (Rev. 06112) Summons ill n Civil Action
UNITED STATES DISTRICT COURT
for the Central District of California

NICOLE COGDELL, KAI HAWKINS, and MYRIAM SAINT-HILAIRE, on behalf of themselves and all
others similarly situated
P/oi/lliff(s) V.
THE WET SEAL, INC., THE WET SEAL RETAIL,INC., WET SEAL GC, INC., and WET SEAL GC, LLC
Difendol/I(s)

)

)

)

)

)

) }
)

Civil Action No.
SACV 12- 01138 AG (ANx)

)

)

)

)

SUMMONS IN A CIVIL ACTION

To: (DefendanT's ntlme and address)

Wet Seal GC, LLC c/o CSC - Lawers Incorporating Service 2710 Gateway Oaks Dr. STE 150N Sacramento, CA 95833

A lawsuit has been filed against you.
Within 21 days after service ofthis summons on you (not counting the day you received it) - or 60 days if you are the United States or a United States agency, or an officer or employee ofthe United States described in Fed. R. Civ. P. 12 (a)(2) or (3) -- you must serve on the plaintiff an answer to the attached complaint or a motion under Rule 12 of the Federal Rules of Civil Procedure. The answer or motion must be served on the plaintiffor plaintiffs attorney, whose name and address are:
Brad Seligman Lewis, Feinberg, Lee, Renaker & Jackson, P.C. 476 9th Street Oakland, CA 94607
If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint. You also must file your answer or motion with the court.

CLERK OF COURT

Case 8:12-cv-01138-AG-AN Document 1 Filed 07/12/12 Page 41 of 41 Page ID #:41

AO 440 (Rev. 06/12) Summons in a Civil Action (Page 2)
Civil Action No.

PROOF OF SERVICE (This section should not befiled with the COllrt unless required by Fed. R. Civ. P. 4 (I))

This summons for (name ofindividual and title, ifany) was received by me on (date)

o I personally served the summons on the individual at (place)

on (date)

;or

o I left the summons at the individual's residence or usual place ofabode with (name)

on (date)

, a person of suitable age and discretion who resides there, ------
, and mailed a copy to the individual's last known address; or

o I served the summons on (name ofindividual)

,who is
---------------------

designated by law to accept service of process on behalf of (name oforganization)

- - - - - - - - - - - - - - - - - - - - - - - - - - on (date) - - - - - - - - - - ; or

o I returned the summons unexecuted because

; or

o Other (specifY):

My fees are $

for travel and $ - - - - - - for services, for a total of $

0.00

I declare under penalty of perjury that this information is true.

Date:

Server's signature

Printed name and title

Additional information regarding attempted service, etc:

Server's address

 </s> Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 1 of 50 Page ID #:345

1

Bill Lann Lee (SBN 108452) blee@lewisfeinberg.com

Debo P. Adegbile* dadegbile@naacpldf.org

2

Julie'Wilensky (SBN 271765)
jwilensk~lewisfeinberg.com

Elise13oddie* eboddiera1naacpldf.org

3

LEWIS,FEINBERG, LEE, RENAKER & JACKSON, P.C.

ReNika C. Moore*
rmoore@naaCI~ldf.org

4

476 9th Street Oakland, CA 94607

Ria Tabacco Mar* rtabaccora1naacpldf.org

5

Telephone: (510) 839-6824 FacsImile: (510) 839-7839

NAACP LEGAL DEFENSE & EDUCATIONAL FUND, INC.

6

99 Hudson Street, Suite 1600 New York, NY 10013

7

Telephone: (212) 965-2200 FaCSImile: (202) 226-7592

8

Nancy C. DeMis* (SBN (inactive)

114770)

.

9

ncd@gsscd.com SusanR. Fiorentino*

10

sfiorentino@gsscd.com GALLAGIlER. SCHOENFELD,

11

SURKIN,; CHUPEIN & DEMIS, P.C. 25 West .,econd Street

12

Media, PA 19053 Telephone: (610) 565-4600

13 FacsImile: (610) 566-8257

14 * Admitted Pro Hac Vice

"(;;-'..;.~:>

r~,fI...')

c.~

;y:r..\1

,~\!.::
U.J

I ..,-.

I"q

-1(')

]

~I·,~

r:'?
G) v:>

15

Attorneys for Plaintiffs and the ProposeaClass

16

UNITED STATES DISTRICT COURT

17

CENTRAL DISTRICT OF CALIFORNIA

18

19 NICOLE COGDELL, et al.,

20

21

Plaintiffs,

22

v.

23 THE WET SEAL, INC., et al.,

24

Defendants.

25

Case No.: SACV 12-01138 AG (ANx) FIRST AMENDED COMPLAINT FOR DAMAGES: 42 U.S.C. § 1981; TITLE VII OF THE CIVIL RIGHTS ACT OF 1964 CLASS ACTION JURY TRIAL DEMANDED

26

27

28

FIRST AMENDED COMPLAINT - CASE NO.: SACV 12-01138 AG (ANx)

Case 8:12-cv-01138-A(Gj-AN Document 49 Filed 01/09/13 Page 2 of 50 Page ID #:346

1

Plaintiffs bring this action on behalf of themselves and all others similarly

2 situated for race discrimination in employment by The Wet Seal, Inc., The Wet Seal

3 Retail, Inc., Wet Seal GC, Inc., and Wet Seal GC, LLC (collectively, "WET

4 SEAL"), and allege as follows:

5

INTRODUCTION

6

1. This action challenges WET SEAL's policy and practice of

7 discriminating against African-American store management employees at Wet Seal

8 and Arden B. stores from at least 2008 to the present, in violation of 42 U.S.C. §

9 1981 and Title VII of the Civil Rights Act of 1964 (42 U.S.c. § 2000e et seq.).

10 This policy was adopted by the most senior executives of the company, and resulted

11 in the targeting of African-American employees for termination because of their

12 race and color, and a denial of pay and promotions for African Americans on the

13 same basis as white store employees.

14

2. In addition to strong circumstantial evidence that WET SEAL enforced

15 an illegal policy of discrimination, direct evidence in the form of emails and

16 testimony of former managers also demonstrates that WET SEAL corporate

17 executives at the highest levels instructed managers to terminate African-American

18 employees, and to "diversify" their work forces by hiring and promoting white

19 employees who fit the WET SEAL "brand image." The EEOC found in its

20 Determination of Plaintiff Nicole Cogdell's charge that "corporate managers have

21 openly stated they wanted employees who had the 'Armani' look, had blue eyes,

22 thin, and blond in order to be profitable." (emphasis in original). In one email, the

23 second in command of WET SEAL, the Senior Vice President of Store Operations,

24 reporting on a series of store visits, stated to the Vice President of Store Operations

25 and a district manager that, "African American dominate - huge issue." High-level

26 WET SEAL corporate executives also instructed a district manager to "clean the

27 entire store out" by firing all African-American employees at one or more stores,

28 and they threatened to terminate Store Managers if they did not staff more white

- 1-
FIRST AMENDED COMPLAINT - CASE NO.: SACV 12-01138 AG (ANx)

o Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13( ~)Page 3 of 50 Page ID #:347

1 employees than African-American employees in their stores.

2

3. Plaintiffs bring this case as a class action on behalf of current and

3 former WET SEAL store management employees and seek back pay, general

4 damages, and punitive damages.

5

PARTIES

6

4. Plaintiff Nicole Cogdell is an African-American woman who was

7 formerly employed by WET SEAL at its Springfield, Pennsylvania and King of

8 Prussia, Pennsylvania stores. She is a resident of Delaware County, Pennsylvania.

9

5. PlaintiffKai Hawkins is an African-American woman who was

10 formerly employed at WET SEAL stores in California, Pennsylvania and New

11 Jersey, and was last employed at the Cherry Hill, New Jersey store. She is a

12 resident of Delaware County, Pennsylvania.

13

6. Plaintiff Myriam Saint-Hilaire is an African-American woman who

14 was formerly employed by WET SEAL at its King of Prussia store. She is a

15 resident of Delaware County, Pennsylvania.

16

7. Plaintiff Michelle Guider is an African-American woman who was

17 formerly employed by WET SEAL at its Arden B. store in Durham, North

18 Carolina. She is a resident of Wake County, North Carolina.

19

8. Defendant The Wet Seal, Inc. is a Delaware corporation headquartered

20 in Foothill Ranch, Orange County, California.

21

9. Defendant The Wet Seal Retail, Inc. is a subsidiary of The Wet Seal,

22 Inc. and is a Delaware corporation headquartered in Foothill Ranch, Orange

23 County, California.

24

10. Defendant Wet Seal GC, Inc. is a subsidiary of The Wet Seal, Inc. and

25 is a Virginia corporation headquartered in Foothill Ranch, Orange County,

26 California.

27

11. Defendant Wet Seal GC, LLC is a subsidiary of The Wet Seal, Inc.

28 and is a Virginia limited liability company headquartered in Foothill Ranch, Orange

-2 -
FIRST AMENDED COMPLAINT -CASE NO.: SACV 12-01138 AG (ANx)

( ) ( j Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 4 of 50 Page ID #:348

1 County, California.

2

12. Defendants The Wet Seal, Inc., The Wet Seal Retail, Inc., Wet Seal

3 GC, Inc., and Wet Seal GC, LLC are collectively referred to as "WET SEAL."

4

13. WET SEAL sells women's clothing and accessories at its

5 approximately 550 stores under the Wet Seal and Arden B. store names

6 (collectively referred to as "WET SEAL stores"). It employs over 7,000

7 employees, including 2,000 full-time employees.

8

CLASS ACTION ALLEGATIONS

9

14. Plaintiffs bring this action pursuant to Rule 23 of the Federal Rules of

10 Civil Procedure on behalf of current and former African-American store

11 management level employees of WET SEAL. "Store management level"

12 employees include current and former Assistant Managers, Co-Managers, and Store

13 Managers of WET SEAL.

14

15. The members of the class are sufficiently numerous that joinder of all

15 members is impracticable. On information and belief, the class includes over 250

16 class members.

17

16. There are questions of law and fact common to the class, and these

18 questions predominate over individual questions. Such questions include, among

19 others: (1) whether WET SEAL has a general policy of discrimination with regard

20 to pay, promotion, and termination of African-American store management level

21 employees; (2) whether WET SEAL has a pattern or practice of discrimination with

22 regard to pay, promotion, and termination of African-American store management

23 level employees; and (3) whether punitive damages are warranted.

24

17. The claims alleged by Plaintiffs are typical of the claims ofthe class.

25 All Plaintiffs were African-American store management level employees who have

26 been harmed by WET SEAL's discriminatory policies and practices.

27

18. Plaintiffs will fairly and adequately represent the interests of the class.

28

19. If the class is certified, Plaintiffs will provide the "best notice

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1 practicable under the circumstances" to the class pursuant to Fed. R. Civ. P.

2 23(b)(c)(2)(B), including but not limited to mail, posting, and distribution to current

3 employees.

4

20. Class certification is appropriate pursuant to Fed. R. Civ. P. 23(b)(3)

5 because common questions of fact and law predominate over any questions

6 affecting only individual members of the class, and because a class action is

7 superior to other available methods for the fair and efficient adjudication of this

8 litigation. The members of the class have been damaged and are entitled to

9 recovery as a result of WET SEAL's common and unfair discriminatory personnel

10 policies and practices.

11

21. Particular issue certification of class liability is also appropriate under

12 Rule 23(c)(4) because such claims present only common issues, the resolution of

13 which would benefit the parties and serve judicial economy.

14

JURISDICTION AND VENUE

15

22. This Court has jurisdiction over this action pursuant to 28 U.S.C. §§

16 1331 and 1343.

17

23. This Court has personal jurisdiction over this action because WET

18 SEAL corporate headquarters are located in Foothill Ranch, California, which is in

19 Orange County, and WET SEAL does business in stores throughout this district and

20 the State of California.

21

24. Venue is proper within this District pursuant to 28 U.S.C. § 1391(b),

22 because WET SEAL's headquarters are located in this District and WET SEAL

23 maintains branches throughout California and this District, and is subject to

24 personal jurisdiction in this District. Moreover, a substantial part of the events,

25 acts, and omissions giving rise to the claims of Plaintiffs and the proposed class

26 occurred in this District.

27

WET SEAL POLICIES AND PRACTICES

28

25. Each WET SEAL store employs Sales Associates, Assistant Managers,

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1 and Store Managers. Larger stores also have a Co-Manager, an intermediate

2 position between Assistant Manager and Store Manager. Store Managers report to

3 a District Manager, who typically supervises ten to twelve stores. District

4 Managers report to Regional Managers. On information and belief there are

5 currently four Regional Managers for WET SEAL, and during the relevant time

6 period, both Wet Seal and Arden B. stores moved from a separate reporting

7 structure to reporting to the same District and Regional Managers, and WET SEAL

8 store management employees have been promoted between Wet Seal and Arden B.

9 stores. Regional Managers report to the Vice President of Store Operations, who in

10 tum reports to the Senior Vice President of Store Operations, who reports directly

11 to the CEO of WET SEAL.

12

26. While a Store Manager may hire Sales Associates within limited pay

13 ranges, all hiring of such personnel at rates above these pay ranges must be

14 approved by district and higher level management. On occasion, Store Managers

15 are directed or required by higher level managers, to hire, or not hire, specific

16 individuals for sales positions. All promotions to store management level positions

17 must be approved by District and Regional Managers. All store management pay

18 must be approved by District and Regional Managers, and, if pay exceeds company

19 pay ranges, the pay must be approved by the Vice President of Store Operations.

20 All terminations of store employees must be approved by District and Regional

21 Managers and the corporate Human Resources Department.

22

27. WET SEAL has no formal promotion policy or application procedure

23 for store management positions it fills internally, nor does it post such openings.

24 Other than minimal experience and age requirements, it has no written criteria to

25 determine which employees should be promoted. Store management pay is

26 supposed to be based on a pay scale tied to the size and profitability of each store.

27 In fact, frequent exceptions to this scale are granted by senior management. There

28 are no written criteria that guide the granting of such exceptions.

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1

28. Although WET SEAL has a written non-discrimination policy, this

2 policy is neither enforced nor monitored for compliance. On information and

3 belief, WET SEAL does not collect or compile accurate data, including the race and

4 ethnicity of applicants for hire and employees regarding hiring, pay, promotions, or

5 terminations. On information and belief, for many years WET SEAL has not

6 prepared and filed accurate EEO-1 reports with the United States Equal

7 Employment Opportunity Commission ("EEOC") showing the racial and ethnic

8 demographics of its workforce as required by federal equal employment

9 regulations.

10

29. WET SEAL has a general policy and practice of discriminating against

11 its nonwhite employees, and particularly its African-American employees. This

12 policy and practice is manifested in the following ways:

13

a. Failing and refusing to promote African-American store

14

employees to store management positions on the same basis as white

15

employees are promoted;

16

b. Failing to pay African-American store management employees

17

at the same rates as similarly-situated white employees;

18

c. Limiting promotion opportunities for African-American

19

employees at stores with a significant white clientele;

20

d. Insisting on a "brand" or "image" of its employees that

21

predominantly reflects a white image, an image reinforced by WET SEAL's

22

advertising to the general public;

23

e. Holding African-American store management employees to

24

higher performance standards than white store management employees;

25

f. Terminating African-American store management employees on

26

the basis of their race and not performance; and

27

g. Failing and refusing to take adequate steps to eliminate the

28

effects of its past discriminatory practices.

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1

30. The above-listed discriminatory policies and practices are and have

2 been devised, implemented, and enforced by a small group of the most senior

3 corporate managers, including WET SEAL's President and CEO, Senior Vice

4 President of Store Operations, Vice President of Store Operations, and corporate

5 Human Resources executives. These senior officials have enforced these policies

6 through store visits, management meetings, and electronic and telephonic

7 communications to lower level management employees. They have fired

8 management employees who opposed these policies, and ignored or rejected

9 recommendations by lower level managers to hire, pay, and promote African-

10 American employees on the same basis as white employees. They have imposed

11 their own management and sales employee selections in stores. Examples of the

12 implementation of this general policy and practice of discrimination include:

13

a. Senior Vice President of Store Operations Barbara Bachman

14

("Bachman") instructed a District Manager to "clean the entire store out" by

15

firing all African-American store management employees in or around

16

August 2008:

17

b. After Bachman conducted a surprise store visit and realized that

18

the Store Manager she had previously approved was African-American, she

19

ordered the District Manager to terminate or demote the African-American

20

Store Manager, and replace her with a white manager. She threatened to

21

terminate the District Manager if she did not terminate African-American

22

employees, and ordered her to terminate Store Managers that did not

23

"diversify" (i.e., increase the number of white employees in) their store work

24

force;

25

c. Bachman instructed store management personnel of the WET

26

SEAL store at the King of Prussia Mall ("King of Prussia store") to hire more

27

employees who looked like a particular blond white sales associate;

28

d. On March 3, 2009, Bachman sent an email to a District

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1

Manager, copying Vice President of Store Operations Barbara Harris

2

("Harris"), describing store visits she had conducted of twenty stores in the

3

Maryland and Philadelphia region. Bachman wrote: "Global Issues ...

4

Store teams - need diversity/African American dominate - huge issue." A

5

true and correct copy of this email is attached as Exhibit 1 and incorporated

6

by reference;

7

e. Bachman told a District Manager that the Regional Manager

8

must have "lost her mind" putting a black person in charge of a particular

9

store. She instructed managers to "lighten up" their stores (i.e., terminate

10

African-American and hire white employees). She informed a Regional

11

Manager that there were "way too many" African-American store employees

12

in the Maryland market;

13

f. Bachman targeted stores with primarily African-American

14

employees to be "cleaned up" as an urgent priority, but did not target

15

similarly-situated stores with mostly non-minority employees with

16

comparable performance;

17

g. Director of Human Resources Patricia Sprowell made racially

18

derogatory comments about female African-American employees to a newly

19

hired Regional Manager, saying that such employees will get pregnant "if

20

they touch the counter." She also stated that African-American employees

21

were difficult to manage. On another occasion she instructed a Regional

22

Manager to "figure out a way to get rid" of two African-American employees

23

who had filed race discrimination complaints with the EEOC;

24

h. President and CEO Ed Thomas ("Thomas"), Senior Vice

25

President Bachman, and Vice President Harris frequently made store visits,

26

during or after which they instructed managers to "diversify" the work forces

27

in stores with largely African-American employees and to hire and promote

28

white employees who fit the "brand image." They made no such requests

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1

regarding stores that were staffed predominantly by white employees; and

2

1. Vice President of Store Operations Harris required a Regional

3

Manager to provide photographs of her District Managers in a portfolio

4

which was used to discuss and evaluate them as candidates for advancement

5

within the company.

6

31. WET SEAL has relied on advertising that predominantly features

7 white models as a means of projecting a "brand image," which was understood in

8 the company to mean white females.

9

32. In order to protect African-American employees from discrimination,

10 managers have taken steps to ensure that African-American employees were not

11 working in the store front when a high level corporate executive made a store visit

12 by, for example, sending African-American employees to the back of the store or

13 on a lunch break when a visit by a corporate official was expected.

14

33. On information and belief, since 2008, senior management positions,

15 including senior corporate managers, Regional Managers, and District Managers,

16 have been held almost exclusively by white employees.

17

34. On information and belief, African-American store management level

18 employees are and have been paid less on average than similarly-situated white

19 employees, promoted at a lower rate and to less desirable stores, and fired at a

20 higher rate than white employees.

21

PLAINTIFF COGDELL

22

35. Plaintiff Nicole Cogdell ("Cogdell") was hired by WET SEAL on

23 November 20,2008 as Store Manager for the WET SEAL retail store in the

24 Springfield Mall, Springfield, Pennsylvania ("Springfield Mall store"). Cogdell

25 had substantial prior retail management experience, including prior employment as

26 a Store Manager at WET SEAL approximately ten years earlier.

27

36. Prior to being hired in 2008, Cogdell was interviewed in person by the

28 WET SEAL Philadelphia District Manager and by telephone by the WET SEAL

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1 Regional Manager assigned to the Northeast Region, Ms. Davey ("Davey").

2

37. While Cogdell was the Store Manager for the Springfield Mall store,

3 the objective and subjective performance metrics for that store improved

4 substantially, including:

5

a. Increased retail sales;

6

b. Decreased theft from the store; and

7

c. Significantly improved cleanliness and orderliness of the store.

8

38. At or around the same time, the King of Prussia store was experiencing

9 significant problems in the following areas:

10

a. Sales below projective levels;

11

b. Significant shrinkage; and

12

c. Significant reported issues regarding cleanliness and

13 disorganization.

14

39. The Philadelphia District Manager recommended Cogdell for Store

15 Manager at the King of Prussia store, on or around January 2009. Because the

16 King of Prussia store was a busier store in a more lucrative market, and the pay for

17 its Store Manager was higher than that for the Springfield Store Manager, this move

18 was a promotion for Cogdell. Cogdell was promoted to Store Manager at the King

19 of Prussia store in January 2009. On information and belief, at the time this

20 promotion was approved, WET SEAL senior management was not aware that

21 Cogdell was African-American.

22

40. Under Cogdell's direction, the King of Prussia store improved

23 substantially according to both objective and subjective measures utilized by WET

24 SEAL to analyze store performance. On or about Friday, February 27, 2009, at

25 mid-day, Bachman visited the King of Prussia store along with the Philadelphia

26 District Manager and other corporate officials.

27

41. Cogdell and two African-American Sales Associates overheard

28 Bachman express dismay to the Philadelphia District Manager that Cogdell was the

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1 Store Manager, saying she wanted someone with "blond hair and blue eyes."

2

42. Cogdell reasonably felt betrayed, humiliated, and belittled by what she

3 felt were Bachman's obviously racist comments and their implications for her own

4 and her Sales Associates' value to WET SEAL.

5

43. On information and belief, Bachman also stated to the Philadelphia

6 District Manager that Regional Manager Davey "must be out of her mind" to have

7 placed an African American in the position of Store Manager at the King of Prussia

8 store, and that the African-American Cogdell was not the "brand image" WET

9 SEAL wanted to project.

10

44. On information and belief, later that same day (February 27,2009),

11 Davey called Harris to complain that Bachman was being unfair and was not

12 looking at the objective measures, which showed substantial improvement in the

13 store's performance. Harris assured Davey she would speak to Bachman about it.

14 Bachman terminated Davey from her position as Regional Manager on the

15 following Monday, March 2,2009. On information and belief, Davey was

16 terminated in retaliation for placing an African American, Cogdell, in the position

17 of Store Manager at the King of Prussia WET SEAL store, and for protesting

18 Bachman's criticisms of Cogdell as unfair.

19

45. On Tuesday, March 3, 2009, Bachman sent an email to the

20 Philadelphia District Manager and others which stated that African-American

21 predominance on store teams was a "huge issue."

22

46. On Tuesday March 3, 2009, Cogdell was advised by the Philadelphia

23 District Manager that her employment was being terminated. On information and

24 belief, Bachman ordered the termination of Cogdell's employment because of

25 Cogdell's race, and advised the Philadelphia District Manager that if the

26 Philadelphia District Manager did not terminate Cogdell, the Philadelphia District

27 Manager would be fired.

28

47. One day after she received notice of her termination, March 4,2009,

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1 Cogdell contacted the EEOC and filed a charge of discrimination based on race, in

2 violation of Title VII and the Pennsylvania Human Relations Act. A copy of this

3 charge is attached hereto as Exhibit 2 and incorporated by reference.

4

48. On March 5, 2009, Cogdell contacted Barbara Arneklev ("Arneklev"),

5 WET SEAL's Vice President of Human Relations, to complain about

6 discriminatory comments and treatment and left a voice message requesting a call.

7

49. When Arneklev returned Cogdell's call on March 5, 2009, Cogdell

8 told Arneklev that she was going to her doctor the next day and preferred to

9 communicate in writing.

10

50. Cogdell was greatly distressed by these events and suffered loss of

11 sleep, headaches, and other physical and emotional distress.

12

51. Cogdell's physician ordered her out of work until March 16,2009.

13

52. Later on March 5, 2009, the Philadelphia District Manager

14 communicated via email to Cogdell that there was a "new career opportunity"

15 which she would secure in written form. Cogdell never received written

16 confirmation of a "new career opportunity."

17

53. On information and belief, the "opportunity" the Philadelphia District

18 Manager was authorized to offer Cogdell was a demotion back to the lower-paying

19 Springfield Store Manager position.

20

54. Cogdell viewed managing the Springfield store as both a demotion and

21 as part of WET SEAL's pattern of segregating African-American Store Managers

22 by assigning them to stores in mixed or largely African-American markets.

23

55. On March 6, 2009, Arneklev called Cogdell and told her "not to

24 worry" about the Springfield store and said that she could work in the King of

25 Prussia store.

26

56. Cogdell agreed to work at the King of Prussia store on the condition

27 and with the understanding that issues of racism in the workplace would be

28 addressed there before she returned. Cogdell's next day of work at the King of

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1 Prussia store was on March 16, 2009.

2

57. Cogdell reasonably expected that while she was out, WET SEAL

3 would have at least initiated an investigation into racially motivated employment

4 practices under Bachman, and would have reassured employees that racial

5 discrimination in any form would not be tolerated by WET SEAL.

6

58. Instead, Cogdell learned that WET SEAL had taken no steps to

7 address employee concerns about racial discrimination by management when she

8 was approached, the same day, by African-American employees of WET SEAL

9 who had overheard Bachman's comments about Cogdell to the District Manager

10 and had received no follow up from WET SEAL about discrimination and racism in

11 the workplace.

12

59. Cogdell was shocked to learn that WET SEAL had taken no steps to

13 deal with issues of racism, which were clearly known to WET SEAL before her

14 termination and return to work. She advised Ameklev by telephone that she would

15 finish out the day but would not continue to work for WET SEAL because the

16 company had done nothing to address employees' concerns about racism in the

17 workplace. Ameklev said she was "sorry" but made no offer to address the

18 situation.

19

60. Cogdell believed that employment under these conditions had become

20 intolerable. A reasonable African-American employee in the same circumstances

21 would have concluded that continued employment would be intolerable.

22 Accordingly, Plaintiff Cogdell was constructively terminated by WET SEAL.

23

61. On or about May 12,2010, Cogdell filed an amended EEOC charge

24 describing the events that occurred after March 4,2009, when she filed her initial

25 charge. A copy of the amended charge is attached as Exhibit 3 and incorporated by

26 reference.

27

62. The EEOC investigated Cogdell's treatment by Wet Seal and

28 determined that the evidence established "a violation of Title VII in that Charging

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1 Party was subjected to a hostile work environment and the conditions were so

2 intolerable her only recourse was to resign." A copy is attached as Exhibit 4 and

3 incorporated by reference. The EEOC subsequently issued a Notice of Right to Sue

4 on this charge, and this First Amended Complaint was timely filed within 90 days

5 of this Notice.

6

63. After her constructive discharge by WET SEAL, Cogdell attempted to

7 find work in retail sales but was unable to secure a position despite her experience

8 and qualifications. On information and belief, WET SEAL discriminated and

9 retaliated against Cogdell because of her race and opposition to discriminatory

10 practices by failing to provide fair references to potential employers.

11

64. On information and belief, Cogdell was replaced as Store Manager at

12 the King of Prussia store by a white employee with a poor performance record and

13 less experience and who was paid more than Cogdell was.

14

65. On information and belief, WET SEAL routinely promoted white

15 females to store management and higher positions despite their being unqualified or

16 poor performers according to WET SEAL's internal standards, including, for

17 example, promoting the white manager of the Granite Run store to a high profile

18 store shortly after Bachman described that store as "embarrassing and totally

19 unacceptable-[one] of the worst stores I have seen in a long time!" (Exhibit 1.)

20

66. On information and belief, in or around June 2009, Bachman

21 complimented a Maryland District Manager for her rapid comprehension of the

22 "WET SEAL look," after Bachman toured a store that had previously been staffed

23 largely by African Americans but was then staffed entirely or mostly with white

24 employees. The District Manager understood this comment to refer to the racial

25 composition of the store employees.

26

67. Although as Store Manager she was charged with some hiring

27 responsibilities, at no time during her employment did Cogdell receive any training

28 regarding equal opportunity policies or procedures at WET SEAL.

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1

PLAINTIFF HAWKINS

2

68. PlaintiffKai Hawkins ("Hawkins") first began working for WET

3 SEAL in or around July 2002 at the Plymouth Meeting Pennsylvania store. She

4 was promoted to Store Manager within several months. Hawkins was a successful

5 Store Manager who was particularly good at reducing "inventory shrink" in stores

6 she managed, and received commendation and a bonus for that success from WET

7 SEAL.

8

69. In 2003 and 2004, Hawkins was assigned to manage WET SEAL

9 stores in the Oak Ridge Mall in San Jose, California, and the Valley Mall in Santa

10 Clara, California. Both stores had high shrink before Hawkins took over as Store

11 Manager, and both had much improved numbers under Hawkins.

12

70. Hawkins returned to the Philadelphia region in 2004. Although she

13 had been promised a "high profile" store such as King of Prussia, Hawkins was

14 instead assigned to the Gallery Store at Market East in Philadelphia, a store with a

15 much larger percentage of minority shoppers. Hawkins asked repeatedly to be

16 transferred to the King of Prussia store, but was never given the opportunity to

17 manage this store, despite success in all her assignments.

18

71. In 2008, Hawkins was transferred to the Cherry Hill New Jersey store,

19 which has a larger percentage of minority shoppers than King of Prussia. The

20 Cherry Hill store was visited by Thomas, Harris and Bachman at or around the end

21 of2008. In or around late February or early March, 2009, Hawkins was told by the

22 Philadelphia District Manager that the executive management of WET SEAL had

23 said that if Hawkins did not "diversify" the staff at the Cherry Hill store by hiring

24 more non-black employees within thirty days, she would be terminated. At that

25 time, the Cherry Hill store employees were Hawkins (African-American), one Co-

26 Manager (Asian-American), two Assistant Managers (one African-American and

27 one white), and approximately eight Sales Associates (four African-American, three

28 Latina, and one white).

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1

72. On or about March 3, 2009, Hawkins saw the "huge issue" email from

2 Bachman (Exhibit 1). Hawkins was highly offended, but as a single mother she

3 did not feel she had alternatives but to keep working for WET SEAL. On

4 information and belief, WET SEAL executives were aware that Bachman's email

5 had been forwarded to WET SEAL employees, including Hawkins. In March 2009,

6 the Philadelphia District Manager told Hawkins that WET SEAL management

7 wanted to get rid of her and that she should "watch her back."

8

73. After both the Regional and District Managers to whom she reported

9 left the company, in March 2009, the new District Manager made hiring decisions

10 for the Cherry Hill store, and hired non-minority employees, rejecting without

11 explanation an African American recommended by Hawkins. This was contrary to

12 the usual WET SEAL practice, which was for Store Managers to make hiring

13 decisions for their store. On information and belief, these hiring decisions were

14 taken over by the new District Manager in order to assure that new hires at the

15 Cherry Hill store were white.

16

74. Shortly after the new District Manager assumed her duties, she gave

17 Hawkins a written discipline for shrink, despite the fact that the store audit upon

18 which the discipline was based included a period before Hawkins began to work in

19 her store, and WET SEAL senior management were aware that the sensor tags did

20 not work with the Cherry Hill equipment. Hawkins protested the discipline to HR

21 but never received a response. On information and belief, this discipline was

22 unwarranted, was out of proportion to what was imposed on similarly-situated

23 white Store Managers, and was a pretext to begin the process of terminating

24 Hawkins because of her race.

25

75. By 2010, Hawkins was one of only two African-American Store

26 Managers in the Philadelphia District; the other was assigned to the Gallery

27 location Hawkins had previously managed. Hawkins was advised by the

28 Philadelphia District Manager in February 2010 that she was terminated for having

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1 low sales and high shrink results.

2

76. In fact, the Cherry Hill shrink figures had improved since Hawkins

3 took over as Store Manager and were continuing to improve, at the time of her

4 termination. Nor had Hawkins been afforded the benefit ofmentoring or

5 progressive discipline, which, on information and belief, was routinely offered to

6 similarly-situated white Store Managers.

7

77. When she had sought transfer to other stores, Hawkins was told that it

8 was WET SEAL policy that Store Managers in high shrink stores are not eligible

9 for promotion or transfer; however, in or around November 2009, an Asian-

10 American Co-Manager from the Cherry Hill store was promoted to manage an

11 Arden B. store.

12

78. Although as Store Manager Hawkins was charged with hiring

13 subordinates, at no time during her employment with WET SEAL did Hawkins

14 receive any training regarding equal opportunity policies or procedures.

15

79. Hawkins observed that African-American employees were terminated

16 despite doing a good job and without any explanation. On information and belief,

17 an African-American employee she supervised, K. Benson, was singled out for

18 termination by Bachman because of her race, as she was a good worker who was

19 liked and respected by her colleagues and by the Philadelphia District Manager,

20 who cried as she terminated Benson.

21

80. On information and belief, during the last two years of her

22 employment at WET SEAL Hawkins' performance was as good as or better than

23 that of white Store Managers. Despite WET SEAL policy that employees receive

24 regular reviews, Hawkins received no performance reviews during her last two

25 years at WET SEAL, which made her ineligible to receive any raise. On

26 information and belief, similarly-situated white employees received performance

27 reviews and raises during this period.

28

81. On information and belief, similarly-situated white employees with

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1 lesser qualifications were promoted to higher paying positions than Hawkins.

2

82. After her termination, Hawkins sought employment. Despite her

3 qualifications, she was unable to secure employment until November 2011. On

4 information and belief, WET SEAL discriminated against and retaliated against

5 Hawkins because of her race and opposition to discriminatory practices by failing

6 to provide a fair reference to potential employers.

7

83. During the pendency of the Cogdell and other similar EEOC charges

8 of discrimination, Hawkins filed a timely charge of discrimination with the EEOC,

9 a copy of which is attached hereto as Exhibit 5 and incorporated by reference. The

10 EEOC subsequently issued a Notice of Right to Sue on this charge, and this First

11 Amended Complaint was timely filed within 90 days of this Notice.

12

PLAINTIFF SAINT-HILAIRE

13

84. PlaintiffMyriam Saint-Hilaire ("Saint-Hilaire") was hired by WET

14 SEAL in January 2007 as an Assistant Manager at WET SEAL's King of Prussia

15 store. She had retail loss prevention experience from her prior work at one of WET

16 SEAL's competitors.

17

85. Although she understood that she was going to be hired into the Co-

18 Manager position, Saint-Hilaire was given the title of Assistant Manager but

19 required to perform the duties of a Co-Manager.

20

86. According to WET SEAL policy, Saint-Hilaire should have received

21 periodic written performance reviews. Salary increases are provided as a result of

22 positive reviews. Saint-Hilaire never received a written performance review.

23 Every time she was due for a review, her Store Manager made an excuse to explain

24 why Saint-Hilaire would not receive a review. As a result, Saint-Hilaire never

25 received the pay increases that would have resulted from positive reviews. On

26 information and belief, similarly-situated white employees received performance

27 reviews and periodic raises.

28

87. Saint-Hilaire's performance at WET SEAL should have resulted in

- 18 -
FIRST AMENDED COMPLAINT - CASE NO.: SACV 12·01138 AG (ANx)

Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 20 of 50 Page ID #:364

1 positive performance reviews.

2

88. On one occasion in 2007, Saint-Hilaire was written up by her Store

3 Manager for being late (after working late the night before-hours past her

4 scheduled shift-because the store was understaffed), but white associates were

5 frequently late and not written up.

6

89. In or around December 2007, Thomas, then-President and CEO of

7 WET SEAL, visited the King of Prussia store. A few weeks after Thomas's visit to

8 the King of Prussia store, Saint-Hilaire heard from the Philadelphia District

9 Manager that she had been present with Thomas and three or four other high-level

10 corporate executives of WET SEAL when Thomas or his assistant said that they

11 were "not comfortable" with the staff at the King of Prussia store, and that while

12 the store had been doing well, it would do better if the employees had a "different

13 look" that would attract more customers. The Philadelphia District Manager was

14 told to hire an all-new management staff, keeping only the Store Manager (who

15 was white) and an African-American Assistant Manager with a very light

16 complexion. The District Manager later told Saint-Hilaire that Thomas and the

17 other high-level officials wanted her to fire the African-American employees, and

18 that she was under intense pressure to fire the African-American employees in the

19 King of Prussia store.

20

90. Saint-Hilaire was upset by what the Philadelphia District Manager told

21 her. The Philadelphia District Manager said that she would do her best to keep her,

22 and that Saint-Hilaire should "stay under the radar" by keeping the store as clean as

23 possible and not doing anything that would make her a target to be fired.

24

91. At around the same time, in late 2007 or early 2008, the King of

25 Prussia store was understaffed. One Associate said that she knew someone with

26 retail experience who could work in the store. The Store Manager, who was white,

27 asked, "Is she black?" and when the Associate said yes, the Store Manager said that

28 she had been told that they could not hire any more African-Americans, because

- 19 -
FIRST AMENDED COMPLAINT - CASE NO.: SACV 12-01138 AG (ANx)

C) Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 21 of 50 Page ID #:365

1 there were too many African-Americans and the company "needed diversity."

2

92. The Store Manager also told Saint Hilaire and other store employees

3 that they "need to hire more diversity," that they had a lot of African-American

4 employees, and that they should try to attract the kind of clientele that shopped at

5 their more upscale competitors, such as Abercrombie & Fitch.

6

93. In mid-2008, a white, tall, thin, blond Sales Associate named Leslie

7 was hired to work in the King of Prussia store. The Store Manager hired Leslie

8 because she thought she could "help them" with the "diversity issue" and because

9 she fit the "brand image," which was understood to mean white females. On

10 information and belief, Leslie was also approved for higher pay than the other

11 Associates. When Leslie later indicated that she might leave WET SEAL, she was

12 offered a raise because the management wanted to keep her in the store.

13

94. On information and belief, the Vice President for Store Operations told

14 the Philadelphia District Manager that they needed to hire "people like Leslie for

15 the WET SEAL look" to "be profitable in every way."

16

95. Saint-Hilaire went on maternity leave in late 2008. Several weeks

17 after she returned from leave, she was fired by the Philadelphia District Manager on

18 February 13,2009. The District Manager was crying when she fired Saint-Hilaire.

19

96. The District Manager told Saint-Hilaire that she was being fired

20 because she was not covering all the areas in the store while training a new

21 associate, and that she did not greet a manager who came into the store. White

22 employees were not disciplined for such conduct, and the store was too short-

23 staffed to allow full coverage of the store. On information and belief, these reasons

24 were a pretext for terminating Saint-Hilaire based on race.

25

97. On information and belief, the Philadelphia District Manager was

26 instructed by senior management to fire Saint-Hilaire because she was African-

27 American.

28

98. On information and belief, during Saint-Hilaire's employment at WET

- 20-
FIRST AMENDED COMPLAINT - CASE NO.: SACV 12·01138 AG (ANx)

Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 22 of 50 Page ID #:366

1 SEAL, she was paid less than similarly-situated white employees, and was denied

2 promotions to better paying positions that less qualified white employees received.

3

99. On information and belief, all or nearly all of the current employees in

4 the King of Prussia store are white.

5

100. On March 9, 2009, Saint-Hilaire filed a race discrimination charge

6 with the EEOC alleging that her termination was discriminatory, a copy of which is

7 attached hereto as Exhibit 6 and incorporated by reference. The EEOC

8 subsequently issued a Notice of Right to Sue on this charge, and this First Amended

9 Complaint was timely filed within 90 days of this Notice.

10

101. After her termination, Saint-Hilaire attempted to find employment.

11 WET SEAL refused to give her a reference or even verify her employment. On

12 information and belief, this refusal to verify employment or give a reference was in

13 retaliation to Saint-Hilaire's opposition to WET SEAL's discriminatory practices

14 and filing of an EEOC charge and was intended to and did interfere with Saint-

15 Hilaire's ability to find subsequent employment.

16

PLAINTIFF GUIDER

17

102. Plaintiff Michelle Guider ("Guider") was hired by WET SEAL in or

18 around September of2009 as a Sales Associate in the Arden B. store in Durham,

19 North Carolina. Guider had prior management experience.

20

103. At that time, the Durham store management team was made up of one

21 Store Manager (white) and two Assistant Managers (one white and one African-

22 American). All but one of the four to seven Sales Associates were African-

23 American.

24

104. According to WET SEAL policy, Guider should have received

25 periodic written performance reviews. WET SEAL employees are awarded salary

26 increases based on positive performance reviews.

27

105. Guider never received a written performance review. On information

28 and belief, similarly-situated white employees received performance reviews and

- 21 -
FIRST AMENDED COMPLAINT - CASE NO.: SACV 12-01138 AG (ANx)

Cj Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 23 of 50 Page ID #:367

1 periodic raises.

2

106. Guider orally received positive feedback about her performance from

3 her Store Manager, including the Store Manager's recommendation that Guider be

4 promoted to Assistant Manager. Guider's performance at WET SEAL should have

5 resulted in positive performance reviews.

6

107. In or around July 2010, the Durham Store Manager promoted Guider

7 to Assistant Manager.

8

108. In mid-2010, the Store Manager resigned and a white Assistant

9 Manager was promoted to Store Manager.

10

109. On one occasion in 2010, Guider overheard the North Carolina District

11 Manager, Marleen Coakley, and the new Store Manager discussing store hiring.

12 One of them stated that the store needed to hire "some white girls, some Hispanic

13 girls to broaden the horizon." She stated that the store needed to hire more students

14 from the University of North Carolina at Chapel Hill, a school that is known in the

15 area to be predominantly white.

16

110. On another occasion in 2010, the Store Manager told Guider that the

17 store "needed to hire a more diverse group of girls." At that time, nearly all of the

18 Sales Associates in the Durham store were African-American.

19

111. When Coakley visited the Durham store, she did not speak to African-

20 American employees, except to criticize an African-American Sales Associate

21 about her appearance. The Sales Associate was fired in or around February 2011.

22

112. On information and belief, Coakley imposed a new rule that Store

23 Managers were not permitted to hire Sales Associates without Coakley's

24 participation in a second-round interview. During one such interview at another

25 Arden B. store in North Carolina, Coakley asked the candidate "So what are you?"

26 referring to the candidate's ethnicity.

27

113. In or around February of2011, Coakley visited the Durham store and

28 told Guider that her performance needed to improve. Although Coakley had visited

- 22 -
FIRST AMENDED COMPLAINT - CASE NO.: SACV 12·01138 AG (ANx)

( ) Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 24 of 50 Page ID #:368

1 the Durham store on at least two prior occasions, this was the first time Guider

2 received any feedback from Coakley on Guider's performance at WET SEAL.

3

114. Coakley told Guider that she wanted to work with her to improve

4 Guider's performance in the areas of sales and store displays. Coakley stated that

5 she would visit the store more often to assist Guider in these areas. Guider

6 responded positively to what she believed to be an opportunity for professional

7 development, and she expressed a willingness to work on the stated performance

8 objectives.

9

115. Later that same week, Coakley informed Guider that she was being

10 demoted to Sales Associate at a lower rate of pay.

11

116. On information and belief, Coakley instructed the Store Manager to

12 reduce Guider's work hours. Guider had previously worked full-time as an

13 Assistant Manager and before that, three to four days per week as a Sales Associate.

14 After she was demoted, Guider was scheduled to work only one regular shift and

15 two "call-in" shifts, which meant she would not work unless another employee was

16 absent.

17

117. Guider felt humiliated by having to work alongside employees whom

18 she had previously supervised. She was unable to support herself without regularly

19 scheduled shifts. Guider believes that Coakley demoted her and reduced her hours

20 and pay to force Guider to resign.

21

118. Guider believed that employment under these conditions had become

22 intolerable. A reasonable African-American employee in the same circumstances

23 would have concluded that continued employment would be intolerable.

24 Accordingly, Guider was constructively discharged. Guider resigned from WET

25 SEAL in or around February 2011.

26

119. On information and belief, during Guider's employment at WET

27 SEAL, she was paid less than similarly-situated white employees.

28

120. On information and belief, Guider was replaced as Assistant Manager

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FIRST AMENDED COMPLAINT - CASE NO.: SACV 12-01138 AG (ANx)

( ) () Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 25 of 50 Page ID #:369

1 by a white employee with less experience who was hired after Guider and whom

2 Guider had trained. An African-American Sales Associate also expressed interest

3 in the vacant Assistant Manager position, but she was denied an interview even

4 though she had a positive performance record and more experience than the white

5 employee who was ultimately selected.

6

121. On information and belief, after Guider was forced to resign from

7 WET SEAL, three additional African-American women who had been Sales

8 Associates at the Durham store were fired.

9

122. On information and belief, Coakley instructed the Store Manager to

10 terminate the employment of one of the African-American Sales Associates for

11 leaving her cell phone in the break room instead of inside her locker, but white

12 Sales Associates frequently carried cell phones on the sales floor and were not

13 disciplined or fired.

14

123. On information and belief, Coakley also instructed the Store Manager

15 of the WET SEAL store in Greenbrier, North Carolina to fire or demote black

16 employees and replace them with white employees. All or nearly all of the current

17 employees at the Durham store are white.

18

FIRST CLAIM FOR RELIEF: DISCRIMINATION IN

19

VIOLATION OF 42 U.S.C. § 1981

20

124. Paragraphs 1-123 are incorporated by reference. This claim is brought

21 on behalf of Plaintiffs and the class they represent. The foregoing conduct violates

22 42 U.S.C. § 1981 because such conduct discriminates against the Plaintiffs and

23 class on the basis of their color and race.

24

125. As a result of WET SEAL's discriminatory conduct, Plaintiffs and the

25 class they represent have been denied equal pay and have lost compensation and

26 benefits they would have been entitled to in the absence of discrimination, and have

27 suffered emotional distress and consequential damages.

28

126. WET SEAL has performed the acts alleged with malice, fraud,

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FIRST AMENDED COMPLAINT - CASE NO.: SACV 12-01138 AG (ANx)

Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13( jPage 26 of 50 Page ID #:370

1 oppression, and/or reckless indifference to the protected rights of Plaintiffs and the

2 class. Plaintiffs and the class are thus entitled to recover punitive damages in an

3 amount according to proof.

4

SECOND CLAIM FOR RELIEF: RETALIATION IN

5

VIOLATION OF 42 U.S.C. § 1981

6

127. Paragraphs 1-126 are incorporated by reference. This claim is made

7 on behalf of Plaintiffs Cogdell, Hawkins, and Saint-Hilaire.

8

128. The foregoing conduct violates 42 U.S.C. § 1981 because such

9 conduct was in retaliation to the opposition by Cogdell, Hawkins, and Saint-Hilaire

10 of discrimination on the basis of race and color. As a result of WET SEAL's

11 discriminatory conduct, Plaintiffs Cogdell, Hawkins, and Saint-Hilaire have lost

12 compensation and benefits to which they would have been entitled in the absence of

13 discrimination, and have suffered emotional distress and consequential damages.

14

129. WET SEAL has performed the acts alleged with malice, fraud,

15 oppression, and/or reckless indifference to the protected rights of Cogdell,

16 Hawkins, and Saint-Hilaire. Cogdell, Hawkins, and Saint-Hilaire are thus entitled

17 to recover punitive damages in an amount according to proof.

18

THIRD CLAIM FOR RELIEF: DISCRIMINATION IN VIOLATION

19

OF TITLE VII OF CIVIL RIGHTS ACT OF 1964

20

130. Paragraphs 1-129 are incorporated by reference. This claim is brought

21 on behalf of Plaintiffs and the class they represent. The foregoing conduct violates

22 Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq.) because such

23 conduct discriminates against the Plaintiffs and class on the basis of their color and

24 race. Plaintiffs and the class have met all statutory prerequisites to suit and have

25 filed these claims in a timely manner.

26

131. As a result of WET SEAL's discriminatory conduct, Plaintiffs and the

27 class they represent have been denied back pay and front pay and have lost

28 compensation and benefits they would have been entitled to in the absence of

- 25 -
FIRST AMENDED COMPLAINT - CASE NO.: SACV 12-01138 AG (ANx)

C) Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 27 of 50 Page ID #:371

1 discrimination, and have suffered emotional distress and consequential damages.

2

132. WET SEAL has performed the acts alleged with malice, fraud,

3 oppression, and/or reckless indifference to the protected rights of Plaintiffs and the

4 class. Plaintiffs and the class are thus entitled to recover punitive damages in an

5 amount according to proof.

6

FOURTH CLAIM FOR RELIEF: RETALIATION IN VIOLATION OF

7

TITLE VII OF CIVIL RIGHTS ACT OF 1964

8

133. Paragraphs 1-132 are incorporated by reference. This claim is made

9 on behalf of Plaintiffs Cogdell, Hawkins, and Saint-Hilaire. Plaintiffs have met all

10 statutory prerequisites to suit and have filed these claims in a timely manner.

11

134. The foregoing conduct violates Title VII of the Civil Rights Act of

12 1964 (42 U.S.C. § 2000e et seq.) because such conduct was in retaliation to the

13 opposition by Cogdell, Hawkins, and Saint-Hilaire of discrimination on the basis of

14 race and color. As a result of WET SEAL's discriminatory conduct, Plaintiffs

15 Cogdell, Hawkins, and Saint-Hilaire have lost compensation and benefits to which

16 they would have been entitled in the absence of discrimination, and have suffered

17 emotional distress and consequential damages.

18

135. WET SEAL has performed the acts alleged with malice, fraud,

19 oppression, and/or reckless indifference to the protected rights of Cogdell,

20 Hawkins, and Saint-Hilaire. Cogdell, Hawkins, and Saint-Hilaire are thus entitled

21 to recover punitive damages in an amount according to proof.

22

FIFTH CLAIM FOR RELIEF: HOSTILE ENVIRONMENT

23 IN VIOLATION OF TITLE VII OF CIVIL RIGHT ACT OF 1964

24

136. Paragraphs 1-135 are incorporated by reference. This claim is

25 brought on behalf of Plaintiff Cogdell. The foregoing conduct violates Title VII of

26 the Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq.) because such conduct

27 created a hostile racial environment and forced the constructive termination of

28 Plaintiff Cogdell. As a result of WET SEAL's discriminatory conduct, Plaintiff

- 26-
FIRST AMENDED COMPLAINT - CASE NO.: SACV 12-01138 AG (ANx)

C) Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 28 of 50 Page ID #:372

1 Cogdell has lost compensation and benefits to which she would have been entitled

2 in the absence of discrimination, and has suffered emotional distress and

3 consequential damages.

4

137. WET SEAL has performed the acts alleged with malice, fraud,

5 oppression, and/or reckless indifference to the protected rights of Cogdell. Cogdell,

6 is thus entitled to recover punitive damages in an amount according to proof.

7

PRAYER FOR RELIEF

8 WHEREFORE, Plaintiffs pray for relief as follows:

9

1. An order reinstating Plaintiffs and class members to their rightful

10 positions;

11

2. All lost pay and benefits sustained by Plaintiffs and the class as a result

12 of WET SEAL's conduct according to proof;

13

3. Compensatory damages for emotional distress;

14

4. Front pay for Plaintiffs and the class;

15

5. Punitive damages for Plaintiffs and the class;

16

6. Costs incurred, including reasonable attorneys' fees to the extent

17 allowable by law;

18

7. Pre-judgment and post-judgment interest, as provided by law; and

19

8. Such other and further legal and equitable relief as this Court deems

20 necessary, just, and proper.

21

JURY TRIAL DEMAND

22

Plaintiffs on behalf of themselves and all other similarly sit6ated, demand a

23 jury trial in this action for all claims so triab

24

Dated: January 9, 2013

By:

25

26
Bill Lann Lee (SBN 108452)

27

LEWIS, FEINBERG, LEE,

28

RENAKER & JACKSON, P.C.

- 27-
FIRST AMENDED COMPLAINT - CASE NO.: SACV 12-01 138 AG (ANx)

Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13('JPage 29 of 50 Page ID #:373

1

476 9th Street

Oakland, California 94607

2

Telephone: (510) 839-6824

3

Facsimile: (510) 839-7839

blee@lewisfeinberg.com

4

Attorneys for Plaintiffs and the

5

ProposeaClass

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

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27

28

- 28-
FIRST AMENDED COMPLAINT - CASE NO.: SACV 12-01138 AG (ANx)

o C) Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 30 of 50 Page ID #:374
EXHIBIT 1

( ) () Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 31 of 50 Page ID #:375

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C) () Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 33 of 50 Page ID #:377

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Store had no rnualc on • the ~'~ad broken ilia day b.mre , \
. SIore was embMI8tfngJ VlsUS", 'lI~d ClUIftz.looked IkIlr;:uIoulll

., WS SPringfield . . New StOM Md".gjr I.cked fast pii~d retaIIeklU - bad hll'll ' . Stephania from DeptfoRi waa In \t,I1J.. ..mra trainillg her

"
)
j
J
/.
I.

() Case 8:12-cv-01138-AG(-)AN Document 49 Filed 01/09/13 Page 35 of 50 Page ID #:379
EXHIBIT 2

Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 36 of 50 Page ID #:380

Eeoc FOIIII &(8101)

CHARGE OF DI$CRIMINATION
.~: 1hls rorm Is aIfeatad b)'1/ta Prfvaoy~or 1814. See enoIOlIIId PrlIIBO)'AG1
8tatemanllll1d oIhar InI'otmatIan before COIIIple\lng lhII form.

oCharge Presented To: FEPA l!J EEOC

Agency(iN) Charge No(s): 530-2009..01834

NamB (II1dItare Mr., Af&, Mnt.)
Nicole Cogdell

Pennsylvania Human Relations Commission

CIty. Slate 8IId ZIP (;(I(Ie

-Homt Phone (Incf. Area Corle)

and EEOC
-Date of Birth

Named 18 the Employer, Ylbot~. Employment Agenay, AppreRI/cestIIp Committee, or Stele or LooaI Govemmont AgBnoy That IBelieve
Ofeorlmlnated AgaJn8t Mil or othtn. (Ifft'IQI8 than two. list unrJerPARTlOULARS betow.) .

Name

No. Emplo)'el!8. M8IIIII8I'8 PhoRe No. (Inolude Ares Gods)

WET SEAL

500 or More

(610) 768-0331

~Add""8

Q\y,bleandZIPCodB

160 North Gulph Road, King Of Prussia. PA 19460

Name

OIly. IBIata and ZIP Code

DISCRIMINATION BASED ON (0IJsc;k spptoptIate bo~(N).J

[K] D JW:I!

COLOR

o D RETALIATION

D SEX 0 AGE

0 0 RelIGION

NAYIONAl ORIGIN

DI$A8lLlTV

0 OTHER (fltJfC/fY below.)

DATE(S) DISCRIMINATION K.-::I2

Eatllail

.:".) IfIIlI'I'If

03..034009 ~3"03·2009

o OOMYINUlNG~laN

THII

LARS ME (If

pspfll'l. netdtlfUttaoh fll/fnllIhaeI(-J':

I was hIred by Respondent as a Store Manger at Its Springfield, PA location on 11/10/2008. On 1/0212009, I

was promoted to Store Manager for King of Prussia and I simultaneously ran both sloms for approximately a

month and a half before solely concentrating on KIng of Prussia. I had no performance deficiencies. On March

3, 2009, I was given my tennlnation notice (given two weeks) by Christina Sanchez, DIstrict Director. I believe

the reason for my termination was my race. black.

I believe that In violation of Title VII of the Civil RIghts Act of 1964, as amended, l have been notIfied of my termination on the baals .of my race. black. I believe a class of blacks (Dlstrict-wide and perhaps nationally) have been denied hire or tenntnatedbecause of thIs race-based decision. Respondent's Se,nlor Executive . Management has Issued a directive to decrease the number of Black employees and hire Caucasians District
wide. Approximately two weeks ago, I myself was told to discharge Black employees and hire white .
employees. I was actively trying to nnster my Black employees to another store (Springfield) so not to fire them. I transferred Cassie (white) and Kathleen (white) over to King of PrussIa. Christina Sanchez told me to
set up Interviews solely based on hiring whites (race).

Iwant tllis Ohq, tlr.. with both the mace aid the State or Iooal Agenoy. I'MY. I
will advise the egenolea I't Change my add"", or phorIe number erid I wiD llCIOPlH'ate fully Wllh them In Ihe precessIng of my charge In accotdancewJth 1helr.prooadur8a.

Jt.::;=~~~~~~~":"r~~~~-:-~~---t I swear or affirm that I have reed the abCrJe charge and that It 16 b'UB lp

the bast of my knoWledge, InformBlion and belief.

.,.. .

. $IGNATIJRIi OF CDMPLAINANT

Mar 04, 2009
Dilto

SUBSCRIBED AND SWORN TO BEFORE MI! 'I'HIS DATE (mlll/th, !lclY. ~f)

re-EO-C-CF-OaR-Ms-1e3-1 (8-51:0-11)-2--c-v--.0.1.1:3:8>U-.A<.Sf\G·:.'-;.1A.~."".V'1N".&~.~DI EocmupmIoenytm4e9ntF0ilepdp

o0r1t/u0m9/•1ty3,".t/l~0tP\fJ./'i%ai.i.gl)em•3ls7s•loofn50 Page ID #:381 PERS8N;<:-FI~L1~N~G-C~H-:-AR:-G::-:E:--~------'

I Ms. Barbara Amiekiez V" P. of Human Resources WET SEAL 26792 Burbank Foothill Ranch, CA 92610
L

Nicole D. Cogdell
THIS PERSON (check one or both)
[ i I Claims To Be Aggrieved
o Is Filing on Behalf of Other(s)
.-J EEOC CHARGE NO. 530·2009·01834
NOTICE OF CHARGE OF DISCRIMINATION
(See the enclosed for additlonallnfonnation)

This is notice that a charge of employment discrimination has been filed against your organization under:

[ ! I Title VII of the Civil Rights Act

D The Americans with Disabilities Act

D The Age Discrimination in Employment Act

D The Equal Pay Act

The boxes checked below apply to our handling of this charge:

[!J 1.

No action Is required by you at this time.

D 2.

Please call the EEOC Representative listed below concerning the further handling of this charge.

D ·3.

Please provide by

a statement of your position on the Issues covered by tills charge, with copies of any

supporting documentation to the EEOC Representative listed below. Your response will be placed in the file and considered as we investigate

the charge. A prompt response to this request will make It easier 10 conclude our investigation.

D 4.

Please respond fully by

to the enclosed request for information and send your response to the EEOC

Representative listed below. Your response will be placed in the file and considered as we Investigate the charge. A prompt response to this

request will make It easier to conclude our investigation.

D 5.'

EEOC has a Mediation program that gives parties an opportunity 10 resolve the issues of a charge without extensive investigation or

expenditure of resources. If you would like to participate, please say so on the enclosed form an~ re~p()rJdby

to

If you DO NOT wish to try Mediation, you must respond to any request(s) made above by the date(s) specified there.

For further inquiry on this matter, please use the charge number shown above. Your position statement, your response to our request for information, or any Inquiry you may have should be directed to:

William D. Cook, Enforcement Manager
EEOC Representetive
Telephone _<:..;.2.;..;;1...;.5Lo)..;.44.;.0;.•..;..;;26..;..3..;..4~ Enclosure(s): ~ Copy of Charge

Philadelphia District Office 801 Market Street Suite 1300 Philadelphia, PA 19107

CIRCUMSTANCES OF ALLEGED DISCRIMINATION

[]I D D D D D D D D RACE

COLOR

SEX

RELIGION

NATIONAL ORIGIN

AGE

DISABILITY

RETALIATION

OTHER

See enclosed copy of charge of discrimination.

Date
March 19, 2009

Name I Title of Authorized Official
Marie M. Tomasso, District Director

Case 8:12-cv-01138-AG(-)AN Document 49 Filed 01/09/13( )Page 38 of 50 Page ID #:382
EXHIBIT 3

Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 39 of 50 Page ID #:383

85'1212a10 11:B4 6:::.1=:.:-._~_ _ _ _ _ _-..:;GAL....;;;;.;;;L;....AG:....HE~R...S..CH;.;......O_E_'·_, L_D_ _ _ _ _ _R_A_G_ E _El2_'_8_2-,

AMENDED C8MtGEOF DISCROONAl'lON
Th.i,1bmt is aHeucd by tbc Privacy Act of' 1!I74i See PrivacyAct Statmncnt bcfiIre this fonn.

AGENCV
-omFEoPAe

0 CHARGE NUM8EP. -

NAMED IS mEEMPLOYEK. LA.90RORGANlZAUON. GOVER'NMfiNr AGENCY WHO 1)ISCllIMlNAT1l'O .

NAME: TIle Wet lae.

NUMBER OF EMPLOYW.NEMBERS . ,or more

S'DlEET ADDR.~SS
IfiG Norah GtdPh Read

STA.'rnANDZlPCODE .rrr.... PA.. .9460

CAUSE OF DISCRIMJNADON BASED ON (Check apptoprilr.o box(cs»

III RACE D COLOR Q SEX o!.f.£UGION

a NATIONAL ORJOIN

o .DISABIU1Y

IJ RETALtATION

D AGE

DATEl>lSClUMINATION TOOK PLACE

EARLffiST LATBS't cmmNUINGACTlQN

VIIS

31J09

THE PARTICULARS ARE: I am a Black female with significant retail marketing ~ence. I was hired by Respondent as a Store Mmager at its Springfield. PA location on 11/10lOS. On lf2lO9, I was promoted to Ston: Manager for King ofPmssiaand [
simultaneously tan both stores for approximately a month and a balfbefore solely concentmtiJIg on King ofPrussia.
I bad no perfoma.ance deficiencies.

Feb.1:uary, after visiting the King ofPrussia 5tore, Respondent's Senior Executive Mauagement issued a directive
complaining about the number ofBlack employees; they said the King ofPmssia stote looked great but I was ~ng" for the store (1 believe this was a ref"el:ence to my race). Shortly ther.eaiter, I was told to discharge Black employees and hire "'bite employees. Instead, I tried to tnmsfer my Black anptoyees to another store (Springfield) so as not to fite them. J transfem:d Cassie (white) and Kathleen (white) over 10 King ofPrussia. District Djrector Cristioa Sanchez told me to set up interviews solely based on hiring whites (race). On March 3, 2009, I was given
my termination notice (given two weeks) by Cristina Sanchez. I believe she was instru.cted to terminate me be<;ause ofmy "l'8Cie. black, and betause [ was trying to save the jobs ofBJack employees. I filed a charge immediately.

After I told Wet Seal HR that I bad filed a charge ofdiscrimination, 1hey said they would lCtake cam" ofthe situation
and asked me to retum to work at the KiDg ofPrussia store. I telumed on March 20, 2009. As soon as I arrived for work, I was approached by Black ~ployees who reported they were being terminated based c>.n race. 1finished out my work day and then re&sned because t could not work in an environment where senior management made decisions based on race~ and where they had not r.a.ken steps to halt discrimination against these employee$ after they
prom.i$ed to fIX. the problems. My replacement was white. 1 believe she was less qualified than me. but was paid rnore.

I believe that in violation of TItle vn ofthe Civil Rights Act of 1964, as amcDded, and "the p~ I have suffered
homli1;y, discIimiDation, tennination and constructive d.ischargc on the basis ofmy race, black. 1believe a class of blacks (District-wide 8.O.d perhaps nationally) hAts been denied hire Ot tenninated because ofmee-based decisions. I
reqne$ that the EEOC conduct an in\'eStigstion. 0.0. behalfofme and all other similarly-situated employees or

SlONATUIl6 OFCOMPLA~A!IT
stmSCRll:lmMND SWOR~TO UEFOREME M'3
t)A.'I1i
II\OI!tII

Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 40 of 50 Page ID #:384
EXHIBIT 4

Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 41 of 50 Page ID #:385

U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

Philadelphia District Office

80 I Market Street, Suite 1300 Philadelphia, PA 19107-3127 Intake Information Group: (800) 669-4000 Intake Information Group TTY: (800) 669-6820 Philadelphia Status Line: (866) 408-8075 Philadelphia Direct Dial: (215) 440-2602
TTY (215) 440-26\0 FAX (2\5) 440-2632, 2848 & 2604

CHARGE NUMBER: 530-2009-01834

/'.' "\\'-1£)\."1\..;";-' \

vs.
Wet Seal, Inc. 26972 Burbank Drive Foothill Ranch, CA 92610

DETERMINATION

Under the authority vested in me by the Commission, I issue the following determination as to the merits of the above-cited charge. All requirements for coverage have been met under Title VII of the Civil Rights Act of 1964, as amended (Title VII).

Charging Party alleges that because of her race (Black) she was subjected to harassment and a hostile work environment. Charging Party alleges that because of the harassment, she constructively discharged her employment. Charging Party further alleges that Respondent replaced her with a white female, who was less qualified and paid a higher salary.
Charging Party was re-hired with Respondent on November 10, 2008 as a Store Manager in its Springfield, PA store. In February 2009, Respondent's Regional Director, officially assigned her to the position of Store Manager in the King of Prussia location. Charging Party alleged that on March 3, 2009, she saw an email in which Barbara Bachman, former Sr. Vice President of Operations, drafted summarizing the results of her store visits. In Bachman's memo she referenced the King of Prussia store as having too many African Americans, which was problematic, and concluded that Charging Party was not "right" for the store. On March 4,2009, Charging Party called Barbara Arnekl~v, former Vice President of Human Resources, to complain about Ms. Bachman's comments and expressed concern that Respondent was considering Charging Party's termination. Because of these events, Charging Party went on medical leave. Ms. Arneklev assured Charging Party her job was safe and instructed her to return to her assigned store at the completion of her medical leave.
Charging Party returned to work on March 20, 2009. Upon her return, African American employees approached her to report they were being terminated because of race. On the same day, Charging Party resigned in protest of the terminations and having to address the numerous

( ) () Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 42 of 50 Page ID #:386
discrimination concerns of her employees. She alleges that her replacement was white, with less experience and paid a higher salary.
Respondent denies the charges and states that Cogdell resigned her position and, thus, there has been no adverse employment action. Respondent states it originally hired Charging Party in September 2002 and she resigned in January 2003 for unknown reasons. It further contends that Charging Party's race was not an issue since she was re-hired in November 2008. Respondent contends that on January 2, 2009, the Regional Director, Meghan Davey, transferred Charging Party to King of Prussia, a higher volume store with underperforming sales, without Respondent's approval. With respect to the Bachman e-mail, Respondent failed to address the issue in its position statement. However, during the August 10, 2010 deposition, Bachman averred that she wrote the memo to stress the importance of having diversity in all stores.
With respect to the wage issue, Respondent stated it hired Nicole Moser on March 23, 2009 to replace Charging Party. Respondent contends that it paid Moser a higher salary because of her experience as a District Manager and that she held a store manager position earning a salary of $54,800 in a different retail environment that was significantly larger than Wet Seal. Therefore, she was offered ajob with Respondent at a salary of$48,999.12.
An analysis of documental and testimonial evidenc~ reveal that corporate managers have openly stated they wanted employees who had "the Armani look, were white, had blue-eyes, thin, and blond in order to be profitable." A review of the e-mail Ms. Bachman distributed after conducting store visits in the Maryland and Philadelphia markets, stated the following: Global Issues: "Stores Teams- need diversity African Americans dominate - huge issue." Bachman proceeded to give her observations of individual stores. Under [Wet Seal] King of Prussia, Bachman wrote, "Store Manager is not right for this store-she has been in this store for a month!"
A review of Charging Party's employment record during her five-month employment shows she demonstrated outstanding performance and her store sales and shrinkage records exceeded standards. Charging Party's Regional Director and District Manager described her as having great energy, strong ability to hold all members of management accountable around .payroll, shipment processing and placement, backroom and sales floor standards. Further records show that under Charging Party's leadership, the King of Prussia store received high ratings and positive feedback from the Field Visual Manager and Loss Prevention Manager. Under Chargi~g Party's supervision, the records show the King of Prussia store ranked Number 8 in the company.
A review of Ms. Bachman's personnel file revealed that in previous years, Respondent warned her about making discriminatory remarks about males that ultimately resulted in a gender discrimination complaint. However, Respondent retained Ms. Bachman in high-level management positions with supervisory authority. With respect to the memo that generated the instant charge, Ms. Bachman only received a written warning but no further action was imposed to prevent such conduct from arising in the future. Ms. Bachman voluntarily resigned in Year 2011.

Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 43 of 50 Page ID #:387
With respect to Charging Party's constructive discharge claim, The Supreme Court held, to establish "constructive discharge'" in a hostile environment claim the [Charging Party] must prove that she was the victim of a hostile work environment and that "the abusive working environment became so intolerable that her resignation qualified as a fitting response. II
In the instant charge, the evidence demonstrates that Charging Party was under insurmountable pressure following the corporate visit in February 2009. The material facts of the case reveals, Barbara Harris, Vice President of Operations, instructed Sanchez to demote Charging Party and transfer her back to the Springfield location, which is a lower volume store. Respondent failed to proffer a legitimate business reason to justify transferring Charging Party to a lower volume store but for the fact, she was an African American.
Witness interviews corroborate Charging Party's claims that she was upset at the prospect of Respondent terminating African American employees in King of Prussia based on Bachman's assessment that African American dominance in the sales force was a "huge issue". Charging Party faced further humiliation to know corporate officials considered her as not being "right" for King of Prussia despite her glowing performance as its store manager. Witness interviews revealed that Bachman never expressed diversity concerns in stores with a predominantly White sales force but encouraged it because the sales force mirrored the community.
Charging Party complained to Human Resources about the discriminatory e-mail and comments but no corrective action was taken. Thus, Charging Party went on a medical stress leave due to the stressful working conditions. Upon her return to work, African, American employees bombarded Charging Party with concerns of ongoing race discrimination and possible terminations over which she had no control. Respondent's faihITe to take effective remedial and con'ectiye action to address the egregious managerial conduct of Bachman and other corporate officials, created a stressful and hostile working environment for Charging Party coupled with the fact, she was employed with a company where managers were instructed to make employment decisions based on race.
Based on this analysis I have determined that the evidence obtained during the investigation establishes a violation of Title VII in that Charging Party was subjected to a hostile work environment and the conditions were so intolerable, her only recourse was to resign. No finding is made with respect to any remaining issues.
Upon finding that there is reason to believe that a violation has occurred, the Commission attempts to eliminate the alleged unlawful practices by informal methods of conciliation. Therefore, the Commission now invites the. parties to join with it in reaching a just resolution of this matter. In this regard, conciliation of this matter has now begun. Please be advised that upon receipt of this finding, any reasonable offer to resolve this matter will be considered. The Commission may seek an amount inclusive of the applicable cap to Respondent's organization for compensatory and punitive damages and actual monetary losses incurred by the Charging Party.
A Conciliation Agreement will be mailed with a demand to include actual and compensatory and/or punitive damages, if any; and, if appropriate attorney fees and costs which have accrued

Case 8:12-cv-01138-A(Gj-AN Document 49 Filed 01/09/13( jPage 44 of 50 Page ID #:388
to date. Again, the Commission's is postured to consider any reasonable offer during this period. If an offer has not been previously submitted, Respondent is requested to accept, reject, or submit a counteroffer within 15 days of its receipt of the conciliation proposal, which will be forthcoming shortly separately. The confidentiality provisions of the statute and Commission's Regulations apply to information obtained during conciliation. If the Respondent declines to discuss settlement or when, for any other reason, a settlement acceptable to the office Director is not obtained, the Director will inform the parties and advise them of the court enforcement alternatives available to aggrieved persons and the Commission.
On Behalf ofthe Commission:

Date
Cc: Nancy DeMis, Esquire Counsel for Charging Party
Nancy Abell, Esquire Counsel for Respondent

Spencer H. Lewis District Director

Cj Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13~)Page 45 of 50 Page ID #:389
EXHIBIT 5

~~?OENFELD Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 46 of 50 Page ID #:390

10/05/2012 12:51

GALLAGHER

PAGE 03/04

CHARGE OF DISCRIMINATTON This form is affected by the Privacy Act of 1974; Sec Privacy Act StatE:ment before
-cr ·...oleting this fonn.

AGENCY

CHARGE NUMBER

SEEOC

S$fJ cJ-1f.!; ~p~ lSi

Pennsylvania Human Relations Commission lind EEOC

I NAMB (Indicate Mr.• Ms., MnJ Kal Hawkins

HOMe TELEPt-rONE (Include Area c o d ! l ) _ -

_I" J AlJl.J~;'i)

ClTY. STATE AND ZIP CODE

DATE OF BIRT~-l

.'

"

NAMED'S THE EMPloYER, LABOR ORGANIZATION. EMPLOYMENT AGENCY AP~RENTICESJ:lIP COMMI'TTEE, STATE OR LOCAL'

' I J GOV.ERNMENT AGElI-ICY WHO DlSCRJMI'NATED AGAINST M~ (if more than one list below.)

NAME:

NUMBER OF EMnOYEES, MEMBERS

TE.T••F.WHONE NUMBER (.Include Area. Code)

Tbe Wet SeliA, Inc.

500 or more

949-699·3900

STREET ADDRESS

CITY. STATE AN.D ZIP CODE

Store: Cherry Hill Mall, Haddon.field Road. at Kaighns Avenue, ClJerry Hill NJ 08002

HQ: 26972 Burbank Foothill Ranch, California 92610.

COUNTY CAmden. NJ
Ornnge County, CA.

CAUSE OF DISCRJMINATION BASED ON (Check aPPl'(lpriatc box(es))

BRACE 1!!ICOLOR o SEX

ClRELlGION

Cl NATIONAL ORIGIN

[J DISABILITY

Ii!I RETALIATION

cAGE

DATE DISCR.IMINATION TOOK PLACE

5ARL TEST

LATEST..J CONTlJllUING ACTION

THJ: PARTICULARS ARE:

I believe I have been discriminated against on account of my race (African-American) and color (hlack). This discrimination is part of 11 pattern or

practice and policy ofdiscriminatiol'lllgnin:lt AfiiC£ln-American anel black employees and form.er employees of Wet Seal £IS follows:

. .

I began working for WET SEAL in around .Tuly Z002 at the Plymouth Meeting Pennsylvania stOTt. I was promoted to Store Maneger (SM) ""'thm

several months. In Z003 and 2004, I effectively managed WET SEAL storeS in California. I returned to the Philadclphin region in :2004, where J had been

promised a "high profile" store such as King of Prussia (KO?). Instead, I was assigned to the Gallery Store III Market East in Philadelphia, a lower volume

store with a larger percentage of minority shopper:s.. I repeatedly requested tronsfer to KOP or another hotter-ranked store. African American mapagetpE:llt employecs were almost e"clusively limited to positions in lower volume. lower profile store~ with higher minority customers. and were much leS$ likely to
be placed in better mans or those with largely white customer bases.
In 2008. I was assigned 10 manage the Cherry Hill New Jersey store. which has tllal'ger pcrcen(.f~8e ofminolity shoppcrs thlUl KOt>. The Cherry Hill

store was visited by CEO Ed Thol11lls (white), and VPs Barbara H"llrris (white) nnd Barbara Bachman(whitc) itt or around late Z008. Around PeblMal'cb.

.2009. philadelphia District Maneger ("DM") Cristina SRneho?,; told mE: that I WIlS required k,. "diversify" my team by hiring more white employeEs within
thirty days, or I would be terminated. At around the samc time. Sanchez forwarded an cmail from Baehrnlll'l saying African American dominance 01'1 store s was Ii "huge issue." [ did not follow the oroer to "diversify" the store team, which would have meant tenninatlng employee~ baslld on mce.

• no time during my E:mploymeot with WET SEAL did I receive any training regarding eq\lil\ opportunity policics or procedures. Although Afriean-

American employees were hired tor SEasonal nnd other wor~. they were subjected to discipline and ttnnination at a higher rate than other employees. Some

African·American employees were terminated because of their race. For example, Sanchez was visibly upsel when she terminated K. Benson (African American). Sanchez said she was orderecl to lenninate Benson by VP Barbara Bachman (white). bcca.\lse Bachman (1;(1 not Iikc Ben!lon'~ "look." Benson

was a good worker who did [lot disserve to be terminated.

In September 2009 a nC"W DM took over the Philadelphia di~trict, Monyn Vuletic (white). Contrary to usual Wet Seal practice, VUletie madc hjri~g decisions fbr the Ch~ny Hill store. She rejected without explanation 1\ qualitled African-American cnn<lk1.ate [rccommended and selected a less qUllhfied
white applicant for Assistant Manager under me without oven consulting me. Shortly after Vuletic became OM, she gave me a written discipline for

shrink, even though the audit included a pcriod before TbegantQ work in her store, and Wet Seal SEnsor tPgs did not work in the Cherry Hill mall. .t protest.ed the discipline to HR but never got a response. During my las1 two year~ of employment at WET SEAL [received no review and no raise. T

believe white Store Managers received performance reviews Ilnd raises during this pcriod. In 20 10, I w~s one ofonly two African-Alllerican Store.

Managers in the J.>hiladelphia District; the other black store manager WIIS in the "urban" Gp.1lery location I had had previou!lly managed. I was tcrmmated in, February 2010 by OM Vuletic, without fullowing Wet ~eal's progressive discipline policy, She said it WQ.~ because ofhi~h shrink. My tennina.1:ion was

because of my raoe, find because' did oot carry out instructions to chnnse thll: racial makeup ofmy store team. The Cherry Hill shrink figllre8 had . improved since J took over as Store Manager nlld were continuing to improve. Also. prior to my terminat\on, on Asian Co-Manager from the ChCl'lY HII~

store was promoted to m&no.ge an Arden B. store. WET SBAL policy was that managers in high shrink stores were not eligible for promotion or transfer,

:>0 eitber the ;;tm;dards were different for non-Ati·ielln American managers. or the Cherry Hill store wos not really experiencing high shrink.

After my t.ermination, I could not find ajob until November 20 I J. J believe that Wet Senl failed to provide a fair reference to potential employers, in

retaliation f.or my objecting to discrimination.

I am part of the samc clEl8s. and subject to the sarnO, ongoing pattcrn or praclicE and policy of discrimination and retaliation, as alleged in numerous

peoding EEOC ch[lfges of discrimination against Wet Senl. inch)cling thc charges ofNieole Cogdell (530·:2009·01834). M)lriam Sainthilaire (530-200901836) and Katie Benson (530-2009-1933). all filed in March. 2009. The filing of thesl; olos~ charges tolled the limitation~ period for the tiling ofsimilaT

Ch!l.Tll:es. Accordingly, my cbarge Is timely. I make this chat~e on my own behalf and of behalf of all others similarly situated.

IBI I WDnt this chsrge filed with both the eEOC and the State or local Agency. '1 wilIllcl\'isc the ngencic$ ifl change my IIcldte.~g or telephone number ~Ild cooperDte flllly Wilh 11,em in the proecs$ing afmy charge in nccOl'<lanee with their "procedurc~.

NOTARY· (when neccssRty f\:lr Stole and Locol Requirement!;)
I ~woar or affirm thm Thave read tile l'bovc charge ariel thaI it is tnlC 10 the bC>lt of my knowledge, fnformllticm 9I1d belfef.

I declare under penalty of perjury that the foregoing is true and correct.

SIGNATURE 01' COMl'tAINANT

JbLl J Dato:

\~ Charging Party (.,lgnamre) lC-t,.=tl> 1 ~ ~

\ I

Sl.Ifl$CRIBED AND SWORN TO BEFORE ME THIS
DATE
(day, month and l'e;,r)

Case 8:12-cv-01138-A(Gj-AN Document 49 Filed 01/09/13()Page 47 of 50 Page ID #:391
EXHIBIT 6

Case 8:12-cv-01138-AG-AN

Document 49

Filed 01/09/13("P~a.geI 48 of 50
Charge ~jli;'!.1 To:
FePA
eeoo

Page ID #:392
Ag,enoyf\es) Charge No(s):
630.2009.01836
and eeoc

*' Name Qntllcafs1k, IIt&J
MYl1am Sainthnatre

CII¥. Slate and liP Code

NamedJathe

or Slate or Local GDvemmentAgency That I Balleve

Name

WET SEAL

~~~

~~n~~

160 North Gulph Road, King Of PI'lIMIa, PA 19460

ltv.

t.tambe", P1JQ1\8 No.

AI81I GDD'eJ

500 or More

(610) 768-0331

DISCRIMINATION IIA6IO

rn 0 0 RACE

COLOR

o D RETALIATION

AGE

SEX
0

D 0 RELIGION

NATlONAI.OR1GIN

0 DtSABILI1Y.

OlHER~b81DW.)

1'001(PLACE •

R'EstrIiI:&_t ~ ~
~:i~

O~..1IS3Ia..S2I009

CONTINUING ACllON

. . ...... ..' .... . . ".

dlICIIJ

I was hired by Respondent 88 an Asst. Store Manager at Its KfTIO OfPiUSSfaloCiti6rrlh0112007. In 2007, I was

falsely written up by Menssa Khan, Aeat store Mgr., (niCG=White) for not attending the meeting: In February of

2009. I was written up by Christina Sanchez (HIspanic), DistricI: Manager, for not -rtgure 8-1ng" loss prevention

Issues. It was a rule we never usedlpract{ced at KIng of Prussia. On February 13, 2009, I was fired by

Christina for not attending the front whDe I was doing fitting room, shipment and ugo..backD with the new

was a~clate. Chrlatiria tokl me iii manager came In the store ant;l was not greetet;l and also my pay raise was an

Issue. I believe the reason for my termination my race, black.

'.

Ibelieve that In'vlolation of Title val of the CMI Rights Aot of 1964, as amended, I havel'~n terminated on the

basis of my race, black. I believe a class of blacks (DIstrict.-wide and nationally) have Deen denied hire or

terminated because of their 1'8Oe,. blaek. Barbie (r.ac:e--white), President's Edward JohnsOJ1's Asst., told Kim .

DeFelice (store mgf. ra~that th~need tcWil8 more people who look like Leslie (white. tall blOnde) and

"maybe we will be profitable. ' ~lfi1':~r___ck) applied and Melissa said we Gould not hire her

because she was black and we were riot aHowec:I to hire blacks. Another associate referred a friend and

Melissa told herthat she could not hire any more ~Iack

Melissa·told me several ocoaslons) that we

~~~~~~~~~~~~~"""':"'"__~_ _-I I swear OI'aftkm that I havereadtha abowcM'9Band that his lruato the best of my Ic.nOWledgs,lnftJrmaUon and beUer.
SIGNATURE OF COMPlAINANT

Mar04,2009 Dp

SUPSCRIBEDAND SWORN TO PEFORS ME THIS DJ\"I'S
(lIIOIHh, I'IIY, ,Veal)

Case 8:12-cv-01138-ArG'\-AN Document 49 Filed 01/09/13 Page 49 of 50 Page ID #:393

t EEOC FORM 131 (6/01)

\. )
U.S.

\
Employment Opportunity

ission

')
.,~, ,

, - M~. Barbara Amekfez
V. ·P. of Human Resources WET SEAL 26972 Burbank Foothill Ranch, CA 92610
L

Mu,rIAIIn Sainthilalre
THIS PERSON (check one or both)
[!] Claims To Be Aggrieved
D Is Filing on Behalf of Olher(s)
.J EEOC CHARGE NO.
530·2009"()1836

NOTICE OF CHARGE OF DISCRIMINATION
(See the enclosed for additional Information)

00 D This Is notice that a charge of employment discrimination has been flied against your organization under:

Title VII of the Civil Rights Ad.

The Americans with DlsablllUes Act

o The Age DIscrimination In Employment Ad.

D The Equal Pay Act

The boxes checked below apply to our handling of this charge:

[!J 1.

No action Is required by you, at this time.

D 2.

Please call the EEOC Representative listed below concerning the further handling of this charge•

0 .3.

Please provide by .

a statement of your position on the Issues covered by this charge. with copies of any

supporting documentation to the EEOC Representative listed below. Your response will be placed In the file and considered as we Investigate

the charge. A prompt response to this request will make It easier to conclude our Investigation.

D 4.

Please respond fully by

to the enclosed request for Infonnatlon and send your response to the EEOC

Representative listed below. Your response will be placed In the file and considered as we Investigate the charge. A prompt response to this

request will make It easier to conclude our Investigation.

05.

EEOC has a Mediation program that gives parties an opportunity to resolve the Issues of a charge without extensive InvesUgation or

expenditure of resources. If you would like to participate. please say so on theenciosed,form.andrespond.by

to

If you ~ wish to try Mediation. you must respond to any request(s) made above by the date(s) specified there.

For further inquiry on this maHer, please use the charge number shown above. Your position statement, your response to our request for Infonnatlon, or any Inquiry you may have should be dlred.ed to:

William D. Cook. Enforcement Manager

EEOC Representallve

Telephone ___<.2.._15...>._44_0_._. 2_6_34 _

I:8J Enclosure(s):

Copy of Charge

Philadelphia District Office 801 Market Street Suite 1300 Philadelphia, PA 19107

1]1 0 D D o 0 D D D CIRCUMSTANCES OF ALLEGED DISCRIMINATION

RACE

COLOR

SEX

RELIGION

NATIONAL ORIGIN

AGE

DISABILITY

RETALIATION

OTHER

See enclosed copy of charge of discrimination.

Date
March 19, 2009

Name I TiUe of Authorized Official
Marie M. Tomasso, District Director

Signature

( ) () Case 8:12-cv-01138-AG-AN Document 49 Filed 01/09/13 Page 50 of 50 Page ID #:394

1

CERTIFICATE OF SERVICE

2 I, Nate Jenkins, declare:

3

My business address is 476 9th Street, Oakland, California, 94607. I am over

4 the age of 18 years and not a party to the above-entitled action.

5

On January 9,2013, I served:

6

FIRST AMENDED COMPLAINT

7 on the persons listed below bye-mail, addressed as follows:

8
NANCY L. ABELL
9 nancyabell@paulhastings.com
10 HOLLY R. LAKE
holly lake@paulhastings.com 11 LISAM. PAEZ
12 lisapaez@paulhastings.com
PAUL HASTINGS LLP
13 515 South Flower Street, Twenty-Fifth Floor 14 Los Angeles, CA 90071-2228

15 JAMES P. CARTER 16 jamescarter@paulhastings.com
PAUL HASTINGS LLP
17 695 Town Center Drive, Seventeenth Floor 18 Costa Mesa, CA 92626

19
I declare under penalty of perjury that the foregoing is true and correct.
20
Executed on January 9,2013 at Oakland, California
21

22

23

24

25

26

27

28

FIRST AMENDED COMPLAINT CASE NO.: SACV 12-01138 AG (ANX)

 </s> Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 1 of 18
(ANx),CLOSED,DISCOVERY,MANADR
UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA (Southern Division − Santa Ana)
CIVIL DOCKET FOR CASE #: 8:12−cv−01138−AG−AN

Nicole Cogdell et al v. The Wet Seal Inc et al Assigned to: Judge Andrew J. Guilford Referred to: Magistrate Judge Arthur Nakazato Cause: 28:1331 Fed. Question: Employment Discrimination
Plaintiff

Date Filed: 07/12/2012 Date Terminated: 12/09/2013 Jury Demand: Plaintiff Nature of Suit: 442 Civil Rights: Jobs Jurisdiction: Federal Question

Nicole Cogdell on behalf of themselves and all others similarly situated

represented by Bill Lann Lee Civil Rights Education and Enforcement Center 2120 University Ave. Berkeley, CA 94704 510−431−8484 Email: blee@creeclaw.org ATTORNEY TO BE NOTICED

Brad Seligman Lewis Feinberg Lee Renaker and Jackson PC 476 Ninth Street Oakland, CA 94607 510−839−6824 Fax: 510−839−7839 Email: bseligman@lewisfeinberg.com TERMINATED: 01/02/2013

Debo P Adegbile NAACP Legal Defense and Educational Fund Inc 99 Hudson Street Suite 1600 New York, NY 10013 212−965−2200 Fax: 212−226−7592 Email: dadegbile@naacpldf.org TERMINATED: 04/22/2013 PRO HAC VICE

Elise C Boddie NAACP Legal Defense and Educational Fund Inc 99 Hudson Street Suite 1600 New York, NY 10013 212−965−2200 Fax: 212−226−7592 Email: eboddie@naacpldf.org TERMINATED: 05/15/2013 PRO HAC VICE

Julie Wilensky Civil Rights Education and Enforcement Center 2120 University Ave. Berkeley, CA 94704 510−431−8484 Email: jwilensky@creeclaw.org ATTORNEY TO BE NOTICED

Leah C Aden

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 2 of 18
NAACP Legal Defense and Education Fund, Inc. 40 Rector Street 5th Floor New York, NY 10006 212−965−2259 Fax: 212−226−7592 Email: laden@naacpldf.org PRO HAC VICE ATTORNEY TO BE NOTICED
Nancy C DeMis Gallagher Schoenfeld Surkin Chupein and DeMis PC 25 West Second Street PO Box 900 Media, PA 19063 610−565−4600 Fax: 610−566−8257 Email: ncd@gsscd.com PRO HAC VICE ATTORNEY TO BE NOTICED
Renika C Moore NAACP Legal Defense and Educational Fund Inc 40 Rector Street 5th Floor New York, NY 10006 212−965−2200 Fax: 212−226−7592 Email: rmoore@naacpldf.org TERMINATED: 01/25/2016 PRO HAC VICE
Ria Tabacco Mar NAACP Legal Defense and Educational Fund Inc 40 Rector Street 5th Floor New York, NY 10006 212−965−2200 Fax: 212−226−7592 Email: rtabacco@naacpldf.org TERMINATED: 08/21/2014 PRO HAC VICE
Shira Wakschlag Lewis Feinberg Lee Renaker and Jackson PC 476 Ninth Street Oakland, CA 94607 510−839−6824 Fax: 510−839−7839 Email: SWakschlag@lewisfeinberg.com TERMINATED: 03/31/2015
Sima Fard Sima Fard Law Offices 19900 MacArthur Blvd, Suite 1150 Irvine, CA 92612 949−476−7006 Email: simafard@earthlink.net ATTORNEY TO BE NOTICED
Susan R Fiorentino

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 3 of 18

Gallagher Schoenfeld Surkin Chupin and DeMis PC 25 West Second Street PO Box 900 Media, PA 19063 610−565−4600 Fax: 610−566−8257 Email: sfiorentino@gsscd.com TERMINATED: 08/14/2013 PRO HAC VICE

Plaintiff
Kai Hawkins on behalf of themselves and all others similarly situated

represented by Bill Lann Lee (See above for address) ATTORNEY TO BE NOTICED

Brad Seligman (See above for address) TERMINATED: 01/02/2013

Debo P Adegbile (See above for address) TERMINATED: 04/22/2013 PRO HAC VICE

Elise C Boddie (See above for address) TERMINATED: 05/15/2013 PRO HAC VICE

Julie Wilensky (See above for address) ATTORNEY TO BE NOTICED

Leah C Aden (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Nancy C DeMis (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Renika C Moore (See above for address) TERMINATED: 01/25/2016 PRO HAC VICE

Ria Tabacco Mar (See above for address) TERMINATED: 08/21/2014 PRO HAC VICE

Shira Wakschlag (See above for address) TERMINATED: 03/31/2015

Susan R Fiorentino (See above for address) TERMINATED: 08/14/2013 PRO HAC VICE

Plaintiff

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 4 of 18

Myriam Saint−Hilaire on behalf of themselves and all others similarly situated

represented by Bill Lann Lee (See above for address) ATTORNEY TO BE NOTICED

Brad Seligman (See above for address) TERMINATED: 01/02/2013

Debo P Adegbile (See above for address) TERMINATED: 04/22/2013 PRO HAC VICE

Elise C Boddie (See above for address) TERMINATED: 05/15/2013 PRO HAC VICE

Julie Wilensky (See above for address) ATTORNEY TO BE NOTICED

Leah C Aden (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Nancy C DeMis (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED

Renika C Moore (See above for address) TERMINATED: 01/25/2016 PRO HAC VICE

Ria Tabacco Mar (See above for address) TERMINATED: 08/21/2014 PRO HAC VICE

Shira Wakschlag (See above for address) TERMINATED: 03/31/2015

Susan R Fiorentino (See above for address) TERMINATED: 08/14/2013 PRO HAC VICE

Plaintiff Michelle Guider

represented by Bill Lann Lee (See above for address) ATTORNEY TO BE NOTICED

Debo P Adegbile (See above for address) TERMINATED: 04/22/2013 PRO HAC VICE

Elise C Boddie (See above for address) TERMINATED: 05/15/2013

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 5 of 18
PRO HAC VICE
Julie Wilensky (See above for address) ATTORNEY TO BE NOTICED
Leah C Aden (See above for address) PRO HAC VICE ATTORNEY TO BE NOTICED
Renika C Moore (See above for address) TERMINATED: 01/25/2016 PRO HAC VICE
Ria Tabacco Mar (See above for address) TERMINATED: 08/21/2014 PRO HAC VICE
Shira Wakschlag (See above for address) TERMINATED: 03/31/2015

V. Defendant The Wet Seal Inc

represented by Nancy Abell Paul Hastiings LLP 515 South Flower Street, 25th Floor Los Angeles, CA 90071 213−683−6000 Fax: 213−627−0705 Email: nancyabell@paulhastings.com LEAD ATTORNEY ATTORNEY TO BE NOTICED
Hillary Jay Baca Paul Hastings LLP 515 South Flower Street 2th Floor Los Angeles, CA 90071 213−683−6000 Email: hjb@jmbm.com TERMINATED: 06/20/2014
Holly R Lake Miller Law Group PC 11845 West Olympic Blvd Suite 910 W Los Angeles, CA 90064−1149 310−943−8500 Fax: 310−943−8501 Email: HLake@millerlawgroup.com TERMINATED: 05/15/2013
James Putman Carter Jackson Lewis PC 200 Spectrum Center Drive Suite 500 Irvine, CA 92618 949−885−1360 Fax: 949−885−1380 Email: james.carter@jacksonlewis.com

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 6 of 18

ATTORNEY TO BE NOTICED

Lisa M Paez Paul Hastings LLP 515 South Flower Street 25th Floor Los Angeles, CA 90071−2228 213−683−6259 Fax: 213−627−0705 Email: lisapaez@paulhastings.com ATTORNEY TO BE NOTICED

Defendant The Wet Seal Retail Inc

represented by Nancy Abell (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

Hillary Jay Baca (See above for address) TERMINATED: 06/20/2014

Holly R Lake (See above for address) ATTORNEY TO BE NOTICED

James Putman Carter (See above for address) ATTORNEY TO BE NOTICED

Lisa M Paez (See above for address) ATTORNEY TO BE NOTICED

Defendant Wet Seal GC Inc

represented by Nancy Abell (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

Hillary Jay Baca (See above for address) TERMINATED: 06/20/2014

Holly R Lake (See above for address) ATTORNEY TO BE NOTICED

James Putman Carter (See above for address) ATTORNEY TO BE NOTICED

Lisa M Paez (See above for address) ATTORNEY TO BE NOTICED

Defendant Wet Seal GC LLC

represented by Nancy Abell (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

Hillary Jay Baca (See above for address)

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 7 of 18
TERMINATED: 06/20/2014
Holly R Lake (See above for address) ATTORNEY TO BE NOTICED
James Putman Carter (See above for address) ATTORNEY TO BE NOTICED
Lisa M Paez (See above for address) ATTORNEY TO BE NOTICED

Date Filed 07/12/2012
07/12/2012 07/12/2012 07/12/2012 07/13/2012 07/13/2012 07/13/2012 07/13/2012 07/13/2012 07/13/2012 07/17/2012

# Docket Text
1 COMPLAINT against Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc and Wet Seal GC LLC. Case assigned to Judge Andrew J. Guilford for all further proceedings. Discovery referred to Magistrate Judge Arthur Nakazato.(Filing fee $350 Paid). Jury Demanded. Filed by Plaintiffs Nicole Cogdell, Kai Hawkins and Myriam Saint−Hilaire.(lwag) (Entered: 07/13/2012)
21 DAY Summons Issued re Complaint − (Discovery), Complaint − (Discovery) 1 as to Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc and Wet Seal GC LLC. (lwag) (Entered: 07/13/2012)
2 CERTIFICATION and Notice of Interested Parties filed by Plaintiffs Nicole Cogdell, Kai Hawkins and Myriam Saint−Hilaire. (lwag) (Entered: 07/13/2012)
3 NOTICE TO PARTIES OF COURT−DIRECTED ADR PROGRAM filed.(lwag) (Entered: 07/13/2012)
4 NOTICE OF FILING FEE DUE on Pro Hac Vice Application emailed and mailed to Nancy C. DeMis for Plaintiffs Nicole Cogdell, Kai Hawkins and Myriam Saint−Hilaire. (Attachments: # 1 G−64 Application, # 2 G−64 Proposed Order) (lwag) (Entered: 07/13/2012)
5 NOTICE OF FILING FEE DUE on Pro Hac Vice Application emailed and mailed to Susan R. Fiorentino for Plaintiffs Nicole Cogdell, Kai Hawkins and Myriam Saint−Hilaire. (Attachments: # 1 G−64 Application, # 2 G−64 Proposed Order) (lwag) (Entered: 07/13/2012)
6 NOTICE OF FILING FEE DUE on Pro Hac Vice Application emailed and mailed to Debo P. Adegbile for Plaintiffs Nicole Cogdell, Kai Hawkins and Myriam Saint−Hilaire. (Attachments: # 1 G−64 Application, # 2 G−64 Proposed Order) (lwag) (Entered: 07/13/2012)
7 NOTICE OF FILING FEE DUE on Pro Hac Vice Application emailed and mailed to Elisa Boddie for Plaintiffs Nicole Cogdell, Kai Hawkins and Myriam Saint−Hilaire. (Attachments: # 1 G−64 Application, # 2 G−64 Proposed Order) (lwag) (Entered: 07/13/2012)
8 NOTICE OF FILING FEE DUE on Pro Hac Vice Application emailed and mailed to ReNika C. Moore for Plaintiffs Nicole Cogdell, Kai Hawkins and Myriam Saint−Hilaire. (Attachments: # 1 G−64 Application, # 2 G−64 Proposed Ordr) (lwag) (Entered: 07/13/2012)
9 NOTICE OF FILING FEE DUE on Pro Hac Vice Application emailed and mailed to Ria A. Tabacco for Plaintiffs Nicole Cogdell, Kai Hawkins and Myriam Saint−Hilaire. (Attachments: # 1 G−64 Application, # 2 G−64 Proposed Order) (lwag) (Entered: 07/13/2012)
10 NOTICE OF LIEN filed by plaintiff Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire, The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC. (Fard, Sima) (Entered: 07/17/2012)

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 8 of 18

07/18/2012
07/18/2012
07/18/2012
07/18/2012
07/18/2012 07/18/2012 07/31/2012 07/31/2012 08/01/2012 08/02/2012 08/09/2012

11 PROOF OF SERVICE Executed by Plaintiff Nicole Cogdell, Myriam Saint−Hilaire, Kai Hawkins, upon Defendant The Wet Seal Inc served on 7/13/2012, answer due 8/3/2012. Service of the Summons and Complaint were executed upon CSC− Becky DeGeorge−Person authorized to accept service of process in compliance with Federal Rules of Civil Procedure by service on a domestic corporation, unincorporated association, or public entity. Original Summons NOT returned. (Wilensky, Julie) (Entered: 07/18/2012)
12 PROOF OF SERVICE Executed by Plaintiff Nicole Cogdell, Myriam Saint−Hilaire, Kai Hawkins, upon Defendant The Wet Seal Retail Inc served on 7/16/2012, answer due 8/6/2012. Service of the Summons and Complaint were executed upon Ethel Jones− Person authorized to accept service of process in compliance with Federal Rules of Civil Procedure by service on a domestic corporation, unincorporated association, or public entity. Original Summons NOT returned. (Wilensky, Julie) (Entered: 07/18/2012)
13 PROOF OF SERVICE Executed by Plaintiff Nicole Cogdell, Myriam Saint−Hilaire, Kai Hawkins, upon Defendant Wet Seal GC Inc served on 7/13/2012, answer due 8/3/2012. Service of the Summons and Complaint were executed upon CSC−Becky DeGeorge−Person authorized to accept service of process in compliance with Federal Rules of Civil Procedure by service on a domestic corporation, unincorporated association, or public entity. Original Summons NOT returned. (Wilensky, Julie) (Entered: 07/18/2012)
14 PROOF OF SERVICE Executed by Plaintiff Nicole Cogdell, Myriam Saint−Hilaire, Kai Hawkins, upon Defendant Wet Seal GC LLC served on 7/13/2012, answer due 8/3/2012. Service of the Summons and Complaint were executed upon CSC−Becky DeGeorge− Person authorized to accept service of process in compliance with Federal Rules of Civil Procedure by service on a domestic corporation, unincorporated association, or public entity. Original Summons NOT returned. (Wilensky, Julie) (Entered: 07/18/2012)
15 NOTICE OF ERRATA filed by Plaintiffs Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire. correcting Service of Summons and Complaint Returned Executed (21 days), Service of Summons and Complaint Returned Executed (21 days) 11 (Wilensky, Julie) (Entered: 07/18/2012)
16 PROOF OF SERVICE Executed by Plaintiff Nicole Cogdell, Myriam Saint−Hilaire, Kai Hawkins, upon Defendant Service of the Summons and Complaint were executed upon CSC−Becky DeGeorge− Person authorized to accept service of process in compliance with Federal Rules of Civil Procedure by service on a domestic corporation, unincorporated association, or public entity. Original Summons NOT returned. (Wilensky, Julie) (Entered: 07/18/2012)
17 STIPULATION for Extension of Time to File Answer to September 3, 2012 filed by DEFENDANTS The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC. (Attachments: # 1 Proposed Order To Extend Named Defendants' Time To Respond To Complaint)(Abell, Nancy) (Entered: 07/31/2012)
18 ORDER granting Stipulation to Extend Time to Answer (More than 30 days) 17 . defendant The Wet Seal Inc answer due 9/3/2012; The Wet Seal Retail Inc answer due 9/3/2012; Wet Seal GC Inc answer due 9/3/2012; Wet Seal GC LLC answer due 9/3/2012 by Judge Andrew J. Guilford (twdb) (Entered: 08/01/2012)
19 APPLICATION for attorney Nancy C. DeMis to Appear Pro Hac Vice. (PHV FEE PAID.) filed by plaintiffs Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire. Lodged order. (twdb) (Entered: 08/02/2012)
20 ORDER by Judge Andrew J. Guilford: granting 19 Application to Appear Pro Hac Vice by Attorney Nancy C. DeMis on behalf of Plaintiff, designating Brad Seligman as local counsel. (lt) (Entered: 08/02/2012)
21 APPLICATION for attorney Debo Patrick Adegbile to Appear Pro Hac Vice(PHV Fee of $325 receipt number 0973−10789847 paid.) filed by Plaintiffs Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire. (Attachments: # 1 Proposed Order)(Seligman, Brad) (Entered: 08/09/2012)

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 9 of 18

08/09/2012 08/09/2012 08/09/2012 08/09/2012 08/09/2012 08/14/2012
08/14/2012 08/14/2012 08/14/2012 08/14/2012 08/14/2012 08/31/2012 08/31/2012 08/31/2012 08/31/2012 09/04/2012

22 APPLICATION for attorney Elise C. Boddie to Appear Pro Hac Vice(PHV Fee of $325 receipt number 0973−10789937 paid.) filed by Plaintiffs Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire. (Attachments: # 1 Proposed Order)(Seligman, Brad) (Entered: 08/09/2012)
23 APPLICATION for attorney ReNika C. Moore to Appear Pro Hac Vice(PHV Fee of $325 receipt number 0973−10789980 paid.) filed by Plaintiffs Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire. (Attachments: # 1 Proposed Order)(Seligman, Brad) (Entered: 08/09/2012)
24 APPLICATION for attorney Ria A. Tabacco to Appear Pro Hac Vice(PHV Fee of $325 receipt number 0973−10790018 paid.) filed by Plaintiffs Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire. (Attachments: # 1 Proposed Order)(Seligman, Brad) (Entered: 08/09/2012)
25 APPLICATION for attorney Susan R. Fiorentino to Appear Pro Hac Vice(PHV Fee of $325 receipt number 0973−10790052 paid.) filed by Plaintiffs Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire. (Attachments: # 1 Proposed Order)(Seligman, Brad) (Entered: 08/09/2012)
26 STIPULATION for Order to Appoint Brad Seligman as Local Counsel for Non−Resident Attorneys Seeking Admission Pro Hac Vice filed by Plaintiffs Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire. (Attachments: # 1 Proposed Order)(Seligman, Brad) (Entered: 08/09/2012)
27 ORDER by Judge Andrew J. Guilford, re Stipulation for Order 26 : It is ordered that Brad Seligman of Lewis, Feinberg, Lee, Renaker and Jackson, P.C. is appointed local counsel in this matter for non−resident attorneys Debo P. Adgebile, Elise Boddie, ReNika C. Moore, Ria A. Tabacco, and Susan R. Fiorentino, as set forth in the Orders granting each attorneys application for admission pro hac vice. (rla) (Entered: 08/15/2012)
28 ORDER by Judge Andrew J. Guilford: granting 22 Application to Appear Pro Hac Vice by Attorney Elise C. Boddie on behalf of Plaintiffs, designating Brad Seligman as local counsel. (lt) (Entered: 08/15/2012)
29 ORDER by Judge Andrew J. Guilford: granting 23 Application to Appear Pro Hac Vice by Attorney ReNika C Moore on behalf of Plaintiffs, designating Brad Seligman as local counsel. (lt) (Entered: 08/15/2012)
30 ORDER by Judge Andrew J. Guilford: granting 21 Application to Appear Pro Hac Vice by Attorney Debo P. Adegbile on behalf of Plaintiffs, designating Brad Seligman as local counsel. (lt) (Entered: 08/15/2012)
31 ORDER by Judge Andrew J. Guilford: granting 24 Application to Appear Pro Hac Vice by Attorney Ria Tabacco on behalf of Plaintiffs, designating Brad Seligman as local counsel. (lt) (Entered: 08/15/2012)
32 ORDER by Judge Andrew J. Guilford: granting 25 Application to Appear Pro Hac Vice by Attorney Susan Fiorentino on behalf of Plaintiff, designating Brad Seligman as local counsel. (lt) (Entered: 08/17/2012)
33 CORPORATE DISCLOSURE STATEMENT filed by Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC identifying The Wet Seal, Inc. as Corporate Parent. (Abell, Nancy) (Entered: 08/31/2012)
34 Certification and Notice of Interested Parties filed by Defendants All Defendants, identifying The Wet Seal, Inc.. (Abell, Nancy) (Entered: 08/31/2012)
35 NOTICE of Related Case(s) filed by Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC. (Abell, Nancy) (Entered: 08/31/2012)
36 ANSWER to Complaint − (Discovery), Complaint − (Discovery) 1 filed by Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC.(Abell, Nancy) (Entered: 08/31/2012)
37 ORDER RE EARLY MEETING OF PARTIES AND SCHEDULING CONFERENCE: Scheduling Conference set for 11/5/2012 at 9:00am in Courtroom 10D before Judge Andrew J. Guilford. (lb) (Entered: 09/04/2012)

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 10 of 18

10/29/2012 10/29/2012 10/29/2012 10/29/2012 10/30/2012 11/05/2012 11/05/2012
01/02/2013 01/03/2013 01/04/2013 01/07/2013 01/09/2013 01/11/2013 01/23/2013 02/19/2013

38 REQUEST for ADR Procedure No. 1 filed. Parties request to Appear Before Hon. Andrew J. Guilford for settlement proceedings. Filed by Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC.(Abell, Nancy) (Entered: 10/29/2012)
39 STIPULATION for Protective Order filed by Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC. (Attachments: # 1 Proposed Order Concerning Stipulation For Protective Order)(Abell, Nancy) (Entered: 10/29/2012)
40 REPORT filed by Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC. (Attachments: # 1 Proposed Order re Joint Rule 26(f) Report of Early Meeting of Counsel)(Abell, Nancy) (Entered: 10/29/2012)
41 REPORT filed by Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC. (Attachments: # 1 Proposed Order re Joint Rule 26(f) Report of Early Meeting of Counsel)(Abell, Nancy) (Entered: 10/29/2012)
42 MINUTE ORDER IN CHAMBERS by Magistrate Judge Arthur Nakazato: For the reasons discussed below, the Court declines to issue the Proposed Order as drafted. re: Stipulation for Protective Order 39 . See minute order for more information. (twdb) (Entered: 11/01/2012)
43 SCHEDULING ORDER SPECIFYING PROCEDURES: Final Pretrial Conference set for 3/30/2015 at 8:30am. 10 Day Jury Trial set for 4/14/2015 at 9:00am. (lb) (Entered: 11/06/2012)
44 MINUTES OF Scheduling Conference held before Judge Andrew J. Guilford. Cause is called for hearing and counsel make their appearances. Court and counsel confer.The Court sets the following dates: A Final Pretrial Conference is set for March 30, 2015, at 8:30 a.m. A Jury Trial is set for April 14, 2015 at 9:00 a.m. Court sets the length of the trial at 10 days. Class certification motion to be heard December 2, 2013 at 10:00 a.m. Counsel stipulate to ADR Procedure No. 1 before the Magistrate Judge. Scheduling Order Specifying Procedures is signed and filed this date.Court Reporter: Denise Paddock. (twdb) (Entered: 11/06/2012)
45 NOTICE Notice of Withdrawal of Counsel filed by Plaintiffs Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire. (Wilensky, Julie) (Entered: 01/02/2013)
46 NOTICE of Change of Attorney Information for attorney Ria Tabacco Mar counsel for Plaintiffs Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire. Filed by plaintiff Nicole Cogdell, et al. (Mar, Ria) (Entered: 01/03/2013)
47 STIPULATION to AMEND Complaint − (Discovery), Complaint − (Discovery) 1 filed by Plaintiffs Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire. (Attachments: # 1 Exhibit [Proposed] First Amended Complaint, # 2 Proposed Order)(Lee, Bill) (Entered: 01/04/2013)
48 ORDER Permitting Plaintiffs to File First Amended Complaint, by Judge Andrew J. Guilford. It is ordered that Plaintiffs are permitted to file the proposed First Amended Complaint. Plaintiffs shall manually file the proposed First Amended Complaint within 5 days. (dro) (Entered: 01/07/2013)
49 FIRST AMENDED COMPLAINT against defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC amending Complaint − (Discovery) 1 ; filed by plaintiffs Myriam Saint−Hilaire, Nicole Cogdell, Kai Hawkins, Michelle Guider. (rla) (Entered: 01/10/2013)
50 NOTICE of Appearance filed by attorney Shira Wakschlag on behalf of Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire (Wakschlag, Shira) (Entered: 01/11/2013)
51 ANSWER to Amended Complaint, 49 filed by Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC.(Abell, Nancy) (Entered: 01/23/2013)
52 STIPULATION to Continue Pre−Certification Deadlines and Hearing on Motion for Class Certification from December 2, 2013 to After March 12, 2014 filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Attachments:

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 11 of 18

02/20/2013 03/26/2013 04/22/2013 05/08/2013
05/08/2013 05/08/2013 05/08/2013 05/08/2013 05/08/2013

# 1 Proposed Order)(Lee, Bill) (Entered: 02/19/2013)
53 ORDER Continuing Pre−Certification Deadlines and Haring on Motion for Class Certification, by Judge Andrew J. Guilford, pursuant to Stipulation to Continue, 52 . (see document for details). (dro) (Entered: 02/20/2013)
54 NOTICE of Appearance filed by attorney Nancy L Abell on behalf of Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC (Abell, Nancy) (Entered: 03/26/2013)
55 NOTICE of Change of Attorney Information for attorney Ria Tabacco Mar counsel for Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire.DEBO P. ADEGBILE is no longer attorney of record for the aforementioned party in this case for the reason indicated in the G−06 Notice. Filed by Plaintiff Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire, and Michelle Guider (Mar, Ria) (Entered: 04/22/2013)
56 NOTICE OF MOTION AND MOTION for Order for (1) PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT; (2) PRELIMINARY CERTIFICATION OF SETTLEMENT CLASS; (3) APPOINTMENT AS CLASS COUNSEL; (4) APPROVAL OF NOTICE PLAN AND DISTRIBUTION OF NOTICE; AND (5) SETTING SCHEDULE FOR FINAL APPROVAL filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. Motion set for hearing on 6/10/2013 at 10:00 AM before Judge Andrew J. Guilford. (Attachments: # 1 Proposed Order, # 2 Exhibit Settlement Agreement, # 3 Exhibit Class Notice, # 4 Exhibit Claim Form, # 5 Exhibit Wet Seal Letter)(Lee, Bill) (Entered: 05/08/2013)
57 MEMORANDUM in Support of MOTION for Order for (1) PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT; (2) PRELIMINARY CERTIFICATION OF SETTLEMENT CLASS; (3) APPOINTMENT AS CLASS COUNSEL; (4) APPROVAL OF NOTICE PLAN AND DISTRIBUTION OF NOTICE; AND (5) SETTING SCHEDULE FOR FINAL A 56 filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Lee, Bill) (Entered: 05/08/2013)
58 DECLARATION of Bill Lann Lee In Support of MOTION for Order for (1) PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT; (2) PRELIMINARY CERTIFICATION OF SETTLEMENT CLASS; (3) APPOINTMENT AS CLASS COUNSEL; (4) APPROVAL OF NOTICE PLAN AND DISTRIBUTION OF NOTICE; AND (5) SETTING SCHEDULE FOR FINAL A 56 filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Lee, Bill) (Entered: 05/08/2013)
59 DECLARATION of ReNika C. Moore in Support of MOTION for Order for (1) PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT; (2) PRELIMINARY CERTIFICATION OF SETTLEMENT CLASS; (3) APPOINTMENT AS CLASS COUNSEL; (4) APPROVAL OF NOTICE PLAN AND DISTRIBUTION OF NOTICE; AND (5) SETTING SCHEDULE FOR FINAL A 56 filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Lee, Bill) (Entered: 05/08/2013)
60 DECLARATION of Nancy C. DeMis in Support of MOTION for Order for (1) PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT; (2) PRELIMINARY CERTIFICATION OF SETTLEMENT CLASS; (3) APPOINTMENT AS CLASS COUNSEL; (4) APPROVAL OF NOTICE PLAN AND DISTRIBUTION OF NOTICE; AND (5) SETTING SCHEDULE FOR FINAL A 56 filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Lee, Bill) (Entered: 05/08/2013)
61 DECLARATION of Julie Wilensky in Support of MOTION for Order for (1) PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT; (2) PRELIMINARY CERTIFICATION OF SETTLEMENT CLASS; (3) APPOINTMENT AS CLASS COUNSEL; (4) APPROVAL OF NOTICE PLAN AND DISTRIBUTION OF NOTICE; AND (5) SETTING SCHEDULE FOR FINAL A 56 filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Lee, Bill) (Entered: 05/08/2013)

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 12 of 18

05/08/2013
05/15/2013 05/15/2013 05/22/2013 05/23/2013 05/24/2013 05/24/2013 05/28/2013 05/29/2013
06/04/2013

62 NOTICE OF NON−OPPOSITION to MOTION for Order for (1) PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT; (2) PRELIMINARY CERTIFICATION OF SETTLEMENT CLASS; (3) APPOINTMENT AS CLASS COUNSEL; (4) APPROVAL OF NOTICE PLAN AND DISTRIBUTION OF NOTICE; AND (5) SETTING SCHEDULE FOR FINAL A 56 filed by Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC. (Abell, Nancy) (Entered: 05/08/2013)
63 NOTICE of Change of Attorney Information for attorney Ria Tabacco Mar counsel for Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire.ELISE C. BODDIE is no longer attorney of record for the aforementioned party in this case for the reason indicated in the G−06 Notice. Filed by Plaintiff Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire, and Michelle Guider (Mar, Ria) (Entered: 05/15/2013)
64 NOTICE of Change of Attorney Information for attorney Holly R Lake counsel for Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC.Holly R. Lake is no longer attorney of record for the aforementioned party in this case for the reason indicated in the G−06 Notice. Filed by Defendant The Wet Seal, Inc. (Lake, Holly) (Entered: 05/15/2013)
65 Third Party EX PARTE APPLICATION to Continue Preliminary Approval of Settlement from June 10, 2013 to July 10, 2013 Re: Notice of Lien 10 Attorney Sima Fard filed by Nicole Cogdell Nicole Cogdell. (Attachments: # 1 Memorandum Supporting Ex Parte Application, # 2 Declaration Declaration of Sima Fard in Support of Ex Parte Application)(Fard, Sima) (Entered: 05/22/2013)
66 Third Party EX PARTE APPLICATION for Order for Ex Parte to continue hearing on preliminary approval of settlement, Amended EX PARTE APPLICATION to Amend re Third Party EX PARTE APPLICATION to Continue Preliminary Approval of Settlement from June 10, 2013 to July 10, 2013 Re: Notice of Lien 10 Attorney Sima Fard 65 proof of service filed by plaintiff Nicole Cogdell.(Fard, Sima) (Entered: 05/23/2013)
67 MEMORANDUM in Opposition to Third Party EX PARTE APPLICATION to Continue Preliminary Approval of Settlement from June 10, 2013 to July 10, 2013 Re: Notice of Lien 10 Attorney Sima Fard 65 filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Attachments: # 1 Declaration of Bill Lann Lee)(Lee, Bill) (Entered: 05/24/2013)
68 Defendants' Opposition to the Law Offices of Sima Fard's Ex Parte Application for an Order Continuing the Hearing on Plaintiffs' Motion for Preliminary Approval of Class Action Settlement opposition re: Third Party EX PARTE APPLICATION to Continue Preliminary Approval of Settlement from June 10, 2013 to July 10, 2013 Re: Notice of Lien 10 Attorney Sima Fard 65 filed by Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC. (Paez, Lisa) (Entered: 05/24/2013)
69 MINUTES (IN CHAMBERS): ORDER by Judge Andrew J. Guilford: denying 65 Ex Parte Application to continue the hearing on Motion for Preliminary Approval. (twdb) (Entered: 05/28/2013)
70 NOTICE TO FILER OF DEFICIENCIES in Electronically Filed Documents RE: Third Party EX PARTE APPLICATION 66 . The following error(s) was found: Incorrect event selected. The correct event is: Proof of service. In response to this notice the court may order (1) an amended or correct document to be filed (2) the document stricken or (3) take other action as the court deems appropriate. You need not take any action in response to this notice unless and until the court directs you to do so. (twdb) (Entered: 05/30/2013)
71 OBJECTION BY LAW OFFICES OF SIMA FARD TO PRELIMINARY APPROVAL OF CLASS SETTLEMENT re Third Party EX PARTE APPLICATION to Continue Preliminary Approval of Settlement from June 10, 2013 to July 10, 2013 Re: Notice of Lien 10 Attorney Sima Fard 65 , MOTION for Order for (1) PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT; (2) PRELIMINARY CERTIFICATION OF SETTLEMENT CLASS; (3) APPOINTMENT AS CLASS COUNSEL; (4) APPROVAL OF NOTICE PLAN AND DISTRIBUTION OF NOTICE; AND (5) SETTING SCHEDULE FOR FINAL A 56 ,

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 13 of 18

06/04/2013
06/05/2013 06/07/2013 06/07/2013 06/10/2013 06/11/2013 06/11/2013 06/11/2013

Third Party EX PARTE APPLICATION for Order for Ex Parte to continue hearing on preliminary approval of settlementAmended EX PARTE APPLICATION to Amend re Third Party EX PARTE APPLICATION to Continue Preliminary Approval of Settlement from June 10, 2013 to July 10, 2013 Re: Notice of Lien 10 Attorney Sima Fard 65 proof of service 66 filed by Plaintiff Nicole Cogdell. (Fard, Sima) (Entered: 06/04/2013)
72 OBJECTION 71 re: Third Party EX PARTE APPLICATION to Continue Preliminary Approval of Settlement from June 10, 2013 to July 10, 2013 Re: Notice of Lien 10 Attorney Sima Fard 65 , Third Party EX PARTE APPLICATION for Order for Ex Parte to continue hearing on preliminary approval of settlementAmended EX PARTE APPLICATION to Amend re Third Party EX PARTE APPLICATION to Continue Preliminary Approval of Settlement from June 10, 2013 to July 10, 2013 Re: Notice of Lien 10 Attorney Sima Fard 65 proof of service 66 OBJECTION TO PRELIMINARY APPROVAL filed by Plaintiff Nicole Cogdell. (Fard, Sima) (Entered: 06/04/2013)
73 OPPOSITION OPPOSITION re: Third Party EX PARTE APPLICATION to Continue Preliminary Approval of Settlement from June 10, 2013 to July 10, 2013 Re: Notice of Lien 10 Attorney Sima Fard 65 OPPOSITION TO THE LAW OFFICES OF SIMA FARD'S OBJECTION TO MOTION FOR PRELIMINARY APPROVAL OF SETTLEMENT filed by Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC. (Paez, Lisa) (Entered: 06/05/2013)
74 NOTICE TO FILER OF DEFICIENCIES in Electronically Filed Documents RE: Objection/Opposition (Motion related),, 72 . The following error(s) was found: Incorrect event selected. The correct event is: Declaration. In response to this notice the court may order (1) an amended or correct document to be filed (2) the document stricken or (3) take other action as the court deems appropriate. You need not take any action in response to this notice unless and until the court directs you to do so. (dro) (Entered: 06/07/2013)
75 objection opposition to re: Third Party EX PARTE APPLICATION to Continue Preliminary Approval of Settlement from June 10, 2013 to July 10, 2013 Re: Notice of Lien 10 Attorney Sima Fard 65 68, Declaration of Bill Lann Lee filed by Plaintiff Nicole Cogdell. (Fard, Sima) (Entered: 06/07/2013)
81 MINUTES OF Motion Hearing held before Judge Andrew J. Guilford: MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT [DKT #56]. Cause is called for hearing and counsel make their appearances. Matter is argued and takenunder submission.Court Reporter: Denise Paddock. (twdb) (Entered: 06/14/2013)
76 TRANSCRIPT ORDER as to Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC Court Reporter. Court will contact Cathy Smith−Joo at cathysmithjoo@paulhastings.com with any questions regarding this order. Transcript portion requested: Other: 06/10/2013 Hearing re Mtn for Preliminary Approval of Class Action Settlement, etc.. Transcript preparation will not begin until payment has been satisfied with the court reporter/recorder. (Abell, Nancy) (Entered: 06/11/2013)
77 TRANSCRIPT ORDER as to Plaintiff Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire Court Reporter. Court will contact Shira Wakschlag at swakschlag@lewisfeinberg.com with any questions regarding this order. Transcript portion requested: Other: 06/10/2013 Hearing re Mtn for Preliminary Approval of Class Action Settlement. Transcript preparation will not begin until payment has been satisfied with the court reporter/recorder. (Wakschlag, Shira) (Entered: 06/11/2013)
78 Amendment to MOTION for Order for (1) PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT; (2) PRELIMINARY CERTIFICATION OF SETTLEMENT CLASS; (3) APPOINTMENT AS CLASS COUNSEL; (4) APPROVAL OF NOTICE PLAN AND DISTRIBUTION OF NOTICE; AND (5) SETTING SCHEDULE FOR FINAL A 56 [Amendments to [Proposed] Order, Settlement Agreement, and Class Notice] filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Attachments: # 1 Exhibit Revised Settlement Agreement, # 2 Exhibit Revised Class Notice)(Lee, Bill) (Entered: 06/11/2013)

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 14 of 18

06/12/2013
06/12/2013
06/27/2013
06/27/2013
07/12/2013
07/12/2013 07/15/2013 08/14/2013 08/21/2013 08/23/2013 08/23/2013 08/26/2013 08/27/2013
08/28/2013

79 [IN CHAMBERS] ORDER RE PRELIMINARY APPROVAL OF CLASS SETTLEMENT by Judge Andrew J. Guilford: The Court finds it proper to sign the proposed order granting preliminary approval of this class action settlement. (See document for details.) The Court finds it proper to sign the proposed order granting preliminary approval of this class action settlement. (Attachments: # 1 EXHIBIT A) (rla) (Entered: 06/13/2013)
80 ORDER 1) PRELIMINARILY APPROVING CLASS ACTION SETTLEMENT; 2) PRELIMINARILY CERTIFYING SETTLEMENT CLASS; 3) APPOINTING CLASS COUNSEL; 4) APPROVING NOTICE PLAN AND DIRECTING DISTRIBUTION OF NOTICE; AND 5) SETTING A SCHEDULE FOR THE FINAL APPROVAL PROCESS by Judge Andrew J. Guilford. (twdb) (Entered: 06/14/2013)
82 NOTICE of Change of address by Ria Tabacco Mar attorney for Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. Changing attorneys address to 40 Rector Street, 5th Floor, New York, NY 10006. Filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Mar, Ria) (Entered: 06/27/2013)
83 NOTICE of Change of address by Renika C Moore attorney for Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. Changing attorneys address to 40 Rector Street, 5th Floor, New York, NY 10006. Filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Moore, Renika) (Entered: 06/27/2013)
84 NOTICE OF MOTION AND MOTION for Attorney Fees and Costs filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. Motion set for hearing on 11/18/2013 at 10:00 AM before Judge Andrew J. Guilford. (Attachments: # 1 Memorandum, # 2 Declaration, # 3 Exhibit, # 4 Exhibit, # 5 Declaration, # 6 Declaration)(Lee, Bill) (Entered: 07/12/2013)
85 APPLICATION for Attorney Fees Points & Authorities in Support of filed by Nicole Cogdell Nicole Cogdell. Application set for hearing on 11/18/2013 at 10:00 AM before Judge Andrew J. Guilford. (Attachments: # 1 Declaration Declaration of Sima Fard in Support of Fee Application)(Fard, Sima) (Entered: 07/12/2013)
86 APPLICATION for Attorney Fees Declaration of Sima Fard Attaching Exh. F filed by Nicole Cogdell Nicole Cogdell. Application set for hearing on 11/18/2013 at 10:00 AM before Judge Andrew J. Guilford. (Fard, Sima) (Entered: 07/15/2013)
87 (Wakschlag, Shira) (Entered: 08/14/2013)
88 NOTICE filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. Letter to the Court regarding request of Sima Fard. (Lee, Bill) (Entered: 08/21/2013)
89 MINUTE ORDER IN CHAMBERS by Judge Andrew J. Guilford: ORDER RE 8/21/13 LETTER 88 . (twdb) (Entered: 08/23/2013)
90 SEALED STRICKEN OBJECTIONS to Fee Application by Class Counsel. (Attachments: # 1 Declaration)(Fard, Sima) Modified on 9/19/2013 (twdb). (Entered: 08/23/2013)
91 STIPULATION to Continue Deadline for Class Members to Object to Motions for Attorneys' Fees from August 23, 2013 to September 6, 2013 filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Attachments: # 1 Proposed Order, # 2 Declaration of Bill Lann Lee)(Lee, Bill) (Entered: 08/26/2013)
92 Emergency EX PARTE APPLICATION to Strike re Objections − non−motion 90 filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Attachments: # 1 Memorandum in Support of Plaintiffs' Emergency Motion to Strike Sima Fard's Unauthorized Filing, # 2 Declaration of Bill Lann Lee In Support of Plaintiffs' Emergency Motion to Strike Sima Fard's Unauthorized Filing, # 3 Proposed Order)(Lee, Bill) (Entered: 08/27/2013)
93 ORDER by Judge Andrew J. Guilford, granting Stipulation to Continue deadline for Class Members to Object to Class Counsel's Motion for Attorneys' Fees 91 . (twdb) (Entered: 08/28/2013)

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 15 of 18

08/29/2013
09/05/2013 09/09/2013 09/10/2013 09/12/2013 09/12/2013 09/12/2013 09/13/2013 09/20/2013 09/25/2013 10/07/2013 10/18/2013
10/30/2013
10/31/2013

94 MINUTE ORDER IN CHAMBERS by Judge Andrew J. Guilford: ORDER RE EX PARTE APPLICATION. The Court is concerned about the continuing flood of papers it is receiving relating to the claims of Ms. Sima Fard. Most recently, the Court has received Plaintiffs Notice of Emergency Motion and Motion to Strike Sima Fards Unauthorized Filing. (Dkt. No. 93.) (twdb) (Entered: 08/29/2013)
95 SCHEDULING NOTICE by Judge Andrew J. Guilford: Plaintiff's ex parte application to strike Sima Fard's unauthorized filing is set for hearing on September 10, 2013 at 10:00 am. (lb) TEXT ONLY ENTRY (Entered: 09/05/2013)
96 OPPOSITION to Emergency EX PARTE APPLICATION to Strike re Objections − non−motion 90 92 filed by Plaintiff Nicole Cogdell. (Attachments: # 1 Affidavit)(Fard, Sima) (Entered: 09/09/2013)
99 MINUTES OF Motion Hearing held before Judge Andrew J. Guilford: PLAINTIFFS EX PARTE APPLICATION TO STRIKE SIMA FARDS UNAUTHORIZED FILING.Court Reporter: Denise Paddock. (twdb) (Entered: 09/19/2013)
97 NOTICE of Manual Filing filed by Plaintiff Nicole Cogdell (Fard, Sima) (Entered: 09/12/2013)
102 APPLICATION to File Under Seal 1. Objections to Plaintiffs' Fee Applications by Law Offices of Sima Fard; 2. Declaration of Sima Fard, in Support of Objections to Fee Applications. Motion set for hearing on 9/10/2013 at 10:00 AM before Judge Andrew J. Guilford. (ago) (Entered: 10/07/2013)
104 SEALED DOCUMENT − NOTICE OF OBJECTION and Objection by Objector and Lien Holder, Sima Fard to Class Counsel's fee Applications, filed by Objector and Lien Holder, Law Offices of Sima Fard. (dro) (Entered: 10/10/2013)
98 MINUTES (IN CHAMBERS): ORDER by Judge Andrew J. Guilford: granting 92 Ex Parte Application to Strike and document is stricken. (twdb) (Entered: 09/16/2013)
100 Joint STIPULATION to Clarify Deadlines for Claims Administrator filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Attachments: # 1 Proposed Order)(Lee, Bill) (Entered: 09/20/2013)
101 ORDER by Judge Andrew J. Guilford, granting Stipulation regarding deadlines for claims administrator 100 (twdb) (Entered: 09/26/2013)
103 ORDER by Judge Andrew J. Guilford granting 102 Application to Seal. (see document for details). (dro) (Entered: 10/07/2013)
105 NOTICE OF MOTION AND MOTION for Settlement Approval of Class Action (Unopposed) filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. Motion set for hearing on 11/18/2013 at 10:00 AM before Judge Andrew J. Guilford. (Attachments: # 1 Memorandum in Support, # 2 Declaration of Bill Lann Lee, # 3 Declaration of Claims Administrator, # 4 Declaration of Nancy L. Abell, # 5 Proposed Order, # 6 [Proposed] Final Judgment)(Lee, Bill) (Entered: 10/18/2013)
106 TRANSCRIPT for proceedings held on 091013 DCCD GUILFORD 10D COGDELL SEALED PORTIONS REDACTED CT. Transcript may be viewed at the court public terminal or purchased through the Court Reporter/Electronic Court Recorder before the deadline for Release of Transcript Restriction. After that date it may be obtained through PACER. Notice of Intent to Redact due within 7 days of this date. Redaction Request due 11/20/2013. Redacted Transcript Deadline set for 11/30/2013. Release of Transcript Restriction set for 1/28/2014. DENISE PADDOCK, OFFICIAL COURT REPORTER − WWW.OFFICIALCOURTTRANSCRIPTS.COM TRANSCRIPTS@OCRECORD.COM.(Paddock, Denise) (Entered: 10/30/2013)
108 NOTICE OF FILING TRANSCRIPT filed for proceedings re Transcript 106 THERE IS NO PDF DOCUMENT ASSOCIATED WITH THIS ENTRY. (Paddock, Denise) TEXT ONLY ENTRY10/30/2013 106 TRANSCRIPT for proceedings held on 091013 DCCD GUILFORD 10D COGDELL SEALED PORTIONS REDACTED CT. Transcript may be viewed at the court public terminal or purchased through the Court Reporter/Electronic Court Recorder before the deadline for Release o f Transcript Restriction. After that date it may be obtained through PACER. Notice of Intent to

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 16 of 18

11/11/2013
11/12/2013 11/12/2013 11/12/2013 11/12/2013 11/15/2013 11/15/2013
11/18/2013
12/09/2013 12/13/2013 12/20/2013 01/03/2014 01/17/2014 02/06/2014

Redact due within 7 days of this date. Redaction Request due 11/20/2013. Redacted Transcript Deadline set for 11/30/2013. Release of Transcript Restric tion set for 1/28/2014. DENISE PADDOCK, OFFICIAL COURT REPORTER − WWW.OFFICIALCOURTTRANSCRIPTS.COM TRANSCRIPTS@OCRECORD.COM.(Paddock, Denise) (Entered: 10/31/2013)
109 REPLY APPLICATION for Attorney Fees Points & Authorities in Support of 85 , MOTION for Attorney Fees and Costs 84 filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Attachments: # 1 Declaration of Bill Lann Lee, # 2 Proposed Order Regarding Sima Fard's Motion for Attorneys' Fees and Costs and Allocation of Attorneys' Fees and Costs)(Lee, Bill) (Entered: 11/11/2013)
110 DECLARATION of Claims Administrator filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Lee, Bill) (Entered: 11/12/2013)
111 NOTICE of Manual Filing filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire of Exhibits A and B to Declaration of Claims Administrator. (Lee, Bill) (Entered: 11/12/2013)
114 APPLICATION to File Exhibits to the Claims Administrator's Declaration Under Seal, filed by Plaintiffs. (dro) (Entered: 11/19/2013)
116 SEALED DOCUMENT EXHIBIT A AND B TO THE DECLARATION OF CLAIMS ADMINISTRATOR.(twdb) (Entered: 12/03/2013)
112 Third Party REQUEST for Extension of Time to File Respond to Belated Reply Memorandum filed by Objector Sima Fard Nicole Cogdell. Request set for hearing on 11/23/2013 at 10:00 AM before Judge Andrew J. Guilford. (Attachments: # 1 Declaration)(Fard, Sima) (Entered: 11/15/2013)
115 ORDER by Judge Andrew J. Guilford: granting 114 Application to File Exhibits to the Claims Administrator's Declaration Under Seal. Good cause having been shown, Class Counsel's application on behalf of the Claims Administrator to file exhibits to the Claims Administrator's Declaration under seal is GRANTED. IF DENIED: The application to seal and the underlying document shall be returned to Class Counsel without filing. IT IS SO ORDERED. (dro) (Entered: 11/19/2013)
113 MINUTES OF Motion Hearing held before Judge Andrew J. Guilford: Cause is called for hearing and counsel make their appearances. Alyson Barker with Wet Seal and some individual named plaintiffs also present. Court and counsel confer. taking under advisement 85 Application for Attorney Fees ; taking under advisement 86 Application for Attorney Fees ; taking under advisement 105 Motion for Settlement; Court Reporter: Maria Dellaneve. (twdb) (Entered: 11/18/2013)
117 ORDER Granting Final Approval of class settlement and granting in part applications for attorney fees and costs by Judge Andrew J. Guilford, re Amendment (Motion related) 78 . (Made JS−6. Case Terminated.) (twdb) (Entered: 12/10/2013)
118 Defendants The Wet Seal, Inc., The Wet Seal Retail, Inc., Wet Seal GC, Inc. and Wet Seal GC, LLC's Monitor's Certificate of Compliance with Settlement Agreement re: Order, Terminated Case 117 (Abell, Nancy) (Entered: 12/13/2013)
119 FINAL JUDGMENT by Judge Andrew J. Guilford. Under the Court's December 9, 2013, Order Granting Final Approval of Settlement (Order) 117 , it is hereby ORDERED that final judgment in this matter is entered in accordance with the Order and the Settlement it incorporates. (nbo) (Entered: 01/02/2014)
120 NOTICE of Satisfaction of Judgment filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Lee, Bill) (Entered: 01/03/2014)
121 DECLARATION of Claims Administrator filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Lee, Bill) (Entered: 01/17/2014)
122 MINUTE ORDER IN CHAMBERS by Judge Andrew J. Guilford: ORDER CONCERNIING LETTER RECEIVED **DOCUMENT SEALED** (twdb) (Entered: 02/06/2014)

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 17 of 18

03/07/2014 04/09/2014 05/09/2014 06/11/2014 06/12/2014
06/20/2014 06/25/2014
08/21/2014
11/06/2014 11/14/2014 12/01/2014 12/01/2014 12/11/2014

123 SEALED DOCUMENT RE UNDER SEAL [IN CHAMBERS] ORDER EXTENDING DEADLINE TO RESPOND TO LETTER RECEIVED (mt) (Entered: 03/14/2014)
124 SEALED DOCUMENT RE UNDER SEAL [IN CHAMBERS] ORDER EXTENDING DEADLINE TO RESPOND TO LETTER RECEIVED. (nbo) (Entered: 04/11/2014)
125 RESPONSE filed by Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLCto Minutes of In Chambers Order/Directive − no proceeding held, Document Sealed 122 PARTIES' RESPONSE TO COURT'S FEBRUARY 6, 2014 ORDER (DKT. NO. 122) RE STACEY LYNN JONES (Abell, Nancy) (Entered: 05/09/2014)
126 Defendants The Wet Seal, Inc., The Wet Seal Retail, Inc., Wet Seal GC, Inc. and Wet Seal GC, LLC's Monitor's Certificate of Compliance with Settlement Agreement re: Order, Terminated Case 117 (Abell, Nancy) (Entered: 06/11/2014)
127 Notice of Electronic Filing re Miscellaneous Document 126 e−mailed to Attorney Hillary Jay Baca at HBaca@JMBM.com bounced due to invalid email. Primary e−mail address corrected. Notice of Electronic Filing resent addressed to HBaca@JMBM.com. Pursuant to Local Rules it is the attorneys obligation to maintain all personal contact information including e−mail address in the CM/ECF system. THERE IS NO PDF DOCUMENT ASSOCIATED WITH THIS ENTRY. (ir) TEXT ONLY ENTRY (Entered: 06/12/2014)
128 Notice of Appearance or Withdrawal of Counsel (Abell, Nancy) (Entered: 06/20/2014)
129 NOTICE TO FILER OF DEFICIENCIES in Electronically Filed Documents RE: Miscellaneous Document 128 . The following error(s) was found: Incorrect event selected. The correct event is: Notice of Appearance or Withdrawal of Counsel. In response to this notice the court may order (1) an amended or correct document to be filed (2) the document stricken or (3) take other action as the court deems appropriate. You need not take any action in response to this notice unless and until the court directs you to do so. (ak) (Entered: 06/25/2014)
130 Notice of Appearance or Withdrawal of Counsel: for attorney Ria Tabacco Mar counsel for Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. Ria Tabacco Mar is no longer attorney of record for the aforementioned party in this case for the reason indicated in the G−123 Notice. Filed by Plaintiffs Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire, Michelle Guider. (Mar, Ria) (Entered: 08/21/2014)
131 STIPULATION for Order Regarding Disposition of Funds Remaining in Settlement Account filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Attachments: # 1 Declaration of Claims Administrator, Exh. A, # 2 Declaration of Julie Wilensky, Exh. B, # 3 Proposed Order Regarding Disposition of Funds Remaining in Settlement Account)(Wilensky, Julie) (Entered: 11/06/2014)
132 SCHEDULING NOTICE: A hearing on the Stipulation and proposed order regarding disposition of remaining funds in settlement account is set for hearing on 12/1/2014 at 9:00 am.THERE IS NO PDF DOCUMENT ASSOCIATED WITH THIS ENTRY. (lb) TEXT ONLY ENTRY (Entered: 11/14/2014)
133 ORDER by Judge Andrew J. Guilford, RE Stipulation for Order Regarding Disposition of Remaining Funds in Settlement Account 131 . (twdb) (Entered: 12/01/2014)
134 MINUTES OF Hearing on Stipulation Regarding Disposition of Remaining Funds in Settlement Account held before Judge Andrew J. Guilford: Stipulation is granted. Order signed and filed this date. Court Reporter: Miriam Baird. (twdb) (Entered: 12/09/2014)
135 Defendants Monitor's Certificate of Compliance with Settlement Agreement re: Order, Terminated Case 117 filed by Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC (Abell, Nancy) (Entered: 12/11/2014)

Case: 8:12-cv-1138 As of: 10/26/2017 11:48 PM PDT 18 of 18

03/23/2015 03/23/2015 03/23/2015 03/31/2015 12/16/2015 12/16/2015 12/24/2015
01/22/2016 01/25/2016 01/25/2016

136 NOTICE OF FIRM NAME CHANGE filed by Plaintiff Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Wilensky, Julie) (Entered: 03/23/2015)
137 NOTICE OF ERRATA filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. correcting Notice (Other) 136 (Lee, Bill) (Entered: 03/23/2015)
138 NOTICE OF FIRM NAME CHANGE filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Lee, Bill) (Entered: 03/23/2015)
139 Notice of Appearance or Withdrawal of Counsel: for attorney Julie H Wilensky counsel for Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. Shira Wakschlag is no longer attorney of record for the aforementioned party in this case for the reason indicated in the G−123 Notice. Filed by Plaintiffs Nicole Cogdell et al.. (Wilensky, Julie) (Entered: 03/31/2015)
140 NOTICE of Change of Attorney Business or Contact Information: for attorney Julie H Wilensky counsel for Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. Changing firm affiliation and address to Civil Rights Education and Enforcement Center, 2120 University Ave., Berkeley, CA 94704. Changing email to jwilensky@creeclaw.org. Filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hillaire. (Wilensky, Julie) (Entered: 12/16/2015)
141 NOTICE of Change of Attorney Business or Contact Information: for attorney Bill Lann Lee counsel for Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. Changing firm affiliation and address to Civil Rights Education and Enforcement Center, 2120 University Ave., Berkeley, CA 94704. Changing email to blee@creeclaw.org. Filed by Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hillaire. (Lee, Bill) (Entered: 12/16/2015)
142 NOTICE Regarding Chapter 11 Sale of Defendants Seal123, Inc. (Formerly Known As The Wet Seal, Inc.), Seal123 Retail, Inc. (Formerly Known As The Wet Seal Retail, Inc.), and Seal123 GC, LLC (Formerly Known As Wet Seal GC, LLC) filed by Defendants The Wet Seal Inc, The Wet Seal Retail Inc, Wet Seal GC Inc, Wet Seal GC LLC. (now known as Seal123, Inc., Seal123 Retail, Inc., and Seal123 GC, LLC) (Attachments: # 1 Declaration of Nancy L. Abell, # 2 Exhibit 1 to Abell Decl, # 3 Declaration of William Langsdorf, # 4 Exhibit A to Langsdorf Decl, # 5 Exhibit B to Langsdorf Decl, # 6 Exhibit 1 of Exhibit B to Langsdorf Decl, # 7 Exhibit 2 of Exhibit B to Langsdorf Decl, # 8 Exhibit 3 of Exhibit B to Langsdorf Decl, # 9 Exhibit 4 of Exhibit B to Langsdorf Decl, # 10 Exhibit 5 of Exhibit B to Langsdorf Decl, # 11 Exhibit 6 of Exhibit B to Langsdorf Decl, # 12 Exhibit 7 of Exhibit B to Langsdorf, # 13 Exhibit 8 of Exhibit B to Langsdorf Decl, # 14 Exhibit C to Langsdorf Decl)(Abell, Nancy) (Entered: 12/24/2015)
143 APPLICATION for attorney Leah C. Aden to Appear Pro Hac Vice (PHV Fee of $325 receipt number 0973−17142442 paid.) filed by plaintiff Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. (Attachments: # 1 Proposed Order) (Lee, Bill) (Entered: 01/22/2016)
144 Notice of Appearance or Withdrawal of Counsel: for attorney Renika C Moore counsel for Plaintiffs Nicole Cogdell, Michelle Guider, Kai Hawkins, Myriam Saint−Hilaire. ReNika C. Moore is no longer counsel of record for the aforementioned party in this case for the reason indicated in the G−123 Notice. Filed by plantiffs Nicole Cogdell, Kai Hawkins, Myriam Saint−Hilaire, and Michelle Guider. (Moore, Renika) (Entered: 01/25/2016)
145 ORDER ON APPLICATION OF NON−RESIDENT ATTORNEY TO APPEAR IN A SPECIFIC CASE PRO HAC VICE by Judge Andrew J. Guilford: granting 143 APPLICATION to Appear Pro Hac Vice by Attorney Leah C. Aden on behalf of Plaintiff, designating Bill L. Lee as local counsel. (lt) (Entered: 01/25/2016)


[CONTENT] July 12, 2012 | three | African-American | Wet Seal | the U.S. District Court | the Central District | California ||| the NAACP Legal Defense Fund | Wet Seal, Inc. | Wet Seal | Arden B. | 42 | 1981 |||  |||  |||  |||  |||  ||| one ||| Jan. 9, 2013 | Title VII of the Civil Rights Act | 42 | Title VII ||| May 8, 2013 |||  ||| $7.5 million | up to $1.8 million | 120,000 |||  ||| June 10, 2013 | Andrew J. Guilford ||| the Settlement Agreement |||  ||| June 12, 2013 | Guilford | Settlement Agreement | Oct. 18, 2013 | no later than Nov. 11, 2013 ||| Nov. 18, 2013 ||| Dec. 9, 2013 ||| 1,729,037.80 | three-year ||| July 3, 2012 | 70,962.20 ||| the 36 months | Monitor's Certificates of Compliance | Controller | the Settlement Agreement ||| the Dec. 11, 2014 | Certificate of Compliance | the Settlement Agreement |||  [SUMMARY] On July 12, 2012, three African-American former store-management employees of Wet Seal who had been terminated filed this lawsuit in the U.S. District Court for the Central District of California. The plaintiffs were represented the NAACP Legal Defense Fund and private counsel, and alleged that Wet Seal, Inc., and related corporations, which sell women's clothing in Wet Seal and Arden B. retail stores., had engaged in racial discrimination and retaliation in violation of 42 U.S.C. § 1981. The plaintiffs filed the retaliation claims on their own behalf and the discrimination claims as a class action on behalf of black current or former store-management employees.  The complaint sought injunctive relief, including reinstatement and monetary relief in the form of back pay, front pay, attorneys' fees, punitive damages, and compensation for emotional distress.

The plaintiffs alleged that the defendant discriminated against black employees in hiring, pay, promotion, and discipline, in comparison to similarly situated white employees. Plaintiffs further argued that senior level company management discriminated against black employees by firing them on account of their race and without cause. Senior-level management had pursued a racially discriminatory brand image of white women, preferably with blond hair and blue eyes, especially in markets with a greater percentage of white clientele, by instructing various levels of management to "diversify" stores with largely black employees by hiring more white employees and firing black employees. The plaintiffs claimed that their difficulty in obtaining subsequent employment was due to retaliation for resisting the defendant's discriminatory policies, alleging that the defendant had failed to provide fair references, and in one case, even failed to verify employment.

On Jan. 9, 2013, the plaintiffs filed an amended complaint, that among other amendments, added another named plaintiff and new claims: a claim for discrimination under Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e) and claims for retaliation and hostile work environment under Title VII on behalf of individual plaintiffs.

On May 8, 2013, the plaintiffs filed a motion for preliminary approval of a class action settlement, preliminary approval of settlement class, appointment of plaintiffs' counsel as class counsel, approval of notice plan and distribution of notice, and setting schedule for final approval. The settlement addressed both the class action and individual claims. The terms of the proposed settlement provided for a payment of $7.5 million, which included up to $1.8 million for attorney's fees and costs and $120,000 for administration of claims. The proposed settlement included injunctive relief, including diversity, nondiscrimination, and investigation training; development of fair job-related evaluation criteria; and a dedicated phone line for verifying employment.

On June 10, 2013, a motion hearing was held before District Judge Andrew J. Guilford. The court granted class certification, appointed the plaintiffs' counsel as class counsel, and preliminarily approved the Settlement Agreement, and stayed all further litigation not related to the settlement approval process. Regarding the notice plan and distribution of notice, the court suggested several changes at the hearing that the parties adopted. On June 12, 2013, Judge Guilford signed the order, which included the following deadlines: class counsel was to file a motion for final approval of the settlement and Settlement Agreement by Oct. 18, 2013, and class counsel was to file a reply to any objection from class members no later than Nov. 11, 2013.

On Nov. 18, 2013, a final approval hearing was held. On Dec. 9, 2013, the court issued an order granting final approval of the settlement. The court awarded a total of $1,729,037.80 to class counsel, which included attorneys' fees and reasonable costs for work performed to date as well as future monitoring and enforcement through the three-year term of the settlement. The court also granted in part the fee application by the plaintiffs' original attorney - who had been terminated from the plaintiffs' litigation team on July 3, 2012, and had disputed the terms of the settlement agreement - and found that she was entitled to a total fee award of $70,962.20.

Over the 36 months of monitoring required by the settlement, the defendant filed periodic Monitor's Certificates of Compliance, in which the Monitor, the defendant's Vice President and Corporate Controller, certified to the court the status of the defendant's implementation of its programmatic initiatives with the Settlement Agreement. In the Dec. 11, 2014, Certificate of Compliance, the Monitor stated that it was satisfied that the defendant was complying with the Settlement Agreement.

The case is now closed.