The Notice is to tell you about the Settlement of a “class action” lawsuit that was filed against Houlihan, Smith & Co., Inc., its subsidiaries or affiliated companies, including, but not limited to, Houlihan Smith Advisors, LLC, and Richard Houlihan, Andrew D. Smith and Charles Botchway, in their individual capacities and to tell you about a “Fairness Hearing” before Judge Walker on September 5, 2023 at11:00 a.m. via video conference at Meeting ID: 955 0046 1687; Password: 640378 or via teleconference at 312-626-6799 to determine whether the proposed settlement (the “Settlement”) with Andrew D. Smith (“Defendant”) described in the Class Action Settlement Agreement fairly resolves the claims against Defendant as explained below.

On November 23, 2010, Plaintiff Ross Perlmutter filed a complaint in the Chancery Division of the Circuit Court of Cook County, Illinois, alleging that he and other similarly situated employees of Houlihan Smith & Company, Inc. (hereafter “HSC”), its subsidiaries or affiliated companies, including, but not limited to, Houlihan Smith Advisors, LLC (hereafter “HSA”), and Richard Houlihan, Andrew D. Smith and Charles Botchway, in their individual capacities, employed in the State of Illinois as telemarketers, or other similar positions, at any time from November 23, 2007 to the present, (a) were not paid at least the Illinois minimum wage for all hours worked during each individual work week and (b) were not paid one and one-half the regular rate of pay for all hours worked over 40 hours in a work week and is entitled Perlmutter, et al. v. Houlihan, Smith and Co., Inc., et al., Case No. 2010 CH 50204 (“the Lawsuit”).

In the Fifth Amended Complaint, the operative complaint in the Lawsuit, the Plaintiff brought a claim under the Illinois Minimum Wage Law (“IMWL”), 820 ILCS 105/1 et seq., claiming that Defendants failed to pay him and other similarly situated employees at least the Illinois minimum wage rate for all hours worked in individual work weeks between November 23, 2007 and the present and claiming that Defendants failed to pay him and other similarly situated employees one and one-half the regular rate of pay for all hours worked over 40 hours in a work week between November 23, 2007 and the present. On April 23, 2019, the Court issued a new order modifying the certification of this matter as a class action by amending the class period to July 1, 2009 to the present. During the course of this litigation, Plaintiff and Defendants Richard Houlihan and Charles Botchway engaged in settlement discussions and reached a settlement which was approved by the Court on April 25, 2022. The litigation continued against Defendant Smith and now Plaintiff and Defendant Smith have reached this settlement on behalf of Plaintiff and the Class. Defendant denies all of the allegations in the Lawsuit and no court has made a determination as to merits of Plaintiff’s claims.

You received a Notice because information provided by the Defendants to Class Counsel identified you as a person in the Class, which has been defined by the Court as:

The Class Representative (Ross Perlmutter) and (a) All individuals who were employed by Houlihan Smith & Company, Inc., its subsidiaries or affiliated companies, including, but not limited to, Houlihan Smith Advisors, LLC, in the State of Illinois, as telemarketers, or other similar positions, at any time from July 1st of 2009 to April 13.2023, that were not paid at least the Illinois minimum wage for all hours worked each week and (b) All individuals who were employed by Houlihan Smith & Company, Inc., its subsidiaries or affiliated companies, including, but not limited to Houlihan Smith Advisors, LLC, in the State of Illinois, as telemarketers, or other similar positions, at any time from July 1st of 2009 to April 13, 2023, that were not paid one and a half times the regular rate of pay for all time worked in excess of 40 hours in a week.

If you received a Notice, you are eligible to receive compensation as described below.

The Settlement is a compromise of Plaintiff’s claims in the Lawsuit and is not to be construed as an admission of liability on the part of any of the Defendants. The Court has granted preliminary approval of this Class Action Settlement, and the Named Plaintiff and Defendant (collectively, “the Settling Parties”) are now seeking final Court approval, which is required for the Settlement to become effective. The Settlement includes a procedure for eligible persons to file a claim to receive a share of the Class Settlement Fund. Plaintiff believes that the claims asserted in the Lawsuit have merit. Defendant does not believe that the claims asserted in the Lawsuit have merit. There has been no determination by any court, administrative agency, or other tribunal as to the truth or validity of the factual allegations made against Defendant in this Lawsuit to date.

Substantial amounts of time, energy, and other resources have been devoted by the Settling Parties in prosecuting and in defending the Lawsuit. Unless there is a Settlement, the Lawsuit will continue against Defendant. In settlement negotiations, the Settling Parties have taken into account the uncertainty of the outcome and the risk of litigation. In light of these factors, the Settling Parties believe that the Settlement is good way to resolve the claims against Defendant and achieving certain recovery for you and other members of the Class while all of the Settling Parties can minimize the time, expense and risk inherent in going to trial. The litigation will continue against the non-Settling Defendants.

The Settling Parties and their attorneys believe that the Settlement is fair, reasonable, and adequate, and in the best interests of all Parties, including the Class.

Defendant has agreed to pay a Settlement Amount of $232,500.00 to resolve all claims in this Lawsuit. Each class member shall be allocated a proportionate share of the Settlement Amount as a portion of each class member’s alleged unpaid minimum wages, alleged unpaid overtime wages, and statutory interest owed on these unpaid wages during the class period after the Settlement Amount has been reduced by: (1) the costs of administering the settlement up through final approval of the Settlement; (2) the $20,000.00 court-approved payment to the Named Plaintiff for his service to the Class; and (3) Class Counsel’s reasonable attorneys’ fees and costs as awarded by the Court (which shall be no more than one-third of the Settlement Amount). The Settlement Amount as reduced by the foregoing amounts is referred to in this Notice as the “Class Settlement Fund.”

As part of the Settlement, each Class Member who files a timely claim will receive a pro rata share of the Class Settlement Fund based on the following formula:

[$100.00 representing alleged unpaid overtime] + [Individual Owed Unpaid Minimum Wages/Total Unpaid Minimum Wages * Class Settlement Fund]

The Settlement Administrator will pay settlement payments directly to Claimants. Half of the payment made to each Claimant shall be treated as unpaid minimum wages and overtime wages for which the Settlement Administrator shall issue an IRS Form W-2 and the other half of the payment made to each Claimant shall be treated as statutory damages for the unpaid minimum wages and overtime wages, for which the Settlement Administrator shall issue an IRS Form 1099 if required by law. If you receive a settlement payment, you are responsible for any tax liability resulting from such payments.

To receive a part of the Class Settlement Fund, you must return to the Settlement Administrator a completed claim form no later than July 3, 2023.  If the Court gives final approval to this Settlement with Defendant, the Settlement Administrator will issue a check directly to each Claimant. Please note that it is your obligation to provide the Settlement Administrator with any updated address information, as needed.

No, you may exclude yourself or “opt-out” of the Settlement if you do not wish to participate in this Settlement as long as you comply with the opt-out procedures. To opt-out, you must submit to the Settlement Administrator, with a copy to Class Counsel and Counsel for Defendant, a letter (“Request for Exclusion”) that states: “I request to be excluded from the settlement in Perlmutter, et al. v. Houlihan, Smith and Co., Inc., et al., Case No. 2010 CH 50204 (Circuit Court for Cook County, Illinois, Chancery Division).” You must also include your full name, address, and telephone number on the request and you must personally sign the letter. The letter must be returned to the Settlement Administrator with a copy to Class Counsel and Defendant’s counsel at the addresses below no later than July 3, 2023. The Request for Exclusion must be returned to the Settlement Administrator with a copy to Class Counsel and Defendant’s counsel (a) by U.S. Mail, postage pre-paid, (b) by overnight delivery by a national courier service, such as United Parcel Service or Federal Express, or (c) by hand-delivery to the Settlement Administrator, Class Counsel, and Settling Defendants’ Counsel. Any attempt to return the Request for Exclusion in any other manner, such as by e-mail, fax, or telephone, will be insufficient to exclude you from the settlement and will be consider null and void. If you opt-out of the Settlement you will not recover any money as part of this Settlement. You may, however, pursue other legal remedies apart from the Settlement that may be available to you. Neither the Parties nor their attorneys make any representations to you regarding what, if any, legal remedies are available to you should you choose to opt-out. YOU SHOULD NOT OPT-OUT IF YOU WISH TO PARTICIPATE IN THIS SETTLEMENT.

You may also object to the terms of the Settlement. To object to this Settlement, you must send a written objection to the Settlement Administrator with copies to Class Counsel and Defendant’s Counsel, at the addresses below, no later than July 3, 2023. The written objection must be returned to the Settlement Administrator with copies to Class Counsel and Defendant’s counsel (a) by U.S. Mail, postage pre-paid, (b) by overnight delivery by a national courier service, such as United Parcel Service or Federal Express, or (c) by hand-delivery to the Settlement Administrator, Class Counsel, and Defendant’s Counsel. Any attempt to return the written objection in any other manner, such as by e-mail, fax, or telephone, will be insufficient to object to the settlement and will be consider null and void. The objection must set forth, in clear and concise terms, the legal and factual arguments supporting the objection. Only Class Members may object to the settlement.

The Settlement Administrator
Perlmutter v. HSA Settlement
c/o Analytics Consulting LLC
P.O. Box 2006
Chanhassen, MN 55317-2006

Class Counsel
Christopher Williams
Workers’ Law Office, PC
1 N. LaSalle Street, Suite 1275
Chicago, IL 60602

Defendant Smith’s Counsel
Jeffrey M. Hansen
Actuate Law, LLC
641 W Lake Street, 5th Floor
Chicago, IL 60661

The Fairness Hearing will be held before the Honorable Allen P. Walker on September 5, 2023 at 11:00 a.m. via video conference at Meeting ID: 955 0046 1687; Password: 640378 or via teleconference at 312-626-6799 to determine whether the proposed settlement (the “Settlement”) with Defendant described in the Class Action Settlement Agreement fairly resolves the claims against Defendant as explained below. The Fairness Hearing may be continued from time to time as the Court may direct, without further notification.

If you are a member of the Class, you will be bound by the proposed Settlement if it is approved, unless you opt-out by making a timely opt-out request as described in Section 8 above.

The purpose of the Fairness Hearing in this case is to determine whether the proposed Settlement of the Lawsuit with Defendant is fair, reasonable, and adequate, and whether the proposed Settlement should be finally approved by the Court and the Lawsuit dismissed against the Defendant. Any member of the Class who is satisfied with the proposed Settlement does not have to appear at the Fairness Hearing.

Any member of the Class who has not validly and timely opted-out of the Settlement but who objects to the proposed Settlement may appear in person or through counsel at the Fairness Hearing and be heard as to why the Settlement should not be approved as fair, reasonable, and adequate, or why a final approval order should or should not be entered dismissing the Lawsuit with prejudice. No attorneys’ fees will be paid by Defendant to an objector’s counsel for any work related to an objection to this Settlement.

No member of the Class will be heard or entitled to object to the Settlement and no papers or briefs submitted by any such Class Member will be received or considered by the Court, unless a written objection following the procedure outlined above is postmarked or received by the Settlement Administrator no later than July 3, 2023. Any documents filed with the Court must be mailed to Class Counsel and Counsel for Defendant at the addresses listed in Section 8 above.

Members of the Class who do not timely make their objections in this manner will be deemed to have waived all objections and shall not be heard or have the right to appeal approval of the settlement.

YOU ARE NOT REQUIRED TO ATTEND THIS HEARING UNLESS YOU PLAN TO OBJECT TO THE SETTLEMENT.

Members of the Class who do not opt-out of this Settlement (whether or not such members submit claims) will release and discharge, on behalf of themselves and their heirs, legatees, personal representatives and assigns, Defendant Smith from all claims raised in or that could have been raised in or that were dismissed from the Lawsuit, including, but not limited to, the Fifth Amended Complaint, described in Section 2 above, and any other previous complaints filed in the Lawsuit.

Class Counsel will petition the Court for reimbursement of reasonable attorneys’ fees and costs from the Settlement Amount, not to exceed one-third of the Total Settlement Amount, for all past and future legal work and costs incurred in this Litigation through final approval of this Settlement as set forth in the Class Action Settlement Agreement.

If the Court does not approve the Settlement, the case will proceed against Defendant as if no Settlement has been attempted, and there can be no assurance that Class Members will recover more than is provided for in the Settlement, or indeed, anything.

Yes, to review the Settlement Agreement, click here, or to request a copy, contact Class Counsel at:

Christopher Williams
Workers’ Law Office, PC
1 N. LaSalle Street, Suite 1275
Chicago, IL 60602
Telephone: (312) 795-9120
E-mail: cwilliams@wagetheftlaw.com