Munoz v. Earthgrains Distribution, LLC

Plaintiffs Corona, Munoz and Ruiz initiated this “Action” by filing a Class Action Complaint in San Diego County Superior Court, which Defendants Bimbo Bakeries USA, Inc. and Earthgrains Distribution, LLC subsequently removed to the United States District Court for the Southern District of California. Plaintiffs Corona, Munoz, and Ruiz later filed their First Amended Complaint, adding Steven Snavely as a Plaintiff (together, “Plaintiffs”). In the operative Second Amended Complaint, Plaintiffs allege causes of action for (1) violation of California Labor Code §2802 (failure to reimburse business expenses); (2) violation of California Labor Code §§ 221-223 (unlawful deductions from wages); (3) violation of California Labor Code § 226 (failure to provide accurate wage statements) (4) violation of California Labor Code § 510 (failure to pay overtime); (5) violation of California Labor Code § 226.7 (failure to provide meal periods or rest breaks); (6) violation of California Labor Code § 201-203 (failure to pay wages due upon termination); (7) violation of California Labor Code § 245-259 (failure to pay sick leave wages); (8) violation of California Business & Professions Code §§ 17200, et seq. (violation of unfair competition law); (9) violation of California Labor Code § 2698, et seq. (PAGA). Plaintiffs seek to represent current and former Independent Business Partners (“IBPs”) who contracted with either Earthgrains Distribution LLC or one of its predecessors, subsidiaries, or affiliates for sales in sales areas in California or who were purchasing product in California or selling to customers in California at any time between June 27, 2018 and February 28, 2026.

Defendants deny all allegations in the Action and contend that they fully complied with federal, state and local wage and hour laws. The settlement is not an admission of any wrongdoing by Defendants or others released by the settlement or an indication that any law was violated or that this case was suitable for class or representative treatment. Through arms-length negotiations with an experienced wage and hour mediator, the Parties reached a class and PAGA settlement subject to Court approval, which is summarized in this Notice.

The proposed Settlement provides for a maximum payment of Seventeen Million Five Hundred Thousand Dollars and Zero Cents ($17,500,000.00) (referred to as the “Gross Settlement Amount”). In addition to paying your Individual Settlement Payment (discussed below), this amount will pay for several other things related to this Lawsuit. From the Gross Settlement Amount, Class Counsel will apply to the Court for: attorneys’ fees of up to one third of the Gross Settlement Amount, or Five Million Eight Hundred Thirty-Three Thousand Three Hundred Thirty-Three Dollars and Thirty-Three Cents ($5,833,333.33) and up to Forty Five Thousand Dollars and Zero Cents ($45,000.00) in recoverable costs incurred in this Action; Class Representative Enhancement Award of Sixty Thousand Dollars and Zero Cents ($60,000.00), representing Fifteen Thousand Dollars and Zero Cents ($15,000.00) each to Plaintiffs Munoz, Ruiz, Corona, and Snavely for their work and efforts prosecuting this case, for undertaking the risks of payment of costs (in the event of an unsuccessful outcome of this Action) and for signing a general release of any claims they may have against Defendants; a Three Hundred Fifty Thousand Dollars and Zero Cents ($350,000.00) payment as settlement for claims for civil penalties under PAGA (the “PAGA Payment”), of which 75% will go to the California Labor Workforce Development Agency (“LWDA”) and 25% will be divided among the PAGA Members as described below; a Two Hundred Thousand Dollars ($200,000.00) Reserve Fund to make Individual Settlement Payments to Class Members, if any, who were not identified in the Class Data before the Effective Date through the 180-day cash checking period; and Settlement Administration Costs estimated at Sixteen Thousand Dollars ($16,000.00). The exact amount of the attorneys’ fees, litigation costs, Class Representative Enhancement Award, and Settlement Administration Costs will be determined by the Court at the Final Approval hearing.