$1.6M settlement money already cashed

As of last week, only 3,790 of the 29,700 in settlement checks that had been mailed have been cashed, for a total cash distribution of $1.6 million to garment workers, according to the lawyers representing the plaintiffs in the class-action against the CNMI garment industry.

The plaintiffs’ lawyers, however, said that they needed more money to distribute all the checks as they already exceeded by over $250,000 the $500,000 that was provided for expenses related to providing notice to class members in the lawsuit and in administering the settlement.

Attorney Joyce C. H. Tang, one of the plaintiffs’ counsel, stated in court papers filed in federal court that as of Thursday, claims administrator Gilardi & Co. reports that 3,790 of the 29,700 checks mailed have been cashed for a total of $1,631,258.79 or about 40 percent of the total amount distributed to workers.

The 3,790 checks are part of the over $5 million settlement money being sent to the 29,700 workers.

Tang said that of these cashed checks, 2,268 were cashed in China; 1,213 on Saipan; and the remainder in the Philippines, Thailand, Bangladeshi, and North America.

About 3,000 checks have already been returned to Gilardi, the lawyer explained.

“Although it is too early to draw any firm conclusions from these initial data, it would appear that about a quarter of the checks mailed are now accounted for, and that the mail distribution system appears to be working fairly well, including in foreign countries,” she said.

Tang said the process of creating a database and ensuring its accuracy and thoroughness was far more complex than what they contemplated, and they have been beset by a number of unforeseen difficulties.

She said the settlement negotiated by the parties in the lawsuit and approved by the court provided for only $500,000 for expenses related to sending notices to class members and in administering the settlement.

Tang said the sum already has been exceeded by over $250,000 and that they anticipate that the expenses will continue to grow as they and Gilardi attempt to resolve check distribution and verify claims of persons not currently on the database.

Tang proposed to the court to permit reimbursement of administrative expenses over and above the original settlement allocation from undistributable funds intended originally for the workers.