CHERYL KATER and SUZIE KELLY v. CHURCHILL DOWNS, INC.

Case No. 15-cv-00612-RBL

MANASA THIMMEGOWDA v. BIG FISH GAMES, INC.

Case No. 19-cv-00199-RBL

United States District Court Western District of Washington at Tacoma

Plan of Allocation

Each Settlement Payment will be comprised of (1) a Base Payment Amount, (2) plus a Supplemental Payment Amount, (3) minus the Settlement Class Member’s share of any Fee Award, incentive awards to the Class Representatives, and Settlement Administration Expenses.

  1. Base Payment Amounts

    Base Payment Amounts will be calculated by applying an escalating marginal recovery formula to the Settlement Class Member’s Lifetime Spending Amount through and including July 23, 2020, with the portion of the Settlement Class Member’s spending attributable to Platform Provider fees (fixed for settlement purposes as 30% of each Settlement Class Member’s lifetime spending) discounted by 75%.

    Settlement Class Members with Non-DRP Claims will be subject to an escalating marginal recovery formula based on the percentages described in Figure 1 below. Settlement Class Members with DRP Claims will be subject to an escalating marginal recovery formula based on the percentages described in Figure 2 below.

    Figure 1 (Non-DRP Claims)
    Lifetime Spend ($)Marginal Rate (%)
    .01-1,00010
    1,000.01-10,00017.5
    10,000.01-100,00030
    100,000.01+60

    Figure 2 (DRP Claims)
    Lifetime Spend ($)Marginal Rate (%)
    .01-1,0008
    1,000.01-10,00012.5
    10,000.01-100,00020
    100,000.01+40

    By way of example, an individual with Non-DRP Claims and a Lifetime Spending Amount of $40,000 will be entitled to a Base Payment Amount of $8,273.12, calculated as: ((10% of their first $1,000 in spending [$100]) + (17.5% of their next $9,000 in spending ([$1,575)]) + (30% of their next $30,000 in spending [$9,000])) * (1 – (75% * 30%)).

    Alternately, an individual with DRP Claims and a Lifetime Spending Amount of $40,000 will be entitled to a Base Payment Amount of $5,583.87, calculated as: ((8% of their first $1,000 in spending [$80]) + (12.5% of their next $9,000 in spending ([$1,125)]) + (30% of their next $30,000 in spending [$6,000])) * (1 – (75% * 30%)).

  2. Supplemental Payment Amounts.

    Supplemental Payment Amounts will be calculated on a pro rata basis and will depend on Settlement Class Member participation rate in the Settlement. Upon the close of the claims period, the sum of all unclaimed Base Payment Amounts will be considered the Supplemental Payment Fund. The Supplemental Payment Fund will be apportioned pro rata to each Settlement Class Member who submitted a valid claim, based on the participating Settlement Class Member’s Base Payment Amount. For example, if valid claims total $77.5 million in Base Payment Amounts (i.e., 50% of the Gross Settlement Fund), then the Supplemental Payment amount of a Settlement Class Member whose Base Payment Amount was $8,273.12 would likewise be $8,273.12 (for a Gross Payment Amount of $16,546.24). Alternately, and again if valid claims total $77.5 million in Base Payment Amounts (i.e., 50% of the Gross Settlement Fund), then the Supplemental Payment amount of a Settlement Class Member whose Base Payment Amount was $5,583.87 would likewise be $5,583.87 (for a Gross Payment Amount of $11,167.74). Gross Payment Amounts are subject to the deductions described in Section (3).

    Regardless of Settlement Class Member participation rates, the sum of Base Payment Amounts and Supplemental Payments Amounts will equal the Settlement Fund ($155 million).

  3. Fee Award, Incentive Awards, and Settlement Administration Expenses.

    Settlement Payment Amounts will be a Settlement Class Member’s Base Payment Amount plus their Supplemental Payment Amount, minus their share of any Fee Award, Incentive Awards, and Settlement Administration Expenses, anticipated not to exceed 30% of the Settlement Amount.