$20 Million Settlement for Delivery Drivers Misclassification Lawsuit

From Baking Business, Eric Schroeder reports on the settlement by Flowers Foods, Inc., makers of Wonder, Sunbeam, Home Pride and other products,  to a lawsuit by delivery drivers. Eric writes:

PORTLAND, MAINE — Flowers Foods, Inc. on Oct. 22 agreed to pay approximately $20 million to current and former distributors in Maine to settle a lawsuit dating back to Dec. 3, 2015.

Under terms of the settlement, Flowers has agreed to create a $9 million settlement fund to be distributed among more than 50 delivery drivers and a $10,000 service award to be given to lead plaintiff Timothy Noll. The Thomasville, Ga.-based company also has agreed to buy back the drivers’ distribution rights at an estimated cost of $3.3 million, which was calculated by taking the sum of 10 times the average weekly branded sales calculated over a 52-week period preceding the date of repurchase. An additional $7.5 million will be paid out to cover attorneys’ fees, costs of notice and settlement administration.

“The parties view the settlement as a desirable alternative to the uncertainty, expense and delay that would result from further litigation,” the joint motion for preliminary approval noted. “At the same time, class counsel believe the settlement achieves an excellent result and is in the best interests of the settlement class members, and the parties believe it should ultimately be approved by the court as fair, reasonable and adequate in all respects.”

Read the full story at Flowers agrees to settle six-year lawsuit | 2021-10-26 | Baking Business

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