JAMES ELLIS and DARRYL ELLIS v. NATIONSTAR MORTGAGE LLC d/b/a MR. COOPER

In early 2019, Nationstar acquired mortgage servicer PUF. Plaintiffs James Ellis and Darryl Ellis, whose mortgages were being serviced by PUF at the time of the acquisition allege that Nationstar and PUF did not provide adequate notices of transfer of servicing and collected overlapping autodraft payments from certain borrowers. This lawsuit sought to recover actual damages, statutory damages, costs and attorneys' fees from Defendant for its alleged violation of the Electronic Funds Transfer Act (“EFTA”), Real Estate Settlement Procedures Act (“RESPA”), Truth in Lending Act (“TILA”), and Chapter 224 of Wis. Stats. (“Section 224”).

      Nationstar denies that it has any liability to Plaintiff or the Class and denies that it has violated the EFTA, RESPA, TILA, and Section 224, but has agreed to settle this case based on the likely high cost of protracted litigation.

            The Class was conditionally certified for purposes of settlement, pursuant to Wis. Stat. § 803.08(2)(c), as a class action. The Court has appointed Plaintiffs as representatives of the Class, and their attorneys, Shpetim Ademi, John D. Blythin, Jesse Fruchter, and Ademi LLP as Counsel for the Class.

            This description of Plaintiff’s claims and Defendant’s response is general and does not cover all of the claims and contentions of the parties. For a complete statement of all the contentions and proceedings in this case, you should consult the files relating to this lawsuit, which are available for your inspection at the office of the Milwaukee County Clerk of Courts, 901 North 9^th Street, Room 104, Milwaukee, Wisconsin 53233.

The Class consists of approximately 125,000 people and the Subclass consists of approximately 3,000 people. Plaintiff and Defendant have agreed to a proposed settlement that provides:

1. Nationstar will pay one million dollars ($1,000,000) into a Common Fund, to be distributed as follows:

a.  Approximately two hundred thousand dollars ($200,000) will be used to pay the costs of notice and administration of the Settlement;

b.  Approximately twenty-five thousand dollars ($25,000) will be used to compensate Plaintiffs for their individual actual and statutory damages and a reasonable incentive award for their time, effort, and willingness to represent the Class and Subclass;

c.  Plaintiffs intend to seek from the Court, and Nationstar has agreed not to oppose, an award of reasonable attorneys’ fees and litigation expenses for Class Counsel, not to exceed three-hundred fifty thousand dollars ($350,000); and

d.  Approximately four-hundred twenty-five thousand dollars ($425,000) will be distributed amongst the members of the Class and Subclass, with one hundred thousand dollars ($100,000) to be paid to the Subclass with up to $350 per Claimant and the remaining portion of the Common Fund to be paid to the Claimants in the Class on a pro rata basis.

2.  Any settlement check that is returned as undeliverable by the Postal service or which remains uncashed 120 days after the date of distribution shall be considered to be undistributable funds.

     3.  Upon final approval of the settlement the Court will enter a judgment dismissing the lawsuit with prejudice and releasing Nationstar from all liability to Plaintiffs and the Class for the Released Claims.

 If you received a Notice in the mail, you have been identified from Nationstar’s records as a member of the Class.

The EFTA, RESPA, TILA, and Section 224 provide for the recovery of actual and statutory damages as well as payment of costs and reasonable attorneys' fees to a successful plaintiff. There is no guarantee that Nationstar would be found liable to the Class or Subclass under any of these provisions or that statutory damages would be awarded. Here, Class Counsel believes that the proposed settlement amount is fair and reasonable in light of the strength and nature of the claims and defenses in the Action.

 You also have the right to bring your own individual action. However, there is no guarantee that a court would find Nationstar liable or award you any individual damages.

If you want to receive your share of the recovery, you must complete and return by mail, the attached claim form by September 16, 2024.

                        If you do not want to be a member of the Class, you have the right to opt out or exclude yourself from the Class by sending a written request for exclusion containing your name, address, and the name and number of this case to Class Counsel at the address listed below and to: Ellis v. Nationstar, c/o Settlement Administrator, PO Box 23489, Jacksonville, FL 32241-3489. However, if you exclude yourself from the Class, you will not be entitled to share in the Class recovery, nor will you be bound by the judgment in this matter. Your request for exclusion must be postmarked by September 16, 2024.

            If you elect to remain as a member of the Class, you also have the right to object to the proposed settlement by filing and serving a written objection. Your objection must include your name, address, telephone number, the case name and number, a summary of your objection, and whether you intend to appear at the hearing. You or your attorney must sign your objection personally. You must mail your objection, postmarked on or before September 16, 2024, to the following address:

Clerk of the Milwaukee County Circuit Court
Room 104
901 North 9th Street
Milwaukee, Wisconsin 53233

You must also mail a copy of your objection, postmarked on or before September 16, 2024, to Class Counsel and Counsel for Defendants at the following addresses:

NOTICE IS HEREBY GIVEN THAT a hearing will be held before the Honorable Gwen Connolly, Circuit Court Judge, on October 29, 2024 at 1:30 PM  in Courtroom 415 of the Milwaukee County Courthouse, 901 North 9th Street, Milwaukee, Wisconsin 53233. This hearing will be held to determine if the proposed settlement is fair, reasonable, and adequate and should be approved and the lawsuit dismissed with prejudice. If the proposed settlement is approved, it will be binding and will release Defendant from any and all claims that were asserted or could have been asserted by any of the Class Members.

Questions concerning this class action litigation should be directed to Class Counsel: Shpetim Ademi, John D. Blythin, Jesse Fruchter, and Ben J. Slatky, Ademi LLP, 3620 E. Layton Avenue, Cudahy, Wisconsin 53110, or to the call center at (800) 687-0141.

PLEASE DO NOT CALL THE JUDGE OR THE COURT CLERK