Hahn, et al. v. Hanil Development, Inc., et al.
www.AromaClassActionSettlement.com

Frequently Asked Questions

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1.      How do I know if I am part of the Settlement?

Everyone who fits the following description is a Class Member: All current or former Lifetime or Ten (10) Year Members of Aroma Spa & Sports. These people are referred to in the Notice as “Class Members.” If you received a copy of the Notice directly by mail, the parties have determined that you may be a member of the class.

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2.      How do I know if I am a Lifetime Member, a Transferee Lifetime Member or a Ten Year Member?

You are a Lifetime Member if you paid an initiation fee to Aroma or HDI for an Aroma lifetime membership, and are a member of Aroma as of the Effective Date of the Settlement.

You are a Transferee Lifetime Member if you paid another Lifetime Member to acquire that member’s Aroma lifetime membership, and are a member of Aroma as of the Effective Date of the Settlement.

You are a Ten (10) Year Member if you purchased a ten-year membership from Aroma.

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3.      What does Effective Date of Settlement mean?

The Effective Date of Settlement is the date on which all appellate rights with respect to the Final Approval Order and Judgment have expired or been exhausted. If no objections to the Settlement are timely filed, then the Effective Date of the Settlement will be the day the Court grants the Settlement’s Final Approval. If objections are filed, but there is no appeal, the Settlement’s Effective Date will likely be 60 days from the Court’s Order giving final approval to the Settlement. However, if there are appeals the date will be later. When the date becomes known, it will be posted on this website.

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4.      What does the Settlement provide if I am a Lifetime Member or Transferee Lifetime Member?

  • An Amended and Restated Report Membership Agreement. This new agreement will replace your Lifetime Resort Membership Agreement. The Amended and Restated Resort Membership Agreement provides for a three (3) year term membership to Aroma. At the conclusion of the three (3) year term, you may elect to renew the Amended and Restated Resort Membership Agreement for an additional two (2) year term. The three (3) term will begin the first day of the month following thirty (30) days after the Effective Date of Settlement. Under the Amended and Restated Resort Membership Agreement, you will continue to receive Lifetime Membership Benefits except that the membership will no longer be transferable.
  • A Reduction in Your Monthly Membership Dues. During the first three (3) year term of the Amended and Restated Resort Membership Agreement, Aroma will reduce your monthly dues to $75.00 per month. During the remaining two (2) year term, if elected, your monthly dues will be increased to $100.00 per month.
    • If you are currently paying monthly dues in a sum less than $75.00. You will continue to pay the lesser amount until the date of expiration, which is ten (10) years from the date of your Lifetime Resort Membership Agreement. After such time, you will pay monthly dues to Aroma in the sum of $75.00 for the remainder of your Amended and Restated Resort Membership Agreement three (3) year term.
    • If you have paid monthly dues in advance. You will receive a monthly credit against your reduced monthly dues obligation ($75.00 per month), until your advance payment has been exhausted. After such time, you will pay the reduced monthly dues ($75.00 per month) for the remainder of your Amended and Restated Resort Membership Agreement three (3) year term.
    • If you choose to terminate your Amended and Restated Resort Membership Agreement during your initial three (3) year term. You must provide Aroma with at least thirty (30) days’ notice of your intent to terminate the membership. Although you will no longer be obligated to pay Aroma the $75.00 monthly dues upon termination, you will still be entitled to receive the Initiation Fee Refund identified below.
  • Initiation Fee Refund
    • Lifetime Member. Subject to a pro rata reduction in the event of a court award of costs and fees, Aroma will refund you fifty percent (50%) of any initiation fee paid by you, pursuant to the following payment schedule:
      • $500.00 by December 31, 2015
      • $500.00 by December 31, 2016
      • $500.00 by December 31, 2017
      • Remaining balance to be paid by December 31, 2018.
    • Transferee Lifetime Member. Subject to a pro rata reduction in the event of a court award of costs and fees, Aroma will refund you a percentage of the initiation fee as set forth in the transferor’s original Lifetime Resort Agreement. The refund will be based on the date you received the transfer of the lifetime membership pursuant to the following formula:

      Time of Transfer Percentage
      Within the past 12 months from the
      Effective Date of Settlement
      80% subject to pro rata reduction
      Within the past 12-24 months from the
      Effective Date of Settlement
      70% subject to pro rata reduction
      Within the past 24-36 months from the
      Effective Date of Settlement
      60% subject to pro rata reduction
      Within the past 36-48 months from the
      Effective Date of Settlement
      50% subject to pro rata reduction
    • The above payments will be made to you pursuant to the following payment schedule:
      • $500.00 by December 31, 2015
      • $500.00 by December 31, 2016
      • $500.00 by December 31, 2017
      • Remaining balance of the initiation fee by December 31, 2018.

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5.      What does the Settlement provide if I am current or prior Ten (10) Year Member?

Aroma will provide you with a $60.00 Aroma gift certificate within 90 days from the Effective Date of Settlement. In addition, if you currently hold a ten-year membership agreement with Aroma, you may complete the remaining balance of your membership term.

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6.      When will I receive the benefits of the Settlement?

The Court will hold a Fairness Hearing on October 2, 2015 (continued from September 11, 2015), at 8:30 a.m., to decide whether the Settlement is fair, reasonable, and adequate for the Class Members, and if so, whether the Settlement should be finally approved by the Court. If the Court approves the Settlement, there may be appeals. Before any Settlement payments can be made, all appeals filed must be resolved. It is always uncertain whether appeals can be resolved, and resolving them can take time, perhaps more than a year. Please be patient.

If the Effective Date of Settlement (see FAQ No. 3) falls after the first payment deadline of December 31, 2015, any payments that would have otherwise been due but for the non-occurrence of the Effective Date of Settlement will be made within thirty (30) days after the Effective Date of Settlement.

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7.      Can I get out of this Settlement?

You were previously provided notice of class certification and an opportunity to exclude yourself in the June 2013 Notice of Pendency of Class Action and December 2013 Amended Notice of Pendency of Class Action. The deadline to request exclusion from the Class has now passed. If you did not send a Request for Exclusion by mail saying that you wanted to be excluded from the Hahn v. Hanil Development, Inc. Class postmarked no later than January 27, 2014, you are bound by the terms of the Settlement.

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8.      Do I have a lawyer in this case and how will they be paid?

The Court has appointed the following attorneys and law firms to represent you and other Class Members. Together, these lawyers are called Class Counsel:

Paul A. Traina, Esq.
Steven J. Lipscomb, Esq.
Engstrom, Lipscomb & Lack
10100 Santa Monica Blvd., 12th Fl.
Los Angeles, CA 90067-4113
Tel: (310) 552-3800
Henry Bahk, Esq.
Law Offices of Henry H. Bahk
3731 Wilshire Blvd, Ste 940
Los Angeles, CA 90010
Tel: (310)770-7560

Class Counsel will ask the Court for $1 million in attorneys’ fees and $150,000.00 in litigation costs (“fee award”). Class Counsel will seek $665,000.00 of the fee award to be paid by Defendants separate and apart from any benefits to be paid to the Class Members. Defendant agrees to pay $665,000.00 or any lesser amount approved by the Court and such payment will not come out of the Common Benefit Fund for Class Members. Class Counsel will seek the remaining $485,000.00 of the fee award and $15,000.00 service payments to each of the Class Representatives for their services to the Class to be paid from the Common Benefit Fund. Class Counsel will not seek more than these amounts from the Common Benefit Fund. Any amount of attorneys’ fees and costs awarded to Class Counsel must be approved by the Court. The costs associated with Settlement administration will be paid equally by Defendants and Class Counsel, who will separately pay these costs and they will not come out of the Common Benefit Fund for Class Members.

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9.      How do I tell the Court that I do not like the Settlement?

If you are a Class Member, you can object to the Settlement and/or Class Counsel’s petition for attorneys’ fees, service payments and expenses if you do not like any part of them. You can give reasons why you think the Court should not approve them. The Court will consider your reasons. To object, you must send a letter to the Settlement Administrator, Class Counsel, and HDI and Aroma’s Counsel saying that you object to the Hahn, et al. v. Hanil Development, Inc., et al. Settlement. Be sure to provide:

  • your full name, current address, and telephone number;
  • whether you are a current or former Lifetime Member, Transferee Lifetime Member, or Ten (10) Year Member;
  • the date you purchased your Aroma lifetime membership or the date you purchased your Ten (10) Year membership;
  • a statement of the reasons you object to the Settlement and/or Class Counsel’s petition for fees, service payments and expenses, including legal and factual grounds for your objection; and
  • copies of all documents that you wish to submit in support of your objections.

Any objection must be postmarked no later than July 10, 2015, and mailed to:

Settlement Administrator
Hahn, et al. v. Hanil
Development, Inc., et al.

c/o Garden City Group, LLC
P.O. Box 35100
Seattle, WA 98124-1100
Class Counsel
Paul A. Traina, Esq.
Steven J. Lipscomb, Esq.
ENGSTROM, LIPSCOMB
& LACK
10100 Santa Monica Blvd.,
12th Fl.
Los Angeles, CA 90067-4113
(310) 552-3800
-or-
Henry Bahk, Esq.
LAW OFFICES OF
HENRY H. BAHK
3731 Wilshire Blvd, Ste 940
Los Angeles, CA 90010
(310) 770-7560
HDI and Aroma’s Counsel
Douglas Smith, Esq.
Nathaniel Tarvin, Esq
GORDON & REES LLP
2211 Michelson Drive,
Suite 400
Irvine, CA 92612
-or-
Yvonne Dalton, Esq.
Matthew Soroky, Esq.
LEE HONG DEGERMAN,
KANG & WAIMEY
660 So. Figueroa Street,
Suite 2300
Los Angeles, CA 90017

DO NOT file your objection with the Court.

The Court will hold a Fairness Hearing at 8:30 a.m. on October 2, 2015 (continued from September 11, 2015), in Department 3 of the Los Angeles Superior Court, located at 111 North Hill Street, Los Angeles, California 90012. The hearing may be moved to a different date or time without additional notice, so it is a good idea to return to this website frequently for any changes. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The judge will only listen to people who have asked to speak at the hearing. After the hearing, the Court will decide whether to approve the Settlement.

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10.      How do I get more information?

You can write to the Settlement Administrator, Hahn, et al. v. Hanil Development, Inc., et al., c/o Garden City Group, LLC, P.O. Box 35100, Seattle, WA 98124-1100. You may also contact Class Counsel as identified in Question 9.

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