PHOENIX (LN) — U.S. District Judge Kathleen Martinez granted preliminary approval of a $3 million class action settlement against LifeStance Health Group on Tuesday, ruling that a revised fee structure cured the collusion concerns that previously blocked the agreement in a website-tracking privacy case.
The court had denied a prior joint motion for preliminary approval, finding the original payment structure disproportionate and failing to overcome warning signs for collusion under Ninth Circuit precedent. The earlier proposal relied on a reversionary, uncontested $0.75 million fund to pay plaintiffs’ attorneys’ fees, in addition to 25% or 33% of the $1.2 million class award.
After that order issued, the parties engaged in additional negotiations and resubmitted a revised Settlement Agreement. The new proposal eliminates the reversionary fund entirely, with attorneys’ fees paid as a percentage from the Settlement Fund, allowing LifeStance to object to the fees.
The court found the compensation structure fair and reasonable. The other portions of the proposed settlement, including the class definition, remained the same or did not change so as to materially impact the previous analysis.
The Settlement Class consists of all natural persons who were members of LifeStance’s total patient population between March 1, 2020, and April 30, 2023. The class is divided into two subclasses, both of which will receive cash payments from the Settlement Fund.
Settlement Subclass 1 includes members who booked at least one session through LifeStance’s online booking tool on lifestance.com during the relevant period. Settlement Subclass 2 includes all other members of the patient population during that time.
The parties agreed LifeStance will fund two non-reversionary, common funds totaling about $3.03 million. The Settlement Subclass 1 Fund is about $1.2 million, which will fund cash payments for that subclass. The Settlement Subclass 2 Fund is about $1.82 million, which will fund cash payments for the second subclass.
Hart L. Robinovitch and Ryan J. Ellersick of Zimmerman Reed LLP, along with David S. Almeida and Britany A. Kabakov of Almeida Law Group LLC, are appointed as Class Counsel. Plaintiffs Montana Strong and Debra Yick are appointed as Class Representatives.
The court approved a notice program requiring direct email notice to all Settlement Class Members for whom a valid email address is available in the Class List by July 1, 2026. If email transmission results in bounce-backs, the Settlement Administrator must make a second attempt and, if that fails, mail a postcard notice to the member’s last-known mailing address.
A Longform Notice will be published on a Settlement Website administered by Angeion Group, the appointed Settlement Administrator. The website will allow Class Members to review documents, file Claim Forms online, and access a Frequently Asked Question section with a toll-free number.
Class Members have until August 31, 2026, to object to the settlement or request exclusion. Objections must be filed with the Court and served on Class Counsel and Defendant’s Counsel. Requests for exclusion must be sent to the Settlement Administrator deadline.
A Settlement Hearing is scheduled for October 16, 2026, at 10:30 a.m. at the Sandra Day O’Connor United States Courthouse in Phoenix. The hearing will determine whether the settlement is fair, reasonable, and adequate, and will consider Class Counsel’s motion for attorneys’ fees and expenses.
The court reserved the right to approve the settlement with modifications agreed upon, provided such modifications do not impair Class Members’ rights. The court may enter the Judgment approving the settlement regardless of whether it has approved the Plan of Allocation or awarded attorneys’ fees.