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NOTICE OF PROPOSED CLASS ACTION SETTLEMENT


TO: ALL PERSONS WHO PURCHASED, WERE THE HOLDERS OF, AND/OR RECEIVED A PEP BOYS GIFT CARD DURING THE PERIOD JANUARY 1, 2008, THROUGH JULY 13, 2012, (THE “CLASS”).

PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. THIS NOTICE RELATES TO A PROPOSED SETTLEMENT OF THIS CLASS ACTION AND, IF YOU ARE A MEMBER OF THE CLASS, CONTAINS IMPORTANT INFORMATION AS TO YOUR RIGHTS CONCERNING THE SETTLEMENT.


THIS NOTICE AFFECTS YOUR RIGHTS:

The Alameda Superior Court (the “Court”) authorized this notice (the “Notice”).

A settlement was given preliminary approval (the “Settlement”) in a class action lawsuit pending in the California Superior Court for the County of Alameda entitled Teresa Graber v. The Pep Boys, et al., Case No. RG 11600495 (the “Action”), involving plaintiff Teresa Graber (“Graber” or “Plaintiff”) and defendants The Pep Boys – Manny, Moe & Jack and The Pep Boys Manny, Moe & Jack of California (jointly, “Pep Boys”). Graber and Pep Boys are collectively referred to herein as the “Parties.”

The purpose of this Notice is to provide a brief summary of the claims asserted in the Action and the terms of the Settlement. If you wish to be included in the Settlement, you do not have to do anything to indicate your consent. This Notice also describes what you need to do if you wish to be excluded from the Settlement.


WHAT'S THIS ABOUT?

The Settlement will resolve the Action involving Graber’s claims that Pep Boys violated California law by not redeeming a gift card for cash, upon request, when the remaining balance on the gift card was less than Ten Dollars and No Cents ($10.00). Pep Boys denies any wrongdoing. The Parties concluded it is in their best interests to settle the Action to avoid the expense and uncertainty of ongoing litigation. The Court did not decide which side was right, but both sides agreed to the Settlement.


WHO IS IN THE CLASS?

You are a member of the Class if you purchased, held, or received a Pep Boys gift card at anytime during the period January 1, 2008, through July 13, 2012 (“Class Member”).


WHAT DOES THE SETTLEMENT PROVIDE?

Pep Boys has agreed to do the following: (a) post one (1) 5” x 7” sign in one (1) employee-only area in each of its California stores for a period of six months that contains the following language: “California law requires that a gift card must be redeemed for cash, upon a customer’s request, when the gift card balance falls below ten dollars ($10.00)”; (b) post the following statement on its gift card displays: “California law requires that a gift card must be redeemed for cash, upon a customer’s request, when the gift card balance falls below ten dollars ($10.00)” (c) incorporate the following statement in all its cashier training materials and/or point-of-sale manual: “California law requires that a gift card must be redeemed for cash, upon a customer’s request, when the gift card balance falls below ten dollars ($10.00)”; and (d) provide additional training to California store employees regarding gift card cash redemption rights and procedures.

Subject to Court approval, the class representative Teresa Graber will receive an incentive award of One Thousand Dollars and No Cents ($1,000.00), and the attorney for the Class (“Class Counsel”) will be paid up to Thirty-Eight Thousand Dollars and No Cents ($38,000.00) total for attorneys’ fees and costs.


RELEASE OF ALL CLAIMS

If the Court approves the Settlement, it will enter a judgment in the Action with prejudice as to all Class Members. Class Members who do not validly and timely request to be excluded from the Settlement and each of their respective successors, assigns, legatees, heirs, and personal representatives shall release and forever discharge Pep Boys and each of its past and present parents, divisions, subsidiaries, affiliates, predecessors, successors, assigns, officers, directors, employees, investigators, attorneys, contractors, subcontractors, agents, representatives and all persons acting by, through, under or in concert with them, or any of them (the “Released Parties”), from, without limitation, any and all claims, rights, demands, actions, obligations, damages, liabilities, and causes of action of any and every kind, nature and character whatsoever, whether based in tort, contract, statute or on any other theory of recovery, whether known or unknown, and whether for equitable relief, statutory penalties, compensatory, or punitive damages, which Plaintiff or each Class Member ever had or could have asserted against Pep Boys arising out of or relating to Pep Boys’ alleged failure to provide a cash redemption on a Pep Boys gift card, including without limitation, any and all alleged violations of California Civil Code section 1749.5 or California Business and Professions Code sections 17200, et seq., or that were alleged or that could have been asserted in the Action. This release will cover these claims even if you were not aware of the claims at the time of the Settlement. You waive any and all rights or benefits under California Civil Code section 1542, which provides:

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.


WHAT ARE YOUR OTHER OPTIONS?

If you want to opt out of the Settlement, you must exclude yourself by no later than September 2, 2012. To be excluded, you must submit a letter postmarked no later than September 2, 2012, containing: (a) the name of the Action: “Teresa Graber v. The Pep Boys, et al.”; (b) your full name, address, and telephone number; and (c) a statement that you are a Class Member and wish to be excluded from the Class. To be considered valid, a request for exclusion must set forth all of this information, be timely, and be sent to class counsel and defense counsel at the following addresses:



   Class Counsel   Defense Counsel

   Robert B. Hancock, Esq.
   PACIFIC JUSTICE CENTER
   50 California Street, Suite 150050
   San Francisco, CA 94111


   Diane L. Webb, Esq.
   MORGAN LEWIS & BOCKIUS
   One Market Plaza
   Spear Street Tower
   San Francisco, CA 94105


You may object to the proposed settlement in writing. You may also appear at the Final Approval Hearing, either in person or through an attorney at your own expense, provided you notify the Court of your intent to do so. All written objections, supporting papers and/or notices of intent to appear at the Final Approval Hearing must (a) clearly identify the case name and number: Graber v. The Pep Boys, Case No. RG-11-600495; (b) be submitted to the Court either by mailing to: Clerk of Court, Superior Court of California, County of Alameda, Rene C. Davidson Alameda County Courthouse, 1225 Fallon Street, Oakland, California 94612, or by filing in person at any location of the Superior Court, County of Alameda that includes a facility for civil filings; (c) be mailed to the law firms identified above; and (d) be filed or postmarked on or before September 2, 2012.


FINAL APPROVAL HEARING

The Court will have a hearing to decide whether to finally approve the settlement on September 14, 2012, at 10:30 a.m., before the Honorable Wynne S. Carvill, in Department 21, of the California Superior Court for the County of Alameda, 1221 Oak Street, Oakland, CA 94612.


ADDITIONAL INFORMATION

The above is a summary of the basic terms of the settlement. For the precise terms and conditions of the settlement, you are referred to the detailed settlement agreement, which is on file with the Clerk of the Court. The pleadings and other records in this litigation, including the settlement agreement, may be examined (a) online on the Alameda County Superior Court’s website, known as “DomainWeb,” at http://apps.alameda.courts.ca.gov/domainweb/html/casesumbody.html, or (b) in person in Room B-16 at the County Administration Building at 1221 Oak Street, Oakland, California 94612, between the hours of 8:30 a.m. and 2:30 p.m., Monday through Friday, excluding Court holidays, or you may contact Class Counsel.


HON. WYNNE S. CARVILL
JUDGE OF THE SUPERIOR COURT