Rochester Gas & Electric (RG&E) Settlement

In September 2005, a group of African American employees of RG&E retained Class Counsel and requested that they begin an investigation as to whether RG&E was engaged in a pattern or practice of discrimination against its African American employees. Subsequently, some of these African American employees filed charges of discrimination against RG&E with the United States Equal Employment Opportunity Commission (the "EEOC"), and the New York Division of Human Rights.

On January 13, 2006, Plaintiffs advised RG&E in writing of the class nature of the allegations made by their clients, requested that RG&E preserve all relevant evidence, and indicated that Plaintiffs were open to potentially resolving this matter through a pre-filing alternative dispute resolution ("ADR") mechanism. The parties ultimately agreed to an ADR process which included extensive discovery.

The parties then engaged in a series of meetings in which they discussed and agreed on the scope of discovery to be produced in order to allow informed settlement discussions to proceed. Ultimately, RG&E produced thousands of pages of documents, including the hard copy personnel files of many of the Plaintiffs, as well as RG&E's relevant human resource policies and equal employment opportunity policies. RG&E also produced an electronic copy of its human resource ("HR") database.

Plaintiffs retained a prominent labor economist and statistician to analyze RG&E's HR database and to determine whether there were statistically significant disparities affecting African American Class Members. Plaintiffs later produced the results of that investigation to RG&E, along with a sample of detailed individual claim summaries. The individual Plaintiffs were very much involved in this process, gave statements, and regularly responded to requests for information from Class Counsel and RG&E.

After exchanging large amounts of information, the parties began settlement discussions. Numerous meetings took place between April 2007 and November 2007. Ultimately, the parties agreed to settle the litigation on the terms set forth below. Based upon their investigation, Class Counsel have concluded that the terms of the settlement are fair, reasonable, adequate, and in the best interests of the Class. In reaching this conclusion, Class Counsel have analyzed the benefits of the settlement and the risk of an unfavorable outcome (i.e., losing), as well as the expense and length of continued proceedings necessary to prosecute this action. RG&E does not admit any wrongdoing or liability by entering into this settlement, and has agreed to these settlement terms because it wishes to avoid further costly, disruptive, and time-consuming litigation, and desires to obtain complete and final settlement of the claims of the Plaintiffs and Class Members.

Royal denies Plaintiffs' allegations. Neither Plaintiffs nor Royal have proven their assertions. The Court expresses no opinion as to whether Plaintiffs' allegations are correct or whether Royal has engaged in any wrongdoing. The purpose of this Notice is to inform you of the proposed certification of the Class and the proposed settlement with Royal and your rights in connection with the settlement.

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