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What is this Case about?

‍A Former Sovos employee (called the “Claimant”) filed an action claiming that Sovos misclassified Compliance Services Employees, meaning Compliance Services Associates, Compliance Services Representatives, Senior Compliance Services Representatives, and Compliance Services Team Leads, as “exempt” from overtime regulations. Claimant alleges that Sovos failed to pay overtime wages in accordance with applicable laws.

The Arbitrator has not made any judgment or determination about Claimant’s allegations.  Sovos denies and disputes the allegations.  

The issuance of this Notice is not an expression of the Arbitrator’s opinion on the merits or the lack of merits of Claimant’s allegations. The Arbitrator has not decided this case in favor of either side. However, both sides have agreed to resolve the claims to avoid the risk and expense of litigation.

Why did I get this Notice?

‍This Notice is to tell you about the Settlement brought on behalf of all employees who work or have worked as Compliance Services Employees for Sovos during the relevant period.

You received this Notice because Sovos’s records show that you are part of the proposed Settlement collective. This Notice gives you a summary of the terms of the Settlement and explains your rights and options.

What do I do next?

Read this Notice carefully to understand the Settlement terms. You have received the enclosed Claim Form and have a choice to make:  

SUBMIT A CLAIM FORM AND RECEIVE A CHECK

If you wish to participate in the settlement, subject to applicable taxes and withholdings, you must submit a Claim Form by October 19, 2026.

You may submit a Claim Form online or use the return envelope included in this mailing.

DO NOTHING

If you do nothing, you will not receive a settlement payment.  You will retain your right to pursue your claims, if any, if you so choose.  

What does the Settlement provide?

‍Sovos has agreed to pay $1,200,000 into a Settlement fund. This money is divided among the collective members and used to pay for costs and attorneys’ fees approved by the Arbitrator, a service payment awarded to Claimant ($12,000) to compensate him for his work on the case, and the cost of settlement administration. Members of the Settlement collective who cash a check will “release” their claims as part of the Settlement, which means they cannot sue Sovos for the same issues or claims raised by this case. The full terms of the release can be found in the Settlement Agreement at SovosSettlement.com.

How was my estimated payment calculated?

The calculation of your payment depends on your time worked as a Compliance Services Employee between April 4, 2022, and February 24, 2026. The Settlement Administrator used information from Sovos’s records to calculate your payment based on your total compensation and the number of weeks you worked in an eligible role.

One half (1/2) of your individual Settlement payment is treated as wages and subject to tax withholdings and deductions (paid on IRS Form W2) and one half (1/2) is treated as non-wage compensation with no taxes withheld (paid on IRS Form 1099). 

The Settlement Administrator and lawyers in the case cannot advise you on taxes associated with this payment. Please seek your own personal tax advice.

Do I have a lawyer in this case?         

‍In a collective settlement, the Arbitrator approves lawyers to represent the collective and its members. For this Settlement, the Arbitrator has approved the following lawyers as Collective Counsel:

Collective Counsel:

Melissa L. Stewart, Jennifer Davidson, and Anne Weis

            Outten & Golden LLP

            685 Third Avenue, 25th Floor

            New York, New York 10017

            (561) 778-7689

            sovos@outtengolden.com  

These are the lawyers who negotiated the Settlement on behalf of the collective.

If you want to be represented by your own lawyer, you may hire one at your own expense.   

Do I have to pay the lawyers?

‍No. These lawyers’ fees and costs will be paid from the Settlement fund.

To date, Collective Counsel has not been paid any money for their work or the expenses that they have paid for the case. To pay for their time and risk in bringing this case without any guarantee of payment, Collective Counsel requested and the Arbitrator approved a payment of up to one-third of the Settlement fund, or $400,000 total in lawyers’ fees, plus reimbursement of out-of-pocket costs.

Are there more details about the Settlement?

This Notice summarizes the proposed Settlement. More details are in the Settlement Agreement which is available at SovosSettlement.com or you can contact the Settlement administrator at classaction@xpandlegal.com or Collective counsel at sovos@outtengolden.com or (561) 778-7689.

What happens next?

‍Option 1: Accept the Settlement By Submitting a Claim Form

How do I participate in the Settlement?

To participate in the Settlement, complete and submit a Claim Form.  You can do this online at SovosSettlement.com or by using the Claim Form and return envelope included in this mailing. Please submit the Claim Form prior to October 19, 2026.

If you have questions about the Claim Form, you may contact the Settlement Administrator at:

Sovos Compliance LLC Settlement

c/o Xpand Legal Consulting

PO Box 51570

Irvine, CA 92619

classaction@xpandlegal.com

Toll-free: (888) 557-2773

If you have questions about your legal rights, contact Collective Counsel at sovos@outtengolden.com or (561) 778-7689.

Option 2: Do Nothing

What if I don’t want to be part of this Settlement?

You do not have to be part of this Settlement. If you do not want to be part of this Settlement, do NOT submit a Claim Form, and you will not be a part of the Settlement or release anything.

Key Resources

How do I get more information?

There are more details about the case, go to SovosSettlement.com or contact the Settlement Administrator or Collective Counsel:

Settlement Administrator

Sovos Compliance LLC Settlement

c/o Xpand Legal Consulting

PO Box 51570

Irvine, CA 92619

classaction@xpandlegal.com  

Toll-free: (888) 557-2773

Collective Counsel:

Melissa L. Stewart, Jennifer Davidson, and Anne Weis

            Outten & Golden LLP

            685 Third Avenue, 25th Floor

            New York, New York 10017

            (561) 778-7689

            sovos@outtengolden.com