Jimenez Del Rosario v. Baldor Specialty Foods, Inc.
- Alvin Hellerstein
- 1:23-cv-03580
- U.S. District Court · Southern District of New York
- 12
In Jimenez Del Rosario v. Baldor Specialty Foods, Inc., Judge Hellerstein approved the data-security settlement and dismissed the action with prejudice.
The order affects the 13,382 people included in the settlement class, the named plaintiffs, Baldor Specialty Foods, Inc., class counsel, and the settlement administrator. Eligible class members may receive settlement relief if they submit valid claims, while released claims related to the data incident cannot be pursued under the settlement’s terms.
What happened
In Jimenez Del Rosario v. Baldor Specialty Foods, Inc., plaintiffs alleged that Baldor Specialty Foods failed to use adequate safeguards to protect personal information in a February 2023 data incident. The court approved a settlement covering 13,382 people who were notified that their information might have been compromised.
The settlement allows eligible class members to submit claims, requires Baldor to pay administration costs, and releases covered claims related to the data incident. No class members opted out, one objection was overruled, and the court approved $5,000 service awards for each class representative, $125,000 in attorneys’ fees, and $3,832 in costs and expenses.
Judge Alvin K. Hellerstein found the settlement fair, reasonable, adequate, and in the class’s best interests. The court did not decide whether Baldor was liable, but approved the settlement, directed its implementation, retained authority over its enforcement, and dismissed the action with prejudice.
The detailed version
- Jimenez Del Rosario v. Baldor Specialty Foods, Inc. · No. 1:23-cv-03580
- Alvin Hellerstein
- Sept. 4, 2024
Background
Plaintiffs Eduardo Antonio Jimenez Del Rosario, Jayson Mercado, and Taneisha Lewis brought the action on behalf of themselves and others similarly situated. The opinion states that the plaintiffs alleged Baldor Specialty Foods, Inc. failed to implement or maintain adequate data-security measures and safeguards for private information, causing injuries connected to a data incident discovered by Baldor in February 2023. Baldor denied the allegations, and the settlement was not an admission of liability or wrongdoing.
The court had previously conditionally certified a settlement class, appointed the plaintiffs as class representatives, appointed Raina Borrelli and Brittany Resch of Strauss Borrelli PLLC as class counsel, preliminarily approved the settlement, and approved the notice process. The court held a final fairness hearing on August 21, 2024.
Settlement Class and Notice
The court finally certified, for settlement purposes only, a class consisting of all 13,382 individuals who received notice from Baldor that their personally identifiable information might have been compromised in the data incident. The court approved the notice program and found that it provided sufficient notice of the settlement, class members’ rights to submit claims, object, or exclude themselves, and the final approval hearing.
No potential class members requested exclusion by the opt-out deadline. One class member, Jaime Diaz O’Niell, objected to the settlement. The court considered the objection and overruled it in all respects.
Court’s Analysis and Rulings
Under Federal Rule of Civil Procedure 23, the court reviewed whether the settlement was fair, adequate, reasonable, and in the best interests of the settlement class. The court stated that it was not required to hold a trial or decide with certainty the disputed factual and legal issues. It found that the settlement was negotiated in good faith and at arm’s length, was not collusive, and was supported by the risks, expense, delay, and uncertainty of continued litigation.
The settlement provides for claims administration, payment of administration costs from the settlement fund, and payment of approved attorneys’ fees, costs, expenses, and service awards from that fund. The court approved $5,000 service awards for each class representative, $125,000 in attorneys’ fees for class counsel, and $3,832 in costs and expenses. The court also found that Baldor had taken sufficient steps to improve the security of plaintiffs’ and class members’ personal information going forward.
The settlement releases covered claims arising from or related to the disclosure of private information in the data incident and conduct alleged or that could have been alleged in the action. The court directed the parties, their attorneys, and the settlement administrator to carry out the settlement and required class counsel to report on claim approvals, distributions, and any remaining settlement funds.
The court retained jurisdiction over the parties and subject matter to interpret and implement the settlement. It stated that the order resolved all claims against all parties and was final. The action was dismissed with prejudice and without costs except as provided in the settlement agreement. The court did not make a finding that Baldor was liable or had committed wrongdoing.
Read the full 12-page opinion on CourtListener, the free public archive maintained by the Free Law Project.