Toretto v. Donnelley Financial Solutions, Inc.

Background

The court considered the plaintiffs’ unopposed motion for final approval of a class-action settlement under Federal Rule of Civil Procedure 23(e), along with class counsel’s unopposed request for attorneys’ fees, expenses, and service awards. The settlement agreement was entered into by the plaintiffs and Mediant Communications, Inc. on June 15, 2022. The court had previously granted preliminary approval, directed notice to the proposed class, appointed interim class counsel, and appointed Epiq Class Action and Claims Solutions, Inc. as settlement administrator.

The court found that the notice provided to class members was the best notice practicable under the circumstances and complied with Rule 23(c)(2). No class member objected to the settlement, and one person opted out. The court also found that the class representatives and class counsel adequately represented the class, that the negotiations were conducted at arm’s length with the assistance of a mediator, and that the settlement provided adequate relief in light of the risks of continued litigation.

Settlement Terms

The settlement provides eligible class members with twenty-four months of three-bureau credit monitoring without submitting a claim. It also provides reimbursement for out-of-pocket losses up to $10,000 per claimant and reimbursement for lost time spent addressing the data security incident up to $160 per claimant. In addition, Mediant agreed to contractual measures to improve its network and data security.

The settlement class consists of approximately 224,650 individuals who were mailed a notification that their personal information may have been affected by the data security incident experienced by Mediant on or around April 1, 2019. The court found that the class satisfied the requirements for settlement certification, including sufficient size, common legal and factual questions, typical claims, an efficient classwide method of resolving the dispute, and adequate representation.

Class members who did not timely exclude themselves are bound by the settlement and its releases. The order permanently bars those members and the plaintiffs from asserting released claims against Mediant or the released parties, as provided in the settlement agreement. The order also states that the settlement is not an admission or concession by Mediant or the released parties and may not be used as evidence in another action or proceeding.

Rulings

The court finally and unconditionally approved the settlement as fair, reasonable, and adequate. It finally appointed J. Austin Moore, Elaine A. Ryan, and John A. Yanchunis as class counsel, and Phillip Torretto, Daniel C. King, and Sheri Braun as class representatives. It certified the settlement class for purposes of entering judgment on the settlement.

The court approved class counsel’s request for $700,000 in combined attorneys’ fees and expenses. It found the amount reasonable based on counsel’s work, the complexity and risks of the litigation, counsel’s experience, and the results achieved for the class. The court also approved a $2,500 service award for each of the three class representatives. Mediant must pay the fees, expenses, and service awards separately from the relief available to class members.

Judge Gregory Woods entered the order on January 5, 2023.