CareCentrix Class Action Settlement Frequently Asked Questions

Frequently Asked Questions about the CareCentrix Class Action Settlement

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Questions

Answers

1. What is this lawsuit about?

Answer:

In March 2016, CareCentrix announced that it was targeted by a “spoofing” scam, and released the 2015 Internal Revenue Service Wage and Tax Statements (W-2 Forms) of approximately 2,000 current and former CareCentrix employees to an unknown third party. The information contained on the W-2 Forms included employees’ full names, addresses and ZIP codes, dates of birth, wages, and Social Security Numbers.

This class action lawsuit was filed by an individual affected by the breach in the United States District Court for the District of Kansas. The judge overseeing the case is the Honorable Kenneth G. Gale. The individual who sued is called the “Plaintiff.” CareCentrix is the “Defendant.” The most recent version of the lawsuit, which describes the specific legal claims alleged by the Plaintiffs, is described in the Plaintiff’s Memorandum in Support of Motion for Preliminary Approval Order (PDF: 4.5 MB).

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2. Why is this a class action?

Answer:

In a class action, one or more people called “class representatives” sue on behalf of themselves and other people with similar claims. All of these people together are the “class” or “class members.” Because this is a class action, even persons who did not file their own lawsuit can obtain relief from harm that may have been caused by the E-mail Security Incident, except for those individuals who timely exclude themselves from the settlement class.

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3. Why is there a settlement?

Answer:

The Court has not decided in favor of Plaintiffs or CareCentrix. Instead, both sides agreed to a settlement. Settlements avoid the costs and uncertainty of a trial and related appeals, while more quickly providing benefits to members of the settlement class. The “settlement class representative” appointed to represent the class, and the attorneys for the settlement class (“Class Counsel,” see Question 14) believe that the settlement is in the best interests of the settlement class members.

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4. How do I know if I am part of the settlement?

Answer:

You are a member of the settlement class and affected by the settlement if your personal information was disclosed as a result of the E-mail Security Incident. You are a member of the Settlement Class if:

  • You received a notice from CareCentrix that your information was disclosed; or
  • You received this settlement notice by mail or email stating that you are a class member.

Excluded from the settlement are:

  • Officers and directors of CareCentrix;
  • The presiding judge and any judicial staff involved in the lawsuit; and
  • Any class member who excludes herself from the settlement (see Question 17)

If you are not sure whether you are included in the Settlement Class, call 1-844-528-0183

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5. What does the settlement provide?

Answer:

The settlement provides the following benefits:

  • Cash reimbursement for Out-of-Pocket Losses up to $5,000 per individual for documented Out-Of-Pocket losses, including a minimum payment of $200 for claimants who experienced documented tax fraud fairly traceable to the E-Mail Security Incident (see Question 6 and Question 7);
  • Free Credit Monitoring Services (see Question 8);
  • Free Identity Restoration Services (see Question 9);
  • Data Security Commitments by CareCentrix (see Question 10).

CareCentrix has also agreed to pay reasonable attorneys’ fees, costs, and expenses (see Question 16) and the costs of notifying the class and administering the settlement.

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6. How will the Settlement compensate me for identity theft and fraud I have already suffered or expense I have already paid to protect myself?

Answer:

Settlement Benefit: Reimbursement for Out-of-Pocket Losses

If you spent money to address fraud or identity theft that you believe was fairly traceable to the E-mail Security Incident, or to protect yourself from future harm, then you may make a documented claim for reimbursement up to $5,000.

Out-of-Pocket Losses that are eligible for reimbursement through the Settlement include the following costs incurred in or after March 2016, if they have not already been reimbursed by CareCentrix or any other organization:

  • The costs of credit monitoring or identity protection services you obtained;
  • Unreimbursed losses, fees, or charges incurred as a result of identity fraud or theft connected with the possible misuse of your Social Security Number, date of birth, address, income and/or employment information;
  • Professional fees and other costs incurred addressing identity fraud or theft, including falsified tax returns or other identity fraud or theft connected with the possible misuse of your Social Security number, date of birth, address, income and/or employment information;
  • Costs associated with placing credit freezes or fraud alerts with the credit reporting agencies; and
  • Miscellaneous expenses such as notary, fax, postage, copying, mileage, and long-distance charges that you show were incurred in connection with fraud or identity theft connected with the possible misuse of your Social Security number, date of birth, address, income and/or employment information.

This list provides examples only, and other losses or costs fairly traceable to the E-mail Security Incident may also be eligible for reimbursement. YOU MUST BE ABLE TO DOCUMENT YOUR CLAIM.

You must submit with your claim a verification that you believe the losses you claim are fairly traceable to the E-mail Security Incident and that those expenses have not been reimbursed from any other source.

The Settlement Administrator has the authority to determine the validity of claims for Out-of-Pocket Losses. Only valid claims will be paid. The deadline to file a claim for documented Out-of-Pocket Losses is January 29, 2018.

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7. What if I experienced a fraudulent tax return?

Answer:

Settlement Benefit: Minimum Payment for Documented Tax Fraud

If you experienced and can properly document a fraudulent tax return you experienced between March 2016 and the date of your claim, you are eligible for a single payment of $200. You must submit documentation from a governmental taxing authority showing that an actual fraudulent tax filing was made in your name. You must also submit with your claim a verification that you believe the tax return you experienced is fairly traceable to the E-mail Security Incident.

If you make a claim for this $200 minimum payment, you will forego any other claims for unreimbursed expenses, but may make a claim for Credit Monitoring Services. If you experienced tax return fraud and also have documented out-of-pocket losses (see Question 6 ) of greater than $200, you may make a claim for the greater amount of documented out-of-pocket losses.

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8. How will the Settlement help protect me against future identity theft and fraud?

Answer:

Settlement Benefit: Free Three-Bureau Credit Monitoring Services

The settlement provides a way to protect yourself from unauthorized use of your personal information. Settlement Class Members are encouraged to submit a claim to receive two years of Experian Identity Works credit monitoring services.

The Credit Monitoring Services provided by the Settlement are separate from, and in addition to, the two years of credit monitoring and identity protection services offered by CareCentrix through AllClear ID starting in 2016. You need not have signed up for the previous services to be eligible to make a claim for the Credit Monitoring Services offered through this settlement.

The features included with Experian Identity Works credit monitoring services include:

a. Daily credit monitoring of your credit file at all three (3) major credit reporting agencies (Experian, Equifax & TransUnion);

b. An Experian credit report upon enrollment;

c. A subsequent, updated Experian credit report available at your election as often as daily (online);

d. Identity theft insurance offered through AIG, which covers certain identity theft related expenses incurred by you up to a limit of $1 million;

e. Internet surveillance, which includes monitoring of the “dark web” for your personal information;

f. Identity validation monitoring and alerts to notify you in the event your identity has been verified across the Experian identity network; and

g. Identity restoration services that provide professional fraud resolution assistance to you if you experience identity theft or fraud, helping you with identity recovery and restoration.

If you submit a valid claim form and elect to enroll in Credit Monitoring Services, you will receive enrollment instructions by email shortly after final approval of the Settlement. You may make a claim for both reimbursement for Out-of-Pocket Losses (or for a minimum payment for tax return fraud) and Credit Monitoring Services.

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9. How will the Settlement help me deal with identity theft or fraud if it happens?

Answer:

Settlement Benefit: Free Identity Restoration Services

All Settlement Class Members will receive access to Identity Restoration Services through Experian after the Settlement becomes final. Fraud Resolution Specialists will be available by telephone, e-mail, and mail to help you with important but often time-consuming tasks such as placing fraud alerts with the credit bureaus, disputing inaccurate information on your credit reports, scheduling calls with creditors and other service providers, and working with law enforcement and government agencies to dispute fraudulent information.  More details about Experian’s Identity Restoration Services for Settlement Class Members will be provided to you by mail and email after the settlement becomes final.

All Settlement Class Members may access Identity Restoration Services after the Settlement becomes final, even if you never make a claim from this Settlement, by Filing A Claim or calling toll free number 1-844-528-0183 and requesting your enrollment number from the Settlement Administrator.

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10. Will the settlement help protect information stored by CareCentrix from another E- Mail Security Incident?

Answer:

Settlement Benefit: Data Security Practice Commitments by CareCentrix

CareCentrix will maintain security practices to help protect the personal information of its employees. This includes maintaining technical security barriers specifically designed to reduce the flow of unwanted outside emails.

CareCentrix will also maintain an employee cybersecurity training program that regularly trains and educates employees responsible for handling payroll and compensation data on maintaining the confidentiality of such information, and helping them recognize scams aimed at gaining unauthorized access to such information, including “phishing” and “spoofing” scams.

CareCentrix agreed to implement these measures for a period of at least two (2) years following the date the settlement goes into effect.

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11. How do I file a claim for Credit Monitoring Services or Out-of-Pocket Losses?

Answer:

To obtain Credit Monitoring Services or to file a claim for reimbursement of Out-of-Pocket Losses fairly traceable to the E-mail Security Incident, you will need to file a claim form and submit documentation regarding the costs and losses that you incurred. There are two options for filing claims:

(1) File Online: You may fill out and submit the claim form here. This is the quickest way to file a claim.

(2) File by Mail: Alternatively, you may simply send back the claim form included with this notice, fill it out, and mail it to the address on the form with supporting documentation, if any. If you lost or did not otherwise receive a claim form, you can download a hard copy of the claim form available here or ask the Settlement Administrator to mail a claim form to you by calling 1-844-528-0183. Fill out your claim form, and mail it (including postage) to: CareCentrix E-mail Security Incident, Settlement Administrator:

Hapka v. CareCentrix, Inc.

c/o Heffler Claims Group

P.O. Box 59419

Philadelphia, PA 19102-9419

The deadline to file a claim is January 29, 2018 (this is the last day to file online and postmark deadline for mailed claims).

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12. When and how will I receive the benefits I claim from the Settlement?

Answer:

Credit Monitoring Services claimed by settlement class members will begin, and payments for valid claims will be made, after the Court enters a final judgment and the Settlement becomes final. This process may take several months or more, please be patient. Once there is a final judgment, it will be posted on the Settlement Administrator’s website.

If you make a valid claim for Credit Monitoring Services, the Settlement Administrator will send you information on how to activate your credit monitoring. The Settlement Administrator will provide you with an activation code that you will use at the Experian website to activate your Credit Monitoring Services.

Checks for valid Out-of-Pocket Losses claims or Tax Return Fraud claims will be mailed by the Settlement Administrator to the mailing address that you provide.

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13. What am I giving up to stay in the settlement class?

Answer:

If you make a claim under the settlement, or if you do nothing, you will be releasing all of your legal claims relating to the E-mail Security Incident against CareCentrix when the Settlement becomes final. By releasing your legal claims, you are giving up the right to file separate lawsuits against, or seek further compensation from CareCentrix for any harm related to the E-mail Security Incident —whether or not you are currently aware of those claims.

Unless you exclude yourself from the Settlement (see Question 17 ), all of the decisions by the Court will bind you. That means you will be bound to the terms of the settlement, and accompanying court ruling, and cannot bring a lawsuit, or be part of another lawsuit against CareCentrix regarding the E-mail Security Incident.

Paragraph XI of the Settlement Agreement defines the claims that will be released by Settlement Class Members who do not exclude themselves from the Settlement. You can access the Settlement Agreement (PDF: 396.4 kB) and read the specific details of the legal claims being released.

If you have any questions about what this means, you can contact the Settlement Administrator (see Question 19).

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14. Do I have a lawyer in the case?

Answer:

Yes. The Court appointed the following attorney to represent you and other Settlement Class Members as “Class Counsel.”

Barrett J. Vahle
STUEVE SIEGEL HANSON LLP
460 Nichols Road, Suite 200
Kansas City, MO 64112
816-714-7100

You will not be charged by these lawyers for their work on the case. If you want to be represented by your own lawyer, you may hire one at your own expense.

If you have questions about making a claim, please contact the Settlement Administrator (See Question 19).

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15. How will these lawyers be paid?

Answer:

Class Counsel has undertaken this case on a contingency-fee basis, and has not been paid any money in relation to their work on this case. Accordingly, Class Counsel will ask the Court to award them attorneys’ fees of up to $475,000, and reimbursement for costs and expenses up to $25,000 to be paid separately by CareCentrix. The Court will decide the amount of fees and costs and expenses to be paid. The award of fees, costs and expenses will have no impact on the settlement benefits available to the Class. You will not have to separately pay any portion of these fees yourself. Class Counsel’s request for attorneys’ fees and costs (which must be approved by the Court) will be filed by December 8, 2017 and will be available to view on the Settlement website under the “Documents” section.

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16. Will the named plaintiffs get any additional money?

Answer:

The named plaintiff in this action is Sarah Hapka. Class Counsel will ask the Court to award this individual a “service award” of $2,500 for the time that she spent, and the risk that she undertook, in bringing this lawsuit on behalf of the class. This amount is also subject to Court approval. Whatever amount the Court approves, if any, will be paid separately by CareCentrix.

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17. How do I exclude myself from the settlement?

Answer:

If you are a member of the settlement class but do not want to remain in the class, you may exclude yourself from the class (also known as “opting out”). If you exclude yourself, you will lose any right to participate in the Settlement, including any right to receive a settlement payment.

If you decide on this option, you may keep any rights you have, if any, against CareCentrix and you may file your own suit against CareCentrix based upon the same legal claims that are asserted in this lawsuit, but you will need to find your own attorney at your own cost to represent you in that suit. If you are considering this option, you may want to consult an attorney to determine the extent of your rights.

IMPORTANT: You will be bound by the terms of the Settlement unless you submit a timely and signed written request to be excluded from the Settlement. To exclude yourself from the Settlement you must postmark a request for exclusion, postmarked no later than December 29, 2017 to:

CareCentrix E-mail Security Incident
c/o Heffler Claims Group
Attn: Exclusion
P.O. Box 59419
Philadelphia, PA 19102-9419

This statement must contain the following information:

(1) The name of this proceeding (Sarah Hapka v. CareCentrix, Inc., Case No. 2:16-cv-02372; or similar identifying words such as “CareCentrix E-mail Security Incident Lawsuit”);

(2) Your full name;

(3) Your current address;

(4) The words “Request for Exclusion” at the top of the document or a statement that you do not wish to participate in the Settlement; and

(5) Your signature.

If you do not comply with these procedures and the deadline for exclusions, you will lose any opportunity to exclude yourself from the settlement class, and your rights will be determined in this lawsuit by the Settlement Agreement if it is approved by the Court, and you may not recover under any other individual settlement agreement regarding the claims released as part of the settlement.

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18. How do I tell the Court that I like or don’t like the settlement?

Answer:

If you are a Settlement Class Member, you have the right to tell the Court what you think of the settlement. You can object to the settlement if you don’t think it is fair, reasonable, or adequate, and you can give reasons why you think the Court should not approve it. You can’t ask the Court to order a larger settlement; the Court can only approve or deny the Settlement. The Court will consider your views.

To object, you must send a letter stating that you object to the settlement. Your objection must include:

(1) The name of this proceeding (Sarah Hapka v. CareCentrix, Inc., Case No. 2:16-cv-02372; or similar identifying words such as “CareCentrix E-mail Security Incident Lawsuit”);

(2) Your full name;

(3) Your current address;

(4) The reasons for the objection, as well as any documents supporting the objection;

(5) The identity of any attorneys representing you with respect to the objection; and

(6) You or your attorney’s signature.

To be considered by the Court, your objection must be mailed, postmarked no later than December 29, 2017, to the Settlement Administrator at the following address:

CareCentrix E-mail Security Incident
c/o Heffler Claims Group
Attn: Objection
P.O. Box 59419
Philadelphia, PA 19102-9419

You must not submit your objections directly to the Court. If you do not comply with these procedures and the deadline for objections, you may lose any opportunity to have your objection considered at the Final Approval Hearing or otherwise to contest the approval of the settlement or to appeal from any orders or judgments entered by the Court in connection with the proposed Settlement. You will still be eligible to receive settlement benefits if the Settlement becomes final even if you object to the Settlement.

The Court has scheduled a Final Approval Hearing to listen to and consider any concerns or objections from class members regarding the fairness, adequacy, and reasonableness of the terms of the Settlement Agreement. That hearing will take place on February 15, 2018, at 1:00 P.M.  before the Honorable Kenneth G. Gale, at 440 U.S. Courthouse, 500 State Avenue, Kansas City, Kansas 66101. This hearing date and time may be moved. Please refer to the Settlement Website for notice of any changes.

If you have an objection to Class Counsel’s motion for an award of attorneys’ fees and costs and expenses, and/or their request for a “service award” to the named plaintiff, you must submit to the Settlement Administrator a written statement of the grounds of your objection, signed by you or your attorney, along with any supporting papers that you wish the Court to consider. The written objection must be postmarked by December 29, 2017. Should you wish to review the motion, it will be filed by and will be available to view on the Settlement website on or about December 11, 2017.

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19. Where can I get more information?

Answer:

If you have questions about this Notice or the Settlement, or if you did not receive this Notice by mail or email and believe that you are or may be a member of the Class, you should contact the Settlement Administrator by calling 1-844-528-0183 or by sending a letter to:

CareCentrix E-mail Security Incident
c/o Heffler Claims Group
P.O. Box 59419
Philadelphia, PA 19102-9419

If you wish to communicate directly with Class Counsel, you may contact them (contact information noted above in Question 14). You may also seek advice and guidance from your own private attorney at your own expense, if you wish to do so.

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This website is authorized by the Court, supervised by counsel and controlled by Heffler Claims Group, the Settlement Administrator approved by the Court. This is the only authorized website for this case.

For more information please call 1-844-528-0183

Documents

Please read for a full explanation of the settlement and your options and all applicable timelines.

Contact

Contact us with any inquiries, comments, and/or requests.

Submit Claim

Click here to safely and securely submit a Claim Form.

Important Dates

  • Exclusion Deadline

    Friday, December 29, 2017

    Your exclusion request must be postmarked no later than December 29, 2017.

    How Do I Exclude Myself

  • Objection Deadline

    Friday, December 29, 2017

    You must mail your objection(s) and/or notice of intent to appear at the Final Approval Hearing so that it/they are postmarked no later than December 29, 2017.

    How Do I Object

  • Claim Form Deadline

    Monday, January 29, 2018

    You must submit your Claim Form on-line no later than Monday, January 29, 2018, or mail your completed paper Claim Form so that it is postmarked no later than January 29, 2018.

    How Do I File A Claim

  • Final Approval Hearing Date

    Thursday, February 15, 2018 The Final Approval Hearing is scheduled for February 15, 2018 at 1:00 P.M. Please check this website for updates as the hearing is subject to change.

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