Lopez, et al. v. San Andreas Regional Center

You received this Notice because you may be a Settlement Class Member able to receive benefits from a proposed settlement of the class action lawsuit Lopez, et al. v. San Andreas Regional Center, Case No. 21CV386748, Superior Court of California, Santa Clara County. (the “Lawsuit”). The Court overseeing the Lawsuit authorized this Notice to advise Settlement Class Members about the proposed Settlement that will affect their legal rights. The Notice explains certain legal rights and options you have in connection with that Settlement.

The Lawsuit is a proposed class action lawsuit brought on behalf of all persons whose personal information may have been accessed and/or compromised by unauthorized third-party criminals as part of the Data Incident perpetrated on SARC on or about July 5, 2021.

In a class action, one or more representative plaintiffs bring a lawsuit on behalf of others who are alleged to have similar claims. Together, all of these people are the “class” and each individually is a “class member.” There are two Representative Plaintiffs in this case: Krystal Lopez, as parent, guardian, and next friend of her minor child A.L., and Rebecca Acosta, as parent, guardian, and next friend of her minor child A.A. The class in this case is referred to in this Notice as the “Settlement Class.”

The Representative Plaintiffs in the Lawsuit, through their attorneys, investigated the facts and law relating to the issues in the Lawsuit. The Representative Plaintiffs and Class Counsel believe that the Settlement is fair, reasonable, and adequate and will provide substantial benefits to the Settlement Class. The Court has not decided whether the Representative Plaintiffs’ claims or Defendant’s defenses have any merit, and it will not do so if the proposed settlement is approved. By agreeing to settle, both sides avoid the cost and risk of a trial, and people who submit valid claims will receive benefits from the Settlement. The Settlement does not mean that the Defendant did anything wrong, or that the Representative Plaintiffs and the Settlement Class would or would not win the case if it were to go to trial.

The Settlement Class is defined as all persons to whom SARC mailed notice that on or about July 5, 2021, SARC was the target of a cyberattack in which third-party criminals gained unauthorized access to SARC’s network, encrypted some of SARC’s systems, and gained unauthorized access to the personal information of consumers.

The Settlement Class specifically excludes: (i) SARC and its respective officers and directors; (ii) all members of the Settlement Class who timely and validly request exclusion from the Settlement Class; (iii) the Judge and Magistrate Judge assigned to evaluate the fairness of this Settlement; and (iv) any other Person found by a court of competent jurisdiction to be guilty under criminal law of initiating, causing, aiding, or abetting the Data Incident or who pleads nolo contendre to any such charge.

The proposed Settlement provides for monetary payments for ordinary expense reimbursement and/or extraordinary expense reimbursement (See Questions 8-10 below). In addition, all Class Members who reside in California and who submit a Valid Claim using the Claim Form for ordinary or extraordinary losses are also eligible to receive a separate, California statutory damages award. All such Class Members who submit a timely and valid claim and provide their California address shall be awarded $100.  This additional amount shall be subject to the caps set forth for ordinary and extraordinary losses.

All members of the Settlement Class who submit a Valid Claim using the Claim Form are eligible for two (2) years of free single bureau credit monitoring and identity theft protection services, called IDX Identity Protection Services. For members of the Settlement Class who opted to receive the credit monitoring initially offered by SARC, IDX Identity Protection Services shall be in addition to that monitoring. IDX Identity Protection Services includes, at least, the following, or similar, services: Cyberscan Dark Web Monitoring; $1 Million Reimbursement Insurance; Fully-Managed Identity Restoration; Member Advisory Services; and Lost Wallet Assistance.

Settlement Class Members who do not validly exclude themselves from the Settlement will be bound by the Settlement Agreement and any final judgment entered by the Court, and will give up their right to sue the Defendant for the claims being resolved by the Settlement. The claims that Settlement Class Members are releasing are described in Section 1.20 of the Settlement Agreement and the persons and entities being released from those claims are described in Section 1.21 of the Settlement Agreement. To view the Settlement Agreement, please visit www.SARCDataSettlement.com.

Settlement Class Members who submit valid claims and all required documentation may receive an ordinary expense reimbursement payment not to exceed $500 and/or an extraordinary expense reimbursement payment not to exceed $2,500. All Class Members who reside in California and who submit a Valid Claim using the Claim Form for ordinary or extraordinary losses are also eligible to receive a separate, California statutory damages award in the amount of $100.  This additional amount shall be subject to the caps set forth for ordinary and extraordinary reimbursements.

Only one Settlement Claim may be submitted per Settlement Class Member.

All members of the Settlement Class who submit a Valid Claim using the Claim Form are eligible for the following documented out-of-pocket expenses, not to exceed $500 per member of the Settlement Class, that were incurred as a result of the Data Incident:

1. Out-of-pocket expenses incurred as a result of the Data Incident, including bank fees, long distance phone charges, cell phone charges (only if charged by the minute), data charges (only if charged based on the amount of data used), postage, or gasoline for local travel;
2. Fees for credit reports, credit monitoring, or other identity theft insurance product purchased after the July 5, 2021 Data Incident and before August 27, 2021, when SARC sent offers of credit monitoring;
3. Up to 3 hours of lost time, at $20/hour spent dealing with the Data Incident. Class members who experienced documented out-of-pocket losses may claim up to 3 hours of lost time with an additional attestation that they spent the claimed time responding to issues raised by the Data Incident. Claims for lost time are including within the $500 cap on ordinary unreimbursed economic losses.

Settlement Class Members may make a claim for Ordinary Expense Reimbursement if: (i) the loss is an actual, documented, and unreimbursed monetary loss; (ii) the loss was more likely than not caused by the Data Incident; (iii) the loss occurred during a time period after the July 5, 2021 Data Incident and up until the Claims Deadline; the loss is not already covered by one or more of the normal reimbursement categories; and the claimant made reasonable efforts to avoid, or seek reimbursement for, the loss, including but not limited to exhaustion of all available credit monitoring insurance and identity theft insurance.

To receive reimbursement for any of the above-referenced out-of-pocket expenses, Settlement Class Members must submit (i) their name and current address; (ii) supporting documentation of such out-of-pocket expenses; and (iii) a description of the loss, if not readily apparent from the documentation.

All members of the Settlement Class who have suffered a proven monetary loss and who submit a Valid Claim using the Claim Form are eligible for up to $2,500 if:

1. The loss is an actual, documented and unreimbursed monetary loss;
2. The loss was more likely than not caused by the Data Incident, and an attestation by Claimant that they have not received any notice that their information was exposed in a prior unrelated data breach;
3. The loss occurred between July 5, 2021 and the Claims Deadline;
4. The loss is not already covered by one or more of the normal reimbursement categories; and the Settlement Class Member made reasonable efforts to avoid, or seek reimbursement for, the loss, including but not limited to exhaustion of all available credit monitoring insurance and identity theft insurance; and
5. Confirmation that claimant enrolled in the complementary credit monitoring and identity theft services that SARC offered.

Members of the Settlement Class seeking Ordinary or Extraordinary Expense Reimbursement must complete and submit a Claim Form to the Claims Administrator, postmarked or submitted online by April 12, 2023. The Claim Form must be verified by the member of the Settlement Class with a statement that his or her claim is true and correct, to the best of his or her knowledge and belief, and is being made under penalty of perjury. The member of the Settlement Class must submit reasonable documentation that the out-of-pocket expenses and charges claimed were both actually incurred and plausibly arose from the Data Incident. Failure to provide supporting documentation of the out-of-pocket expenses referenced above, as requested on the Claim Form, shall result in denial of a claim. No documentation is needed for lost-time expenses.

The amounts paid for ordinary losses, extraordinary losses and California statutory claims shall be subject to a cap of $200,000. If the cap is reached, the Claims Administrator will apply a pro rata reduction to the amounts to be paid pursuant to all approved claims to ensure that the cap is not exceeded.

If there are any funds remaining after all valid claims are processed and the time to cash any payment checks has passed, those funds shall be returned to Defendant or the entity paying on behalf of Defendant.

If you are a Settlement Class Member, you do not have to do anything to remain in the Settlement.  However, if you wish to seek a Settlement Award, you must complete and submit a Claim Form postmarked or submitted online by April 12, 2023.  You may submit a Claim Form online at www.SARCDataSettlement.com.

If you do not want to give up your right to sue the Defendant about the Data Incident or the issues raised in this case, you must exclude yourself (or “opt-out”) from the Settlement Class.  See Question 17 below for instructions on how to exclude yourself.

If you object to the Settlement, you must remain a Settlement Class Member (i.e., you may not also exclude yourself from the Settlement Class by opting out) and may object as stated in Question 20 below. If you object, you must still submit a claim if you want any monetary relief.

If you do nothing, you will get no payment from this Settlement. Unless you exclude yourself, after the Settlement is granted final approval and the judgment becomes final, you will be bound by the judgment and you will never be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against Defendants related to the claims released by the Settlement.

You may complete the Claim Form online at www.SARCDataSettlement.com.  You may also obtain a paper Claim Form by downloading it at www.SARCDataSettlement.com or by calling the claims administrator at 1-833-505-0030. If you choose to complete a paper Claim Form you may either submit the completed and signed Claim Form and any supporting materials electronically at www.SARCDataSettlement.com or mail them to:

SARC Settlement Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103

The Claims Administrator will initially decide whether a Claim Form is complete and valid and includes all required documentation. The Claims Administrator may require additional information from any claimant. Failure to timely provide all required information will invalidate a claim and it will not be paid.

You must make a signed written request that includes your name, and that says you wish to exclude yourself from the Settlement Class in this Lawsuit. You must deliver your request by March 13, 2023 to this address:

SARC Settlement Administrator
Attn: Exclusions
P.O. Box 58220
Philadelphia, PA 19102

In the alternative, you may also send your request to be excluded to the Clerk of the Court, Superior Court of California, County of Santa Clara, 191 N. 1st Street, San Jose, California 95113.

No. If you exclude yourself, you will not be entitled to any Settlement benefits. However, you will also not be bound by any judgment in this Lawsuit.

No. Unless you exclude yourself, you give up any right to sue the Defendant for the claims that this Settlement resolves. You must exclude yourself from the Settlement Class to start your own lawsuit or to be part of any different lawsuit relating to the claims in this case. If you exclude yourself, do not submit a Claim Form requesting a payment.

All Settlement Class Members who do not request exclusion from the Settlement Class have the right to object to the Settlement or any part of it.  You can ask the Court to deny approval either by filing a written objection or making an oral objection by appearing at the Final Approval Hearing in person or through Teams as explained more fully in paragraph 21 below.  You can’t ask the Court to order a different settlement; the Court can only approve or reject the Settlement.  If the Court denies approval, no Settlement payments will be sent out and the lawsuit will continue.  If that is what you want to happen, you must object.

Any objection to the proposed Settlement may be in writing and if so, it and any supporting papers must be submitted to the Claims Administrator by mail to: SARC Claims Administrator, Attn: Objections, P.O. Box 58220, Philadelphia, PA 19102, or by filing it with the Court Clerk of the Court, Superior Court of California, County of Santa Clara, 191 N. 1st Street, San Jose, California 95113.   Written objections must be filed or postmarked no later than March 13, 2023. 

Your written objection should state: (i) the objector’s full name; (ii) the case name and docket number - Lopez, et al. v. San Andreas Regional Center, Case No. 21-cv-386748 (Santa Clara County); (iii) a written statement of all grounds for the objection, accompanied by any legal support for the objection the objector believes applicable; and (iv) the objector’s signature or the signature of the objector’s duly authorized attorney or other duly authorized representative (if any) representing him or her in connection with the objection.  If you file a timely written objection, you may, but are not required to, appear at the Final Approval Hearing, either in person or through your own attorney. If you appear through your own attorney, you are responsible for hiring and paying that attorney. Any objecting Settlement Class Member may appear at the Final Approval Hearing even if the objector has not submitted a timely written objection. 

The Court will hold a Final Approval Hearing to decide whether to approve the Settlement. That hearing is scheduled for September 27, 2023, at 1:30 P.M. PST, at Department 19, Superior Court of California, County of Santa Clara, 191 N. 1st Street, San Jose, California 95113.  Class Members may appear at the Final Approval Hearing remotely using the Microsoft Teams link for Department 3 (Afternoon Session). Instructions for appearing remotely are provided at https://www.scscourt.org/general_info/ra_teams/video_hearings_teams.shtml and should be reviewed in advance. Class members who wish to appear remotely are encouraged to contact Class Counsel at least three days before the hearing if possible, so that potential technology or audibility issues can be avoided or minimized.

At the Final Approval Hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them and will listen to people who have requested to speak at the hearing. The Court may also consider Class Counsel’s request for attorneys' fees and costs, and the request for a service award for the Representative Plaintiffs. After the hearing, the Court will decide whether to approve the Settlement.

Any Class Member may appear at the Final Approval Hearing to make an oral objection whether or not any written objection or notice of appearance has been provided

It is possible the Court could reschedule the hearing to a different date or time without notice, so it is a good idea before the hearing to check www.SARCDataSettlement.com to confirm the schedule if you wish to attend.

No. You do not need to attend the hearing unless you object to the Settlement and wish to appear in person. It is not necessary to appear in person to make an objection; the Court will consider any written objections properly submitted according to the instructions in Question 20.  You or your own lawyer are welcome to attend the hearing at your expense, but are not required to do so.

If the Court approves the Settlement and no appeal is taken, the Settlement Fund will be funded. The Claims Administrator will send Settlement payments to Settlement Class Members who submitted timely and valid Settlement Claims within sixty (60) days of the Effective Date, or within thirty (30) days of the date that the claim is approved, whichever is later. No distributions will be made without authorization from the parties.

If any appeal is taken, it is possible the Settlement could be disapproved on appeal.

If the Court does not approve the Settlement, no Settlement Fund will be created, and there will be no Settlement benefits available to Settlement Class Members. Class Counsel or the Representative Plaintiffs and the Lawsuit will proceed as if no Settlement had been attempted.

The Court has appointed the following Class Counsel to represent the Settlement Class and Settlement Class Members in this Lawsuit:

Settlement Class Members will not be charged for the services of Class Counsel; Class Counsel will be paid by SARC, subject to Court approval. However, you may hire your own attorney at your own expense to advise you in this matter or represent you in making an objection or appearing at the Final Approval Hearing.

Settlement Class Counsel will seek an order from the Court awarding $185,000.00 for attorneys’ fees, inclusive of any costs and expenses of the Litigation. Settlement Class Counsel, in their sole discretion, shall allocate and distribute the amount of attorneys’ fees, costs, and expenses awarded by the Court among Plaintiffs’ Counsel.

Settlement Class Counsel will also seek, and SARC has agreed not to oppose, an order from the Court awarding $4,000 in service awards in total; $2,000 to each Class Representative.

The Defendant is represented by the following lawyers:

David Ross
WILSON, ELSER, MOSKOWITZ, EDELMAN & DICKER, LLP
1500 K Street, NW, Suite 330
Washington, DC 20005
Telephone: (202) 626-7660
Fax: (202) 628-3606
Attorneys for Defendant

The above is a summary of the basic terms of the Settlement. For the precise terms and conditions of the Settlement, you are referred to the detailed Settlement Agreement, which is on file with the Clerk of the Court. The pleadings and other records in this litigation, including the Settlement Agreement, may be examined (a) online on the Superior Court of California, County of Santa Clara’s Electronic Filing and Service Website at www.scefiling.org, or (b) in person at Records, Superior Court of California, County of Santa Clara, 191 N. 1st Street, San Jose, California 95113, between the hours of 8:30 a.m. and 4:00 p.m., Monday through Friday, 5 excluding Court holidays and closures, or available at www.SARCDataSettlement.com, by contacting Class Counsel at the phone numbers provided in response to Question 25 above, or you may contact the Settlement Administrator.

You can contact the Settlement Administrator by mail, email or phone:

Mail:
SARC Settlement Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103

Email:
info@SARCDataSettlement.com

Phone:
1-833-505-0030

PLEASE DO NOT TELEPHONE THE COURT OR DEFENDANT’S COUNSEL FOR INFORMATION REGARDING THIS SETTLEMENT OR THE CLAIM PROCESS.