Bowen v. Paxton Media Group, LLC

CourtDistrict Court, W.D. Kentucky
DecidedApril 3, 2024
Docket5:21-cv-00143
StatusUnknown

This text of Bowen v. Paxton Media Group, LLC (Bowen v. Paxton Media Group, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bowen v. Paxton Media Group, LLC, (W.D. Ky. 2024).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY PADUCAH DIVISION CIVIL ACTION NO. 5:21-CV-00143-GNS

WILLIAM BOWEN et al. PLAINTIFFS

v.

PAXTON MEDIA GROUP, LLC DEFENDANT

MEMORANDUM OPINION AND ORDER GRANTING PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT

This matter is before the Court on Plaintiffs’ Unopposed Motion for Preliminary Approval of Class Action Settlement (DN 72). The motion is ripe for adjudication. I. BACKGROUND A. Factual and Procedural History This is a class action arising from a third-party criminal data breach of employees’ personally identifiable information (“PII”) at Defendant Paxton Media Group, LLC (“PMG”). (Am. Compl. ¶ 1, DN 27). Named Plaintiffs William Bowen (“Bowen”), Amy Brasher (“Brasher”), Jesse Rogers (“Rogers”), John Champion (“Champion”), Jesse Gilstrap (“Gilstrap”) and Mary Bleier-Troup (“Bleier-Troup”) (collectively “Plaintiffs”) were employees at PMG at the time of the breach, and the PII allegedly accessed during the breach included Social Security numbers, driver licenses numbers, finance accounts, health insurance information, taxpayer identification numbers, and credit card numbers. (Am. Compl. ¶¶ 4, 5, 13-18). Plaintiffs filed this action on behalf of those employees who had their PII stolen as part of the breach (collectively the “Class”) asserting claims against PMG for: (1) negligence; (2) breach of implied contract; (3) invasion of privacy; (4) breach of confidence; (5) unjust enrichment; (6) declaratory and injunctive relief; (7) violation of the Virginia Consumer Protection Act (“VCPA”); (8) violation of the Kentucky Consumer Protection Act (“KCPA”); and (9) violation of the California Unfair Competition Law. (Am. Compl. ¶¶ 19, 177-285). The Court dismissed the claims for declaratory and injunctive relief, and for violations of the VCPA and KCPA, and the parties engaged in discovery. (Mem. Op. & Order, DN 39). The

parties subsequently reached a proposed class action settlement agreement (“Settlement Agreement”) (DN 74-1), and Plaintiffs have moved for preliminary approval of the Settlement Agreement, which is unopposed. (Pl.’s Unopposed Mot. Prelim. Approval Class Action Settlement, DN 72; Federman Aff. Ex. A, DN 74-1). B. Proposed Settlement Agreement 1. Class Membership The proposed Settlement Agreement defines the term “Settlement Class” as including: [A]ll natural persons residing in the United States whose personally identifiable information was compromised in the Data Security Incident that occurred in February and March 2021 and who received notice from PMG of that Data Security Incident. All members of the Settlement Class that do not opt out of the settlement shall be referred to as Settlement Class Members.

(Federman Aff. Ex. A (PageID # 550)). This definition specifically excludes: (i) PMG; (ii) the Related Entities; (iii) all Settlement Class Members who timely and validly request exclusion from the Settlement Class; (iv) any judges assigned to this case and their staff and family; and (v) any other Person found by a court of competent jurisdiction to be guilty under criminal law of initiating, causing, aiding, or abetting the criminal activity occurrence of the Data Security Incident or who pleads nolo contendere to any such charge.

(Federman Aff. Ex. A (PageID # 550-51)).1

1 The proposed Settlement Agreement defines the term “Related Entities” as:

PMG’s past or present parents, subsidiaries, divisions, and related or affiliated entities, and each of PMG’s respective predecessors, successors, directors, officers, shareholders, employees, principals, agents, attorneys, insurers, and 2. Class Benefits For Settlement Class Members who submit a valid claim form, PMG will provide identity theft protection through a third-party vendor for a period of three years. (Federman Aff. Ex. A (PageID # 555)). The identify theft protection will include “single bureau credit monitoring, dark web monitoring, $1 million reimbursement insurance, fully managed identity recovery and

lost wallet assistance.” (Federman Aff. Ex. A (PageID # 555)). PMG also agrees to provide security for its employees’ private information, and those remedial costs are separate from any amounts paid to Settlement Class Members under the proposed Settlement Agreement. (Federman Aff. Ex. A (PageID # 555)). In addition, the proposed Settlement Agreement provides two different methods of filing claims to seek compensation for losses. (Federman Aff. Ex. A (PageID # 553-55)). When submitting a “Claim A”, Settlement Class Members can request reimbursement for ordinary losses. (Federman Aff. Ex. A (PageID # 553-54)). As to this type of claim, the proposed Settlement Agreement provides:

[PMG] will reimburse documented out-of-pocket expenses incurred as a result of the Data Security Incident, up to a maximum of two thousand and five hundred and no/100 dollars ($2,500.00) per person upon submission of a claim and supporting third-party documentation, such as the following losses:

reinsurers, and includes, without limitation, any Person related to any such entity who is, was, or could have been named as a defendant in the Lawsuit, other than any Person who is found by a court of competent jurisdiction to be guilty under criminal law of initiating, causing, or aiding or abetting the criminal activity associated with the Data Security Incident or who pleads nolo contendere to any such charge.

(Federman Aff. Ex. A (PageID # 548-49)). In addition, the proposed Settlement Agreement uses the term “Released Persons”, which refers to “PMG, the Related Entities, and each of their past or present parents, subsidiaries, divisions, and, and each of their respective predecessors, successors, assigns, owners, directors, shareholders, officers, employees, principals, agents, attorneys, insurers, and reinsurers.” (Federman Aff. Ex. A (PageID # 550)). (i) 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; (ii) Fees for credit reports, credit monitoring, or other identity theft insurance product purchased between March 20, 2021, and the close of the Claims Period; and (iii) Compensation for up to four hours of lost time, at $22.50/hour, provided that the claimant certifies under penalty of perjury that the lost time was spent in response to the Data Security Incident and provides a written description of the time spent. The maximum amount any one claimant may recover under Claim A is $2,500.00. (iv) This list of reimbursable documented out-of-pocket expenses is not meant to be exhaustive, rather it is exemplary. Settlement Class Members may make claims for any documented out-of-pocket losses reasonably related to the Data Security Incident or to mitigating the effects of the Data Security Incident. The Claims Administrator shall have discretion to determine whether any claimed loss is reasonably related to the Data Security Incident.

(Federman Aff. Ex. A (PageID # 553-54)). For submissions of a “Claim B”, Settlement Class Members can request reimbursement for extraordinary losses. (Federman Aff. Ex. A (PageID # 554-55)).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Eisen v. Carlisle & Jacquelin
417 U.S. 156 (Supreme Court, 1974)
General Telephone Co. of Southwest v. Falcon
457 U.S. 147 (Supreme Court, 1982)
Amchem Products, Inc. v. Windsor
521 U.S. 591 (Supreme Court, 1997)
In Re American Medical Systems, Inc. Pfizer, Inc.
75 F.3d 1069 (Sixth Circuit, 1996)
Beattie v. CenturyTel, Inc.
511 F.3d 554 (Sixth Circuit, 2007)
Leonhardt v. ArvinMeritor, Inc.
581 F. Supp. 2d 818 (E.D. Michigan, 2008)
Thacker v. Chesapeake Appalachia, L.L.C.
695 F. Supp. 2d 521 (E.D. Kentucky, 2010)
William Whitlock v. FSL Management
843 F.3d 1084 (Sixth Circuit, 2016)
Jane Doe v. Deja Vu Consulting, Inc.
925 F.3d 886 (Sixth Circuit, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
Bowen v. Paxton Media Group, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowen-v-paxton-media-group-llc-kywd-2024.