Brent v. Advanced Medical Management, LLC

District Court, D. Maryland·Decided June 25, 2024·No. 1:23-cv-03254·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND ANTHONY BRENT, et al., * Plaintiffs,

v. * CIVIL NO. JKB-23-3254 ADVANCED MEDICAL MANAGEMENT, LLC, et al., . Defendants. . * * te * * * * * * * * MEMORANDUM Pending before the Court is Plaintiffs’ Renewed Unopposed Motion for Preliminary Approval of Class Action Settlement. (ECF No. 29.) Plaintiffs seek the preliminary approval of the Settlement Agreement and the provisional certification of the Settlement Class, as well as other relief associated with the Settlement Agreement. (/d.) For the following reasons, Plaintiffs’ Renewed Motion will be granted. I. Factual and Procedural Background Named Plaintiffs Anthony Brent, Oluwakemi Ade-Fosudo, James Buechler, Desiree Walker, Confidence Dike, and Tyler Woerner, individually and on behalf of all similarly situated persons, brought claims against Defendants Advanced Medical Management, LLC (“AMM”) and Points Group, LLC (“Points Group”). (See generally ECF No. 2; ECF No. 1, JKB-23-cv-1905.) AMM provides operational, administrative, and technical healthcare management services to healthcare organizations. (ECF No. 1 § 28.) Points Group provides strategy, consulting, and marketing services to businesses and healthcare providers, including AMM. (/d. § 3.) Plaintiffs (and the class they seek to represent) were patients at AMM or AMM affiliates, and had provided AMM with various items of personal information. (/d. 30.) Due to a data breach, Plaintiffs’

personal information was accessed by unauthorized third parties. (/d. § 31.) The claims in this case arise from this unauthorized access, and Plaintiffs brought, infer alia, claims of negligence, breach of contract, and unjust enrichment. (See generally id.) The procedural history of this case is somewhat complicated given the multiple related federal and state court cases that have been dismissed, consolidated, and removed to this Court. In short and as is relevant for purposes of the pending Motion, litigation relating to the claims in this case began in July 2023. (See ECF No. 29-1 at 8.) That month, Plaintiffs Ade-Fosudo, Buechler, Woerner, and Walker each filed cases in this Court and Plaintiff Brent filed an action in state court. (/d.) In August 2023, Plaintiffs Ade-Fosudo, Buechler, and Walker dismissed their federal actions and refiled in state court. (/d. at 9.) Plaintiff Woerner did not dismiss his federal court action, and it remains pending. (/d.) In October 2023, the state court granted a motion to consolidate the Ade-Fosudo, Buechler, and Walker cases into the Brent case. (/d.) On November 30, 2023, the consolidated Brent case—which is the instant case—was removed to this Court. (/d.) Thus, the two remaining cases are the Woerner action and the consolidated Brent action.! This action has been stayed since December 6, 2023, approximately a week after it was removed to this Court. (See ECF No. 5.) The Woerner action—initially filed in this Court in July 2023—has been stayed since September 2023. (See ECF Nos. 10-21, JKB-23-cv-01905.) The Parties sought the stay to resolve certain procedural issues and to “focus their time and energy toward the upcoming mediation[.]” (/d. at 3.) The Court granted the Motion. (ECF No. 6.) The Parties report that, before settlement negotiations, they exchanged informal discovery regarding the breach. (ECF No. 29-1 at 10; ECF No. 30 at 7, 10.) The Parties also report that they

Plaintiff Woerner, who filed a separate federal suit as Diocese in greater detail below, “joins in [the pending] Motion and is also a party to the Settlement Agreement, which resolves the claims asserted in both the Brent Action and the Woerner Action.” (ECF No. 29-1 at 9 n.7.)

exchanged detailed mediation statements, and participated in a “full day, in-person mediation of this matter with the Hon. Diane M. Welsh.” (ECF No. 29-1 at 11; see also ECF No. 29-2 (Declaration of Hon. Diane M. Welsh).)’ Plaintiffs explain that “[a]fter multiple rounds of arms’- length negotiations that lasted well into the evening hours, the Parties were unable to reach a resolution” but that “Judge Welsh presented the Parties with a mediator’s proposal, which Plaintiffs and AMM accepted.” (ECF No. 29-11 at 11; see also ECF No. 30 at 7 (AMM explaining that “[t]he in-person, day-long mediation was hard-fought, and the negotiations were extensive”).) On February 5, 2024, the Parties reported to the Court that they “reached an agreement in principle to settle at the Mediation and to fully and finally resolve all claims in this action and the Woerner action.” (ECF No. 13 at 2.) The Parties continued negotiations, and finalized and signed the Settlement Agreement on April 18, 2024. (See ECF No. 29-1 at 11.) On April 18, 2024, Plaintiffs filed a Motion for Preliminary Approval of Class Action Settlement. (ECF No. 19.) As described in more detail in the Court’s Memorandum and Order denying that Motion, the Court found that it could not provisionally certify the Settlement Class, nor could it find that the settlement was fair, reasonable, or adequate based upon the inadequate briefing provided by the Plaintiffs. (See generally ECF Nos. 23, 24.) The Court permitted Plaintiffs to file a renewed motion. (/d.) Plaintiffs filed the currently pending Renewed Motion on June 7, 2024. (ECF No. 29.) II. Settlement Approval Procedure Approval of a class action settlement under Federal Rule of Civil Procedure 23 proceeds in two stages. At the first stage, the court examines the terms of the proposed settlement to determine whether it is “within the range of possible approval, subject to further consideration at

The Hon. Diane Welsh served as a Magistrate Judge in the U.S. District Court for the Eastern District of Pennsylvania from 1994 to 2005, and is a mediator and members of JAMS. (ECF No. 29-2.)

the final fairness hearing after interested parties have had an opportunity to object.” CASA de Md., Inc. v. Arbor Realty Tr., Inc., Civ. No. DKC-21-1778, 2023 WL 6125531, at *4 (D. Md. Sept. 19, 2023) (citation and quotations omitted). Further, “[w]Jhere a class-wide settlement is presented for approval prior to class certification, there must also be a preliminary determination that the proposed settlement class satisfies the prerequisites set forth in Fed. R. Civ. P. 23(a) and at least one of the subsections of Fed. R. Civ. P. 23(b).” Curry v. Money One Fed. Credit Union, Civ. No. DKC-19-3467, 2021 WL 3212584, at *2 (D. Md. July 29, 2021) (citation omitted). At the second stage, after a final fairness hearing, the Court approves the settlement if the proponents of the settlement satisfy their burden of showing that it is fair, adequate, and reasonable. Jd. Ill. Class Certification Plaintiffs propose the certification of the following Settlement Class: “all individuals who reside in the United States who: (i) had private health information exposed in the Cyberattack involving Defendants; and (ii) [were] sent notification of the Cyberattack from AMM or [were] subject to the notice published in the media and on AMM’s website.” (ECF No. 29-1 at 12.) Plaintiffs estimate that there are 319,485 persons in the Settlement Class. (/d.) Federal Rule of Civil Procedure 23 sets out the requirements for the certification of a class action. “A plaintiff seeking class certification bears the burden of proving the proposed class complies with the requirements of Rule 23.” Gray v. Hearst Commce’ns, Inc., 444 F. App’x 698, 700 (4th Cir. 2011).

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