Desue v. 20/20 Eye Care Network, Inc.

District Court, S.D. Florida·Decided December 5, 2022·No. 0:21-cv-61275·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 21-CIV-61275-RAR

WENSTON DESUE, individually and as legal guardian of N.D. and M.D. and all others similarly situated,

Plaintiff,

v.

20/20 EYE CARE NETWORK, INC., et al.,

Defendants. _______________________________/ ORDER CERTIFYING SETTLEMENT CLASS AND GRANTING PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT AND NOTICE PROGRAM THIS CAUSE comes before the Court on the Unopposed Motion for Preliminary Approval of Class Action Settlement and Memorandum of Law in Support [ECF No. 81] (“Motion”) filed on October 28, 2022. A settlement agreement, dated October 28, 2022 (“Settlement Agreement”), was made and entered into by and among the following Settling Parties: (i) Stephany Alcala; Benjamin J. Liang; Amber Lowe, on behalf of herself and her minor children C.B., K.B., M.B., and G.M.; David Runkle; and Suzanne Johnson (collectively the “Representative Plaintiffs”), individually and on behalf of the Class Members, by and through their attorneys, Gayle M. Blatt of the law firm Casey Gerry Schenk Francavilla Blatt & Penfield LLP; Bryan Bleichner of the law firm Chestnut Cambronne PA; Dorothy P. Antullis of the law firm Robbins Geller Rudman & Dowd LLP; Jean S. Martin of the law firm Morgan & Morgan, P.A.; Terence R. Coates of Markovits, Stock and DeMarco, LLC; Joseph M. Lyon of the Lyon Firm; Nathan D. Prosser of Hellmuth & Johnson PLLC; and M. Anderson Berry of Clayeo C. Arnold, A Professional Law Corp. (collectively, “Proposed Class Counsel” or “Class Counsel”); and (ii) 20/20 Eye Care Network, Inc. (“ECN”) and iCare Acquisition, Inc. (“iCare”) (collectively “20/20” or the “Defendants”), for the benefit of all Released Parties, by and through the Defendants’ counsel of record, Mark S. Melodia and Caitlin Saladrigas of Holland & Knight LLP (“Defense Counsel”). Representative Plaintiffs move for Preliminary Approval of the Settlement Agreement, attached as Exhibit 1 to the Motion, which will resolve all claims against Defendants ECN and iCare in this lawsuit. The Court conducted a hearing on November 30, 2022, and finds that

preliminary approval is warranted as set forth herein. BACKGROUND Following a Data Incident that Defendants discovered on or about January 11, 2021, six putative class actions were filed in the United States District Court for the Southern District of Florida. These lawsuits include the above-captioned matter, Desue v. 20/20 Eye Care Network, Inc. No. 21-cv-61275, and the following: Bowen v. 20/20 Eye Care Network, Inc., No. 21-cv- 61292; Fraguada v. 20/20 Eye Care Network, Inc., No. 21-cv-61302; Runkle v. 20/20 Eye Care Network, Inc., No. 21-cv-61357; Hoffman-Mock v. 20/20 Eye Care Network, Inc., No. 21-cv- 61406; and Johnson v. 20/20 Eye Care Network, Inc., No. 21-cv-61755. All six matters were consolidated under the Desue caption by Court order. Order Consolidating Cases and Setting

Status Conf., June 28, 2021, [ECF No. 11]; see also [ECF Nos. 22, 35]. On September 1, 2022, Plaintiffs filed their First Amended Consolidated Class Action Complaint, alleging four causes of action: (1) negligence and negligence per se; (2) unjust enrichment; (3) breach of confidence; and (4) violation of the Florida Deceptive Trade Practices Act (FDUTPA). [ECF No. 37]. Plaintiffs asserted these claims on behalf of a putative Nationwide Class, or alternatively, as to violation of the FDUTPA, on behalf of a putative Florida Subclass. Plaintiffs also sought an award of actual or statutory damages as well as attorneys’ fees and costs. Id. Defendants filed a Motion to Dismiss the First Amended Consolidated Complaint, which the Court granted in part on March 15, 2022. [ECF No. 51]. In the Order on Defendants’ Motion to Dismiss, the Court held that Plaintiffs had established Article III standing. Two Plaintiffs had established injuries-in-fact based upon substantial risk of imminent identity, financial, and health fraud and theft; emotional anguish and distress resulting from the Data Incident; and increased

time spent reviewing financial statement and credit reports to assess whether fraudulent activity occurred, id. at 6, while the remaining Plaintiffs did so based upon alleged actual misuse of their personal information, id. at 9-10. The Court also ruled that Plaintiffs adequately pleaded traceability. Id. at 11-12. However, the Court dismissed without prejudice under Fed. R. Civ. P. 12(b)(6) the four specific causes of action pleaded in Plaintiffs’ First Amended Consolidated Complaint [ECF No. 51]. The Court dismissed the negligence count because it comingled multiple negligence theories into a single count and did not identify which Defendant was allegedly responsible for various acts or omissions. Id. at 13-15. The Court next dismissed the unjust enrichment count, concluding that Florida law does not recognize indirect conferral of benefits

through a third-party intermediary. Id. at 15-17. The Court held the breach of confidence claim failed because Plaintiffs failed to allege Defendants disclosed their personal identifying information (“PII”) and personal health information (“PHI”) and because no confidential relationship existed between the Parties. Id. at 17-19. Finally, while the Court dismissed the FDUTPA claim because Plaintiffs failed to plead cognizable actual damages, it nevertheless concluded Plaintiffs had standing to assert injunctive relief under the statute. Id. at 19-21. Plaintiffs filed a Second Amended Consolidated Class Action Complaint (“SAC”) on March 29, 2022. [ECF No. 52]. There, Plaintiffs asserted non-commingled negligence counts, specifically, negligence against ECN and negligence against iCare, negligent supervision by ECN of its employees entrusted with access to the PII and PHI of Plaintiffs and putative Class Members, and a count under FDUTPA. On April 25, 2022, following a joint motion by the Parties to extend the briefing dates for pleading challenges, Defendants filed a Motion to Strike Punitive Damages and Special Relationship Allegations [ECF No. 59], and on April 26, 2022, Defendants moved to

dismiss the SAC. [ECF No. 60]. In response, Plaintiffs filed an Unopposed Motion for Leave to File Third Amended Consolidated Class Action Complaint (“TAC”) to refine factual allegations, amend certain legal claims, and address concerns raised by Defendants in their motions. [ECF No. 62]. On May 9, 2022, the Court granted the unopposed motion to file a new amended complaint. Thereafter, and prior to the filing of the TAC, the Parties filed a Joint Motion to Stay Proceedings to provide them time to engage in settlement efforts. [ECF No. 65].1 After actively litigating this lawsuit for more than a year, the Parties agreed to mediate this matter before the Honorable John Thornton (Ret.), an experienced mediator with experience in Florida and Eleventh Circuit case law. In accordance with a motion by the Parties [ECF No. 65],

the Court on July 11, 2022, ordered that mediation occur on July 25, 2022. [ECF No. 68]. The Parties mediated on that date via Zoom Video Conference. The arm’s-length negotiations were hard fought with considerable exchange of information between the Parties and Judge Thornton. The Parties were unable to reach settlement that day. Settlement negotiations continued, and the Parties continued to make progress toward settlement over the ensuing weeks. On August 1, 2022,

1 The SAC thus remains the operative complaint in this action. the Court granted the Parties’ Joint Motion for Extension of the Stay of Proceedings and for Extension of Deadline to File Mediator’s Report. [ECF Nos. 69-70]. The Parties advised the Court on August 15, 2022, that they hoped to reach a settlement in principle within days, with Judge Thornton’s continued oversight. Joint Rpt.

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