IN RE ONIX GROUP, LLC DATA BREACH LITIGATION

District Court, E.D. Pennsylvania·Decided December 13, 2024·No. 2:23-cv-02288·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

CIVIL ACTION

IN RE ONIX GROUP, LLC DATA BREACH LITIGATION NO. 23-2288-KSM

MEMORANDUM

Marston, J. December 13, 2024

This is a putative class action brought by Plaintiffs Eric Meyers, Donald Owens, Aida Wimbush, Ashtyn Mark, Leah Simione, Melissa Lyston, and Angela Haynie (“Plaintiffs”). (See Doc. No. 18.) Plaintiffs allege that Defendant Onix Group, LLC (“Defendant”) failed to adequately safeguard sensitive personal information entrusted to it by its customers, despite the foreseeability of a data breach. (Doc. No. 29-1 at 8.) Plaintiffs, on behalf of a putative class, and Defendants have negotiated a settlement agreement to resolve the allegations in the Complaint. On June 14, 2024, the Court granted Plaintiffs’ unopposed motion for preliminary approval of the class and settlement agreement. (Doc. No. 44; Doc. No. 45.) Plaintiffs now seek final approval of the class and settlement agreement. (Doc. No. 46.) In addition, they seek approval of attorneys’ fees, reimbursement of expenses to class counsel, and a service award to Plaintiffs as the class representatives. (Doc. No. 47.) For the reasons below, the Court will approve the terms of the settlement agreement and grant the motion for attorneys’ fees, reimbursement of expenses, and the service award. I. Background A. Procedural History Beginning in June 2023, numerous class actions were filed in this Court on behalf of consumers whose information was stolen following a third party cyberattack against Defendant,

a conglomerate operating in the hospitality, commercial real estate development, and healthcare industries. (See, e.g., Doc. No. 1, Owens v. Onix Group, LLC, Civil Action No. 2:23-cv-2301- KSM; Doc. No. 1, Bernard v. Onix Group, LLC, Civil Action No. 5:23-cv-02556-KSM; Doc. No. 18 at ¶ 2.) On July 19, 2023, this Court consolidated these class actions under the new case name “In re Onix Group, LLC Data Breach Litigation.” (Doc. No. 14.) In the fall of 2023, Plaintiffs filed a consolidated complaint asserting claims for negligence, negligence per se, breach of implied contract, breach of fiduciary duty, unjust enrichment, and violations of state consumer protection and privacy statutes. (Doc. No. 18.) Plaintiffs alleged that they entrusted Defendant with their sensitive personal information, such as names, addresses, social security numbers, medication information, health insurance information,

and other clinical information, but that Defendant failed to implement adequate security practices to protect the information from cybercriminals. (Id. at ¶¶ 20–24.) Plaintiffs argued that a large depository of highly valuable health care information is a foreseeable target for cybercriminals, and that Defendant should have known that its repository of information for hundreds of thousands of patients posed a significant risk of being targeted for a data breach. (Id. at ¶ 28.) On December 1, 2023, following mediation with an experienced mediator, Bennett G. Picker, Esquire of Stradley Ronon Stevens & Young LLP, the parties agreed to a settlement in principle, and on February 20, 2024, Plaintiffs filed an initial unopposed motion for preliminary approval of the class action settlement. (Doc. No. 29; Doc. No. 29-1 at 9.) On May 15, 2024, the Court held a hearing on the motion, and on May 21, 2024, at the Court’s direction, the parties filed a revised settlement agreement, short-form notice, long-form notice, and claim form. (Doc. No. 34; Doc. No. 35.) Ten days later, at the Court’s further direction to provide additional clarity in the settlement notices and claim form, the parties filed second amended settlement documents.1 (Doc. No. 37.) After receiving these filings, the Court granted preliminary

settlement approval, preliminarily certified a Rule 23 class, and authorized the settlement administrator to notify the class of the settlement. (Doc. No. 45 at 3.) On September 3, 2024, Plaintiffs filed a motion for final approval of the settlement agreement and a motion for an award of attorneys’ fees in the amount of $416,666.66; for litigation costs and expenses in the amount of $12,032; and for service awards to each of the seven class representatives in the amount of $1,000. (Doc. No. 46; Doc. No. 47 at 2.) The Court held a fairness hearing with counsel on November 20, 2024. (Doc. No. 53.) Two class members attended the hearing. B. Settlement Agreement

The settlement agreement identifies the following settlement class: All 308,942 natural persons whose Private Information was compromised in the Data Breach and who have not been confirmed to be deceased. Excluded from the Settlement Class are: (1) the Judges presiding over the Action and members of their immediate families and their staff; (2) Onix, its subsidiaries, parent companies, successors, predecessors, and any entity in which Onix or its parents, have a controlling interest, and its current or former officers and directors; (3) natural persons who properly execute and submit a Request for Exclusion prior to the expiration of the Opt-Out Period; and (4) the successors or assigns of any such excluded natural person.

1 In addition, on June 13, 2024, at the Court’s direction to ensure that deadlines in the settlement agreement were more certain, the parties filed a second amended settlement agreement. (Doc. No. 42.) The parties refiled the settlement agreement on June 14, 2024, to correct a clerical error. (Doc. No. 43.) (Doc. No. 43-1 at ¶ 1.42.) In the settlement agreement, Defendant agreed to create a $1,250,000 non-reversionary settlement fund. (Id. at ¶¶ 1.43, 3.14.) Under its terms, class members have the option to file a claim for one of the following benefits from the settlement fund: (1) class members may claim

12 months of credit monitoring and insurance services (“CMIS”), which includes at minimum three credit bureau monitoring services and $1 million in identity theft insurance; (2) class members may submit a “documented loss payment” claim seeking up to $5,000 per person for the reimbursement of losses supported by reasonable documentation which were more likely than not the result of the data breach at issue; or (3) class members may submit a claim for a pro rata cash payment without any supporting documentation.2 (Id. at ¶ 3.3.) In addition to these benefits, Defendant agreed to “adopt, continue, and/or implement certain data security and privacy improvements designed to protect against similar data security incident in the future.” (Id. at ¶ 2.1.) Defendant has agreed to confirm compliance with these measures to class counsel at their request on an ongoing basis for at least two years. (Id.)

The settlement fund will first be used to pay for administrative expenses, fee award and costs, service awards, and taxes. (Id. at ¶ 3.8.) The remaining amount (the “net settlement fund”) will be used to pay for CMIS, documented losses, and the pro rata cash payments. (Id.) All class members who opt for pro rata cash payment will receive an equal amount, which is calculated by subtracting the costs associated with the first two settlement benefit options from

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