Smallman v. MGM Resorts International

District Court, D. Nevada·Decided January 22, 2025·No. 2:20-cv-00376·Unknown

Opinion

EXHIBIT D DISTRICT OF NEVADA IN RE MGM INTERNATIONAL RESORTS Case No.: 2:20-cv-00376-GMN DATA BREACH LITIGAITON This Document Relates To: All actions. DISTRICT OF NEVADA TANYA OWENS, et al. Master File No. 2:23-cv-01480-GMN (Consolidated for pretrial proceedings with Plaintiffs, Case Nos. 2:23-cv-1481, 2:23-cv1537, 2:23-cv- 1549, 2:23-cv-1550, 2:23-cv1577, Vv. 2:23-cv-1698, 2:23- cv-1719, 2:23-cv1777, 1] 2:23-cv-1826, 2:23-cv- 1981, 2:23-cv2042, MGM RESORTS INTERNATIONAL 2:23-cv-2064, 2:24-cv-81, 2:24-cv-00995, 2:24-cv-00999) Defendant. ORDER GRANTING PLAINTIFFS’ UNOPPOSED MOTION FOR PRELIMIMNARY APPROVAL OF CLASS ACTION SETTLEMENT Pending before the Court is Plaintiffs’! Unopposed Motion for Preliminary Approval of Class Action Settlement and Memorandum of Law, requesting the Court preliminarily certify the Settlement Class and preliminarily approve the Settlement. (ECF No. _.) For the reasons set forth

herein, the Motion for Preliminary Approval is GRANTED.

Defendant is a global gaming, hospitality, and entertamment company headquartered in Las Vegas, Nevada. In the course of operating its business, Defendant collects, maintains, and stores Private Information pertaining to its customers, including, but not limited to, names, contact = information (such as telephone numbers, email addresses, and postal addresses), gender, dates of birth, driver’s license numbers, passport numbers, and Social Security numbers. All capitalized terms used herein shall have the same meanings as those defined in Section II of the Settlement Agreement, attached to the Motion for Preliminary Approval as Exhibit A. myo

In July of 2019, and then again in September of 2023, Defendant’s computer systems were hacked in separate incidents by cybercriminals resulting in the unauthorized access of tens of millions of Defendant’s customers’ Private Information. Following the Data Incidents, Plaintiffs and Settlement Class members began receiving notices that their Private Information was potentially involved. Thereafter, lawsuits were filed against Defendant related to each incident. To avoid the risk and expense of litigation, the Parties agreed to a global settlement to resolve Plaintiffs’ claims for both Data Incidents on a classwide basis. As demonstrated below, the Settlement provides significant relief for the Settlement Class, including a non-reversionary all cash $45,000,000.00 Settlement Fund and valuable non-monetary relief. II. BACKGROUND The Motion for Preliminary Approval details the history of the 2019 Action and the 2023 Action. This Preliminary Approval Order highlights those facts, which support Preliminary Approval. The 2019 Action In or about July 2019, unauthorized individuals accessed Defendant’s network and downloaded certain customer data of approximately 37 million MGM guests. See Joint Declaration of Class Counsel attached to the Motion for Preliminary Approval as Exhibit B. Defendant discovered the 2019 Data Incident on or about July 10, 2019. Jd. According to Defendant, the unauthorized individuals acquired personally identifiable information including customers’ names, postal addresses, telephone numbers, email addresses, dates of birth, and passport numbers. Jd. However, for the vast majority of the victims, the exposure was limited to their names, postal addresses, email addresses, telephone numbers, and/or their dates of birth. Zd. Following the 2019 Data Incident and commencing on February 21, 2019, Defendant was named in the first of eight class action lawsuits (ECF No. 1), which were eventually consolidated into 244 Spee altiamenris iiuaike weit HieQn19 Dain heidentsnd the gimiisity wrth. claati □□□□ cases. including the overlapping classes, Plaintiffs’ counsel for the 2019 Action and the 2023 Action collectively determined it would be in the best interest of all concerned — the Plaintiffs, the Defendant, the putative classes, and the Court — to have this Court preside over both cases, which are now being joined for settlement purposes. The Court agrees that a single settlement process for the Actions makes sense as it will be more efficient and less expensive.

the 2019 Action. (ECF No. 22, 86). The Court also appointed the 2019 Plaintiffs’ interim class counsel. (ECF No. 93.) On April 2, 2021, the 2019 Plaintiffs filed a consolidated class action complaint, asserting claims for negligence, negligent misrepresentation, breach of implied contract, unjust enrichment, and various state consumer protection law violations. (ECF No. 101.). On June 1, 2021, Defendant filed a motion to dismiss the consolidated class action complaint, which was fully briefed. (ECF No. 103, 109, 117.) On November 2, 2022, the Court granted in part and denied in part Defendant’s motion to dismiss. (ECF No. 128.) The Court allowed the 2019 Plaintiffs’ claims for negligence, breach of implied contract, and violations of some state consumer protection laws, but dismissed claims for violations of other state consumer protection laws, negligent misrepresentation, and unjust enrichment. Jd. On December 19, 2022, Defendant answered the 2019 consolidated complaint, denying all material allegations and alleging affirmative defenses. (ECF No. 136.) After the Court’s ruling on Defendant’s motion to dismiss, the Parties in the 2019 Action engaged in substantial fact discovery, including written discovery, document production, depositions, and motion practice. See Joint Declaration. The 2019 Plaintiffs filed notices of related cases on December 6, 2023 (ECF No. 183) and December 20, 2023 (ECF No. 185), seeking to relate several cases filed relating to the 2023 Data Incident, which Defendant and 2023 Plaintiffs opposed. (ECF Nos. 184, 186, 187, 188.) On July 9, 2024, the 2019 Parties filed a stipulation to stay the case pending mediation, which the Court granted that same day. (ECF Nos. 233, 234.) On August 14, 2024, Defendant filed a notice of withdrawal of its response to the 2019 Plaintiffs’ notices of related cases. (ECF No. 235.) On September 18, 2024, the Court issued a Minute Order accepting transfer of the consolidated cases in the 2023 Action. (ECF No. 237.) The 2023 Action Beginning on September 7, 2023, in a separate cybersecurity incident, unauthorized individuals accessed Defendant’s network by impersonating an information technology administrator

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Smallman v. MGM Resorts International, (D. Nev. 2025).

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