Volusion, LLC Data Security Incident Settlement
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There is the Notice because you have a right to know about a proposed Settlement of a class action lawsuit, and about your options, before the Court decides whether to approve the Settlement.The Court in charge of this case is the United States District Court for the Western District of Texas, Austin Division. The case is called Julio Lopez and Michael Oros, on behalf of themselves and all others similarly situated v. Volusion, LLC, Case No. 1:20-cv-00761-LY. The individuals who sued, Plaintiffs Julio Lopez and Michael Oros (“Class Representatives”) on behalf of themselves and all other persons similarly situated are, collectively, called “Plaintiffs.” The company that Plaintiffs sued, Volusion, LLC, is called the "Defendant."
The lawsuit relates to a data security incident that took place on or about October 8, 2019, potentially affecting certain personal information of some of Volusion’s merchant clients’ customers. On or about October 8, 2019, Volusion learned that personal information of some customers of Volusion’s merchant clients may have been improperly exposed as a result of malware placed on Volusion’s e-commerce platform. Volusion denies all allegations of wrongdoing or liability made in the lawsuit. Both sides have agreed to the Settlement to avoid the cost of further litigation.
In a class action, one or more people called Class Representatives (in this case Julio Lopez and Michael Oros), sue on behalf of people who have similar claims. All these people together are a “class” or “class members.” Individual class members do not have to file a lawsuit to participate in the class action settlement or be bound by the judgment in the class action. One court resolves the issues for all class members, except for those who exclude themselves from the Class.
The Court has not decided who is right or wrong. Instead, both sides, with the assistance of experienced privacy litigation class action mediator Bruce A. Friedman, Esq. of JAMS, have agreed to the Settlement. Both sides want to avoid the cost of further litigation. The Class Representatives and their attorneys think the Settlement is in the best interests of the Class and is fair, reasonable, and adequate.
The Class consists of all persons to whom Volusion sent its Notice of Data Incident dated on or about April 21, 2020, advising that on or about October 8, 2019, Volusion learned that personal information of some customers of Volusion’s merchant clients may have been improperly exposed as a result of malware placed on Volusion’s e-commerce platform.
If you are not sure whether you are a Class Member, or have any other questions about the Settlement, you should visit the 'Documents' section of this Website, or contact the Settlement Administrator.
The proposed Settlement provides for a fund totaling up to $4.3 million less additional defense expenses, which will be used to pay for the following: (1) all notice and administration expenses; (2) any award of attorneys’ fees and expenses not to exceed $450,000.00; (3) any Service Award to the Class Representatives, not to exceed $2,500.00 each and (4) Settlement Benefits to Class Members for approved Claims for out-of-pocket losses and approved Claims for Lost Time spent responding to the Data Incident.
If the Court approves the Settlement, Class Members who have not excluded themselves from the Settlement and have submitted approved Claims are eligible to receive the following:
Payment of funds to Class Members cannot exceed the available funds to the Settlement. In the unlikely event this occurs, payments will be reduced pro rata, such that they will be pro-rated down proportionately.
If a pro rata reduction is necessary, then pro rata reduction shall occur in the following order: first, each Class Member’s payment for lost time shall be reduced pro rata such that no Class Member’s payment for lost time shall be reduced below $20.00; second, if after the first pro rata reduction, the balance of the settlement fund is still insufficient to pay the remaining Claims, then a second pro rata reduction shall be made to Class Members’ claims for out-of-pocket losses such that no Class Member’s payment for out-of-pocket losses shall be reduced more than 50%; and third, if after the second pro rata reduction the balance of the settlement fund is still insufficient to pay the remaining Claims, then all Claims shall be reduced proportionally.
To the extent any check or electronic payment issued by the Settlement Administrator remains uncashed ninety (90) days after issuance and the Settlement Administrator has no reasonable means to re-issue the check or payment or if a re-issued check or payment remains uncashed an additional ninety (90) days thereafter, those unpaid funds are forfeited by a Class Member and may be distributed by the Settlement Administrator to the Cy Pres Recipient approved by the Court.
The claim filing deadline has now passed. To be eligible to receive Settlement Benefits, you must have completed and submitted a timely and valid Claim Form, along with any required documentation, online or by mail postmarked no later than September 6, 2022.
Settlement Benefits were paid on December 21, 2022 to Class Members who filed a timely and valid Claim Form after the Court granted “final approval” to the Settlement.
If you are a Class Member, unless you exclude yourself from the Settlement, you cannot sue the Defendant, continue to sue, or be part of any other lawsuit against the Defendant about the claims released in this Settlement. It also means that all the decisions by the Court will bind you. The Released Claims are defined in the Settlement Agreement and describe the legal claims that you give up if you stay in the Settlement.
The exclusion deadline has now passed. You must have completed and mailed your Request for Exclusion so that was postmarked or delivered no later than Tuesday, September 6, 2022.
No. Unless you exclude yourself, you give up any right to sue the Defendant for the claims that this Settlement resolves. If you have a pending lawsuit, speak to your lawyer in that lawsuit immediately. You must exclude yourself from this Settlement to continue your own lawsuit. If you properly exclude yourself from the Settlement, you will not be bound by any orders or judgments entered in the litigation relating to the Settlement.
No. You will not get any of the Settlement Benefits if you exclude yourself. If you exclude yourself from the Settlement, do not send in a Claim Form asking for benefits as that claim will not be approved.
No. The Court has appointed: Edwards Law Group; Pearson, Simon & Warshaw, LLP; Kopelowitz Ostrow Ferguson Weiselberg and Gilbert; and Tycko & Zavareei LLP as "Class Counsel." Class Counsel will answer any questions that the Court may have. You will not be charged for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense. You or your attorney may ask to speak at the hearing at your own cost, but you don’t have to.
Objecting is simply telling the Court that you don’t like something about the Settlement. You can object to the Settlement only if you do not exclude yourself from the Settlement.
Excluding yourself from the Settlement is telling the Court that you don’t want to be part of the Settlement. If you exclude yourself from the Settlement, you have no basis to object to the Settlement because it no longer affects you.
The Court held a Final Approval Hearing on October 6, 2022 at the United States Courthouse, Austin Division, 501 West Fifth Street, Austin, Texas 78701. The Settlement has been approved. For details, please review to the Order Granting Final Approval.
The hearing has taken place. You must have filed your Objection(s) and/or Notice of Intention to Appear at the Final Approval Hearing so that it/they were postmarked no later than Tuesday, September 6, 2022.
If you do nothing, you will not get any of the Settlement Benefits. Unless you exclude yourself, you won’t be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against the Defendant about the legal issues in this case, ever again.
The Notice summarizes the proposed Settlement. More details are in the Settlement Agreement, If you have additional questions, you can contact the Settlement Administrator.
PLEASE DO NOT CONTACT THE COURT OR THE COURT CLERK’S OFFICE.