Mckenzie Et Al V Robeson Health Care Coporation Prelim Settlement Approval 1
Mckenzie Et Al V Robeson Health Care Coporation Prelim Settlement Approval 1
The Court, having considered Plaintiffs' Motion for Preliminary Approval of the Class
Action Settlement ("Motion for Preliminary Approval"), the supporting Memorandum, the Parties'
Settlement Agreement, the proposed Short Notice, Long Notice, and Claim Form, and being
1. The Settlement Agreement is fully incorporated here by reference. The Parties have
moved the Court for an order approving the settlement of the Litigation in accordance with the
Settlement Agreement, which, together with the documents incorporated therein, sets forth the
terms and conditions for a proposed settlement and dismissal of the Litigation with prejudice. The
definitions used in the Settlement Agreement are adopted in this Preliminary Approval Order and
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2. The Court has jurisdiction over the claims at issue in this Litigation, Plaintiffs,
individually and on behalf of all others similarly situated, and Defendant Robeson Health Care
the Court finds that the Parties' Settlement Agreement is fair, reasonable, and adequate and is
within the range of possible approval, and was entered into after extensive, arm's-length
negotiations, such that it is hereby preliminary approved, and that notice of the settlement should
be provided to the Settlement Class Members per the schedule set forth in the Settlement
Agreement.
4. Pending the Final Fairness Hearing, all proceedings in the Litigation, other than
proceedings necessary to carry out or enforce the terms and conditions of the settlement and this
CLASS CERTIFICATION
5. For the purposes of settlement only, and pursuant to Civil Procedure Rule 23, the
Court provisionally certifies the Settlement Class, defined as follows: "all individuals who were
notified that their PII was potentially compromised in the February 2023 Data Breach."
6. The Settlement Class specifically excludes: (1) Defendant and Defendant's parents,
subsidiaries, affiliates, officers and directors, and any entity in which Defendant has a controlling
interest; (11) all individual who make a timely election to be excluded from this proceeding using
the correct protocol for opting out; (111) any and all federal, state, or local governments, including
but not limited to their departments, agencies, divisions, bureaus, boards, sections, groups,
counsels and/or subdivisions; (iv) the attorneys representing the Parties in the Action; (v) all j udges
assigned to hear any aspect of the Action, as well as their immediate family members; and (vi) any
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person found by a court of competent jurisdiction to be guilty under criminal law of initiating,
causing, aiding or abetting the Data Breach, or who pleads nolo contendere to any such charge.
7. The Court provisionally finds, pursuant to Rule 23 of the North Carolina Rules of
Civil Procedure, that, for purposes of this settlement only: (1) a class exists with shared issues of
law or fact that predominate over individual issues; (2) the named representatives are adequate
representatives that will fairly and adequately represent the class, have no conflict of interest with
the class and have a genuine personal interest in the outcome of the case; (3) class members are so
numerous to make joinder impractical; (4) adequate notice can be given to the class; and (5) a class
Hammonds, and Ronnie McGriff are hereby provisionally designated and appointed as the Class
Representative. The Court provisionally finds that the Class Representatives are similarly situated
to absent Settlement Class members, and are typical of the Settlement Class, and, therefore, they
9. For the purposes of settlement only, the Court finds that Milberg Coleman Bryson
Phillips Grossman, PLLC and Chestnut Cambronne, PA are experienced and adequate counsel and
10. The forms of the Email Notice, Postcard Notice, and Long Notice, and Claim Form
attached as Exhibits to the Settlement Agreement (the ""Notice"), are constitutionally adequate, and
are hereby approved. The Notice contains all essential elements required to satisfy North Carolina
requirements and Due Process. The Court further funds that the form, content, and method of
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providing notice to the Settlement Class, as described in the Settlement Agreement, including the
exhibits thereto: (a) constitute the best practicable notice to the Settlement Class; (b) are reasonably
calculated to apprise Settlement Class Members of the pendency of the action, the terms of the
settlement, their rights under the settlement, including, but not limited to, their rights to object to
or exclude themselves from the settlement; and (c) are reasonable and constitute due, adequate,
and sufficient notice to all Settlement Class Members. The Parties, by agreement, may revise the
Notice in ways that are appropriate to update the Notice for purposes of accuracy and clarity, and
may adjust the layout of those notices for efficient electronic presentation and mailing.
11. The notice plan set forth in the Settlement Agreement satisfies Civil Procedure Rule
23, provides the best notice practicable under the circumstances and adequately notifies Settlement
12. The Settlement Administrator is directed to carry out the notice plan as set forth in
13. Within thirty (30) days of entry of this Preliminary Approval Order and to be
substantially completed not later than forty-five (45) days after entry of this Preliminary Approval,
the Settlement Administrator will send Notice via direct mail to Settlement Class Members. Prior
to the dissemination of the Short Notice, the Settlement Administrator shall establish the
Settlement Website, which will inform Settlement Class Members of the terms of the Settlement
Agreement and contain copies of the Long Notice, Claim Form, this Preliminary Approval Order,
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CLAIMS, OPT-OUTS, AND OBJECTIONS
14. The timing of the claims process is structured to ensure that all Settlement Class
Members have adequate time to review the terms of the Settlement Agreement, make a claim, or
15. Settlement Class members will have one hundred and twenty (135) days after the
entry of the Preliminary Approval Order to complete and submit a claim to the Settlement
Administrator.
16. All Persons have the right and ability to exclude themselves from the Settlement
Class. In order to validly be excluded from the Settlement, the Person must send a letter to the
Claims Administrator no later than ninety (90) days after the date on which the Preliminary
Approval Order is entered clearly stating their intent to be excluded from the settlement. If the opt-
out is untimely or otherwise fails to comply with any of the provisions in the Settlement
Agreement, it shall not be considered a valid opt-out and the Person will be bound by the terms of
the Settlement Agreement and Judgment entered thereon. All Persons who submit valid and timely
notices of their intent to be excluded from the Settlement Class shall not receive any benefits of
17. Settlement Class members who comply with the requirements of this paragraph
may object to the settlement. A Settlement Class Member who seeks to object to the settlement
must submit a timely written notice of their objection by the objection date. Such written notice
must state: (i) the objector's full name, address, telephone number, and email address (if any); (ii)
the case name and case number; (iii) information identifying the objector as a Settlement Class
Member, including proof that the objector is a member of the Settlement Class (e.g., copy of
original notice of the Data Breach or a statement explaining why the objector believes he or she is
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a Settlement Class Member); (iv) a written statement of all grounds for the objection, accompanied
by any legal support for the objection the objector believes applicable; (v) the identity of all counsel
representing the objector in connection with the objection; (vi) a statement whether the objector
and/or his or her counsel will personally appear at the Final Fairness Hearing; and (vii) the
objector's signature or the signature of the objector's duly authorized attorney or other duly
authorized representative.
18. To be timely, written notice of an objection in the appropriate form must mailed,
with a postmark date no later than the Objection Date, to Proposed Class Counsel and to
Defendant's counsel as set forth below. For all objections mailed to Proposed Class Counsel and
counsel for Defendant, Proposed Class Counsel will file them with the Court with the Motion for
19. Any Settlement Class Member who fails to comply with the requirements for
objecting herein and in the Settlement Agreement shall waive and forfeit any and all rights he or
she may have to appear separately and/or object to the Settlement Agreement, and shall be bound
by all the terms of the Settlement Agreement and by all proceedings, orders, and judgments in this
Litigation. Without limiting the foregoing, any challenge to the Settlement Agreement, the final
order approving the Settlement Agreement, or the Judgment to be entered upon final approval shall
be pursuant to appeal under the North Carolina Rules of Appellate Procedure and not through a
collateral attack.
20. Class Counsel and Counsel for Defendant have created a process for assessing the
validity of claims and a payment methodology to Settlement Class Members who submit Valid
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Claims. The Court hereby preliminarily approves the settlement benefits to the settlement Class,
and the plan for distributing settlement benefits as described in the Settlement Agreement.
22. The Court directs the Settlement Administrator to effectuate the distribution of
settlement benefits according to the terms of the Settlement Agreement should the settlement be
finally approved.
23. Settlement Class Members who qualify for Settlement benefits and who wish to
submit a Claim Form shall do so in accordance with the requirements and procedures specified in
the Notice.
24. If Final Judgment is entered, all Settlement Class members who fail to submit a
claim in accordance with the requirements and procedures specified in the Notice shall be forever
barred from receiving any settlement benefit and will in all other respects be subject to and bound
by the provisions of the Settlement Agreement, including the Releases contained therein, and the
Judgment.
25. Prior to the Final Fairness Hearing, Class Counsel shall cause to be filed with the
Court an appropriate affidavit or declaration regarding compliance with the provisions of the
26. A Final Fairness Hearing shall be held not less than 120 days following the entry
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North Carolina Superior Court of Robeson County Courthouse, to be noticed on the Settlement
Website.
27. The Court may require or allow the Parties and any objectors to appear at the Final
28. At the Final Fairness Hearing, the Court will determine whether: (1) this Litigation
should be finally certified as a class action for settlement purposes pursuant to Civil Procedure
Rule 23; (2) the settlement should be finally approved as fair, reasonable, and adequate; (3) Class
Counsel's application for attorneys' fees, costs, and expenses should be approved; (4) the Class
Representative's request for a service award should be approved; (5) the Parties, their respective
attorneys, and the Settlement Administrator should consummate the settlement in accordance with
the terms of the Settlement Agreement; (6) Settlkement Class Members should be bound by the
Releases set forth in the Settlement Agreement; and (7) the Litigation should be dismissed with
29. Plaintiffs' application for attorneys' fees, costs, expenses, and service awards and
all supporting papers shall be filed with the Court no later than fourteen (14) days prior to the
Objection Deadline.
30. Plaintiffs' Motion for Final Fairness of the Class Action Settlement and all
supporting papers shall be filed with the Court no later than fourteen (14) days prior to the Final
Fairness Hearing.
RELEASE
31. Upon the Effective Date, each Settlement Class Member, including Plaintiffs, shall
be deemed to have, and by operation of the Judgment shall have, fully, finally, and forever
released, relinquished, and discharged all Released Claims and Unknown Claims. Further, upon
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the Effective Date, and to the fullest extent permitted by law, each Settlement Class Member,
of the general public or in any capacity, be permanently barred and enjoined from commencing,
prosecuting, or participating in any recovery in any action in this or any other forum (other than
participating in the settlement as provided herein) in which any of the Released Claims is asserted.
TERMINATION
32. In the event that the Effective Date does not occur, class certification shall be
automatically vacated and this Preliminary Approval Order, and all other orders entered and
releases delivered in connection herewith, shall be vacated and shall become null and void.
SUMMARY OF DEADLINES
33. The preliminarily approved Settlement shall be administered according to its terms
pending the Final Fairness Hearing. Deadlines arising under the settlement and this Preliminary
Notice Commencement Data Thirty (30) days following the entry of the
preliminary approval order.
Notice Completion Date Forty-five (45) days following the entry of the
preliminary approval order
Deadline for Plaintiffs to File Motion for Fourteen (14) days prior the Objection & Opt-
Attorneys' Fees, Costs, Expenses, and Out Deadlines
Service Award for Class Representative
Objection Deadline and Opt-Out Deadline Sixty (60) days after Notice Commencement
Date
Claims Deadline Ninety (90) days after Notice Completion Date
Deadline for Plaintiffs to File Motion for 14 Days prior to Final Approval Hearing
Final Approval of Class Action Settlement
Final Approval Hearing No earlier than one hundred and sixty five
(165) days after entry of Preliminary Approval
Order.
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34. Upon application of the Parties and good cause shown, the deadlines set forth in
this Preliminary Approval Order may be extended by order of the Court, without further notice to
the Settlement Class. Settlement Class Members must check the Settlement Website regularly for
updates and further detail regarding extensions of these deadlines. The Court reserves the right to
adjourn or continue the Final Fairness Hearing, and/or to extend the deadlines set forth in this
Preliminary Approval Order, without further notice of any kind to the Settlement Class.
ORDERED
3/24/2025 3/24/2025 2:51:15 PM
Hon.
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Resolves Lawsuit Over 2023 Data Breach Incident