In re: Banner Health Data Breach Litigation
Banner Health Settlement
2:16-cv-02696-PHX-SRB

Frequently Asked Questions

 
 

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  • You received notice of the Settlement because records show that you received an earlier notice from Banner Health that your personal information may have been compromised as a result of the Security Incident in 2016.  If you satisfy these criteria, you are a Class Member, and you are entitled to receive Settlement benefits if you submit a valid Claim Form before the deadline and if the Court grants final approval of the Settlement.  You also have other options as described in the notice and in these FAQs.

  • The Class Representatives filed a complaint against Banner Health.  The complaint alleges that Banner Health acted unlawfully by failing to prevent the Security Incident.  The Class Representatives claimed that Banner Health failed to fulfill its legal duty to adequately secure and safeguard the information of the Class Representatives and Class Members and that Banner Health breached promises made to the Class Representatives and Class Members concerning the security of their data.

    Banner Health denies the allegations asserted by the Class Representatives and contends that Banner Health was and is in compliance with applicable state and federal law.  The Court has not made any ruling on the merits of this case.  The attorneys for the Class and Banner Health have agreed to settle the lawsuit, subject to the approval of the Court. 

  • If you received an earlier notice from Banner Health that your personal information may have been compromised a result of the Security Incident at Banner Health, you may be a member of the Settlement Class. 

  • If the Court grants final approval, Banner Health will provide the following Settlement benefits to Class Members:

    1. Ordinary Cash Reimbursement - a cash payment for up to 3 hours of undocumented lost time in connection with the Security Incident and/or additional documented expenses or monetary loss (up to $500.00 per Class Member) as outlined in the Settlement Agreement;
    1. Extraordinary Cash Reimbursement - a cash payment for up to 15 additional hours of documented lost time in connection with the Security Incident and/or additional documented expenses or monetary loss (up to $10,000.00 per Class Member) as outlined in the Settlement Agreement; and
    1. Two Years of Credit Monitoring which includes $1 million in identity-theft coverage.

     

    Cash Reimbursement Terms: Banner Health will pay up to a total of $6,000,000 for Class Members’ valid claims for Ordinary and Extraordinary Cash Reimbursement.  To receive compensation for out-of-pocket losses or lost time incurred due to the Security Incident, you must submit a Claim Form by February 9, 2021.  Claims for Ordinary Lost Time will be compensated at $15.00 per hour upon attestation by the Class Member that the time was spent as a result of the Security Incident.  Claims for Extraordinary Lost Time will be compensated at the rate of $15.00 per hour unless the Class Member establishes through documented proof that the Class Member took unpaid time off work and the Class Member's actual standard compensation rate exceeds $15.00 per hour, in which case payment shall be at the rate of actual compensation up to a maximum of $40.00 per hour.  If the value of valid claims for Ordinary and Extraordinary Cash Reimbursement exceeds a total of $6,000,000, all claims will be reduced on a pro rata basis prior to payment.  Otherwise, the Claims Administrator will process and pay valid claims in their entirety.  The amount you are entitled to receive depends on several factors, including how many Claim Forms are filed before the deadline.  You may review the Claim Form to see an explanation of the types of loss that are considered Ordinary or Extraordinary as well as specific documentation requirements and hourly payment rates for claimed lost time.

    Credit Monitoring Offering Terms: To receive two years of additional credit monitoring, Class Members must submit a valid claim either online or by mail to enroll in credit monitoring.  The deadline to submit a Claim Form is February 9, 2021.

    Injunctive Relief: The Settlement also includes injunctive relief for all Class Members regardless of whether you make a claim in the Settlement.  Banner has provided proof of its security enhancements to the Class Representatives and Class Counsel regarding improvements to its information security enterprise since the Security Incident.  Banner has also agreed to implement extensive information security improvements, including a robust set of future business practice commitments and commitments to substantial information security funding.

    Fees, Costs, and Expenses Associated with the Settlement: The parties estimate that the fees, costs, and expenses associated with the Settlement will be as follows: (i) Settlement Administration Costs estimated to be One Million Five Hundred Thousand Dollars ($1,500,000); (ii) a Fee and Cost Award, to be requested by Class Counsel, not to exceed Two Million Nine Hundred Thousand Dollars ($2,900,000); and (iii) a Service Payment Award, to be requested by the Settlement Class Representatives, not to exceed Five Thousand Dollars per Class Representative ($30,000 in Total).

     
  • If you are an eligible Class Member and you do not exclude yourself from the Settlement, you must submit a valid claim if you wish to receive a payment from the Settlement or two years of additional credit monitoring.  Claims must be filed online by February 9, 2021.  If you cannot file your claim online, you may contact the Claims Administrator toll-free at 1-877-514-0829 to request that a Claim Form be mailed to you.  You may also download a copy of the Claim Form from the Important Documents page.  Claims for distribution submitted after February 9, 2021 will not be paid.

    If the Settlement is approved by the Court after the Final Approval Hearing and you have timely submitted a valid claim for lost time and/or documented expenses, you will be sent a Settlement payout for the value of your share of the Settlement.  If the Settlement is approved by the Court after the Final Approval Hearing and you have timely submitted a valid claim for two years of additional credit monitoring, Identity Guard will send you instructions on how to enroll.

  • The Claims Administrator, in its sole discretion to be reasonably exercised, will determine whether: (1) the claimant is a Class Member; (2) the claimant has provided all information needed to complete the claim, including any documentation that may be necessary to reasonably support the expenses claimed; and (3) if the information submitted could lead a reasonable person to conclude that the alleged expenses plausibly arose from the Security Incident (collectively, “Facially Valid”).  The Claims Administrator may, at any time, request from the claimant in writing additional information (“Claim Supplementation”) as the Claims Administrator may reasonably require in order to evaluate the claim, information regarding the claimed losses, available insurance, and the status of any claims made for benefits and claims previously made for identity theft and the resolution thereof.

    Upon receipt of an incomplete or unsigned claim or a claim that is not accompanied by sufficient documentation to determine whether the claim is Facially Valid, the Claims Administrator shall request Claim Supplementation and give the claimant 30 days to cure the defect before rejecting the claim.  Requests for Claim Supplementation shall be made within 30 days of the filing of such claim or 30 days from the Effective Date, whichever comes latest.  If the defect is not cured, the claim will be deemed invalid and there shall be no obligation to pay the claim.

    Following receipt of additional information requested as Claim Supplementation, the Claims Administrator shall have 30 days to accept, in whole or lesser amount, or reject each claim.  If, after review of the claim and all documentation submitted by the claimant, the Claims Administrator determines that such a claim is Facially Valid, either in whole or in part, then the claim shall be paid in accordance with the Settlement Agreement, to the extent that the Claims Administrator finds the claim to be valid.  If, however, the Claims Administrator determines that the claim is not Facially Valid, the Claims Administrator shall submit the claim to Class Counsel (one Plaintiffs’ Counsel shall be designated to fill this role for all Plaintiffs) and counsel for Banner.  If Class Counsel and counsel for Banner cannot reach an agreement in good faith or do not agree with the claimant, then the claim shall be submitted to an agreed-upon third party neutral at Banner’s cost.

    Class Members shall have 30 days from receipt of the offer to accept or reject any offer of partial payment received from the Claims Administrator.  If a Class Member rejects an offer from the Claims Administrator, the Claims Administrator shall have 15 days to reconsider its initial adjustment amount and make a final determination.  If the final determination is approved by the claimant, then the approved amount shall be paid.

  • Class Members who submit timely, valid claims for credit monitoring will be contacted within 30 days following February 9, 2021, the claim filing deadline, with instructions on how to enroll for the credit monitoring benefit.

  • You have the right to exclude yourself from (“opt out” of) the Class.  If you exclude yourself, you will be giving up the right to receive any payment and the right to object, but you will not be releasing the claims that are released in the Settlement.  To exclude yourself from the Class, you must inform the Claims Administrator in writing of your name, address, and your intention to be excluded.  All requests for exclusion must be submitted, signed, and mailed to the Claims Administrator and postmarked no later than April 10, 2020.  If you return a late request for exclusion, the request will be deemed invalid and you will remain a member of the Class and will be bound by all of the terms of the Settlement.

    YOU CANNOT EXCLUDE YOURSELF BY TELEPHONE OR BY SENDING AN EMAIL.

    DO NOT SUBMIT BOTH A CLAIM FORM AND A REQUEST FOR EXCLUSION.  IF YOU SUBMIT BOTH A CLAIM FORM AND A REQUEST FOR EXCLUSION, THE REQUEST FOR EXCLUSION WILL BE DISREGARDED.

     

  • If you do not exclude yourself, you have the right to object to the Settlement if you wish.  To object, you must file a written statement with the Clerk of the United States District Court for the District of Arizona, Sandra Day O’Connor U.S. Courthouse, Suite 522, 401 West Washington Street, SPC 50, Phoenix, AZ 85003-2153, no later than April 10, 2020.  You must also mail a copy of your objection to the following three places postmarked no later than April 10, 2020:

    Court:
    United States District Court for the District of Arizona
    Sandra Day O’Connor U.S. Courthouse, Suite 522
    401 West Washington Street SPC 50
    Phoenix, AZ 85003-2153

    Class Counsel:
    Andrew S. Friedman
    William F. King
    BONNETT FAIRBOURN FRIEDMAN & BALINT, P.C.
    2325 E. Camelback Road, Suite 1100
    Phoenix, Arizona 85016

    Banner’s Counsel:
    Casie D. Collignon
    Paul Karlsgodt
    BAKER & HOSTETLER LLP
    1801 California Street, Suite 4400
    Denver, CO 80202


    Your objection must include: (i) your full name, address, telephone number, and e-mail address (if any); (ii) information identifying you as a Class Member; (iii) a written statement of all grounds for the objection, accompanied by any legal support you would like to submit; (iv) the identity of all lawyers (if any) representing you; (v) the identity of any lawyer who will appear at the Final Fairness Hearing on your behalf; (vi) a list of all persons who will be called to testify at the Final Fairness Hearing in support of your objection; (vii) a statement confirming whether you intend to personally appear and/or testify at the Final Fairness Hearing; and (viii) your signature or the signature of your duly authorized lawyer or other duly authorized representative (along with documentation setting forth such representation).  

    In addition to the foregoing, objections should also provide the following information: (i) a list, by case name, court, and docket number, of all other cases in which you (directly or through a lawyer) filed an objection to any proposed class action settlement within the last three years; (ii) a list, by case name, court, and docket number, of all other cases in which your lawyer (on behalf of any person or entity) has filed an objection to any proposed class action settlement within the last three years; and (iii) a list, by case number, court, and docket number, of all other cases in which you have been a named plaintiff in any class action or served as a lead plaintiff or class representative.

    You will not be excluded from the Settlement by filing an objection.

  • For purposes of this settlement, the Class Representatives and the Class are represented by Andrew S. Friedman and William F. King of BONNETT FAIRBOURN FRIEDMAN & BALINT, P.C., 2325 E. Camelback Road, Suite 1100, Phoenix, Arizona 85016, and Paul L. Stoller of DALIMONTE RUEB  STOLLER, LLP, 2425 E. Camelback Road, Suite 500, Phoenix, Arizona 85016.  You will not be personally charged for their work on the case (which is being paid out of the Total Settlement Amount).  If you want to be represented by your own lawyer, you may hire one at your own expense.

  • Yes.  Unless you affirmatively exclude yourself, you will agree to the “Release” of claims as described in Section V of the Settlement Agreement.  That means that you cannot sue, continue to sue, or be part of any other lawsuit against Banner Health or other Released Parties for any of the Released Claims.  It also means that the Court’s orders will apply to you and legally bind you.  You may view the Settlement Agreement here for the full language of the legal claims you will give up if you remain in the Settlement.

    If you opt out of the Settlement in accordance with the Court-approved deadlines and procedures provided in Question 8, you have not released any claims that may relate to the Security Incident and you may still file claims related to the allegations in the Complaint. However, there may be a statute of limitations for filing these claims, and the period in which you could have filed these claims may have passed.  You should contact an attorney immediately if you believe you have a claim.

  • The Court will hold a Final Approval Hearing for the Settlement on April 21, 2020 at 10:00 a.m. in Courtroom 502, 5th Floor, of the United States District Court for the District of Arizona, Sandra Day O’Connor U.S. Courthouse, 401 West Washington Street, Phoenix, Arizona 85003-2153.  If objections have been received, the Court will consider them during this hearing.  The Final Approval Hearing may be rescheduled to a later time, which time will be listed at the Court’s website and on this website.  If there are no objections, the Settlement will become final shortly after the Court grants final approval.  If there are objections, the Settlement will become final after the Court grants final approval and either the time to appeal has expired or any appeal filed has been resolved.

    You Are Not Required To Attend The Final Approval Hearing. However, you may appear or may hire your own attorney at your own expense to speak at the Final Approval Hearing.

  • The following are important dates and deadlines under the proposed Settlement:

    Last Day to Submit Request for Exclusion: April 10, 2020
    Last Day to File and Serve Objections: April 10, 2020
    Last Day to File a Claim Form: February 9, 2021
    Final Approval Hearing:   April 21, 2020

For More Information

Visit this website often to get the most up-to-date information.

Mail

Banner Health Settlement
c/o JND Legal Administration
PO Box 91157
Seattle, WA 98111