Guy, et al. v. Convergent Outsourcing, Inc.

You received a Postcard Notice because you have the right to know about the proposed Settlement of a class action lawsuit and about your rights and options before the Court decides whether to grant final approval of the Settlement. The Postcard Notice explains the lawsuit, the Settlement, your legal rights, what benefits are available, who is eligible for the benefits, and how to get them.

Convergent is a third-party debt collection company that serves the telecommunication, utility, banking, cable company, and financial service industries by offering consumer debt collection. In the course of its business, Convergent received from third-party debt settlement companies and stored certain personally identifiable information (“PII” or “Private Information”) of the Plaintiffs and the putative Class Members.

Plaintiffs and the putative Class Members allege that a data security incident occurred in approximately June 2022, where an unauthorized individual accessed Convergent’s computer systems and deployed tools to encrypt Convergent’s systems and access certain personally identifiable information. While Convergent was unable to conclusively determine that the unauthorized individual accessed the content of certain exfiltrated files containing names, contact information, financial account numbers, and Social Security numbers, Convergent notified individuals that their Private Information may have been the subject of a ransomware attack.

No court or other entity has determined that Convergent committed any wrongdoing or violated any law, and Convergent denies all the legal claims asserted in the lawsuit. By settling the lawsuit, Convergent is not admitting any wrongdoing or liability.

In a class action, a representative plaintiff or plaintiffs sue(s) on behalf of all people who have similar legal claims. Together all these people are called a “Settlement Class” or “Settlement Class Members”. One court resolves the issues for all Settlement Class Members, except for those Settlement Class Members who timely exclude themselves from the settlement class.

The proposed Representative Plaintiffs in this case are Leo Guy, Ryan Tanner, Magaly Granados, Kerry Lamons, Tammy Rano, Vicki Will, and Jennifer White.

Plaintiffs and Convergent do not agree about the legal claims made in this lawsuit. The lawsuit has not gone to trial, and the Court has not decided in favor of Plaintiffs or Convergent. Instead, Plaintiffs and Convergent have agreed to settle the lawsuit. Plaintiffs and the lawyers for the Settlement Class (“Settlement Class Counsel”) believe the Settlement is best for all Settlement Class Members due to the risks and uncertainty associated with continuing the lawsuit.

Under the Settlement, the Court decided that the Class includes all persons residing in the United States to whom Defendant Convergent Outsourcing, Inc. sent notification that their personal information may have been compromised by an unauthorized individual as a result of the data security incident discovered by Convergent on or about June 17, 2022.

Yes. Excluded from the Settlement Class are the Court and all members of the Court’s staff, and persons who timely and validly request exclusion from the Settlement Class.

If you are still not sure whether you are a Class Member, you may call the Claims Administrator’s toll-free number at 1-877-564-1209.

If you are a Settlement Class Member, and you file a valid and timely Claim Form by June 19, 2024, you may be eligible for the following Settlement benefits:

Documented Ordinary Losses – Up to $1,500 for documented unreimbursed out-of-pocket expenses fairly traceable to the Data Incident. Examples of Document Ordinary Losses may include:

• Unreimbursed losses relating to fraud or identity theft;
• Out-of-pocket credit monitoring costs that were incurred on or after the Data Incident through the date of claim submission; and
• Unreimbursed bank fees, long distance phone charges, postage, or gasoline for local travel.

This list of reimbursable documented out-of-pocket expenses is not meant to be exhaustive. Settlement Class Members may make claims for any documented unreimbursed out-of-pocket losses reasonably related to the Data Incident or to dealing with the effects of the Data Incident. The Claims Administrator shall have discretion to determine whether any claimed loss is reasonably related to the Data Security Incident. Settlement Class Members with Ordinary Losses must submit documentation supporting their claims. This can include receipts or other documentation not “self-prepared” by the claimant that documents the costs incurred. “Self-prepared” documents such as handwritten receipts are, by themselves, insufficient to receive reimbursement, but may be considered to add clarity or support to other submitted documentation.

Attested Time Spent – Reimbursement for up to 10 hours of lost time at a rate of $30 per hour for time spent remedying issues related to the Data Incident. No documentation other than a description of your actions will be required for you to receive compensation for attested time spent. Claims made for time spent can be combined with reimbursement for Ordinary Losses subject to a $1,500 aggregate individual cap. Time spent may include:

• Changing passwords on potentially impacted accounts;
• Monitoring for or investigating suspicious activity on potentially impacted medical, financial, or other accounts;
• Contacting a financial institution or other provider to discuss suspicious activity;
• Signing up for identity theft or fraud monitoring; or
• Researching information about the Data Incident, its impact, or how to protect themselves from harm due to the Data Incident.

Documented Extraordinary Losses – Compensation for extraordinary losses resulting from the Data Incident, up to $10,000 by submitting a valid Claim Form and supporting documentation, provided that:

• The loss is an actual, documented, and unreimbursed monetary loss;
• The loss was more likely than not caused by the Data Incident;
• The loss occurred between June 17, 2022, and the Claims Deadline;
• The loss is not already covered by one or more of the normal reimbursement categories; and
• You made reasonable efforts to avoid the loss or seek reimbursement for the loss, including, but not limited to, exhaustion of all available credit monitoring insurance and identity theft insurance.

Extraordinary Losses may include, without limitation, the unreimbursed costs, expenses, losses or charges incurred a result of identity theft or identity fraud, falsified tax returns, or other possible misuse of Private Information. To receive reimbursement for any Documented Extraordinary Loss, you must submit supporting documentation of the loss and a description of how the loss is fairly traceable to the Data Incident, if not readily apparent from the documentation.

Please Note: Claims for Documented Ordinary Losses and Attested Time Spent will be limited to $1,500 combined, plus any Documented Extraordinary Losses up to $10,000. All cash payments may be adjusted pro rata depending on the number of Class Members that participate in the Settlement.

Alternative Cash Payment – As an alternative to filing a Claim Form for reimbursement of Ordinary Losses, Attested Time Spent, or Extraordinary Losses, you may submit a Claim Form to receive a pro rata payment from the net Settlement Fund, which is $2,450,000 minus payment of costs of the Settlement including the costs of the Notice Program and Claims Administration, Attorneys’ Fees and Expenses of up to $661,500, Service Awards of up to $1,500 each to the Representative Plaintiffs, and payments for claims for Ordinary Losses, Attested Time Spent, and Extraordinary Losses. Please note that if costs of the Settlement, fees and expenses, service award and payments for claims exceed the Settlement Fund, you may receive no payment if you select this category.

Unless you exclude yourself, you are choosing to remain in the Settlement Class. If the Settlement is approved and becomes final, the Court’s orders will apply to you and legally bind you. You will not be able to sue, continue to sue, or be part of any other lawsuit against Convergent and the Released Parties about the legal issues in this lawsuit that are released by this Settlement. The specific rights you are giving up are called “Released Claims”.

The Settlement Agreement in Section 10 describes the Release, Released Claims, and the Released Parties in necessary legal terminology, so please read this section carefully. The Settlement Agreement is available on the Documents page, or in the public court records on file in this lawsuit. For questions regarding the Release and what it means, you can also contact one of the lawyers listed in FAQ 14 for free, or you can talk to your own lawyer at your own expense.

To receive Settlement benefits, you must file a valid Claim Form. Your Claim Form must be complete and submitted to the Claims Administrator, submitted online or mailed and postmarked on or before June 19, 2024.

Claim Forms may be submitted online via the Submit a Claim page, printed from the Documents page and mailed to the Claims Administrator at the address on the form. The quickest way to submit a Claim Form is online. Claim Forms are also available by writing to:

COI Claims Administrator
P.O. Box 5526
Portland, OR 97228-5526

If you change your mailing address or email address after you submit a Claim Form, it is your responsibility to inform the Claims Administrator of your updated information. You may notify the Claims Administrator of any changes by calling 1-877-564-1209 or by writing to:

COI Claims Administrator
P.O. Box 5526
Portland, OR 97228-5526

If you file a valid Claim Form, payment will be provided by the Claims Administrator after the Settlement is approved by the Court and becomes final.

It may take time for the Settlement to be approved and become final. Please be patient and check this website for updates.

Yes, the Court has appointed Jean S. Martin of Morgan & Morgan Complex Litigation Group, Gary M. Klinger of Milberg Coleman Bryson Phillips Grossman, PLLC, Gary E. Mason of Mason LLP, and Cecily C. Jordan of Tousley Brain Stephens PLLC as Settlement Class Counsel to represent you and the Settlement Class for the purposes of this Settlement. You may hire your own lawyer at your own cost and expense if you want someone other than Settlement Class Counsel to represent you in this lawsuit.

Settlement Class Counsel will file a motion asking the Court for reasonable attorneys’ fees and their reasonable costs and expenses from the Settlement Fund not to exceed 27% of the Settlement Fund (up to $661,500). Settlement Class Counsel will also ask the Court to approve Service Awards of up to $1,500 from the Settlement Fund for each of the Representative Plaintiffs for participating in this lawsuit and for their efforts in achieving the Settlement. The Court may award less than the amounts requested by Settlement Class Counsel.

If you are a Settlement Class Member and you want to keep any right you may have to sue or continue to sue the Defendant and Released Parties on your own based on the legal claims raised in this lawsuit or released by the Released Claims, then you must take steps to get out of the Settlement. This is called excluding yourself from – or “opting-out” of – the Settlement.

You may request to be excluded from the Settlement Class in writing by a request postmarked, or submitted electronically via this Website, on or before May 20, 2024. Your request must include the following:

• Your name, address, and telephone number;
• The name and number of this case, Guy et al. v. Convergent Outsourcing Inc., Case No. 2:22-cv-01558-MJP;
• A statement that you wish to be excluded from the Settlement Class; and
• Your signature.

A request to be excluded that is incomplete, sent to an address other than designated below, or that is not electronically submitted or postmarked within the time specified, will be invalid and the person making the request will be considered a member of the Settlement Class and will be bound as a Settlement Class Member by the Settlement Agreement, if approved.

If sent by mail, your exclusion request must be postmarked and sent to the Claims Administrator at the following address by May 20, 2024:

COI Claims Administrator
P.O. Box 5526
Portland, OR 97228-5526

If submitted electronically on this website, your request to be excluded must be made by midnight Pacific Time on May 20, 2024.

No. If you exclude yourself, you are telling the Court you do not want to be part of the Settlement. You can only get benefits from the Settlement if you stay in the Settlement and submit a valid Claim Form.

No. Unless you exclude yourself, you give up any right to sue Convergent and Released Parties for the claims resolved by this Settlement. You must exclude yourself from this lawsuit to start or continue your own lawsuit or to be part of any other lawsuit against Convergent or any of the Released Parties. If you have a pending lawsuit, speak to your lawyer in that case immediately.

If you are a Settlement Class Member, you can tell the Court you do not agree with all or any part of the Settlement or the requested attorneys’ fees and expenses award or service awards. You can also give reasons why you think the Court should not approve the Settlement or the attorneys’ fees and expenses award or service awards.

To object, you must file a timely written notice of your objection, so it is filed or postmarked by May 20, 2024. Such notice must state:

• Your full name, address, telephone number and email address (if any);
• The name and number of this case, Guy et al. v. Convergent Outsourcing Inc., Case No. 2:22-cv-01558-MJP;
• Information identifying you as a Settlement Class Member, including proof that you are a member of the Settlement Class;
• A statement as to whether the objection applies only to you as a Settlement Class Member, to a specific subset of the Settlement Class, or to the entire class;
• A clear and detailed written statement of the specific legal and factual bases for each and every objection, accompanied by any legal support for the objection you believe is applicable;
• The identity of any lawyers representing you as an objector;
• A statement whether you intend to appear at the Final Approval Hearing, either in person or through your lawyer, and, if through your lawyer, identifying that lawyer;
• A list of all persons who will be called to testify at the Final Approval Hearing in support of the objections and any documents to be presented or considered; and
• Your signature and the signature of your duly authorized lawyer or other duly authorized representative (if any).

To be timely, written notice of an objection in the appropriate form must be filed or sent to the Clerk of the Court for the District Court for the Western District of Washington postmarked by May 20, 2024, with copies sent at the same time to Settlement Class Counsel and Convergent. The addresses for each are as follows:

Objecting is simply telling the Court you do not like something about the Settlement or the requested attorneys’ fees and expenses award. You can object only if you stay in the Settlement Class (that you do not exclude yourself). Requesting exclusion is telling the Court you do not want to be part of the Settlement Class or the Settlement. If you exclude yourself, you cannot object to the Settlement.

The Court will hold a Final Approval Hearing on July 19, 2024, at 10:00 a.m. before Judge Marsha J. Pechman District Court for the Western District of Washington, 700 Stewart Street, Seattle, Washington, 98101, in Courtroom 14206.

At the Final Approval Hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate and decide whether to approve: the Settlement, Settlement Class Counsel’s application for reasonable attorneys’ fees and their reasonable costs and expenses and Service Awards. If there are objections, the Court will consider them. The Court will also listen to people who have asked to speak at the hearing. The Court can only approve or deny the Settlement Agreement. It cannot change the terms of the Settlement.

Note: The date and time of the Final Approval Hearing are subject to change. The Court may also decide to hold the hearing via video conference or by phone. Any change will be posted to this website.

No. Settlement Class Counsel will answer any questions the Court may have. However, you are welcome to attend at your own expense. If you file an objection, you do not have to attend the hearing to speak about it. As long as you file or mail your written objection on time, the Court will consider it.

Yes, as long as you do not exclude yourself, you can (but do not have to) participate and speak for yourself at the Final Approval Hearing. This is called making an appearance. You also can have your own lawyer speak for you, but you will have to hire and pay for your own lawyer. If you choose to make an appearance, you must follow all of the procedures for objecting to the Settlement listed in FAQ 19 above and specifically include a statement whether you and your counsel will appear at the Final Approval Hearing.

If you are a Settlement Class Member and you do nothing, you will not receive any Settlement benefits. You will give up rights explained in the “Excluding Yourself from the Settlement” section of this Notice, including your right to start or continue a lawsuit, or be part of any other lawsuit against Convergent or any of the Released Parties about the legal issues in this lawsuit that are released by the Settlement Agreement.

This information summarizes the proposed Settlement. Complete details are provided in the Settlement Agreement. The Settlement Agreement and other related documents are available on the Documents page, by calling 1-877-564-1209, or by writing to:

COI Claims Administrator
P.O. Box 5526
Portland, OR 97228-5526

PLEASE DO NOT CONTACT THE COURT OR THE COURT’S CLERK OFFICE TO INQUIRE ABOUT THIS SETTLEMENT OR THE CLAIM PROCESS.