Dearing v. Magellan

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

Judge Danielle Viola of the Superior Court of the State of Arizona is overseeing this class action. The case is known as Dearing v. Magellan Health Inc. et al., Case No. CV2020-013648 (the “Litigation”). The person who filed this lawsuit is called the “Plaintiff” or “Class Representative,” and the companies sued, Magellan Health Inc. and Magellan Rx Management, LLC, are collectively called “Magellan” or the “Defendants.”

The Plaintiff alleges that in May 2019, Magellan experienced a phishing incident that may have resulted in cyber-criminals accessing the PII and PHI of approximately 273,000 individuals including their names, Social Security Numbers, member IDs, health plans, provider names, and the name of the drugs that may have been prescribed to them.

The Defendants deny any wrongdoing, and no court or other entity has made any judgment or other determination of any wrongdoing, or that any law has been violated. The Defendants deny these and all other Claims made in the Litigation. By entering into the Settlement, the Defendants are not admitting any wrongdoing.

In a class action, the Class Representative sues on behalf of all people who have similar 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 (opt out) from the Settlement Class.

The proposed Class Representative in this case is the Plaintiff Carol Dearing.

Plaintiff and the Defendants do not agree about the Claims made in this Litigation. The Litigation has not gone to trial, and the Court has not decided in favor of Plaintiff or Defendants. Instead, Plaintiff and the Defendants have agreed to settle the Litigation. Plaintiff and the attorneys for the Settlement Class (“Class Counsel”) believe the Settlement is best for all Settlement Class Members because of the Settlement benefits and the risks and uncertainty associated with continued litigation and the nature of the defenses raised by the Defendants.

You are a Settlement Class Member if you were one of the approximately 273,000 individuals who were mailed a notification that your PII and PHI may have been exposed to unauthorized third parties as a result of the Data Incident. If you were mailed a notification, you are a Settlement Class Member.

Yes. Excluded from the Settlement Class are all Settlement Class Members who timely and validly request exclusion from the Settlement Class.

You can no longer opt out of or object to the Settlement. The Court has granted final approval of the Settlement.

If you are still not sure whether you are a Settlement Class Member, you may call the Claims Administrator’s toll-free number at 1-800-320-5709.

You can no longer file a claim, the deadline has passed. The Court has granted final approval of the Settlement.

If you are a Settlement Class Member and you file a valid and timely Claim Form you may be eligible for reimbursement of the following documented out-of-pocket expenses that were incurred between November 2019 and December 15, 2022, as a result of the Data Incident:

Compensation for Ordinary Out-of-Pocket Expenses

Settlement Class Members who submit a valid and timely Claim Form are eligible to receive compensation up to $225 per Settlement Class Member for their Ordinary Out-of-Pocket Expenses incurred as a result of the Data Incident. You must verify with an attestation (statement in writing) that you believe the losses or expenses were incurred as a result of the Data Incident. These out-of-pocket expenses include:

1. Long distance telephone charges;
2. Cell phone minutes (if charged by the minute);
3. Internet usage charges (if charged by the minute or incurred solely as a result of the Data Incident);
4. Costs of credit reports and/or fraud resolution services purchased between November 2019 and December 15, 2022;
5. Other losses incurred determined to be fairly traceable to the Data Incident; and
6. Compensation for attested-to lost time spent dealing with the Data Incident, at the rate of $15 per hour for up to two hours of lost time.

To recover the cost of credit monitoring and/or fraud resolution services, you must submit:

1. A statement that the monitoring or service was purchased primarily because of the Data Incident and not for other purposes; and
2. Documentation supporting the cost of the service purchased.

In the event the aggregate amount of Ordinary Out-of-Pocket Expenses Claimed by Settlement Class Members exceeds $430,000, Settlement Class Members’ Settlement benefits will be reduced by a pro-rata (equal) share.

Compensation for Documented Extraordinary Out-of-Pocket Expenses

Settlement Class Members who submit a valid and timely Claim Form are also eligible to receive reimbursement of up to $2,500 per Settlement Class Member for:

1. Documented expenses directly associated with dealing with identity theft or identity fraud related to the Data Incident; and
2. An additional three hours of lost time calculated at $15 per hour by providing a narrative description of the activities performed during the time claimed and the connection to the Data Incident.

In the event the aggregate amount of Extraordinary Out-of-Pocket Expenses claimed by Settlement Class Members exceeds $1,000,000, Settlement Class Members’ Settlement benefits will be reduced by a pro-rata (equal) share.

Settlement Class Members seeking reimbursement must complete and submit a Claim Form to the Claims Administrator by December 15, 2022. Claim Forms can be submitted online or by mail. If submitted by mail, the Claim Form must be postmarked by December 15, 2022.

You can no longer file a claim, the deadline has passed. The Court has granted final approval of the Settlement.

Unless you exclude yourself (opt out), you are choosing to remain in the Settlement Class. If the Settlement is approved and becomes final, all Court 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 the Defendants and Released Parties about the legal issues in this Litigation that are released by this Settlement. The specific rights you are giving up are called “Released Claims.”

The Settlement Agreement in Sections II and V describes the Released Claims and the Release, in necessary legal terminology, so please read this section carefully. The Settlement Agreement is available here or in the public Court records on file in this lawsuit. For questions regarding the Release or Released Claims and what the language in the Settlement Agreement means, you can also contact one of the lawyers listed in FAQ 15 for free, or you can talk to your own lawyer at your own expense.

To submit a Claim for reimbursement for Out-of-Pocket Expenses, you must timely submit a valid Claim Form. Settlement Class Members seeking benefits under the Settlement must complete and submit a Claim Form to the Claims Administrator, postmarked or submitted online on or before December 15, 2022. Claim Forms may be submitted online here or mailed to the Claims Administrator at the address on the form. The quickest way to submit a Claim is online. Claim Forms are also available by calling 1-800-320-5709 or by writing to:

Magellan Claims Administrator
P.O. Box 5338
Portland, OR 97228-5338

You can no longer file a claim, the deadline has passed. The Court has granted final approval of the Settlement.

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 1-800-320-5709 or by writing to:

Magellan Claims Administrator
P.O. Box 5338
Portland, OR 97228-5338

If you file a timely and 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.

The Court has granted final approval of the Settlement. Claimants who completed a valid and complete claim were sent a payment on February 3, 2023.

Yes, the Court has appointed John A. Yanchunis of Morgan & Morgan, Joel R. Rhine and Martin A. Ramey of Rhine Law Firm, P.C., and Elaine A. Ryan of Auer Ryan, P.C., as 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 Class Counsel to represent you in this Litigation.

Class Counsel will file a motion asking the Court to award attorneys’ fees and costs not to exceed $280,000 to be paid by the Defendants. They will also ask the Court to approve an incentive award for up to $2,500 to the Class Representative for participating in this Litigation and for her efforts in achieving the Settlement. If awarded by the Court, the Defendants will pay fees, costs, expenses, and the incentive award directly. The fees, costs, expenses and incentive award will not reduce the Settlement benefits available to the Class. The Court may award less than these amounts.

To opt out of the Settlement, you must mail written notice of a request for exclusion. The written notice must be signed, include your name and address, and clearly state that you wish to be excluded from the Settlement Class.

The exclusion request must be postmarked and sent to the Claims Administrator at the following address by November 15, 2022:

Magellan Claims Administrator
Exclusions
P.O. Box 5338
Portland, OR 97228-5338

You cannot exclude yourself by telephone or by email.

You can no longer opt out of or object to the Settlement. The Court has granted final approval of the Settlement.

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

You can no longer opt out of or object to the Settlement. The Court has granted final approval of the Settlement.

No. Unless you opt out, you give up any right to sue the Defendants and Released Parties for the Claims this Settlement resolves and Releases relating to the Data Incident. You must opt out of this Litigation to start or continue with your own lawsuit or be part of any other lawsuit against the Defendants or any of the Released Parties. If you have a pending lawsuit, speak to your lawyer in that case immediately.

You can no longer opt out of or object to the Settlement. The Court has granted final approval of the Settlement.

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 requested attorneys’ fees and expenses. You can also give reasons why you think the Court should not approve the Settlement or attorneys’ fees and expenses. To object, you must file timely written notice as provided below no later than November 15, 2022, stating you object to the Settlement in Dearing v. Magellan et al., Case No. CV2020-013648. The objection must also include all the following additional information:

1. Your full name, address, telephone number, and email address (if any);
2. Information identifying you as a Settlement Class Member;
3. A written statement of all grounds for the objection, accompanied by any legal support you care to submit;
4. The identity of all lawyers (if any) representing you;
5. The identity of all of your lawyers (if any) who will appear at the Final Fairness Hearing;
6. A list of all persons who will be called to testify at the Final Fairness Hearing in support of your objection;
7. A statement confirming whether you intend to personally appear and/or testify at the Final Fairness Hearing;
8. Your signature or the signature of your duly authorized lawyer or other duly authorized representative;
9. A list, by case name, court, and docket number, of all other cases in which you (directly or through a lawyer) have filed an objection to any proposed class action settlement within the last three years; and
10. 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.

To be timely, written notice of an objection in the appropriate form containing the case name and docket number (Dearing v. Magellan et al., Case No. CV2020-013648) must be filed with the Court by November 15, 2022, with copies sent to Class Counsel and Magellan’s Counsel at the following addresses:

Any Settlement Class Member who fails to comply with the requirements for objecting in Section VIII of the Settlement Agreement waives and forfeits any and all rights they may have to appear separately and/or to object to the Settlement Agreement and will be bound by all the terms of the Settlement Agreement and by all proceedings, orders and judgments in the Litigation.

Objecting is simply telling the Court you do not like something about the Settlement or requested attorneys’ fees and expenses. You can object only if you stay in the Settlement Class (meaning you do not opt out of the Settlement). Opting out of the Settlement is telling the Court you do not want to be part of the Settlement Class or the Settlement. If you opt out, you cannot object to the Settlement.

You can no longer opt out of or object to the Settlement. The Court has granted final approval of the Settlement.

The Court held a Final Fairness Hearing on December 2, 2022, at 9:00 a.m. before Judge Connie Contes, Maricopa County Superior Court, Old Court House, 125 W. Washington Street, Courtroom 201, Phoenix, AZ 85003. The Settlement received final approval on December 5, 2022. Payments to claimants with a valid and approved claim were sent on February 3, 2023.

No. Class Counsel will answer any questions the Court may have. However, you are welcome to attend at your own expense. If you send an objection, you do not have to come to court 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 (opt out), you can (but do not have to) participate and speak for yourself in this Settlement. This is called making an appearance. You also can have your own lawyer speak for you, but you will have to pay for the lawyer yourself.

If you want to appear, or if you want your own lawyer instead of Class Counsel to speak for you at the hearing, you must follow all of the procedures for objecting to the Settlement listed in FAQ 20 – and specifically include a statement whether you and your counsel will appear at the Final Fairness Hearing.

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

This website and the Notice summarize the proposed Settlement. Complete details are provided in the Settlement Agreement. The Settlement Agreement and other related documents are available on the Important Documents page, by calling 1-800-320-5709, or by writing to:

Magellan Claims Administrator
P.O. Box 5338
Portland, OR 97228-5338

All reissue requests must be sent in writing to the Claims Administrator by email at info@MHDataSettlement.com or by mail to the following address:

Magellan Claims Administrator
P.O. Box 5338
Portland, OR 97228-5338

For reasons of security, a check reissue cannot take place until the original check has been canceled by us or has expired.

Because one of these events must occur before we can act on your request, it is not possible for us to provide an estimated date for the reissue to take place. We thank you for your patience.