Frequently Asked Questions

BASIC INFORMATION

1. What is this website about?

The purpose of this website is to inform you about the terms of the settlement and your rights and obligations as a Settlement Class Member so that you can make an informed decision to participate in, object to, or opt-out of the settlement. The parties are currently seeking judicial approval of the Agreement in the Superior Court of California, San Francisco County. The Court granted preliminary approval of the settlement. The Court also approved the form and content of the notice and the parties’ plan to notify the Settlement Class Members of the settlement. After the Settlement Class Members decide to participate in, object to, or opt-out of the settlement, the Court will decide whether to grant final approval of the settlement.

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2. What is this lawsuit about?

This class action lawsuit arose out of an incident that occurred on or about May 13, 2020, in which an unauthorized threat-actor accessed Defendant’s computer network server and is alleged to have gained access to potentially sensitive personal information of Named Plaintiffs and Settlement Class Members. The class action is brought by Named Plaintiffs Kara Paolilli and Michael Foster, individually and on behalf of a Settlement Class of persons residing in California in August 2021who were sent notice by Defendant that their PI may have been exposed as a result of the Incident.

The Named Plaintiffs raise five legal claims in connection with the alleged failure to properly secure the PI at issue: (1) negligence; (2) breach of confidence; (3) violation of the California Consumer Privacy Act, California Civil Code § 1798.150; and (4) violation of the California Unfair Competition Law - Unlawful and Unfair Business Practices, California Business & Professions Code § 17200, et seq. Defendant denies all of the Plaintiffs’ allegations of wrongdoing and disclaim all liability with respect to all claims.

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3. What is a class action?

A class action is a type of lawsuit in which one or more plaintiffs, known as Named Plaintiffs or class representatives, sue on behalf of themselves and a group of similarly situated persons, known as the “class.” Although class members do not participate directly in the lawsuit, class members may be entitled to money or other relief if the lawsuit is successful. Class members are also bound by the judgment in the case, which means that they cannot file their own individual lawsuits if they choose to remain part of the class.

Kara Paolilli and Michael Foster are the Named Plaintiffs in this lawsuit, and the Settlement Class is composed of persons residing in the State of California to whom Defendant sent notice that their PI may have been compromised as a result of the Incident.

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4. Why have the parties settled?

The parties have agreed to settle because they believe it is in the best interests of the Named Plaintiffs, the Defendant, and the Settlement Class. Further litigation carries significant risk and imposes substantial costs on both sides. By agreeing to settle, the parties avoid this uncertainty and additional expense. Furthermore, an early resolution allows class members to receive compensation more promptly. The Named Plaintiffs and their attorneys believe the settlement is fair, reasonable, and adequate, and that final approval of the settlement is in the best interests of the Class.

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WHO IS IN THE SETTLEMENT?

5. Who is included in the settlement?

All persons residing in California in August 2021 who were sent notice by Defendant that their PI may have been exposed as a result of the Incident, are included in the settlement. If you are a Settlement Class Member, you should have already received a notice of the settlement from the Settlement Administrator by mail or email from noreply@SmartStartDataSettlement.com.

Specifically excluded from the Settlement Class are Settlement Class Members who timely and validly request exclusion from the Settlement Class (for more information about requesting exclusion see Questions 12-14).

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6. What if I am not sure whether I am included in the settlement?

If you are not sure whether you are included in the settlement or the Settlement Class, or have any other questions related to the settlement, you may contact the Settlement Administrator by phone at 888-232-1565 or by email at info@SmartStartDataSettlement.com. You may also write a letter to the Settlement Administrator at SmartStart Data Settlement, Settlement Administrator, PO Box 25226, Santa Ana, CA 92799-9874. Please do not contact the Court with questions.

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THE SETTLEMENT BENEFIT

7. What does the settlement provide?

To fully settle and release the claims of the Settlement Class Members related to the data security Incident, Defendant has agreed to pay $344,600.00 into a Settlement Fund, which will be used to pay Cash Settlement Awards to Settlement Class Members, as described in response to Question 8 below; (2) settlement administration expenses; (3) Class Counsel’s reasonable attorneys’ fees and costs; and (4) service awards for the Named Plaintiffs.

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8. What monetary benefit is available?

All Settlement Class Members are eligible for cash payments of approximately $50.00 from the Net Settlement Fund. These cash payments will be distributed equally among all Settlement Class Members who do not request exclusion from the Settlement.

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HOW TO GET THE SETTLEMENT BENEFIT

9. How do I get the Settlement benefit?

You do not need to do anything to receive a check for the approximately $50.00 Settlement Award from the settlement. You may choose to receive digital payment (such as Venmo, PayPal, Zelle, or other options) by selecting your payment preference on the Settlement Website on or before October 15, 2024. All Settlement Class Members who do not select their payment preference on or before October 15, 2024, will be mailed their Settlement Payment in the form of a paper check. All Settlement Class Members who received notice that their PI may have been compromised in the data incident will receive payments at the address on file or where selected, in the form of digital payment.

On the summary notices, a unique identifying code is assigned to you for your use in providing payment instruction on the Settlement Website, for requesting exclusion from the Settlement on the Settlement Website and for sending any objection to the Settlement on the Settlement Website. If you cannot locate your unique code or have any questions about it, and wish to use the Settlement Website to elect digital payment, object to or request exclusion from the Settlement, please either call the Settlement Administrator at (888) 232-1565 or email the Settlement Administrator at info@SmartStartDataSettlement.com for assistance.

All Settlement Class Members who received notice that their PI may have been compromised in the data incident will receive payments at the address on file or in the form a digital payment upon request.

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REMAINING IN THE SETTLEMENT CLASS

10. Do I need to do anything to receive the approximately $50.00 cash benefit from the settlement?

You do not need to do anything to remain in the Settlement Class and receive a cash payment of approximately $50.00 if the Court grants final approval of the settlement. If you wish to receive your Settlement Payment by digital means, you must go to the Payment Selection module and follow the instructions to request digital payment. The deadline to request digital payment is October 15, 2024. If you prefer your payment in paper check form, you do not need to take any action.

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11. What am I giving up as part of the settlement?

If the settlement becomes effective and you do not opt out, you will give up your right to bring your own lawsuit against certain parties for any claims related to the data security Incident. This means that if you have any potential claim against SmartStart Employment Screening, Inc relating to the unauthorized access and/or exposure of your personal information as described in the Notice sent in August 2021, you will be giving up your right to pursue that claim. This also includes claims that may have arisen or damages you may have incurred from the 2020 security incident that you are not even aware of at this time. So, the claims and/or damages you are releasing include anything arising out of or relating to the facts pled in the Complaint which is posted on the Settlement Website athere.

The persons and entities who you are giving up claims against are described in Paragraph 3.24 of the Settlement Agreement. They include the following:

Defendant and any and all of its present or past affiliates, divisions, predecessors, successors, assignees, parents, or subsidiaries and the associates, employers, employees, agents, consultants, dealers, contractors, independent contractors, vendors, insurers, directors, managers, managing directors, officers, partners, principals, members, attorneys, accountants, administrators, financial and other advisors, investment bankers, underwriters, shareholders, lenders, auditors, investment advisors, sellers, distributors, legal representatives, successors in interest, assigns and persons, firms, trustees, trusts, corporations, officers, directors, general or limited partners of Defendant, and any and all other individuals or entities in which Defendant have a controlling interest or which are affiliated with them, or any other representatives of any of these persons and entities.

The specific claims you are giving up are described in Paragraphs 3.23 and 3.35 of the Settlement Agreement. They include:

Any and all claims, causes of action, suits, obligations, debts, demands, agreements, promises, liabilities, damages, losses, controversies, costs, expenses and attorneys’ fees of any nature whatsoever, whether based on any law (including federal law, state law, common law, contract, rule, or regulation) or equity, whether known or unknown, suspected or unsuspected, asserted or unasserted, foreseen or unforeseen actual or contingent, liquidated or unliquidated, punitive or compensatory, monetary or nonmonetary, that have been pled in the Complaint and that arise out of or relate to the Incident and claims pled in the Complaint.

The Settlement Agreement is available in the Important Documents section of this website. The Settlement Agreement describes the Released Parties and Released Claims in detail, so read it carefully.

If you have any questions, you may talk to the attorneys listed in Question 15 for free. Alternatively, you may talk to your personal attorney at your own expense.

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EXCLUDING YOURSELF FROM THE SETTLEMENT

If you do not want the monetary benefit from the settlement and/or want to preserve the right to bring your own lawsuit against Defendant regarding the data security Incident, then you must take steps to exclude yourself from the Settlement Class. This is sometimes referred to as “opting out” of the Settlement Class.

12. If I exclude myself, can I get a monetary benefit from this settlement?

No. If you exclude yourself from the settlement, you will not be entitled to the monetary settlement benefit. However, you will not be releasing the Defendant from liability to you for damages you believe you have incurred as a result of the security incident at issue in this case.

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13. If I do not exclude myself, can I bring a claim against Defendant for the same thing later?

No. If you do not exclude yourself from the Settlement Class, you will give up any right to bring your own lawsuit against Defendant and related parties for the claims that this settlement resolves. You must exclude yourself from the Settlement Class if you want to bring a separate action or to be part of any different proceeding relating to the claims in this case.

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14. How do I exclude myself from the settlement?

To exclude yourself from the Settlement Class, you will need to submit a written request for exclusion to the Settlement Administrator by mail, email, or online on the Settlement Website. In the request for exclusion by email or mail or by uploading a request on the Settlement Website, you must (a) provide your full name, address, telephone number, and email address (if any), and (b) state unequivocally that you would like to be excluded from the settlement. If you mail your exclusion, you or a person authorized by law to act on your behalf must sign the request for exclusion. To submit your request for exclusion by mail, you must mail it to the following address: SmartStart Data Settlement, Settlement Administrator, PO Box 25226, Santa Ana, CA 92799-9874. To submit your exclusion by email, you must email it to the following email address: info@SmartStartDataSettlement.com. To submit your exclusion online, you may submit your exclusion on the Settlement Website. To be timely, your request for exclusion must be postmarked or electronically submitted by October 15, 2024.

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THE LAWYERS REPRESENTING THE CLASS

15. Do I have a lawyer in this case?

The Court has appointed the following attorneys as Class Counsel:

Gayle M. Blatt
P. Camille Guerra
CASEY GERRY SCHENK FRANCAVILLA
BLATT & PENFIELD, LLP
110 Laurel Street
San Diego, California 92101
Tel: (619) 238-1811
Fax: (619) 544-9232

As Class Counsel, these attorneys represent the Settlement Class Members with regard to the Settlement. You will not be individually charged for these lawyers. If you decide to exclude yourself from the settlement, then Class Counsel will no longer represent you. If you decide to object to the Settlement, Class Counsel will not represent you for purposes of your objection. If you want to be represented by your own lawyer, you may hire one at your own expense.

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16. How will Class Counsel and the Class Representatives be paid?

The Settlement Agreement provides that Class Counsel will request the Court to award it reasonable attorneys’ fees and costs. Class counsel will request an award of no more than $114,866.67 in fees and up to $15,000 in costs. The Court will then decide whether to award attorneys’ fees and costs and if so, how much. If the Court decides to award attorneys’ fees and costs, they will be paid out of the Settlement Fund.

Class Counsel will also request the Court award $5,000 to each of the Named Plaintiffs to compensate them for the time, effort, and responsibilities of serving as Class Representatives. If the Court approves these service awards, they will be paid out of the Settlement Fund.

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OBJECTING TO THE SETTLEMENT

17. How do I object to the settlement?

If you do not want the Court to grant final approval of the settlement, you may object to the settlement. By objecting to the settlement, you can tell the Court why you think the settlement should not be finally approved.

To object to the settlement, you must (1) timely submit a written objection to the settlement administrator by email or mail, (2) timely upload an objection to the Settlement Website, or (3) appear and state your objection at the final approval hearing. If you wish, you may submit a written objection and voice your objection at the final approval hearing. If you submit a written objection, you should provide (a) your full name, address, telephone number, and email address; (b) the case name and number (Paolilli et al v. SmartStart Employment Screening Inc.; Case No. CGC21597355); and (c) the grounds for your objection. The objection must be signed by you or someone authorized to sign on your behalf. If you are represented by your own attorney, please provide their name and phone number.

If you submit a written objection, you may mail it to the settlement administrator at SmartStart Data Settlement, Settlement Administrator, PO Box 25226, Santa Ana, CA 92799-9874. To be timely submitted, the written objection must be postmarked no later than October 15, 2024. Objections can also be emailed to the Settlement Administrator at info@SmartStartDataSettlement.com or uploaded to the Settlement Website. The deadline for submitting objections by email or upload to the Settlement Website is October 15, 2024.

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18. What is the difference between objecting and opting out?

Objecting is telling the Court that you do not like something about the settlement and why you do not think it should be approved. Opting out is excluding yourself from the settlement. If you opt-out, you cannot object to the settlement because it no longer affects you.

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THE FINAL APPROVAL HEARING

19. When and where will the Court decide whether to approve the settlement?

The Court will hold a hearing to decide whether to grant final approval of the settlement and to determine whether to award attorneys’ fees and costs to class counsel and service awards to the Class Representatives, and if so, in what amounts. The Court will hold the final approval hearing in Department 304 of the courthouse located at 400 McAllister Street, San Francisco, CA 94102 on November 22, 2024, at 10 a.m. PST. You do not need to attend this hearing to receive your benefit from the settlement. The hearing may be moved to a different date or time. It is a good idea to keep checking this website or calling 888-232-1565 to stay up to date.

If the date for the Final Approval Hearing is changed, the Settlement Administrator will post the new hearing date on the Settlement Website and will provide notice of the new hearing date to Settlement Class Members who submitted timely objections to the Settlement.

At this hearing, the Court will consider whether the settlement is fair, reasonable, and adequate. The Court will consider any written objections and will listen to any objectors who attend the hearing and wish to speak. The Court will also consider Class Counsel’s request for an award of attorneys’ fees and costs, as well as the request for service awards for the Class Representatives. After the hearing, the Court will decide whether to approve the settlement and the awards. We do not know how long the Court will take to make these decisions.

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IF YOU DO NOTHING

20. What happens if I do nothing?

If you do nothing, you will remain in the Settlement Class. If the Court grants approval of the settlement and the judgment becomes final, you will receive a Settlement Award and not be able to bring your own lawsuit against the Defendant or other related parties in connection with the data security incident.

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GETTING MORE INFORMATION

21. How do I get more information?

The notice only provides a summary of the proposed settlement. You are encouraged to review the complete details of the settlement, which can be found in the Settlement Agreement available in the Important Documents section of this website. You also may send written questions to the Settlement Administrator at info@SmartStartDataSettlement.com, or call the toll-free number, 888-232-1565.

Again, the important deadlines are:

Last day to request exclusion (opt out) of the settlement class: October 15, 2024
Last day to object to the settlement: October 15, 2024
Final approval hearing: November 22, 2024

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