Webster Bank Data Incident Settlement

The Lawsuit is a proposed class action lawsuit relating to the Data Incident that impacted the personal data of certain customers of Guardian’s clients, including Webster Bank.

In a class action, one or more representative plaintiffs bring a lawsuit for others who are alleged to have similar claims. Together, these people are the “class” and each individually is a “class member.” There are ten Plaintiffs (or Representative Plaintiffs) in this case: Mark S. Holden, Richard Andisio, Edward Marshall, Ann Marie Marshall, Arthur Christiani, Johnielle Dwyer, Pawel Krzykowski, Mariola Krzynowek, James Howe, and Cindy A. Pereira.

Plaintiffs in the Lawsuit, through their attorneys, investigated the facts and law relating to the issues in the Lawsuit. Plaintiffs and Class Counsel believe that the settlement is fair, reasonable, and adequate and will provide substantial benefits to the Settlement Class. The Court has not decided whether Plaintiffs’ claims or Defendants’ defenses have any merit, and it will not do so if the proposed Settlement is approved. By agreeing to settle, both sides avoid the cost and risk of a trial, and Settlement Class Members who submit valid claims will receive benefits from the Settlement. The Settlement does not mean that Defendants did anything wrong, or that Plaintiffs and the Settlement Class would or would not win the case if it were to go to trial.

The Settlement Class is defined as all persons who were notified that their personally identifiable information may have been impacted as a result of the data incident that occurred on Guardian’s systems between November 27, 2022 and January 22, 2023 (i.e., the Data Incident).

Guardian’s, Actimize’s, and Webster Bank’s officers and directors are excluded from the Settlement Class, as well as (i) all Settlement Class Members who timely and validly request exclusion from the Settlement Class; (ii) the judges assigned to the Litigation to evaluate the fairness, reasonableness, and adequacy of this settlement; and (iii) any other Person found by a court of competent jurisdiction to be guilty under criminal law of perpetrating, aiding or abetting the criminal activity occurrence of the Data Incident or who pleads nolo contendere to any such charge.

Guardian, on behalf of all Defendants, will create a Settlement Fund of $1,430,207.50, which will be used to pay for (i) reasonable Notice and Claims Administration Costs incurred pursuant to the Settlement Agreement as approved by the Parties and approved by the Court; (ii) any taxes owed by the Settlement Fund; (iii) any Service Awards approved by the Court; (iv) any attorneys’ fees, costs, and expenses as approved by the Court; and (v) any benefits to Settlement Class Members, pursuant to the terms and conditions of the Settlement. The benefits to Settlement Class Members are explained below:

Compensation for Unreimbursed Losses and Credit Monitoring

The Settlement provides compensation for the following unreimbursed losses:

1. Time Spent: Up to 4 hours of lost time at a rate of $25.00 per hour for time spent dealing with the Data Incident, if the Settlement Class Member spent at least one-half (0.5) hours dealing with the Data Incident.
2. Ordinary Out-of-Pocket Expenses or Losses: Out-of-pocket expenses up to $250.00 incurred as a result of the Data Incident, including: documented bank fees, long distance phone charges, cell phone charges (only if charged by the minute), data charges (only if charged based on the amount of data used), postage, gasoline for local travel, and fees for credit reports, credit monitoring, or other identity theft insurance product purchased between November 27, 2022, and April 24, 2024.
3. Extraordinary Out-of-Pocket Expenses or Losses: Out-of-pocket expenses up to $5,000.00 directly arising from identity theft or other fraud perpetuated on or against the Settlement Class Member as a result of the Data Incident.

Compensation for lost time requires only an attestation that any claimed lost time was spent related to the Data Incident.

Compensation for unreimbursed losses (except for lost time), shall be paid only if: (1) the loss is an actual, documented, and unreimbursed monetary loss; (2) the loss was more likely than not caused by the Data Incident; and (3) the Settlement Class Member made reasonable efforts to avoid, or seek reimbursement for, the loss, including but not limited to exhaustion of all available credit monitoring insurance and identity theft insurance.

4. Credit Monitoring Services: Settlement Class Members who do not opt for the Alternative Cash Payment are eligible to receive 24 months of Credit Monitoring Services free of charge. The Credit Monitoring Services will be provided to all valid claimants who timely enroll in these services for a period of 24 months from the date of activation, including daily three-bureau credit monitoring with Equifax, Experian, and TransUnion; identity restoration services; and $1 million in identity theft insurance, among other features.

Tier 1 and Tier 2 Alternative Cash Payments

As an alternative to a claim for Unreimbursed Losses, Lost Time, and Credit Monitoring, Settlement Class Members may submit a claim to receive a pro rata cash payment from the Settlement Fund (“Alternative Cash Payment”). The amount of the Alternative Cash Payment will be calculated in accordance with the Settlement Agreement, which provides for a distribution of the Settlement Fund to first cover other costs and then distribute the remaining funds amongst Settlement Class Members who elected to receive an Alternative Cash Payment. Alternative Cash Payments are split between Tier 1 Alternative Cash Payments and Tier 2 Alternative Cash Payments. Each Settlement Class Member whose Social Security number was affected in the Data Incident is eligible to select a Tier 1 Alternative Cash Payment, which is worth two times (2x) the amount as a Tier 2 Alternative Cash Payment. Each Settlement Class Member whose Social Security number was not affected in the Data Incident is eligible to select a Tier 2 Alternative Cash Payment. Settlement Class Members whose Social Security numbers were affected in the Data Incident will be sent an SSN Postcard Notice, informing them that they are eligible to select a Tier 1 Alternative Cash Payment. If you did not receive an SSN Postcard Notice, you may only select a Tier 2 Alternative Cash Payment.

Settlement Class Members who do not validly exclude themselves from the Settlement will be bound by the Settlement Agreement, and any final judgment entered by the Court, and will give up their right to sue the Released Parties for the claims being resolved by the Settlement. The claims that are being released and the persons and entities being released from those claims are described in the Settlement Agreement. To view the Settlement Agreement, please visit the Documents page.

If you are a Settlement Class Member, you did not have to do anything to remain in the Settlement. However, if you wanted to obtain the benefits available to Settlement Class Members under the Settlement, you must have completed and submitted a Claim Form postmarked or submitted online by April 24, 2024.

If you do not want to give up your right to sue the Released Parties related to the Data Incident or the issues raised in this case, you must have excluded yourself from (or "opted out" of) the Settlement Class.

If you objected to the settlement, you must remain a Settlement Class Member (i.e., you may not also exclude yourself from the Settlement Class by opting out) and filed a written objection in this case with the Court (see FAQ 14 below). If you object, you must have submitted a claim if you wanted compensation for unreimbursed losses and credit monitoring services or an Alternative Cash Payment.

If you do nothing, you will get no benefit from this Settlement. Unless you exclude yourself, after the Settlement is granted final approval and the judgment becomes final, you will be bound by the judgment and you will never be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against the Released Parties related to the claims released by the Settlement.

The April 24, 2024 Claim Filing deadline has passed. We are no longer accepting submissions at this time.

The Settlement Administrator will initially decide whether a Claim Form is complete and valid and includes all required documentation. The Settlement Administrator may require additional information from any claimant. Failure to timely provide all required information will invalidate a claim and it will not be paid.

The March 25, 2024 Exclusion deadline has passed. We are no longer accepting submissions at this time.

No. If you exclude yourself, you will not be entitled to any Settlement benefits. However, you will also not be bound by any judgment in this Lawsuit.

No. Unless you exclude yourself, you give up any right to sue the Released Parties for the claims that this Settlement resolves. You must exclude yourself from the Settlement Class to start your own lawsuit or to be part of any different lawsuit relating to the claims in this case. If you exclude yourself, do not submit a Claim Form requesting a benefit from this Settlement.

The March 25, 2024 Objection deadline has passed. We are no longer accepting submissions at this time.

The Court will hold a Final Approval Hearing to decide whether to approve the Settlement. That hearing is scheduled for June 4, 2024, at 12:00 p.m., at Martin Luther King Building & U.S. Courthouse, 50 Walnut Street, Newark, NJ 07102, Courtroom MLK 4B. At the Final Approval Hearing, the Court will consider whether the settlement is fair, reasonable, and adequate. If there are timely objections, the Court will consider them and will listen to people who have properly requested to speak at the hearing. The Court may also consider Plaintiffs’ request for attorneys’ fees, costs, and expenses, and Plaintiffs’ request for service awards for Plaintiffs. After the hearing, the Court will decide whether to approve the Settlement.

Please Note: The date and time of the Final Approval Hearing are subject to change. Any change will be posted on the Current Status section of the Home page.

No. You do not need to attend the hearing unless you object to the Settlement and wish to appear in person. It is not necessary to appear in person to make an objection; the Court will consider any written objections properly submitted pursuant to the instructions in FAQ 14. You or your own lawyer are welcome to attend the hearing at your expense, but you are not required to do so.

If the Court approves the Settlement, there may still be appeals. If an appeal is taken, it is possible the Settlement could be disapproved on appeal. We do not know how long this process may take.

If the Court does not approve the Settlement, there will be no Settlement benefits available to Settlement Class Members, Class Counsel, or Plaintiffs, and the case will proceed as if no Settlement had been attempted.

The Court has appointed the following Class Counsel to represent the Settlement Class in this Lawsuit:

Settlement Class Members will not be charged for the services of Class Counsel; Class Counsel will be paid by Defendants out of the Settlement Fund, subject to Court approval. However, you may hire your own attorney at your own expense to advise you in this matter or represent you in making an objection or appearing at the Final Approval Hearing.

Plaintiffs will seek an order from the Court requesting that attorneys’ fees not to exceed $476,735.83 and reasonable costs and expenses be awarded to Class Counsel out of the Settlement Fund.

Plaintiffs will seek an order from the Court requesting that Service Awards in the amount of $1,000 be awarded to Representative Plaintiffs for their time and effort expended on behalf of the Settlement Class in the Litigation.