1. Why was the Notice issued?
2. What is the Lawsuit about?
3. Why is the Lawsuit a class action?
4. Why is there a Settlement?
5. Who is in the Settlement Class?
6. What are the Settlement Benefits?
7. What claims are Settlement Class Members giving up under the Settlement?
8. If I am a Settlement Class Member, what options do I have?
9. What happens if I do nothing?
10. How do I submit a claim?
11. Who decides my Settlement claim and how do they do it?
12. How do I exclude myself from the Settlement?
13. If I exclude myself, can I receive a benefit from this Settlement?
14. If I do not exclude myself, can I sue the Released Persons for the Data Breach later?
15. How do I object to the settlement?
16. How, when and where will the Court decide whether to approve the Settlement?
17. Do I have to attend the hearing?
18. What happens if the Court approves the Settlement?
19. What happens if the Court does not approve the Settlement?
20. Who represents the Settlement Class?
21. How will the lawyers for the Settlement Class be paid?
22. Who represents McPherson in the Lawsuit?
You received Notice because you may be a member of the Settlement Class eligible to receive benefits from a proposed settlement of the class action lawsuit In re McPherson Hospital Data Security Incident Litigation, Case No. MP-2023-cv-000042, in the McPherson County District Court in the Ninth Judicial District of Kansas (the “Lawsuit”). The Court overseeing the Lawsuit authorized Notice to advise Settlement Class Members about the proposed Settlement that will affect their legal rights. The Notice explains certain legal rights and options you have in connection with that Settlement.
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The Lawsuit is a proposed class action lawsuit brought on behalf of all persons whose personally identifiable information was potentially compromised as a result of the cyberattack against McPherson in July of 2022.
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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 four Plaintiffs (or Representative Plaintiffs) in this case: Rachel Klesath, Michael Windom, Stav Caplan, and Marcey Hanson, on behalf of herself and her minor child K.H.
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The Plaintiffs in the Lawsuit, through their attorneys, investigated the facts and law relating to the issues in the Lawsuit. The 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 the Plaintiffs’ claims or McPherson’s 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 people who submit valid claims will receive benefits from the Settlement. The Settlement does not mean that McPherson did anything wrong, or that the Plaintiffs and/or the Settlement Class would, or would not, win the case if it were to go to trial.
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The Settlement Class is defined as all persons whose Private Information was accessed in the Data Breach, including all persons who were notified by or on behalf of McPherson and/or were intended to be notified by or on behalf of McPherson that their Private Information may have been compromised as a result of the Data Breach.
Excluded from the Settlement Class are: (a) McPherson and its officers and directors; (b) all Settlement Class Members who timely and validly request exclusion from the Settlement Class; and (c) any other Person found by a court of competent jurisdiction to be guilty under criminal law of initiating, causing, aiding or abetting the criminal activity pertaining to the Data Breach or who pleads nolo contendere to any such charge. Also excluded are members of the judiciary to whom this case is assigned, their families and members of their staff.
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Identity Protection and Credit Monitoring Services
The proposed Settlement provides 36 months of credit monitoring service free of charge to Settlement Class Members.
Compensation for Unreimbursed Ordinary Expenses and Extraordinary Losses
The Settlement also provides compensation for the following unreimbursed out-of-pocket expenses, up to a total of $400 per member of the Settlement Class:
Out-of-pocket expenses incurred as a result of the Data Breach, including unreimbursed losses relating to fraud or identity theft; professional fees including attorneys’ fees, accountants’ fees, and fees for credit repair services; costs associated with freezing or unfreezing credit with any credit reporting agency;
Fees for credit reports, credit monitoring, or other identity theft insurance product purchased between July 12, 2022 and January 29, 2025; and
Up to 3 hours of lost time at a rate of $30.00 per hour for time spent dealing with the Data Breach.
The Settlement further provides compensation for the following unreimbursed extraordinary losses, not covered by one of the Ordinary Loss categories, up to a total of $5,000 per member of the Settlement Class.
Compensation for such expenses and losses (except for lost time), shall be paid only if:
The loss is an actual, documented, and unreimbursed monetary loss;
The loss is fairly traceable to the Data Breach;
The loss occurred between July 12, 2022 and January 29, 2025;
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; and
Documentation of the claimed losses is not “self-prepared.” Self-prepared documents, such as handwritten receipts, are, by themselves, insufficient to receive reimbursement.
Alternative Cash Payment
In lieu of the all other settlement benefits listed above, each Settlement Class Member may choose to receive a cash payment in an amount of $75.00. Such payments are also subject to the Aggregate Cap.
Aggregate Cap
Payments made under for compensation for Ordinary and Extraordinary Losses, and Alternative Cash Payments shall be subject to an aggregate cap of $500,000.00. Where all Valid Claims together exceed $500,000.00, the payments to Settlement Class Members who submitted such valid claims for either compensation for Ordinary Losses, Extraordinary Losses, or an Alternative Cash Payment shall be reduced pro rata such that the aggregate value of all payments does not exceed $500,000.00. The aggregate cap does not apply to claims for Identity Protection and Credit Monitoring Services.
Security Enhancements and Remedial Measures
McPherson has implemented improvements, and plans for future implementations, to improve its cybersecurity since the Data Breach.
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Settlement Class Members who do not validly exclude themselves from the Settlement will be bound by the Settlement Agreement and Release (“Settlement Agreement”), and any final judgment entered by the Court, and will give up their right to sue the Released Persons 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 Important Documents section of this website.
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If you are a Settlement Class Member, you do not have to do anything to remain in the Settlement. However, if you want to request compensation for unreimbursed expenses and losses and receive 36 months of credit monitoring and identity theft insurance, you must complete and submit a Claim Form postmarked or submitted online by January 29, 2025. You may download or submit a Claim Form online here.
If you do not want to give up your right to sue the Released Persons about the Data Breach or the issues raised in this case, you must exclude yourself (or “opt out”) from the Settlement Class. See FAQ 12 below for instructions on how to exclude yourself.
If you object 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 file a written objection in this case with the Court. (See FAQ 20 below.) If you object, you must still submit a claim if you want compensation for unreimbursed expenses and losses.
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If you do nothing, you will receive no benefits 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 Persons related to the claims released by the Settlement.
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You may complete the Claim Form online here. You may also obtain a paper Claim Form by downloading it here or by calling the claims administrator at (833) 285-3402. If you choose to complete a paper Claim Form, you may either submit the completed and signed Claim Form and any supporting materials electronically here or mail them to:
McPherson Hospital Data Security Incident
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799
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The Claims Administrator will initially decide whether a Claim Form is complete and valid and includes all required documentation. The Claims 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.
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You must make a signed written request that (i) clearly states that you wish to exclude yourself from the Settlement Class in this Lawsuit, and (ii) include your name, address, phone number, and email address (if applicable). You must send your request by December 30, 2024 to this address:
McPherson Hospital Data Security Incident
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799
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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.
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No. Unless you exclude yourself, you give up any right to sue the Released Persons 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.
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All Settlement Class Members who do not request exclusion from the Settlement Class have the right to object to the Settlement or any part of it. You can ask the Court to deny approval by filing an objection. You can’t ask the Court to order a different settlement; the Court can only approve or reject the Settlement. If the Court denies approval, no settlement benefits will be sent out and the lawsuit will continue.
Any objection to the proposed Settlement must be in writing and it and any supporting papers must be filed with the Court and mailed to Class Counsel and McPherson’s Counsel.
Court | Class Counsel | McPherson’s Counsel |
District Court for McPherson County | Mason A. Barney | Kelli McCurdy |
Objections must be filed or postmarked no later than December 30, 2024.
To be considered by the Court, your objection must include: (a) your name, address, telephone number, and email address (if applicable); (b) information identifying you as Settlement Class Member (e.g., copy of notice or copy of original notice of the Data Breach); (c) a written statement explaining all legal and factual bases for your objection; (d) identities of all attorneys representing you; (e) a list, by case name, court, and docket number, of all other cases in which the you and/or your attorney has filed an objection to any proposed class action settlement within the last three (3) years; and (f) your signature and your attorney’s signature.
If you or your attorney wish to appear at the Final Approval Hearing, you must so state in your objection, and must identify any documents or witnesses you intend to call on your behalf.
If you fail to object in this manner, you will be deemed to have waived and forfeited any and all rights you may have to appear separately and/or to object to the Settlement Agreement, and you shall be bound by all the terms of the Settlement Agreement and by all proceedings, orders, and judgments in the Litigation. The exclusive means for any challenge to the Settlement Agreement shall be through the provisions set forth in this paragraph. Without limiting the foregoing, any challenge to the Settlement Agreement, the Final Judgment and Order approving this Settlement Agreement, or the judgment to be entered upon final approval shall be pursuant to appeal under the Kansas Rules of Appellate Procedure and not through a collateral attack.
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The Court will hold a Final Approval Hearing to decide whether to approve the Settlement. That hearing is scheduled for February 5, 2025 at 11:00 a.m., at the McPherson County District Court, located at 117 N Maple St, McPherson, KS 67460. 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 and costs, and Plaintiffs’ request for service awards for the Representative Plaintiffs. After the hearing, the Court will decide whether to approve the Settlement.
It is possible the Court could reschedule the hearing to a different date or time without notice, so it is a good idea before the hearing to check this website to confirm the schedule if you wish to attend.
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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 according to the instructions in FAQ 15. You or your own lawyer are welcome to attend the hearing at your expense, but are not required to do so.
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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.
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If the Court does not approve the Settlement, there will be no Settlement benefits available to Settlement Class Members, Class Counsel, or the Plaintiff, and the case will proceed as if no Settlement had been attempted.
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The Court has appointed the following Class Counsel to represent the Settlement Class in this Lawsuit:
Siri & Glimstad LLP | Cafferty Clobes Meriwether & Sprengel LLP | Milberg Coleman Bryson Phillips Grossman PLLC |
Settlement Class Members will not be charged for the services of Class Counsel; Class Counsel will be paid by McPherson, 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 settlement approval hearing.
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Plaintiffs will seek an order from the Court requesting that attorneys’ fees be awarded to Class Counsel in the amount of $205,000 inclusive of any costs and expenses of the Litigation (the “Class Counsel Payment”).
Plaintiffs will also seek an order from the Court requesting that a Service Award in the amount of $1,500 be awarded to each the Representative Plaintiff for their time and effort expended on behalf of the Settlement Class in the Litigation.
If the Court awards the Class Counsel Payment or the Service Award described above, the Court’s award(s) will not affect any benefits provided to Settlement Class Members, or Plaintiffs.
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McPherson is represented by the following lawyers:
Justin Holmes
Brian Middlebrook
Gordon Rees Scully Mansukhani, LLP
Three Logan Square, 1717 Arch Street
Suite 610
Philadelphia, PA 19103
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