On March 2, 2023, Judge Joel H. Slomsky of the Eastern District of Pennsylvania granted preliminary approval to a proposed class action settlement that resolves claims against Defendant Sincera Reproductive Medicine, formerly known as Abington Reproductive Medicine, stemming from a 2020 data breach during which an unauthorized third-party gained access to Sincera’s data environment, resulting in the potential exfiltration of certain protected health information (“PHI”) and personal identifying information (“PHI”) of current and former patients of Sincera. The Court certified a settlement class consisting of “All Persons residing in the United States who were provided notice from Sincera that their information was involved in the Data Incident.”

Under the Settlement, Sincera agreed to pay a minimum of $800,000.00 and a maximum of $1,200,000.00 in monetary relief to the settlement class. Settlement class members that submit a claim, can receive a cash payment of $150.00 by confirming that they have suffered any of a broad number of harms that they believe is related to the data breach, including but not limited to the following types of harm: time spent dealing with the Data Incident, loss of confidences, loss of their PII/PHI, and/or emotional distress. Settlement class members may also make a claim for any out-of-pocket losses they had that they believe are due to the data breach and may recover those out-of-pocket losses, up to a total of $2,000.00 (inclusive of the cash payment). Notice to the settlement class will be sent by April 24, 2023, which notice will provide details on the settlement and how to file a claim.

Kelly K. Iverson and Patrick D. Donathen of Lynch Carpenter, LLP, along with Kenneth J. Grunfeld of Golomb Spirt Grunfeld, P.C., were appointed by the Court as Settlement Class Counsel.

In reaching its decision to grant preliminary approval, the Court found that the proposed settlement was the result of extensive and good-faith negotiations at arm’s length; was reached only after extensive litigation; and provides an equitable claims process that enables Settlement Class Members to obtain reimbursement for harms related to the data incident.

Settlement class members will have until July 24, 2023, to submit a claim for benefits under the proposed settlement and until June 23, 2023, to otherwise object or opt out of the proposed settlement. The Final Approval Hearing is currently scheduled for September 6, 2023, before Judge Slomsky in Courtroom 13A of United States Courthouse in Philadelphia, Pennsylvania. Settlement class members can obtain more information about the Settlement by visiting www.SinceraSettlement.com.

A copy of the Preliminary Approval Order can be found here.

 

What is Preliminary Approval of a Settlement Class?

Under the Federal Rules of Civil Procedure, the settlement of a class action requires court approval, which the court may issue after a finding that the proposed settlement is fair, reasonable, and adequate. The court reviews proposed class action settlements in two stages. The first stage is the preliminary approval stage, at which the court determines if the proposed settlement discloses grounds to doubt its fairness or other obvious deficiencies. If the court grants preliminary approval, the court then directs that notice of the proposed settlement be sent to all settlement class members. At the second stage, the final approval stage, after settlement class members are notified of the proposed settlement, the court holds a formal fairness hearing where settlement class members may object to the proposed settlement. If the court concludes the proposed settlement is fair, reasonable, and adequate, the proposed settlement is then given final approval.

 

Blog Post by Kelly K. Iverson and Patrick D. Donathen

 

Sources:

Opris et al v. Sincera Reproductive Medicine, Case No. 2:23-cv-03072-JHS (E.D. Pa.), Dkt. No. 61.

In re Nat’l Football League Players’ Concussion Inj. Litig., 961 F. Supp. 2d 708, 713 (E.D. Pa. 2014)

Federal Rule of Civil Procedure 23(e)