McNicholas v. Illinois Gastroenterology Group, P.L.L.C.

The Notice is being issued to inform Settlement Class Members about a proposed Settlement of the class action lawsuit, McNicholas v. Illinois Gastroenterology Group, Case No. 22 LA 173 (Ill. 19th Jud. Dist. Ct. Lake Cnty.) (the “McNicholas Lawsuit”). The Court overseeing the lawsuit authorized the 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.

The McNicholas Lawsuit is a proposed class action Settlement brought on behalf of all persons whose personal information may have been compromised as a result of a cybersecurity incident involving Illinois Gastroenterology Group, P.L.L.C.’s computer network on October 22, 2021. In this McNicholas Lawsuit, plaintiff alleges causes of action for: (1) Negligence; (2) Negligence Per Se; (3) Breach of Fiduciary Duty; (4) Breach of Express Contract; (5) Breach of Implied Contract; (6) Unjust Enrichment; and (7) Violations of the Illinois Consumer Fraud and Deceptive Business Practices Act (“CFA”), 815 Ill. Comp. Stat. §§ 505/1 et seq.

In addition to the McNicholas Lawsuit, other lawsuits related to the Data Breach, which allege similar and additional causes of action, were filed in various Illinois state and federal courts. These lawsuits are: (1) Mahida v. Illinois Gastroenterology Group, P.L.L.C., No. 22-cv-2273 (N.D. Ill. May 2, 2022); (2) Doe v. Illinois Gastroenterology Group, P.L.L.C., No. 22 CH 4408 (Ill. Cir. Ct. Cook Cnty. May 9, 2022); (3) McMillon v. Illinois Gastroenterology Group, P.L.L.C., No. 1:22-cv-02539 (N.D. Ill. May 13, 2022); (4) Fliman v. Illinois Gastroenterology Group, P.L.L.C., No.22 CH 4706 (Ill. Cir. Ct. Cook Cnty. May 17, 2022); (5) Whitehead v. Illinois Gastroenterology Group, P.L.L.C., No. 22 LA 202 (Ill. 19th Jud. Dist. Ct. Lake Cnty. May 27, 2022); and (6) Castillo v. Illinois Gastroenterology Group, P.L.L.C., No. 1:22-cv-02953 (N.D. Ill. June 6, 2022).

Plaintiffs in the additional lawsuits allege causes of action for: (1) Violation of California Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code §§ 17200 et seq.; (2) Violation of the California Consumer Privacy Act (“CCP”), Cal. Civ. Code §§ 1798.100 et seq.; (3) Violation of California’s Consumer Legal Remedies Act (“CLRA”), Cal. Civ. Code §§ 1750 et seq.; (4) Invasion of Privacy; (5) Violation of Illinois Biometric Information Privacy Act (“BIPA”), 740 Ill. Comp. Stat. 14/ et seq.; (6) Breach of Fiduciary Duty of Confidentiality of Medical Records; and (7) California Confidentiality of Medical Information Act (“CMIA”), Cal. Civ. Code §§ 56 et seq.

Together with the McNicholas lawsuit, the combined lawsuits are referred to as the “Lawsuits.”

The proposed class action Settlement will resolve all claims brought by Class Representatives (defined in FAQ #3 below) in all Lawsuits. And the Releases in the proposed Settlement Agreement (see Paragraphs 1.27-1.29 and 13.1-13.5) cover all claims asserted in the Lawsuits against IGG.

In a class action, one or more plaintiffs (or “Class Representatives”) bring a lawsuit on behalf of others who are alleged to have similar claims. Together, all of these people are the “class” and each individually is a “class member.” There are nine Class Representatives in this Settlement: Heriberto Castillo, Kaushik Mahida, Robert Schnaedter, John Doe, Thomas McNicholas, Anita McMillon, Eugene Fliman, George M. Whitehead Jr., and Sarah Kaye. The class in this case is referred to in the Notice as the “Settlement Class.”

The Class Representatives in the Lawsuits, through their attorneys, investigated the facts and law relating to the issues in the Lawsuits. The Class Representatives and Settlement Class Counsel believe that the Settlement is fair, reasonable, and adequate and will provide substantial benefits to the Settlement Classes. The Court has not decided whether the Class Representatives’ claims or IGG’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 IGG did anything wrong, or that the Class Representatives and the Settlement Classes would or would not win the case if it were to go to trial.

The Settlement Class is defined as all 227,943 persons whose PII, PHI, and/or PBI was potentially compromised in the cybersecurity incident involving Illinois Gastroenterology Group, P.L.L.C.’s (“IGG”) computer network on October 22, 2021, and who were the subject of the Notice of Data Breach that IGG published on April 22, 2022.

The “Settlement California Subclass” is defined as all persons whose PHI was potentially impacted in the cybersecurity incident involving Illinois Gastroenterology Group, P.L.L.C.’s (“IGG”) computer network on October 22, 2021 whose address on file with IGG is in California, and who were the subject of the Notice of Data Breach that IGG published on April 22, 2022.

“Settlement Classes” means the Settlement Class and the Settlement California Subclass combined. For avoidance of doubt, “Settlement California Subclass Members” are also Settlement Class Members, and references to the “Settlement Class” therefore include the Settlement California Subclass.

Excluded from the Settlement Classes are (i) officers and directors of IGG and/or the Related Entities; (ii) all Settlement Class Members who timely and validly request exclusion from the Settlement Class; (iii) members of the judiciary who have presided or are presiding over this matter and their families and staff; and (iv) 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 occurrence of the Data Breach or who pleads nolo contendere to any such charge.

Settlement Class Members may file claims for (a) Tier 1 or Tier 2 Alternative Cash Payments, or (b) any combination of Documented Ordinary Losses, Documented Extraordinary Losses, and Credit Monitoring Services:

Tier 1: Alternative Cash Payment of $150 for Settlement Class Members whose Social Security Numbers were compromised in the Data Breach, Settlement Class Members whose PBI information was compromised in the Data Breach, and Settlement California Subclass Members with CMIA claims against IGG whose PHI was compromised in the Data Breach.

Tier 2: Alternative Cash Payment of $50 for Settlement Class Members whose Social Security Numbers were not compromised in the Data Breach, but whose PHI was compromised in the Data Breach.

Documented Ordinary Losses: In the alternative to Tier 1 and Tier 2 Alternative Cash Payments, up to $200 for unreimbursed ordinary losses, including Out-of-Pocket Expenses and Lost Time reimbursement (below).

Lost Time: Reimbursement for up to three (3) hours of Lost Time for time spent responding to issues raised by the Data Breach (calculated at $25 per hour).

Documented Extraordinary Losses: In the alternative to Tier 1 and Tier 2 Alternative Cash Payments, reimbursement for documented Extraordinary Losses, up to $5,000 per Settlement Class Member, for proven actual monetary losses.

Credit Monitoring: In the alternative to Tier 1 and Tier 2 Alternative Cash Payments, Settlement Class Members are eligible upon submission of a valid Claim Form for three (3) years of one (1) bureau credit monitoring services, with $1,000,000 in identity theft protection and identity restoration services.

Injunctive Relief: IGG has implemented and shall continue to implement data enhancement measures to provide security for Plaintiffs’ and Settlement Class Members’ PII, PHI, and PBI.

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 Persons (defined in Paragraph 1.29 of the Settlement Agreement), including IGG, for the claims being resolved by the Settlement. The claims that Settlement Class Members are releasing, and the persons and entities being released from those claims are described in Paragraphs 1.27 through 1.29 and 13.1 through 13.5 of the Settlement Agreement. You can view the Settlement Agreement on the Important Documents page.

Tier 1 Alternative Cash Payment: Alternative Cash Payment of $150 for Settlement Class Members whose Social Security Numbers were compromised in the Data Breach, Settlement Class Members whose PBI information was compromised in the Data Breach, and Settlement California Subclass Members with CMIA claims against IGG whose PHI was compromised in the Data Breach.

Tier 2 Alternative Cash Payment: Alternative Cash Payment of $50 for Settlement Class Members whose Social Security Numbers were not compromised in the Data Breach, but whose PHI was compromised in the Data Breach.

Settlement Class Members can only select one (1) of the Alternative Cash Payment options. Alternative Cash Payments cannot be combined with Documented Ordinary Losses, Documented Extraordinary Losses, or Credit Monitoring benefits.

Settlement Class Members are eligible for compensation for unreimbursed ordinary losses up to a total of $200 per Settlement Class Member, upon submission of a valid Claim Form and supporting documentation (except for claims for Lost Time).

Ordinary losses may include: (a) out-of-pocket expenses incurred as a result of the Data Breach, such as the following: (i) bank fees, (ii) long distance phone charges, (iii) cell phone charges (only if charged by the minute), (iv) data charges (only if charged based on the amount of data used), (v) postage, and (vi) gasoline for local travel; (b) fees for credit reports, credit monitoring, or other identity theft insurance product purchased between October 22, 2021, and June 16, 2023; and (c) up to three (3) hours of lost time, calculated at $25/hour, for time spent responding to issues raised by the Data Breach.

This list of reimbursable Documented Ordinary Losses is not meant to be exhaustive, but is exemplary. Settlement Class Members may make claims for any documented ordinary losses reasonably related to the Data Breach or to mitigating the effects of the Data Breach.

Settlement Class Members are eligible for compensation for Documented Extraordinary Losses up to $5,000 per Settlement Class Member, including proven actual monetary losses, upon submission of a valid Claim Form and supporting documentation, provided that: (i) the loss is an actual, documented, and unreimbursed monetary loss; (ii) the loss was more likely than not caused by the Data Breach; (iii) the loss occurred between October 22, 2021 and June 16, 2023; (iv) the loss is not already covered by one or more of the normal reimbursement categories; (v) the Settlement Class Member made reasonable efforts to avoid the loss or seek reimbursement for the loss, including, but not limited to, exhaustion of all available credit monitoring insurance and identity theft insurance.

In the alternative to Tier 1 and Tier 2 Alternative Cash Payments, Settlement Class Members are eligible upon submission of a valid Claim Form for three (3) years of one (1) bureau credit monitoring services, with $1,000,000 in identity theft protection and identity restoration services.

If you are a Settlement Class Member, you do not have to do anything to remain in the Settlement. However, if you wish to receive a Settlement benefit, you must complete and submit a Claim Form postmarked or submitted online by June 16, 2023. You may submit a Claim Form online on the Submit Claim page.

If you do not want to give up your right to sue IGG about the Data Breach or the issues raised in this case, you must exclude yourself (or “opt out”) from the Settlement Class.

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. If you object, you must still submit a claim if you want to receive Settlement benefits.

If you do nothing, you will get no payment 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 Released Persons, including IGG (defined in Paragraph 1.29 of the Settlement Agreement) related to the claims released by the Settlement.

You may complete the Claim Form online on the Submit Claim page. You may also obtain a paper Claim Form by downloading it from the Important Documents page or by calling the Settlement Administrator at 1-844-506-0054. If you choose to complete a paper Claim Form, you may either submit the completed and signed Claim Form and any supporting documentation electronically on the Submit Claim page by June 16, 2023 or mail them postmarked by June 16, 2023 to:

IGG Settlement Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103

The Settlement Administrator will 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 result in the rejection of the claim.

For a Settlement Class Member’s Opt-Out Request to be valid, it must (a) state the case name, McNicholas v. Illinois Gastroenterology Group, No. 22 LA 173 (Ill. 19th Jud. Dist. Ct. Lake Cnty. May 11, 2022); (b) your full name, address, and telephone number; (c) your personal and original signature (or the personal and original signature of a Person previously authorized by law to act on your behalf with respect to the claims asserted in the Lawsuits); and (d) clearly manifest your intent to be excluded from the Settlement. You must mail your request postmarked no later than May 17, 2023, to this address:

IGG Settlement Administrator
Attn: Exclusions
P.O. Box 58220
Philadelphia, PA 19102

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 Persons (defined in Paragraph 1.29 of the Settlement Agreement), including IGG, 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 payment.

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 payments 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 Clerk of the Court no later than May 17, 2023.

Clerk of the Circuit Court
18 North County Street
Waukegan, IL 60085

To be considered by the Court, your objection must: (i) state the case name, McNicholas v. Illinois Gastroenterology Group, No. 22 LA 173 (Ill. 19th Jud. Dist. Ct. Lake Cnty. May 11, 2022); (ii) your full name, current address, telephone number, and email address (if any); (iii) contain your original signature; (iv) set forth information identifying you as a Settlement Class Member, including proof that you are within the Settlement Class (e.g., copy of the Notice); (v) set forth a statement of all grounds for the objection, including any legal support for the objection that you believe is applicable; (vi) identify all counsel and counsels’ address(es) representing you; (vii) state whether you and/or your counsel will appear at the Final Approval Hearing; (viii) a list of all persons who will be called to testify at the Final Approval Hearing in support of your objection; (ix) a statement confirming whether you intend to personally appear and/or testify at the Final Approval Hearing; (x) a list, by case, name, court, and docket number, of all other cases in which you and/or your counsel have filed an objection to any proposed class action settlement within the last three (3) years, the results of each objection, any court opinions ruling on the objections, and any sanctions issued by a court in connection with objections filed by such attorney; and (xi) contain the signature of your duly authorized attorney or other duly authorized representative (if any), along with documentation setting forth such representation.

In addition, you must mail or hand deliver a copy of your objection to Settlement Class Counsel and IGG’s Counsel postmarked no later than May 17, 2023:

The Court will hold a Final Approval Hearing to decide whether to approve the Settlement. That hearing is scheduled for June 22, 2023, at 9:00 a.m., in Room C-205 of the Nineteenth Judicial Circuit Court, 18 N County Street, Waukegan, IL 60085. 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 Settlement Class Counsel’s request for attorneys' fees, costs, expenses, and the request for a Service Award for each of the Class Representatives. 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 Settlement Website to confirm the schedule if you wish to attend.

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 #19. You or your own lawyer are welcome to attend the hearing at your expense but are not required to do so.

If the Court approves the Settlement and no appeal is taken, the Settlement Administrator will send Settlement payments to Settlement Class Members who submitted timely and valid claim forms within sixty (60) days of the Effective Date.

If any appeal is taken, it is possible the Settlement could be disapproved on appeal.

If the Court does not approve the Settlement, there will be no Settlement benefits available to Settlement Class Members, or attorneys’ fees, costs, expenses, and Service Awards awarded to Settlement Class Counsel or the Class Representatives, and the case will proceed as if no Settlement had been attempted.

The Court has appointed the law firms of Milberg Coleman Bryson Phillips Grossman, PLLC, Morgan & Morgan Complex Litigation Group, Barnow and Associates, P.C., and Zimmerman Reed LLP to represent you and the Settlement Class. These attorneys are called Settlement Class Counsel. Settlement Class Counsel’s contact information is indicated in FAQ #19. You will not be charged for their services; 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.

Settlement Class Counsel will seek an order from the Court awarding an amount not to exceed $600,000 for attorneys’ fees, costs, and expenses.

Settlement Class Counsel will also seek an order from the Court awarding $1,000 in service awards to each of the ten (10) Class Representatives (for a total of $10,000).

The above is a summary of the basic terms of the Settlement. For the precise terms and conditions of the Settlement, you are referred to the detailed Settlement Agreement, which is available on the Important Documents page. You may contact Settlement Administrator by mail, email, or phone:

IGG Settlement Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
Info@IGGSettlement.com
1-844-506-0054

PLEASE DO NOT TELEPHONE THE COURT, DEFENDANT, OR DEFENDANT’S COUNSEL FOR INFORMATION REGARDING THIS SETTLEMENT.