Smith v. Kaye-Smith Enterprises, Inc.

Kaye-Smith’s records show that you were a Business Associate of Kaye-Smith at the time of the Data Incident and may have suffered business losses as a result. Accordingly, you may be eligible to receive a cash payment from the settlement. The purpose of the Notice is to let you know that the parties have reached a proposed settlement in the class action lawsuit entitled Smith et al. v. Kaye-Smith Enterprises, Inc., Cause No. 3:22-cv-01499-AR, pending in the United States District Court for the District of Oregon. You have legal rights and options that you may act on before the Court decides whether to approve the proposed settlement. Because your rights will be affected by this settlement, it is extremely important that you read the Notice carefully. The Notice summarizes the settlement and your rights under it.

The Named Plaintiff alleges that Kaye-Smith violated the Washington Consumer Protection Act, and state common law by failing to protect sensitive personal information it received from Business Associates and failed to timely notify individuals after learning their information may have been compromised in the Data Incident. The Named Plaintiff further alleges that Kaye-Smith breached terms of its contract with its business clients by failing to protect this information. Kaye Smith denies these allegations.

In a class action lawsuit, one or more people called plaintiffs or “class representatives” sue on behalf of other people who have similar claims. The people together are a “class” or “class members.” The party they sue (in this case Kaye-Smith Enterprises, Inc.) is called the defendant. If the lawsuit proceeds as a class action, it resolves the issues for everyone in the class—except for those people who choose to exclude themselves from the class.

The Court did not decide in favor of the Plaintiff or Kaye-Smith. Instead, both sides agreed to a settlement. That way, they avoid the cost of a trial, and the people affected will get compensation. The class representatives and their attorneys think the settlement is best for the Settlement Class.

You are in the “Business Settlement Class” if (1) you had a business relationship with Kaye-Smith, and, (2) your business was financially affected by the Data Security Incident, and (3) you have not resolved your claims against Kaye-Smith prior to October 19, 2023.

The Settlement Class does not include any persons who validly request exclusion from the Settlement Class, as described under FAQ 11. A person who does not exclude themselves is a “Settlement Class Member.”

If you have questions about whether you are a part of the Settlement Class, you may call 877-203-8209 for more information.

Kaye-Smith has agreed to pay no less than $2,000,000 to pay Settlement Class Members who submit valid claims, any court-approved attorneys’ fees, litigation expenses, service awards, and notice and settlement administration expenses. You will not receive any settlement payment unless you submit a Claim Form as described in FAQ 8.

Business Settlement Class Members may submit a claim for reimbursement for business losses fairly traceable to the Data Breach incident. The actual amount of the reimbursement under the settlement will depend on the amounts remaining in the Settlement Fund after paying (1) notice and settlement administration costs; (2) court-approved attorneys’ fees of approximately $667,000.00, costs not to exceed $50,000, and service awards of up to $5,000 to the Named Plaintiff, and (3) the amount of Business Losses claimed by Business Class Settlement Members.

The tax implications may vary based on your income, the amount you receive and other factors, so you should consult a tax professional to assess the specific tax implications of any payment you may receive. Class Counsel, and the settlement administrator cannot advise you with respect to your tax obligations.

The claim filing deadline of December 26, 2024 has passed. Claims are no longer being accepted in this matter.

The Court approved the Settlement on January 10, 2025. If no appeals are timely filed after the Court enters the Final Approval Order, then the Order and settlement will become final. Settlement payments will be sent to Settlement Class Members who submitted valid claims as soon as practicable after the allocation and distribution of funds is determined by the Settlement Administrator following the Effective Date. The checks will only be valid for 120 days from the date of issuance, after which you will not be able to cash or deposit them. However, if an appeal is filed, payments will not be sent until after the appeal is finally resolved, which could take more than one year.

Unless you request to exclude yourself, you are staying in the Settlement Class and you will be a Settlement Class Member. If the Court approves the settlement and becomes final, you and other Settlement Class Members can’t sue, continue to sue, or be part of any other lawsuit against the “Released Parties” regarding the Data Incident.

The Settlement Agreement (available here) describes the claims you are releasing and against whom you are releasing claims, so read it carefully. To summarize, the release includes claims against Kaye-Smith or the Business Associates through which Kaye-Smith obtained the compromised data (the “Released Parties”) that arise out of or relate to the Data Incident.

The deadline to “opt out” or exclude yourself from the settlement was December 2, 2024, and has passed.

If you already have, or want to bring, your own lawsuit against the Released Parties regarding the Data Incident and want to continue with the lawsuit, you need to ask to be excluded from the Settlement Class. If you exclude yourself from the Settlement Class you won’t get any money from the Settlement. However, you may be able to sue or continue to sue the Released Parties regarding the Data Incident on your own. If you exclude yourself, you will not be legally bound by the Court’s judgments in this class action.

No. You will not receive any payment from the settlement if you exclude yourself.

The Court decided that the law firms of Heenan & Cook, Rhodes Legal Group, PLLC and Baxter & Baxter, LLP are qualified to represent you and all Settlement Class Members. These law firms are referred to as “Class Counsel.” You will not receive a bill from these lawyers, who have asked the Court to be paid a percentage of the Settlement Fund. If you want to be represented by your own lawyer, you may hire one at your own expense. The names and addresses of Class Counsel are:

You do not need to hire your own lawyer because Class Counsel are working on your behalf. But, if you want to hire your own lawyer, you will have to pay that lawyer. For example, you can ask a lawyer to appear in Court for you if you want someone other than Class Counsel to speak for you.

Class Counsel will ask the Court to approve payment of attorneys’ fees in the amount of one-third of the $2,000,000 Settlement Fund (which may be increased due to unspent litigation or administration costs) plus litigation costs of approximately $50,000. This payment compensates Class Counsel for investigating the facts, litigating the case, and negotiating the settlement. Class Counsel will also request $5,000 service awards for named plaintiffs, Richard Smith, Noel Woodard, and Richard Krefting, and $2,500 for Named Plaintiff Washington Federal Bank to compensate for time and effort during the litigation. Class Counsel’s complete request for fees, costs, and the service award to the Class Representative will be posted on the Important Documents page of the Settlement Website. The Court may award less than these amounts.

The deadline to object to this settlement was December 2, 2024, and has passed.

Objecting simply means telling the Court that you don’t like something about the settlement. You can object only if you stay in the Settlement Class. Excluding yourself from the Settlement Class is telling the Court that you don’t want to be part of the Settlement Class. If you exclude yourself, you have no basis to object because the case no longer affects you.

The Court approved the Settlement on January 10, 2025. The Court also approved fees, expenses and reasonable litigation costs to Counsel and the service awards to Class Representatives.

No. Class Counsel will answer any questions the Court may have. You are welcome to come to the hearing at your own expense. If you send an objection you don’t have to come to Court to talk about it, as long as your written objection was filed or mailed on time, and meets the other criteria described in the Settlement Agreement, the Court will consider it. You may also pay a lawyer to attend, but you don’t have to.

If you do not exclude yourself from the Settlement Class, you may ask the Court for permission to speak at the hearing concerning any part of the proposed Settlement Agreement. If you submit an objection (see FAQ 18) and intend to appear at the hearing, you must state your intention to do so in your objection. You cannot speak at the hearing if you exclude yourself or if you fail to state your intention to do so in your objection.

If you do nothing, you will be a member of the Settlement Class and you will not receive payment from the settlement. You will also be bound by the terms of the settlement, including the Release described in FAQ 10.

These FAQs summarize the proposed settlement. More details are in the Settlement Agreement. You may review and download or print a copy of the Settlement Agreement here. You can also get a copy of the Settlement Agreement by writing to Kaye-Smith Settlement Administrator at PO Box 2378 Portland, OR 97208-2378.

You can call 1-877-203-8209 toll free; write to Kaye-Smith Settlement Administrator at PO Box 2378 Portland, OR 97208-2378. The Settlement Agreement, Plaintiff’s Complaint, Class Counsel’s motion for an award of attorneys’ fees and costs, and other information are available here.

PLEASE DO NOT CONTACT THE COURT, THE JUDGE, OR KAYE-SMITH WITH QUESTIONS ABOUT THE SETTLEMENT.