Builders Mutual Data Breach

The Court directed that the Notice be provided because you have a right to know about a proposed settlement that has been reached in this class action lawsuit and about all of your options before the Court decides whether to grant final approval to the Settlement. If the Court approves the Settlement, and after objections or appeals, if any, are resolved, the Settlement Administrator appointed by the Court will distribute the benefits that the Settlement allows. The Notice explains the lawsuit, the Settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them.

The Court in charge of this case is the United States District Court for the Eastern District of North Carolina. The case is known as In re Builders Mutual Data Security Incident Litigation, Case No. 5:23-CV-579-M-KS (E.D.N.C.) (the “Action”). The people who filed the lawsuit are called Plaintiffs, and the companies sued (Builders Mutual Insurance Company and Builders Mutual Insurance Company, Inc.) are called the Defendants.

Plaintiffs claim that Builders Mutual was hacked on December 14, 2022 (the “Data Incident”). Plaintiffs claim that this hacking exposed certain personally identifiable information (“PII”) and protected health information (“PHI”)—including names, Social Security numbers, dates of birth, medical information, health insurance information, and worker’s compensation information provided in connection with employment—of Builders Mutual’s stakeholders, customers, employees of policyholders, current and former employees, and claimants.

Builders Mutual has denied and continues to deny all of the claims made in the Action, as well as all charges of wrongdoing or liability against them.

In a class action, one or more people called settlement class representatives (in this case, Matthew Kocher, Mark Rogolino, and James Jackson) sue on behalf of people who have similar claims. Together, all these people are called a class or class members. One court resolves the issues for all class members, except for those who exclude themselves from the settlement class.

The Court did not decide in favor of the Plaintiffs or the Defendants. Instead, the Plaintiffs and Defendants negotiated a settlement that allows them to avoid the risks and costs of lengthy and uncertain litigation and the uncertainty of a trial and appeals. It also allows Settlement Class Members to be compensated without further delay. The Class Representatives and their attorneys think the Settlement is best for all Settlement Class Members.

You are part of this Settlement as a Settlement Class Member if you reside in the United States and your PII or PHI was compromised in the Builders Mutual Data Incident that occurred in December 2022.

Yes. Excluded from the Settlement are (1) the judges presiding over this Action and members of their direct families; (2) the Defendants, their subsidiaries, parent companies, successors, predecessors, and any entity in which the Defendants or their parents have a controlling interest and their current or former officers and directors; and (3) Settlement Class Members who submit a valid Request for Exclusion prior to the Opt-Out Deadline.

If you are still not sure whether you are included, you can call 1-877-558-9511 for more information.

The Settlement provides Settlement Class Members with their choice of:

1. three years of Credit Monitoring Services, compensation for Unreimbursed Economic Losses (up to $10,000), and compensation for Lost Time (up to 6 hours at $25 per hour, up to $150)
   
   OR
2. an estimated $100 Alternative Cash Payment.

Builders Mutual has agreed to pay a total of $1,475,000 into a Settlement Fund. After deducting Notice and Administrative Expenses, Court-approved attorneys’ Fee Award and Expenses, and Class Representative Service Awards, the Net Settlement Fund will be used to pay Settlement Class Members who submit a valid Claim Form.

Each Settlement Class Member who submits a valid Claim Form and opts to receive Credit Monitoring Services will receive a three-year subscription that will include one-bureau credit monitoring, dark web monitoring, real-time inquiry alerts, and $1,000,000 in identity theft insurance, among other features.

In addition to Credit Monitoring Services, Settlement Class Members are eligible to receive compensation for Unreimbursed Economic Losses and for lost time.

• Unreimbursed Economic Losses are out-of-pocket costs related to fraud and identity theft, such as 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; credit monitoring costs that were incurred on or after the Data Incident through the date of claim submission; and miscellaneous expenses such as notary, fax, postage, copying, mileage, and long-distance telephone charges that are fairly traceable to the Data Breach and have not already been reimbursed by a third party. Settlement Class Members who submit a valid Claim Form with documentation, such as receipts, showing Unreimbursed Economic Losses may receive up to $10,000.
• Lost Time is time spent remedying issues related to the Data Incident. Settlement Class Members who submit a valid Claim Form are eligible to receive up to 6 hours of Lost Time at $25/hour (up to $150).

Each Settlement Class Member who submits a valid Claim Form and selects the cash option will receive an estimated $100 payment from the Settlement Fund. This cash option, also called an “Alternative Cash Payment,” may be selected instead of the Credit Monitoring Services and compensation described above. The amount of the Alternative Cash Payments will be increased or decreased on a pro rata basis depending upon the number of valid claims filed and the amount of funds available for these payments. This means that Settlement Class Members who select this option may receive more or less than the estimated $100.

To qualify for a settlement benefit, you must complete and submit a Claim Form by January 8, 2025. The Claim Filing Deadline has passed. Claim forms are no longer accepted.

The Court will hold a Final Approval Hearing at 2:00 p.m. on January 27, 2025, at Courtroom 1 at the Alton Lennon Federal Courthouse, 2 Princess Street, Wilmington, NC 28401 and via videoconference, to decide whether to approve the Settlement. If the Court approves the Settlement, there may be appeals. It is always uncertain whether any appeals can be resolved favorably, and resolving them can take time, perhaps more than a year.

Unless you exclude yourself from the Settlement, you will release certain legal claims as they relate to the Settlement. This means that you will no longer be able to sue, continue to sue, or be part of any other lawsuit against Builders Mutual and the Released Parties about the claims made in this Action and released by the Settlement Agreement. You will be legally bound by all of the Court’s orders, as well as the “Released Claims,” defined in FAQ 14.

“Released Claims” mean any and all past, present, and future liabilities, rights, claims, counterclaims, actions, causes of action, demands, damages, penalties, costs, attorneys’ fees, losses, and remedies, whether known or unknown, existing or potential, suspected or unsuspected, liquidated or unliquidated, legal, statutory, or equitable, that result from, arise out of, are based upon, including, but not limited to, negligence, negligence per se, breach of implied contract, breach of the implied covenant of good faith and fair dealing, breach of third-party beneficiary contract, unjust enrichment, breach of fiduciary duty, any state or federal consumer protection statute, misrepresentation (whether fraudulent, negligent, or innocent), bailment, wantonness, failure to provide adequate notice pursuant to any breach notification statute, regulation, or common law duty, and all relevant statutes in effect in any states in the United States as defined herein, and including, but not limited to, any and all claims for damages, injunctive relief, disgorgement, declaratory relief, equitable relief, attorneys’ fees, costs, and expenses, set-offs, losses, pre-judgment interest, credit monitoring services, the creation of a fund for future damages, statutory damages, punitive damages, special damages, exemplary damages, restitution, the appointment of a receiver, and any other form of relief that either has been asserted or could have been asserted, or relate to the exposure of Private Information in the Data Incident, including conduct that was alleged or could have been alleged in the Lawsuit, without limitation, any claims, actions, causes of action, demands, damages, penalties, losses, or remedies relating to, based upon, resulting from, or arising out of the disclosure of Private Information, which the Class Representatives or any member of the Settlement Class ever had, now has, or hereinafter may have, prior to entry of the final order and judgment in this Action. Released Claims shall not include the right of named Plaintiffs, Settlement Class Members, or any Released Person to enforce the terms of the Settlement Agreement and claims not arising from the facts alleged in the Action.

The deadline to exclude yourself from the Settlement was December 9, 2024. Requests for Exclusions are no longer accepted.

No. If you exclude yourself from the Settlement, do not send in a Claim Form to ask for a settlement benefit because you will no longer be eligible for one.

No. If you stay in the Settlement (i.e., do nothing or do not exclude yourself from the Settlement), you give up any right to separately sue the Defendants for the claims released by the Settlement Agreement.

Yes. The Court appointed Raina C. Borrelli of Strauss Borrelli PLLC, Tyler Bean of Siri & Glimstad LLP, and Daniel Srourian of Srourian Law Firm P.C. to represent you and other Settlement Class Members as Class Counsel. Class Counsel is experienced in handling similar cases. You will not be charged for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.

If the Settlement is approved and becomes Final, Class Counsel will ask the Court to award attorneys’ fees in the amount of $491,617.50, plus litigation expenses up to $25,000, as well as $5,000 Service Awards to each of the three Class Representatives (“Fee and Expense Application”). If approved, these amounts, as well as Notice and Administrative Expenses, will be deducted from the Settlement Fund before making payments to Settlement Class Members who submit a valid Claim Form.

The deadline to object to the Settlement was December 9, 2024. Objections are no longer accepted.

Objecting is telling the Court that you do not like something about the Settlement. Excluding yourself is telling the Court that you do not want to be part of the Class in this Settlement. If you exclude yourself from the Settlement, you have no basis to object or file a claim because the Settlement no longer applies to you.

The Court will hold a Final Approval Hearing at 2:00 p.m. on January 27, 2025, at Courtroom 1 at the Alton Lennon Federal Courthouse, 2 Princess Street, Wilmington, NC 28401 and via videoconference. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. The Court will take into consideration any properly filed written objections and may also listen to people who have asked to speak at the hearing (see FAQ 20 ). The Court will also decide whether to approve payments of fees, expenses, and Service Awards.

No. Class Counsel will answer any questions the Court may have. However, you are welcome to come at your own expense. If you file an objection, you do not have to come to Court to talk about it. You may also hire your own lawyer to attend, at your own expense, but you are not required to do so.

Yes, you may ask the Court for permission to speak at the Final Approval Hearing. To do so, you must follow the instructions provided in Question 20 above. You cannot speak at the hearing if you exclude yourself from the Settlement.

If you do nothing, you will not receive any benefits from this Settlement. If the Court approves the Settlement, you will be bound by the Settlement Agreement and Release. This means you will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against the Defendants or the Released Parties about the issues resolved by this Settlement and released by the Settlement Agreement.

More details are in the Settlement Agreement, which is available on the Documents page of this website. You may also call 1-877-558-9511 or write to Builders Mutual Data Breach Settlement Administrator, P.O. Box 3259, Portland, OR 97208-3259.

Please do not call the Court or the Clerk of the Court for additional information. They cannot answer any questions regarding the Settlement or the Lawsuit.