Schellhorn et al. v. Timios, Inc.

The Court authorized a notice because you have a right to know about the proposed settlement in this Class Action lawsuit and about all of your options before the Court decides whether to give “Final Approval” to the settlement. The notice explains the legal rights and options that you may exercise before the Court decides whether to approve the settlement.

Judge Virginia A. Phillips of the United States District Court for the Central District of California is overseeing this case. The case is known as Schellhorn, et al. v. Timios, Inc., Case No.:2:21-cv-08661-VAP-JC. The people who sued are called the Plaintiffs. Timios, is called the Defendant.

The Plaintiffs in the lawsuit claim that Timios is responsible for the Data Incident that occurred and further allege that, as a result of the Data Incident, the criminals gained access to Plaintiffs’ and “other consumers[’]” personal information, including without limitation, “unredacted names, Social Security numbers, driver’s license or state-issued identification numbers, passport numbers, tax identification numbers, military identification numbers, financial account numbers, payment card numbers, and/or date of birth” (collectively, “PII”).  The lawsuit seeks compensation for people who had losses as a result of the Data Incident. 

Timios denies all of Plaintiffs’ claims and asserts that it did not do anything wrong. 

In a Class Action, one or more people called “Plaintiffs” sue on behalf of all people who have similar Claims. All of these people together are the “Settlement Class Members.” In this case, the Plaintiffs are Myron Schellhorn, Rodney Allen, Tedda Allen, Lauren Waters, Jeff Harrington, and David Thompson. From the onset of the Litigation, and over the course of several months, the Parties engaged in settlement negotiations.  As a result of these negotiation, the Parties reached a settlement, which is memorialized in the Settlement Agreement. 

By agreeing to settle, both sides avoid the cost and risk of a trial, and people who submit valid Claims will get compensation. The Representative Plaintiffs and their attorneys believe the settlement is fair, reasonable, and adequate and, thus, in the best interest of the Settlement Class and its members. The settlement does not mean that Timios did anything wrong.

The Settlement Class includes all persons to whom Timios mailed notice that between July 19, 2021 and July 25, 2021, Timios was the target of a cyberattack in which third-party criminals gained unauthorized access to Timios’ network, encrypted some of Timios’ systems, and may have gained unauthorized access to the personal information of consumers. 

Specifically excluded from the Settlement Class are: (i) Timios and its respective officers and directors; (ii) all members of the Settlement Class who timely and validly request exclusion from the Settlement Class; (iii) the Judge and Magistrate Judge assigned to evaluate the fairness of this settlement; 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 Data Incident or who pleads nolo contender to any such charge.

If you are not sure whether you are included in the settlement, or have any other questions related to the Settlement, you may: 

Call 1-833-620-3584

Write to: 

Schellhorn v. Timios, Inc. Settlement 

c/o Kroll Settlement Administration

PO Box 225391

New York, NY 10150-5391

Please do not contact the Court with questions. 

All members of the Settlement Class who submit a valid Claim using the Claim Form are eligible for 18 months of free identity-theft protection, called “Financial Shield” by Aura.  For members of the Settlement Class who opted to receive the one year of credit monitoring initially offered by Timios, the 18 months of “Financial Shield” shall be in addition to that year. 

The settlement will also provide payments to people who submit Valid Claims for expenses or time incurred as a result of the Data Incident. If for some reason you have not received unique Class Member ID information, but believe you are a Settlement Class Member, please call 1-833-620-3584 to verify your identity and receive further information on how to file a claim. 

In addition to the above benefits, California Settlement Subclass Members who submit a Valid Claim will also be eligible for an additional benefit of $50 each. 

Members of the Settlement Class seeking reimbursement must complete and submit a Claim Form to the Claims Administrator, postmarked or submitted online on or before September 7, 2022. This is the only way to get a payment or receive the free credit monitoring. 

Expense Reimbursement. All members of the Settlement Class who submit a Valid Claim using the Claim Form are eligible for the following documented out-of-pocket expenses, not to exceed $500 per member of the Settlement Class, that were incurred as a result of the Data Incident: (i) unreimbursed bank fees; (ii) unreimbursed card reissuance fees; (iii) unreimbursed overdraft fees; (iv) unreimbursed charges related to unavailability of funds; (v) unreimbursed late fees; (vi) unreimbursed over-limit fees; (vii) long distance telephone charges; (viii) cell minutes (if charged by minute), Internet usage charges (if charged by the minute or by the amount of data usage and incurred solely as a result of the Data Incident), and text messages (if charged by the message and incurred solely as a result of the Data Incident); (ix) unreimbursed charges from banks or credit card companies; (x) interest on payday loans due to card cancellation or due to over-limit situation incurred solely as a result of the Data Incident; (xi) costs of credit report(s), credit monitoring, and/or other identity theft insurance products purchased by members of the Settlement Class between October 11, 2021 and the date of the Claims Deadline; and  (xii) other losses incurred by Settlement Class Members determined by the Settlement Administrator to be fairly traceable to the Data Incident, including, but not limited to, the cost of postage and gas for local travel.  To receive reimbursement for any of the above-referenced out-of-pocket expenses, Settlement Class Members must submit (i) their name and current address; (ii) supporting documentation of such out-of-pocket expenses; and (iii) a description of the loss, if not readily apparent from the documentation.   

Lost Time. Members of the Settlement Class are also eligible to receive up to three hours of lost time spent dealing with issues arising out of the Data Incident (calculated at the rate of $20 per hour).  Members of the Settlement Class must attest on the Claim Form to the time spent.  No documentation other than a description of their actions shall be required for members of the Settlement Class to receive compensation for attested time.  Claims made for lost time can be combined with claims made for out-of-pocket expenses and, together with the out-of-pocket expenses, are subject to the $500 cap for each member of the Settlement Class. 

Extraordinary Expense Reimbursement. All members of the Settlement Class who have suffered a proven monetary loss and who submit a Valid Claim using the Claim Form are eligible for up to $3,000 if: (i) the loss is an actual, documented and unreimbursed monetary loss; (ii) the loss was more likely than not caused by the Data Incident; (iii) the loss occurred between July 19, 2021 and the Claims Deadline; and (iv) the loss is not already covered by one or more of the reimbursement categories listed in Expense Reimbursement; and the member of the Settlement Class 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.

Cash Payment for California Settlement Subclass Members. All California Settlement Subclass Members who submit a Valid Claim using the Claim Form shall be eligible to receive a payment of $50 provided that the California Settlement Subclass Member attests, under oath, that he or she was a resident of the State of California at some point between July 19, 2021 and July 25, 2021.  This additional amount can be combined with a claim for reimbursement for lost time and for out-of-pocket losses under Expense reimbursement and can be combined (if applicable) with reimbursement for losses under extraordinary expense reimbursement.  All claims made under this shall be subject to the $500 per-Settlement-Class-Member cap on compensation for ordinary loss and lost time. 

Identity-Theft Protection. All members of the Settlement Class who submit a Valid Claim using the Claim Form are eligible for 18 months of free identity-theft protection, called “Financial Shield” by Aura.  For members of the Settlement Class who opted to receive the one year of credit monitoring initially offered by Timios, the 18 months of  “Financial Shield” shall be in addition to that year. Financial Shield includes additional benefits, such as up to $1 Million Dollars of identity theft insurance and Dark Web Monitoring, among other benefits.  You must submit a Claim Form to obtain Identity-Theft Protection. After you submit the claim form, if the Court approves the Settlement, you will receive an email with instructions to enroll in the Aura “Financial Shield” program. 

To get a payment from the settlement, you must complete a Claim Form. Please read the instructions carefully, fill out the Claim Form, provide reasonable documentation (where applicable), and submit it online or mail it postmarked no later than September 7, 2022 to: 

Schellhorn v. Timios, Inc. Settlement
c/o Kroll Settlement Administration
PO Box 225391
New York, NY 10150-5391

You may submit a Claim online or download a copy here, or you may request one by mail by calling 1-833-620-3584.

The Claims Administrator will initially decide whether the information provided on a Claim Form is complete and valid. The Claims Administrator may request additional information from any claimant. If the required information is not provided timely, the Claim will be considered invalid and will not be paid. 

If the Claim is complete and the Claims Administrator denies the Claim entirely or partially, the claimant will be provided an opportunity to have their claim reviewed by an impartial claims referee selected by the parties. 

You do not have to do anything to remain in the settlement, but if you want a payment, you must submit a Claim Form postmarked by September 7, 2022.

By not timely opting-out of the class, all of the Court’s orders will apply to you, and you give Timios a “Release.”  A Release means you cannot sue or be part of any other lawsuit against Timios about the claims or issues in this lawsuit (relating to the Data Incident), and you will be bound by the settlement.  The specific claims you are giving up against Timios and related persons or entities are called “Released Claims.”  The Released Claims are defined in Section 1.22 and described in Section 6 of the Settlement Agreement, which is available under the documents page or by clicking here. The Settlement Agreement describes the Released Claims with specific and accurate legal descriptions, so read it carefully. 

No. If you exclude yourself, you will not be entitled to any benefits of the settlement. You will also not be bound by any judgment in this case.

No. Unless you exclude yourself, you give up any right to sue Timios 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 to ask for a payment.

To exclude yourself, send a letter that says you want to be excluded from the settlement in, Schellhorn, et al. v. Timios, Inc., Case No. 2:21-cv-08661-VAP-JC (C.D. Cal.) (“Exclusion Request”). Include your name, address, and signature. You must mail your Exclusion Request postmarked by August 8, 2022 to: 

Schellhorn v. Timios, Inc. Settlement 

c/o Kroll Settlement Administration

PO Box 225391

New York, NY 10150-5391

Yes. The Court appointed the following lawyer as Proposed Settlement Class Counsel: M. Anderson Berry of Clayeo C. Arnold, A Professional Law Corp. 

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. 

Proposed Settlement Class Counsel will seek, and Timios has agreed not to oppose, an order from the Court awarding $215,000.00 to Proposed Settlement Class Counsel for attorneys’ fees, inclusive of any costs and expenses of the Litigation.  Proposed Settlement Class Counsel, in their sole discretion, shall allocate and distribute the amount of attorneys’ fees, costs, and expenses awarded by the Court among Plaintiffs’ Counsel. 

You can object to the settlement if you do not like it or some part of it. The Court will consider your views. To do so, you must file a written objection.

Your objection must include all of the following information: (i) the objector’s full name and address;  (ii) the case name and docket number - Schellhorn, et al. v. Timios, Inc., Case No. 2:21-cv-08661-VAP-JC (C.D. Cal.); (iii) information identifying the objector as a Settlement Class Member, including proof that the objector is a member of the Settlement Class (e.g., copy of the objector’s settlement notice, copy of original notice of the Data Incident, or a statement explaining why the objector believes he or she is a Settlement Class Member); (iv) a written statement of all grounds for the objection, accompanied by any legal support for the objection the objector believes applicable; (v) the identity of any and all counsel representing the objector in connection with the objection; (vi) a statement whether the objector and/or his or her counsel will appear at the Final Fairness Hearing; and (vii) the objector’s signature or the signature of the objector’s duly authorized attorney or other duly authorized representative (if any) representing him or her in connection with the objection.

Your written notice of an objection, in the appropriate form, must be mailed, postmarked by August 8, 2022 and sent to the following addresses: 

Schellhorn v. Timios, Inc. Settlement
c/o Kroll Settlement Administration
PO Box 225391
New York, NY 10150-5391

Objecting is telling the Court that you do not like the settlement and why you do not think it should be approved. You can object only if you do not exclude yourself from the Settlement Class. Excluding yourself is telling the Court that you do not 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 will hold a Final Approval Hearing on October 17, 2022 at 2:00 p.m. to consider whether to approve the settlement. The Court will hear any objections, determine if the Settlement is fair, and consider Proposed Settlement Class Counsel’s request for fees and expenses of up to $215,000 and an incentive award for the two Plaintiffs of $2,500.00. The hearing will be held either in person at First Street Courthouse, 6th Floor, 350 West 1st Street, Los Angeles, CA 90012, via zoom, or telephonically.  Instructions on how to attend the Final Approval Hearing will be available on this website. You may attend the Final Approval Hearing and ask to be heard by the Court, but you do not have to. Class Counsel’s request for attorneys’ fees and costs will be posted on the website after they are filed with the Court. 

No. Proposed Settlement Class Counsel will present the Settlement Agreement to the Court. You or your own lawyer are welcome to attend at your expense, but you are not required to do so. If you send an objection, you do not have to come to the Court to talk about it. As long as you filed your written objection on time with the Court and mailed it according to the instructions provided in Question 18, the Court will consider it. 

You may ask the Court for permission to speak at the Fairness Hearing. To do so, you must file an objection according to the instructions in Question 18, including all the information required.

Your Objection must be either (1) mailed, with a postmark date no later than August 8, 2022, to Proposed Settlement Class Counsel, M. Anderson Berry, Clayeo C. Arnold, A Professional Law Corp., 865 Howe Avenue, Sacramento, CA 95825; and counsel for Timios, Casie D. Collignon, Baker & Hostetler, LLP, 1801 California Street, Suite 4400, Denver, Colorado 80202-2662; or (2) filed with the Court no later than August 8, 2022, through the Court’s ECF system, with service on Proposed Settlement Class Counsel and Timios’ counsel made through the ECF system. 

If you do nothing, you will get no monetary benefits from this settlement. Once the settlement is granted Final Approval and the judgment becomes final, you will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against Timios about the legal issues in this case, ever again.

You must exclude yourself from the settlement if you want to retain the right to sue Timios for the Claims resolved by this settlement. 

This website only provides a summary of the proposed settlement. Complete details about the settlement can be found in the Settlement Agreement.

You may  write to:

Schellhorn v. Timios, Inc. Settlement
c/o Kroll Settlement Administration
PO Box 225391
New York, NY 10150-5391

Call the toll-free number 1-833-620-3584

PLEASE DO NOT CALL THE COURT OR THE JUDGE WITH QUESTIONS ABOUT THE SETTLEMENT OR CLAIMS PROCESS.