Frequently Asked Questions

BASIC INFORMATION

1. HOW DO I KNOW IF I AM AFFECTED BY THE ACTION AND SETTLEMENT?

You are a Settlement Class Member if you are living individual residing in the United States whose personal information was accessed or acquired in the Data Incident. Most Settlement Class Members were notified of the Data Incident by Paycom or a Paycom Customer between July 2023 and October 2023.

The Settlement Class specifically excludes: (i) all Settlement Class Members who timely and validly request exclusion from the Settlement Class; (ii) the Judge assigned to evaluate the fairness of this Settlement; and (iii) 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 Incident or who pleads nolo contendere to any such charge.

The Long-Form Notice explains the nature of the Action and claims being settled, your legal rights, and the benefits to the Settlement Class.

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2. WHAT IS THIS CASE ABOUT?

This case is known as Carmen Johnson v. Paycom Payroll, LLC, CJ-2023-4763 (“Action”), filed in the District Court of Oklahoma County, Oklahoma. The Persons who sued are called the “Plaintiffs” or “Class Representatives” and the company they sued, Paycom Payroll, LLC, (“Paycom”) is known as the “Defendant” in this case.

Plaintiffs filed a lawsuit against Defendant, individually, and on behalf of all others whose personal information accessed or acquired as a result of the Data Incident.

The Action alleges that, between May 28, 2023 and June 2, 2023, there was unauthorized access to or acquisition of the personal information of Plaintiffs’ and Settlement Class Members as a result of unauthorized access to the MOVEit Transfer application that Paycom used. Paycom utilized the MOVEit Transfer application for a limited set of secure file transfers supporting client services and other functions.

Defendant denies all claims asserted against it in the Action and denies all allegations of wrongdoing and liability.

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3. WHY IS THERE A SETTLEMENT?

The Parties agreed to settle the Action and all claims arising out of or related to the allegations or subject matter of the Second Amended Class Action Petition for the purpose of avoiding the burden, expense, risk, and uncertainty of continuing to litigate the Action. The Plaintiffs, Defendant, and their attorneys believe the proposed Settlement is fair, reasonable, and adequate and in the best interest of the Settlement Class. The Court did not decide in favor of the Plaintiffs or Defendant. Full details about the proposed Settlement are found in the Settlement Agreement available HERE.

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4. WHY IS THIS A CLASS ACTION?

In a class action, one or more people called “Class Representatives” sue on behalf of all people who have similar claims. All of these people together are the “Settlement Class” or “Settlement Class members.”

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5. HOW DO I KNOW IF I AM INCLUDED IN THE SETTLEMENT?

You are included in the Settlement Class if you are a living individual residing in the United States whose personal information was accessed or acquired in the Data Incident. Most Settlement Class Members were notified of the Data Incident by Paycom or a Paycom Customer between July 2023 and October 2023. If you are not sure whether you are included as a Settlement Class Member, or have any other questions about the Settlement, call toll free (844) 804-3284 or write to Paycom Data Settlement, Settlement Administrator, PO Box 25203, Santa Ana, CA 92799.

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THE SETTLEMENT BENEFITS

6. WHAT DOES THIS SETTLEMENT PROVIDE?

The proposed Settlement will provide the following benefits to Settlement Class Members:

Reimbursement for Out-of-Pocket Losses: Settlement Class Members who incurred documented Out-of-Pocket Losses fairly traceable to the Data Incident, including costs associated with freezing/unfreezing credit reports, credit monitoring or other mitigative costs, or other miscellaneous expenses incurred related to Out-of-Pocket Losses, such as notary, fax, postage, copying, or long-distance charges may seek reimbursement for such Losses up to $2,500.00 per person. The maximum combined reimbursement of Out-of-Pocket Losses and Time Spent (discussed below) is $2,500 per person.

Reimbursement for Time Spent: Settlement Class Members may make a claim for up to four hours at $25 per hour (for a total of $100) for attested-to Time Spent remedying identity theft or fraud, including misuse of personal information, credit monitoring or freezing credit reports, or other issues related to the Data Incident. The maximum combined reimbursement of Out-of-Pocket Losses and Time Spent is $2,500 per person.

Reimbursement for Extraordinary Losses: Settlement Class Members are also eligible for reimbursement for documented losses stemming from fraud or identity theft fairly traceable to the Data Incident, up to a maximum of $4,200.00 per person, provided the loss is (1) an actual, documented and unreimbursed monetary loss; (2) fairly traceable to the Data Incident; (3) occurred after the Data Incident and before the Claim Form Deadline; (4) not already covered by one or more of the ordinary loss categories, and (5) the Settlement Class Member 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.

Credit Monitoring Services: In addition to the cash payments described above, Settlement Class Members may also make a Claim for 3 years of Credit Monitoring Services, which shall include credit monitoring for one credit bureau, access to credit reports and identify theft insurance.

Alternative Cash Payment: In lieu of filing a claim for reimbursement of Out-of-Pocket Losses, reimbursement for Time Spent, reimbursement for Extraordinary Losses, and/or Credit Monitoring Services, Settlement Class Members may make a claim to receive an Alternative Cash Payment in the amount of $25.00 per person.

Claims will be subject to review for completeness and validity by the Settlement Administrator.

In the event that the amount of Valid Claims exhausts the amount of the Aggregate Cap for Settlement Class Member Benefits of $900,000, the amount of the Settlement Member payments will be reduced pro rata accordingly. For purposes of calculating the pro rata decrease, the Settlement Administrator must distribute the funds within the Aggregate Cap first for payment for Credit Monitoring and then for Out-of-Pocket Expenses, Extraordinary Losses, Time Spent, and Alternative Cash Payments. Any pro rata decreases to Cash Payments will be on an equal percentage basis. In the unexpected event that the value of Credit Monitoring on its own exhausts the amount of the Aggregate Cap, the length of the Credit Monitoring provided will be reduced as necessary to bring the cost within the Aggregate Cap. If a Settlement Class Member does not submit a Valid Claim, the Settlement Class Member Benefit.

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7. HOW DO I SUBMIT A CLAIM FORM?

You must submit a Claim online HERE or send a hard copy Claim Form to the Settlement Administrator at the following address: Paycom Data Settlement, Settlement Administrator, PO Box 25203, Santa Ana, CA 92799. All Claim Forms will be reviewed by the Settlement Administrator for completeness and validity. Claim Forms must be postmarked or submitted online no later than November 7, 2024.

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8. WHAT AM I GIVING UP AS PART OF THE SETTLEMENT?

If you stay in the Settlement Class, you will be eligible to receive the benefits outlined herein, but you will not be able to sue Paycom, nor any of its past, present, and future, direct or indirect, parent companies, partnerships, corporations, subsidiaries, affiliates, divisions, investors, employees, servants, agents, managers, members, providers, partners, principals, directors, shareholders, and owners, and all of its respective attorneys, heirs, executors, administrators, insurers, coinsurers, reinsurers, joint ventures, personal representatives, predecessors, successors, transferees, trustees, associates, and assigns, and includes, without limitation, any Person related to any such entity; nor will you be eligible to sue Paycom’s Customers nor any of their respective past, present, and future, direct or indirect, parent companies, partnerships, corporations, subsidiaries, affiliates, divisions, investors, employees, servants, agents, managers, members, providers, partners, principals, directors, shareholders, and owners, and all of its respective attorneys, heirs, executors, administrators, insurers, coinsurers, reinsurers, joint ventures, personal representatives, predecessors, successors, transferees, trustees, associates, and assigns, and includes, without limitation, any Person related to any such entity (collectively, “Released Parties”), regarding claims relating to the Data Incident.

Please note that companies other than Paycom similarly experienced data incidents relating to the MOVEit Transfer application at or around the same time as the Data Incident. By staying in the class, you will not be releasing any claims relating to such other data incidents. In addition, by staying in the class you will not be releasing any claims against Progress Software relating to the Data Incident.

The Settlement Agreement, which includes all provisions about Released Claims, releases, and Released Parties, is available at HERE.

The only way to keep the right to sue the Released Parties regarding the Data Incident is to opt-out of the Settlement (see Question 10), otherwise you will be included in the Settlement Class and, if the Settlement is approved, you give up the right to sue for these claims.

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9. WILL THE CLASS REPRESENTATIVES RECEIVE COMPENSATION?

Yes. If approved by the Court, the four Class Representatives may each receive a Service Award of up to $2,000, to compensate them for their services and efforts in bringing the Action. The Court will make the final decision as to the amount, if any, to be paid to the Class Representatives. The amount paid for Service Awards will not count toward the $900,000 Aggregate Cap on Settlement Cash Member Benefits.

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EXCLUDE YOURSELF

10. HOW DO I OPT-OUT OF THE SETTLEMENT?

If you do not want to be included in the Settlement, you must “opt-out” by sending a timely request to opt-out, stating your full name, address, and telephone number. Your request to opt-out must state that you want to be excluded from the Settlement in the Action and include your name, address, and original signature (or the original signature of a person authorized by law, such as a trustee, guardian, or person acting under a power of attorney to act on your behalf with respect to a claim or right such as those in the Action).

Your written Request to Opt-Out must be postmarked no later than November 7, 2024 to:

Paycom Data Settlement
Settlement Administrator
PO Box 25203
Santa Ana, CA 92799

Instructions on how to submit a request to opt-out are available at PaycomDataSettlement.com or from the Settlement Administrator by calling (844) 804-3284.

If you opt-out, you will not be able to receive any of the Settlement Class Member Benefits, and you cannot object to the Settlement at the Final Fairness Hearing. You will not be legally bound by anything that happens in the Action, and you will keep your right to sue Defendant on your own for the claims that this Settlement resolves.

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11. IF I DO NOT OPT-OUT, CAN I SUE LATER?

No. If you do not opt-out of the Settlement, and the Settlement is approved by the Court, you forever give up the right to sue the Released Parties (listed in Question 8) for the claims this Settlement resolves.

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12. WHAT HAPPENS IF I DO NOTHING AT ALL?

If you do nothing, you will be bound by the Settlement if the Court approves it, you will not get any money or reimbursement from the Settlement, you will not be able to start or proceed with a lawsuit against the Released Parties arising from the Data Incident, or be part of any other lawsuit against the Released Parties (listed in Question 8) related to the settled claims in this case at any time.

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THE LAWYERS REPRESENTING YOU

13. DO I HAVE A LAWYER IN THE CASE?

Yes. The Court has appointed William B. Federman and Kennedy M. Brian of Federman & Sherwood (called “Class Counsel”) to represent the interests of all Settlement Class Members in this case. 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.

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14. HOW WILL THE LAWYERS BE PAID?

On or before October 23, 2024, Class Counsel will file an application with the Court for attorneys’ fees, costs, and expenses and Class Representative service awards. Class Counsel will petition the Court for up to $275,000.00 in attorneys’ fees, costs, and expenses and up to $2,000 in service awards for each of the four Class Representatives. The amount paid for attorneys’ fees, costs, and expenses and for service awards will not count toward the $900,000 Aggregate Cap on Settlement Cash Member Benefits. A copy of the application will be posted on in the Important Documents page of the settlement website, after it is filed. The Court will make the final decision as to the amounts to be paid to Class Counsel and may award less than the amount requested by Class Counsel.

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OBJECTING TO THE SETTLEMENT

15. IF I DO NOT LIKE THE SETTLEMENT, HOW DO I TELL THE COURT?

If you want to tell the Court that you do not agree with the proposed Settlement or some part of it, you must file an Objection with the Court and serve it on Class Counsel, Paycom’s Counsel, and the Settlement Administrator by November 7, 2024, (the last day of the “Objection Period”) stating why you do not think the Settlement should be approved.

To be valid, each Objection must set forth the following:

  1. the objector’s full name, address, telephone number (if any), and email address (if any);
  2. information identifying the objector as a Settlement Class Member;
  3. a written statement of all grounds for the objection, accompanied by any legal support the objector cares to submit;
  4. the identity of all lawyers (if any) representing the objector;
  5. the identity of all of the objector’s lawyers (if any) who will appear at the Final Fairness Hearing;
  6. a list of all persons who will be called to testify at the Final Fairness Hearing in support of the objection;
  7. a statement confirming whether the objector intends to personally appear and/or testify at the Final Fairness Hearing;
  8. the objector’s signature or the signature of the objector’s duly authorized lawyer or other duly authorized representative;
  9. a list, by case name, court, and docket number, of all other cases in which the objector (directly or through a lawyer) has filed an objection to any proposed class action settlement within the last three (3) years; and
  10. a list, by case number, court, and docket number, of all other cases in which the objector has been a named plaintiff in any class action or served as a lead plaintiff or class representative.

Class Counsel and/or Defendant’s Counsel may conduct limited discovery on any objector or objector’s counsel.

Your objection must be filed with the Clerk of Court by November 7, 2024 (the last day of the “Objection Period”), and must also include the case name and docket number Carmen Johnson v. Paycom Payroll, LLC, Case No. CJ-2023-4763 (“Action”). It gets filed in District Court of Oklahoma County, Oklahoma. The address of the Clerk of Court is as follows:

Clerk of Court,
District Court of Oklahoma County, Oklahoma
321 Park Ave.
Oklahoma City, OK 73102

In addition, you must concurrently mail or hand deliver a copy of your objection to Class Counsel, Paycom’s Counsel and the Settlement Administrator, mailed and postmarked no later than November 7, 2024:

CLASS COUNSEL
PAYCOM’S COUNSEL
SETTLEMENT ADMINISTRATOR

William B. Federman
Kennedy M. Brian
FEDERMAN & SHERWOOD
10205 N. Pennsylvania Avenue
Oklahoma City, OK 73120

Michelle L. Visser
ORRICK, HERRINGTON & SUTCLIFFE LLP
405 Howard Street
San Francisco, CA 94105
mvisser@orrick.com

Paycom Data Settlement
Settlement Administrator
PO Box 25203
Santa Ana, CA 92799

If you do not submit your objection with all requirements, or if your objection is not timely submitted by November 7, 2024, you will be considered to have waived all objections and will not be entitled to speak at the Final Fairness Hearing.

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16. WHAT IS THE DIFFERENCE BETWEEN OBJECTING AND ASKING TO BE EXCLUDED?

Objecting is simply telling the Court that you don’t like something about the Settlement. You can object only if you stay in the Settlement Class. Opting-out is telling the Court that you don’t want to be part of the Settlement Class. If you opt-out you have no basis to object because the Settlement no longer affects you.

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17. WHEN AND WHERE WILL THE COURT DECIDE WHETHER TO APPROVE THE SETTLEMENT?

The Court will hold the Final Fairness Hearing on December 13, 2024, at 9:00 a.m. CT in Courtroom 315, of the District Court of Oklahoma County, Oklahoma, 321 Park Ave, Oklahoma City, OK 73102. The hearing may be moved to a different date, time, or location without additional notice, so it is recommended that you periodically check the website for updated information.

At the hearing, the Court will consider whether the proposed Settlement is fair, reasonable, adequate, and is in the best interests of the Settlement Class Members, and if it should be Finally approved. If there are valid objections, the Court will consider them and will listen to people who have asked to speak at the hearing if the request was made properly. The Court will also consider the attorneys’ fees and costs requested to be paid to Class Counsel, as well as the request for a Service Award to the Class Representatives.

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18. DO I HAVE TO COME TO THE HEARING?

No. You are not required to come to the Final Fairness Hearing. However, you are welcome to attend the hearing at your own expense.

If you submit an objection, you do not have to come to the hearing to talk about it. If your objection was submitted properly and on time, the Court will consider it. You also may pay your own lawyer to attend the Final Fairness Hearing, but that is not necessary. However, you must follow the requirements for making objections in Question 15, including the requirements for making appearances at the hearing.

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19. MAY I SPEAK AT THE HEARING?

Yes. You can speak at the Final Fairness Hearing, but you must ask the Court for permission. To request permission to speak, you must file an objection according to the instructions in Question 15, including all the information required for you to make an appearance at the hearing. You cannot speak at the hearing if you opt-out from the Settlement.

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GET MORE INFORMATION

20. HOW DO I GET MORE INFORMATION ABOUT THE SETTLEMENT?

This is only a summary of the proposed Settlement. If you want additional information about this Action, including a copy of the Settlement Agreement, the Complaint, the Court’s Preliminary Approval Order, Class Counsel’s Application for Attorneys’ Fees, Costs, and Service Awards for Class Representatives when available, and more, you may contact the Settlement Administrator at Paycom Data Settlement, Settlement Administrator, PO Box 25203, Santa Ana, CA 92799 or by email at info@paycomdatasettlement.com.


PLEASE DO NOT ADDRESS ANY QUESTIONS ABOUT THE SETTLEMENT OR ACTION TO THE CLERK OF THE COURT, THE JUDGE, DEFENDANT, OR PAYCOM’S COUNSEL.

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