1. Why was the Notice issued?
2. What is the Lawsuit about?
3. Why is the Lawsuit a class action?
4. Why is there a settlement?
5. Who is in the Settlement Class?
6. What are the terms of the Settlement?
7. What claims are Settlement Class Members giving up under the Settlement?
8. What kind of payments can Settlement Class Members receive?
9. What is the Cash Payment?
10. What is Reimbursement for Ordinary Out-of-Pocket Losses?
11. What is Reimbursement for Extraordinary Losses and Attested Time?
12. When and how will the amount of settlement payments be adjusted?
13. What happens after all claims are processed and there are funds remaining?
14. If I am a Settlement Class Member, what options do I have?
15. What happens if I do nothing?
16. How do I submit a claim?
17. Who decides my Settlement claim and how do they do it?
18. How do I exclude myself from the Settlement?
19. If I exclude myself, can I receive any payment from this settlement?
20. If I do not exclude myself, can I sue Defendant for the Data Incident later?
21. How do I object to the Settlement?
22. How, when and where will the Court decide whether to approve the Settlement?
23. Do I have to attend the hearing?
24. What happens if the Court approves the settlement?
25. What happens if the Court does not approve the settlement?
26. Who represents the Settlement Class?
27. How will the lawyers for the Settlement Class be paid?
28. Who represents the Settlement Class?
29. What if I want further information or have questions?
Settlement Class Members may be eligible to receive payment from a proposed settlement of the 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 Settlement Class Members have in connection with the settlement.
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The Lawsuit is a proposed class action lawsuit brought on behalf of certain individuals whose W-2 forms were acquired by unauthorized individuals as part of the Data Incident. The affected information may include names and Social Security numbers.
The Lawsuit claims Defendant is legally responsible for the Data Incident and asserts various legal claims, including negligence and breach of implied contract. Defendant denies these claims and denies any and all wrongdoing.
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In a class action, one or more representative plaintiffs bring a lawsuit on behalf of others who have similar claims. Together, all of these people are the “class” and each individually is a “class member.” There is one Representative Plaintiff in this case: Shelby Carson. The class in this case is referred to in the Notice as the “Settlement Class.”
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The Court did not decide in favor of the Plaintiff or the Defendant. Plaintiff and the Defendant have agreed to a Settlement to avoid the costs and risks of a trial, and to allow the Class Members to receive benefits from the Settlement. The Plaintiff and their attorneys think the Settlement is best for all Class Members.
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The Settlement Class is defined by the Court as all individual U.S. residents to whom Pathways sent written notification of the February 7, 2023, Data Incident. Excluded from the Settlement Class are: (1) the Judge and Magistrate Judge presiding over the Lawsuits, any members of the Judges’ respective staffs, and immediate members of the Judges’ respective families; (2) officers, directors, members and shareholders of Defendant; (3) persons who timely and validly request exclusion from and/or opt-out of the Settlement Class and the successors and assigns of any such excluded persons; and (4) any person found by a court of competent jurisdiction to be guilty under criminal law of initiating, causing, aiding or abetting the criminal activity or occurrence of the Data Incident or who pleads nolo contendere to any such charge.
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The proposed Settlement would create a Settlement Fund of $285,000.00 that would be used to pay all costs of the settlement, including: (i) payments to Settlement Class Members who submit valid claims, (ii) costs of administration and notice (approximately $12,730.00), (iii) any attorneys’ fees (up to $100,000.00) and/or litigation costs and expenses (up to $10,000.00) awarded by the Court to Class Counsel, and (v) a service award to the Representative Plaintiff awarded by the Court (up to $2,500.00). The settlement also releases all claims or potential claims of Settlement Class Members against Defendant arising from or related to the Data Incident, as detailed in the Class Settlement Agreement and Release.
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Settlement Class Members who do not validly exclude themselves from the Settlement will be bound by the Class Settlement Agreement and Release and any final judgment entered by the Court, and will give up their right to sue Defendant and other Released Persons (as defined in the Settlement Agreement) for the claims being resolved by the settlement, including all claims or potential claims of Settlement Class Members against Defendant and other Released Persons arising from or related to the Data Incident.
The claims that Settlement Class Members are releasing are described in Section 6.1 of the Class Action Settlement Agreement and Release and the persons and entities being released from those claims are described in Sections 1.22 and 1.23 of the Class Action Settlement Agreement and Release. Section 9.1 of the Class Settlement Agreement and Release explains when such releases will occur.
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Settlement Class Members who submit valid claims and any required documentation may receive one or more of the following, to be paid from the Settlement Fund:
A Cash Payment. If there are funds remaining in the Settlement Fund after payment of Approved Claims for Credit Monitoring Services, Approved Claims for Ordinary Out-of-Pocket Losses, Approved Claims for Extraordinary Out-of-Pocket Losses and Attested Time, costs of notice and administration, a service award approved by the Court, and attorney’s fees and expenses approved by the Court (“the Remainder”), the Remainder will be paid pro rata to each Settlement Class Member. The amount of the Cash Payments will be calculated by dividing the Remainder by the number of Settlement Class Members,
One year of one bureau Credit Monitoring Services,
Reimbursement of Ordinary Out-of-Pocket Losses up to $500 per individual for unreimbursed costs or expenditures incurred by a Settlement Class Member in responding to notice of the Data Incident that were incurred between February 7, 2023 (or the earliest verifiable date the Data Incident occurred) and the Claims Deadline, as result of the Data Incident,
Reimbursement of Extraordinary Losses up to $2,500 per individual for proven monetary losses incurred by a Settlement Class member that are more likely than not caused by the Data Incident and are losses that are not already covered by one or more of the normal reimbursement categories, and/or
Whether or not they incurred Ordinary or Extraordinary Out-of-Pocket Losses, Settlement Class Members may also submit a claim for up to 5 hours of time spent remedying issues related to the Data Incident at a rate of $30 per hour, but only if at least 1 full hour was spent. This relief is available only for time spent as a result of identity theft or identity fraud, falsified tax returns, or other possible misuse of the Settlement Class member’s personal information. Settlement Class Members must provide an attestation and a brief description of (1) the actions taken in response to the Data Incident and (2) the time associated with each action (“Attested Time”). Reimbursement for Attested Time is included in the total of up to $2,500 per person for Out-of-Pocket Losses.
Depending on how many valid claims are submitted, the amounts of the reimbursements, Attested Time payments, and Cash Payments will be adjusted upward or downward proportionally among Settlement Class Members submitting valid claims, as explained further below in FAQ 12.
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Every Settlement Class Member is eligible to receive a Cash Payment, regardless of whether he or she experienced any unauthorized charges or identifiable losses related to the Data Incident. Settlement Class Members seeking a Cash Payment must provide the information required on the Claim Form. The Cash Payment is subject to upward or downward adjustment as described below in FAQ 12.
Eligibility for any award, including the Cash Payment, is within the discretion of the Claims Administrator.
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All Settlement Class members may submit a claim for Ordinary Out-of-Pocket Losses up to $500 per individual. “Ordinary Out-of-Pocket Losses” are unreimbursed costs or expenditures incurred by a Class member in responding to notice of the Data Incident that were incurred between February 7, 2023 (or the earliest verifiable date the Data Incident occurred) and the Claims Deadline, as result of the Data Incident.
Settlement Class Members who elect to submit a claim for reimbursement of Ordinary Out-of-Pocket Losses must provide to the Settlement Administrator the information required to evaluate the claim, including: (1) the Settlement Class Member’s name and current address; (2) documentation supporting their claim; and (3) a brief description of the documentation describing the nature of the loss, if the nature of the loss is not apparent from the documentation alone.
Documentation supporting Ordinary Out-of-Pocket Losses can include receipts or other documentation not “self-prepared” by the Settlement Class member that documents the costs incurred. “Self-prepared” documents such as handwritten receipts are, by themselves, insufficient to receive reimbursement, but can be considered to add clarity to or support other submitted documentation.
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In addition to submitting a claim for Ordinary Out-of-Pocket Losses, Settlement Class Members who believe they have suffered identity theft, fraud, or other extraordinary losses may submit a claim for Extraordinary Out-of-Pocket Losses up to $2,500 per individual.
“Extraordinary Out-of-Pocket Losses” are proven monetary losses incurred by a Settlement Class member that are more likely than not caused by the Data Incident and are losses that are not already covered by one or more of the normal reimbursement categories.
Extraordinary Out-of-Pocket Losses are actual, documented, and unreimbursed costs, expenses, losses or charges incurred a result of identity theft or identity fraud, falsified tax returns, or other possible misuse of the Settlement Class member’s personal information.
The loss must have occurred between February 7, 2023 (or the earliest verifiable date the Data Incident occurred) and the Claims Deadline. The Settlement Class Member must have 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.
The Settlement Class Member must have 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.
Settlement Class Members who elect to submit a claim for reimbursement of Extraordinary Out-of-Pocket Losses must provide to the Settlement Administrator the information required to evaluate the claim, including: (1) the Settlement Class member’s name and current address; (2) documentation supporting their claim; and (3) a brief description of the documentation describing the nature of the loss, if the nature of the loss is not apparent from the documentation alone.
Documentation supporting Extraordinary Out-of-Pocket Losses can include receipts or other documentation not “self-prepared” by the Settlement Class member that documents the costs incurred. “Self-prepared” documents such as handwritten receipts are, by themselves, insufficient to receive reimbursement, but can be considered to add clarity to or support other submitted documentation.
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If the aggregate amount of Approved Claims for Ordinary Out-of-Pocket Losses and Approved Claims for Extraordinary Out-of-Pocket Losses and Attested Time exceeds the remaining amount of the Settlement Fund after payment of Approved Claims for Credit Monitoring Services, notice and administration costs, a service award payment approved by the Court, and attorneys’ fees and expenses approved by the Court, Approved Claims for Ordinary Out-of-Pocket Losses and Approved Claims for Extraordinary Out-of-Pocket Losses and Attested Time will be decreased pro rata to consume the remaining amount of the Settlement Fund.
If there are funds remaining in the Settlement Fund after payment of Approved Claims for Credit Monitoring Services, Approved Claims for Ordinary Out-of-Pocket Losses, Approved Claims for Extraordinary Out-of-Pocket Losses and Attested Time, costs of notice and administration, a service award approved by the Court, and attorney’s fees and expenses approved by the Court (“the Remainder”), the Remainder will be paid pro rata to each Settlement Class Member. The amount of the Residual Cash Payments will be calculated by dividing the Remainder by the number of Settlement Class Members.
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If there are any funds remaining after all valid claims are processed and the time to cash any payment checks has passed, those funds shall be distributed as directed by the Court, including potential distribution to a charitable organization. No remaining funds will be returned to Defendant.
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If you are a Settlement Class Member, you do not have to do anything to remain in the settlement. However, if you wish to seek an award under the settlement, you must complete and submit a Claim Form postmarked or submitted online, available here, by September 11, 2025.
If you do not want to give up your right to sue Defendant about Data Incident or the issues raised in this case, you must exclude yourself (or “opt out”) from the Settlement Class. See FAQ 18 below for instructions on how to exclude yourself.
If you wish to 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 submit a written objection. See FAQ 21 below for instructions on how to submit an objection.
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If you do nothing, you will get no award 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 Defendant and other Released Persons related to the claims released by the settlement.
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You may complete the Claim Form online by clicking here. You may also obtain a paper Claim Form by downloading it here or by calling the Claims Administrator at 1-833-360-6790. If you choose to complete a paper Claim Form, you may either submit the completed and signed Claim Form and any supporting materials electronically via email or by mail to:
Pathways, Inc. Data Incident Litigation
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799
info@PathwaysDataIncident.com
If you do not wish to make a Claim for Reimbursement of Ordinary Out-of-Pocket Losses or Reimbursement of Extraordinary Losses, but you do wish to make a claim for a Cash Payment, Credit Monitoring Services, and/or Extraordinary Attested Time, you may fill out and return the “tear off” claim form attached to the mailed notice of this Settlement, for which the postage is prepaid.
Claim Forms must be postmarked or submitted online by September 11, 2025.
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The Claims Administrator will decide whether a Claim Form is complete and valid and includes all required documentation. The Claims Administrator may require additional information from any claimant. Failure to timely provide all required information will invalidate a claim and it will not be paid.
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To opt out of the Settlement you must make a signed, written request that (i) says you wish to exclude yourself from the Settlement Class in this Lawsuit, and (ii) includes your name, address and phone number. You must submit your request either online by clicking here or mail your request to this address:
Pathways, Inc. Data Incident Litigation
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799
Your request must be submitted online or postmarked by August 12, 2025.
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No. If you exclude yourself, you will not be entitled to any award. However, you will also not be bound by any judgment in this Lawsuit.
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No. Unless you exclude yourself, you give up any right to sue Defendant and other Released Persons 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.
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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. If that is what you want to happen, you must object.
Any objection to the proposed Settlement must be in writing and it, along with any supporting papers, must be mailed to the Clerk of the Court, Settlement Class Counsel and Defendant’s Counsel, at the mailing addresses listed below. Your objection must be filed or postmarked no later than the objection deadline, August 12, 2025.
Court | Defendant’s Counsel |
Office of Circuit Court Clerk | Amanda N. Harvey |
Settlement Class Counsel | |
Patrick A. Barthle II | Ryan D. Maxey |
To be considered by the Court, your objection must list all of the following information: (i) the name of the Lawsuit: Carson v. Pathways, Inc., No. 24-CI-00218 (Boyd Circuit Court, Kentucky); (ii) the objector’s full name, address, telephone number, and e-mail address (if any); (iii) information identifying the objector as a Settlement Class Member, including proof that the objector is a member of the Settlement Class; (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 all counsel representing the objector; (vi) a statement whether the objector and/or his or her counsel will appear at the Final Fairness Hearing; (vii) a statement identifying all class action settlements objected to by the objector in the previous 5 years; and (viii) the objector’s signature and the signature of the objector’s duly authorized attorney or other duly authorized representative, if any.
If you submit a timely written objection, you may, but are not required to, appear at the Final Approval Hearing, either in person or through your own attorney. If you appear through your own attorney, you are responsible for hiring and paying that attorney.
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The Court will hold a Final Approval Hearing to decide whether to approve the Settlement. That hearing is scheduled for January 7, 2026, at 9:00 a.m. at the Boyd County Judicial Center, 2805 Louisa Street, Catlettsburg, KY 41129-0688. Please visit the Court’s website at https://www.casd.uscourts.gov for current information regarding courthouse access and court hearings. 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 and costs, and the request for a service award for the Representative Plaintiff. 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 or the Court’s website at https://www.kycourts.gov/Courts/County-Information/Pages/Boyd.aspx to confirm the schedule if you wish to attend.
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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 in order to make an objection; the Court will consider any written objections properly submitted according to the instructions in FAQ 21. You or your own lawyer are welcome to attend the hearing at your expense but are not required to do so.
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If the Court approves the settlement and no appeal is taken, the Settlement Fund will be fully funded. The Claims Administrator will pay any attorney fees and costs award and any Representative Plaintiff’s service award from the Settlement Fund. Then, within the later of 60 days after the Effective Date or 30 days after all disputed claims have been resolved, the Claims Administrator will send settlement payments to Settlement Class Members who submitted timely and valid Settlement Claims.
If any appeal is taken, it is possible the settlement could be disapproved on appeal.
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If the Court does not approve the settlement, no Settlement Fund will be created, there will be no settlement payments to Settlement Class Members, Settlement Class Counsel or the Representative Plaintiff, and the case will proceed as if no settlement had been attempted.
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The Court has appointed the following Class Counsel to represent the Settlement Class in this Lawsuit:
Patrick A. Barthle II | Ryan D. Maxey |
Settlement Class Members will not be charged for the services of Settlement Class Counsel; Settlement Class Counsel will be paid out of the Settlement Fund, subject to Court approval. However, you may hire your own attorney at your own cost to advise you in this matter or represent you in making an objection or appearing at the Final Approval Hearing.
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Settlement Class Counsel will request the Court’s approval of an award for attorneys’ fees up to $100,000.00, plus reasonable costs and expenses (up to $10,000.00), which shall be paid from the Settlement Fund. Settlement Class Counsel will also request approval of a service award of $2,500.00 to the Representative Plaintiff, which shall also be paid from the Settlement Fund.
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Defendant is represented by the following lawyers:
Amanda N. Harvey |
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This website and the Notice summarize the proposed settlement. For the precise terms and conditions of the Settlement, please see the Class Action Settlement Agreement and Release, along with other case related documents, available in the Important Documents page of this website. You may also contact Settlement Class Counsel at the phone numbers provided in FAQ 26 above or by visiting the Office of Circuit Court Clerk, Boyd County Judicial Center, 2805 Louisa Street, Catlettsburg, KY 41129-0688 between 8:00 a.m. and 5:00 p.m., Monday through Friday, excluding Court holidays.
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