1. Why was the Notice issued?
2. What is this lawsuit about?
3. What is a class action?
4. Why is there a settlement?
5. Who is included in the Settlement?
6. Are there exceptions to being included?
7. What does the Settlement provide?
8. What claims am I releasing if I stay in the Class?
9. How do I submit a claim for a Settlement benefit?
10. Are there any important Settlement payment deadlines?
11. When will the Settlement benefits be issued?
12. Do I have a lawyer in the case?
13. Should I get my own lawyer?
14. How will Class Counsel be paid?
15. How do I opt out of the Settlement?
16. How do I tell the Court if I like or do not like the Settlement?
17. What is the difference between objecting and excluding?
18. When is the Court's Final Approval Hearing?
19. Do I have to come to the Final Approval Hearing?
20. What happens if I do nothing at all?
21. How do I get more information?
The Court presiding over the Litigation authorized the Notice. You have a right to know about the proposed Settlement of this class action lawsuit, and about all of your options, before the Court decides whether to grant final approval of the Settlement. The Notice explains the lawsuit, your legal rights, what benefits are available, and who can receive them.
The lawsuit is called In re Carolina Arthritis Associates Data Incident Litigation, Case No. 25-CV002250-640. It is pending in the General Court of Justice, Superior Court Division, New Hanover County, North Carolina. The people that filed this lawsuit are called the "Plaintiffs" (or "Class Representatives") and the company they sued, Carolina Arthritis Associates, P.A., is called the "Defendant."
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This lawsuit alleges that during a September 2024 cyberattack on CAA's computer systems, certain files that contained private information were accessed. These files may have contained personal information such as name; date of birth; Social Security number; diagnosis or clinical information; medical history; mental or physical condition information; prescription information; medical treatment or procedure information; health insurance information, and/or medical claim forms and information.
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In a class action, one or more individuals sue on behalf of other people with similar claims. These individuals are called the "Plaintiffs" or "Class Representatives." Together, the people included in the class action are called a "Class" or "Class Members." One court resolves the lawsuit for all Class Members, except for those who opt out from the settlement. In this Settlement, the Class Representatives are Donna Johnson, April Jenkins, Ronald Lewis, and Bernest Hewett. Everyone included in this Action are the Class Members.
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The Court did not decide whether the Plaintiffs or the Defendant are right. Both sides 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 Plaintiffs and their attorneys think the Settlement is best for all Class Members.
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The Court has defined the Class this way: "All individuals whose Private Information was accessed and/or acquired by an unauthorized party as a result of the Data Incident."
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Yes. Excluded from the Class are: (1) CAA and its directors or officers; (2) governmental entities; (3) the Judge in this case, and the Judge's family and staff; and (4) anyone who validly excludes themselves from the Settlement.
If you are not sure whether you are a Class Member, you can ask for free help any time by contacting the Settlement Administrator at:
CAA Data Incident Settlement
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799-9958
(833) 417-4969
info@CAADataSettlement.com
You may also review the Settlement Agreement.
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CAA will establish a Settlement Fund of $600,000.00. The Settlement Fund will first be used to pay Court-approved Attorneys' Fees and Costs, Service Award payments for the Plaintiffs, and Settlement Administration Costs. The net remaining money will be used to pay for Class Member benefits.
All Class Members may claim two years of Medical Data Monitoring services, and one of two Cash Payment options. The benefits are explained in more detail below.
Medical Data Monitoring Services. All Class Members are eligible to enroll in two years of CyEx Medical Shield Complete . This comprehensive service comes with $1 million of medical identity theft insurance, and includes monitoring for:
healthcare insurance ID exposure
Medical Record Number (MRN) exposure
unauthorized Health Savings Account (HSA) spending
If anything suspicious happens, you will be able to talk to a fraud resolution agent to help fix any problems.
Cash Payments
Cash Payment A – Documented Losses. If you incurred actual, documented out-of-pocket losses due to the Data Incident, you can get back up to $5,000.00. The losses must have occurred between September 27, 2024 , and February 23, 2026 .
This benefit covers out-of-pocket expenses like:
losses because of identity theft or fraud
fees for credit reports, credit monitoring, or freezing and unfreezing your credit
cost to replace your IDs
postage to contact banks by mail
You need to send proof, like bank statements or receipts, to show how much you spent or lost. You can also send notes or papers you made yourself to explain or support other proof, but those notes or papers alone are not enough to make a valid claim. Your proof or notes should show that your expenses were because of the Data Incident.
You cannot claim a payment for expenses that have already been reimbursed by a third party.
Cash Payment B – Alternate Cash. Instead of Cash Payment A, you may claim a pro rata cash payment estimated at $100.00. You do not have to provide any proof or explanation to claim this payment.
The actual amount of your Cash Payment (A or B) will be determined based on the amount remaining in the Settlement Fund, if any, after the payment of Medical Monitoring. The amount may increase or decrease and will be pro rata based upon the total value of all Valid Claims received.
Business Practices Enhancements. Also, as part of the Settlement, CAA acknowledges that it has implemented business practice enhancements intended to improve the security of its systems and protect against future incidents, including 24/7/365 endpoint detection monitoring; multifactor authentication on all workstations and computers with remote access; additional security awareness training to all employees; upgrading its fiber modem; and decommissioning a secondary server containing old files. CAA has borne the costs of these Business Practice Improvements separate and apart from the Settlement Fund and agrees that they benefit the Settlement Class.
If you have questions about these benefits, you can ask for free help any time by contacting the Settlement Administrator at:
CAA Data Incident Settlement
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799-9958
(833) 417-4969
info@CAADataSettlement.com
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If you stay in the class, you won’t be able to be part of any other lawsuit against CAA about the issues that this Settlement covers. The “Releases” section of the Settlement Agreement (Section XIII) describes the legal claims that you give up if you remain in the Class.
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The fastest way to submit your Claim Form is online here. If you prefer, you can download a printable Claim Form here and mail it to the Settlement Administrator at:
CAA Data Incident Settlement
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799-9958
You may also contact the Settlement Administrator to request a Claim Form by telephone, toll free, (833) 417-4969, by email info@CAADataSettlement.com, or by U.S. mail at the address above.
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If you are submitting a Claim Form online, you must do so by February 23, 2026. If you are submitting a claim by U.S. mail, the completed and signed Claim Form, including supporting documentation, must be postmarked no later than February 23, 2026.
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The Court will hold a final approval hearing on March 10, 2026, at 10:00 a.m. (see Question 18). If the Court approves the Settlement, there may be appeals. We do not know if appeals will be filed, or how long it will take to resolve them if they are filed.
Settlement payments will be distributed if the Court grants final approval, and after any appeals are resolved.
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Yes, the Court has appointed attorneys A. Brooke Murphy of Murphy Law Firm and Gary M. Klinger of Milberg Coleman Bryson Phillips Grossman PLLC, to represent you and other Class Members ("Class Counsel").
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You will not be charged for Class Counsel's services. If you want your own lawyer, you may hire one at your expense.
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Class Counsel will ask the court to approve up to one-third of the Settlement Fund as reasonable attorneys' fees, plus reimbursement of litigation costs. This amount will be paid from the Settlement Fund.
Class Counsel will also ask for Service Award payments of $2,500.00 for each of the Class Representatives. Service Award payments will also be paid from the Settlement Fund.
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If you do not want to be part of the Settlement, you must formally exclude yourself from the Settlement. This is called a Request for Exclusion and is sometimes also called "opting out." If you opt out, you will not receive Settlement benefits or payment. However, you will keep any rights you may have to sue CAA on your own about the legal issues in this case.
If you exclude yourself, you are telling the Court that you do not want to be part of the Settlement. You will not be eligible to receive any Settlement benefits if you exclude yourself. The deadline to exclude yourself from the Settlement is February 6, 2026.
To be valid, your Request for Exclusion must have the following information:
the name of the Litigation: In re Carolina Arthritis Associates Data Incident Litigation, Case No. 25-CV002250-640, pending in the Superior Court of New Hanover County, North Carolina;
your full name, mailing address, telephone number, and email address;
personal signature; and
the words "Request for Exclusion" or a clear and similar statement that you do not want to participate in the Settlement.
You may only exclude yourself, not any other person.
Mail your Request for Exclusion to the Settlement Administrator at:
CAA Data Incident Settlement
ATTN: Exclusion Request
P.O. Box 25226
Santa Ana, CA 92799-9958
Your Request for Exclusion must be postmarked by February 6, 2026.
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If you are a Class Member and do not like part or all of the Settlement, you can object to it. Objecting means telling the Court your reasons for why you think the Court should not approve the Settlement. The Court will consider your views.
You cannot object if you have excluded yourself from the Settlement (see Question 15).
You must provide the following information for the Court to consider your objection:
the name of the Litigation: In re Carolina Arthritis Associates Data Incident Litigation, Case No. 25-CV002250-640, pending in the Superior Court of New Hanover County, North Carolina;
your full name, mailing address, telephone number, and email address;
a clear description of all the reasons you object; include any legal support, such as documents, you may have for your objection;
whether you intend to attend the Final Approval Hearing, and whether you want to speak at that hearing; and
your signature (if you have hired your own lawyer, their signature is not sufficient).
For your objection to be valid, it must meet each of these requirements.
To be considered by the Court, you must file your complete objection with the Clerk of Court by February 6, 2026. You must also send a copy of the objection to the Settlement Administrator, Class Counsel, and counsel for Defendants.
Clerk of the Court | Settlement Administrator |
Clerk of the Court | CAA Data Incident Settlement |
Class Counsel | Counsel for Defendants |
Gary M. Klinger | David A. Cole |
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Objecting is telling the Court that you do not like something about the Settlement. You can object to the Settlement only if you do not exclude yourself from the Settlement. Excluding yourself from the Settlement is opting out and stating to the Court that you do not want to be part of the Settlement. If you opt out of the Settlement, you cannot object to it because the Settlement no longer affects you.
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The Court will hold a final approval on March 10, 2026, at 10:00 a.m. Eastern Time, in Room 3205 of the Superior Court of Hanover County, North Carolina, at North Carolina Business Court, 1965 Wake Forest Road, Winston-Salem, North Carolina 27109.
At the final approval hearing, the Court will decide whether to approve the Settlement. The court will also decide how Class Counsel should be paid, and whether to award Service Award payments to the Class Representatives. The Court will also consider any objections to the Settlement.
If you are a Class Member, you or your lawyer may ask permission to speak at the hearing at your own cost (see Question 16).
The date and time of this hearing may change without further notice. Please check the Important Dates page for updates.
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No. Class Counsel will answer any questions the Court may have. You may attend at your own expense if you wish, but you do not have to.
If you file an objection, you do not have to come to the Final Approval Hearing to talk about it; the Court will consider it as long as it was filed on time. You may also pay your own lawyer to attend, but you do not have to.
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If you do nothing, you will not receive a benefit from this Settlement. You will also give up the rights described in Question 8.
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This website and the Notice are a summary of the proposed Settlement. The full Settlement Agreement and other related documents are available on the Important Documents page.
If you have additional questions, you can ask for free help any time by contacting the Settlement Administrator at:
CAA Data Incident Settlement
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799-9958
(833) 417-4969
info@CAADataSettlement.com
You can obtain copies of publicly filed documents by visiting the office of the Clerk of the Court, North Carolina Business Court, 1965 Wake Forest Road, Winston-Salem, North Carolina 27109.
Do Not Contact the Court or Clerk of Court regarding this Settlement.
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