1. WHY DID I GET A NOTICE?
2. WHAT IS THIS LAWSUIT ABOUT?
3. WHY IS THIS A CLASS ACTION?
4. WHY IS THERE A SETTLEMENT?
5. HOW DO I KNOW IF I AM PART OF THIS SETTLEMENT?
6. WHAT DOES THE SETTLEMENT PROVIDE?
7. WHAT CAN I GET FROM THE SETTLEMENT?
8. HOW CAN I GET A CASH PAYMENT?
9. WHEN WOULD I GET MY CASH PAYMENT?
10. WHAT AM I GIVING UP IF I GET A CASH PAYMENT UNDER THE SETTLEMENT?
11. HOW DO I GET OUT OF THE SETTLEMENT?
12. IF I DO NOT EXCLUDE MYSELF, CAN I SUE DEFENDANT FOR THE SAME THING LATER?
13. IF I EXCLUDE MYSELF, CAN I GET A CASH PAYMENT FROM THIS SETTLEMENT?
14. DO I HAVE A LAWYER IN THIS CASE?
15. HOW WILL THE LAWYERS GET PAID?
16. HOW DO I TELL THE COURT THAT I DON’T LIKE THE SETTLEMENT?
17. WHAT’S THE DIFFERENCE BETWEEN OBJECTING AND EXCLUDING?
18. WHEN AND WHERE WILL THE COURT DECIDE WHETHER TO APPROVE THE SETTLEMENT?
19. DO I HAVE TO COME TO THE HEARING?
20. MAY I SPEAK AT THE HEARING?
21. WHAT HAPPENS IF I DO NOTHING AT ALL?
22. HOW DO I GET MORE INFORMATION ABOUT THE SETTLEMENT?
According to Uphold’s records, you reported, on or after February 25, 2021, that your Uphold account was accessed without your authorization and unauthorized withdrawals were made from your account(s) within seven days before or after you made this report. The Court determined that you have a right to know about the proposed Settlement of a class action lawsuit, and about your options, before the Court decides whether to grant final approval of the Settlement. If the Court approves it, and after any objections and appeals are resolved, the benefits will be distributed to eligible claimants in the manner described below.
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 Southern District of New York, and the case is known as Nero, et al. v. Uphold HQ Inc., Case No. 1:22-CV-1602. The people who sued are called Plaintiffs. Uphold is called the Defendant.
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Plaintiffs allege Uphold violated certain provisions of EFTA, and/or was otherwise negligent in protecting customer accounts from unauthorized access by cybercriminals. Uphold denies it did anything wrong.
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In a class action, one or more people, called Class Representatives (in this case Zachary Nero, Jesse W. Smith, Peter Maloupis, José Ramirez, and Gilles Boevi), sue on behalf of people who have similar claims. All these people are a Class or Class Members. One court resolves the issues for all Class Members, except for those who exclude themselves from the Class. The United States District Court for the Southern District of New York oversees this particular class action against Uphold.
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The Lawsuit was filed on February 25, 2022. Uphold filed a motion to dismiss the Lawsuit, and in an opinion on February 22, 2023, the Court dismissed Uphold’s former CEO as a Defendant from the Lawsuit and also dismissed all of the claims in the complaint except for the EFTA claim and the negligence per se claim that was premised upon a purported violation of the EFTA. In a later opinion, on August 23, 2023, the Court dismissed all claims of relief for actual damages, leaving only the remedy of statutory damages, which are limited to $500,000 for a class action. Given the opinion of the Court striking actual damages and limiting damages only to the statutory cap of $500,000, the parties entered into a settlement agreement to avoid the cost of a trial. The Class Representatives and the attorneys think the Settlement is best for everyone.
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Natural persons, that where at the time customers of Uphold HQ Inc., and who reported to Uphold HQ Inc. unauthorized access to their Uphold account(s) on or after February 25, 2021, where such report was within seven days prior to or within seven days following an unauthorized withdrawal of assets.
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Defendant has agreed to establish a settlement fund of $820,000, which includes a payment of the statutory maximum damages of $500,000 for a class action under EFTA, and a separate $320,000 allotment for an award of attorney’s fees. Class counsel will request that administrative costs, service awards, and up to $43,000 in litigation costs be deducted from the $500,000 portion of the settlement fund. All Settlement Class Members who timely submit a valid claim will receive an equal portion of the remaining amount of the $500,000 fund. Assuming all Settlement Class Members make claims, this amount will be between $171 and $195, depending on deductions from the fund authorized by the Court. Your portion will depend on the number of Class Members that timely submit valid claims.
Plaintiffs’ attorneys’ fees of up to $320,000 will be paid from the separate $320,000 of the settlement fund upon Court approval. Class counsel will ask that any amount of the $320,000 which is not approved for payment of fees or costs will be donated to a non-profit organization that assists victims of identity theft. Up to now, Plaintiffs’ attorneys have not been compensated for the time, or reimbursed for the expense, of litigating this lawsuit.
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All Settlement Class Members who timely submit a valid claim will receive an equal share of the settlement fund, after any deductions authorized by the Court. Your portion will depend on the number of Class Members that timely submit valid claims.
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To receive the benefits described above you must timely submit a valid claim. You may do this by completing form on the Submit a Claim module or downloading the Claim Form and submitting it by mail. You may also call 888-836-1712 to request that a Claim Form be mailed to you. If you are submitting a paper Claim Form, make sure that all fields are completed, including your full name, mailing address, email address, and contact phone number, and that the declaration is signed and dated.
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The Court will hold a hearing on October 4, 2024, to decide whether to approve the Settlement. If the Court approves the Settlement, there could be appeals afterward, which will take time to resolve. Please be patient.
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Unless you exclude yourself, you are staying in the Settlement Class, and that means that you cannot sue, continue to sue, or be part of any other lawsuit against Uphold about the factual and legal issues in this case. It also means that all of the Court’s orders will apply to you and legally bind you.
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To exclude yourself from the Settlement, you must submit a Request for Exclusion, which is a written statement clearly stating that you wish to be excluded from the Settlement reached in Nero, et al. v. Uphold HQ Inc., Case No. 1:22-CV-1602, pending in the United States District Court for the Southern District of New York. The written statement must include your full name, mailing address, telephone number, and email address, and must be dated and physically signed.
Your written request for exclusion must be mailed and postmarked no later than August 5, 2024, to:
Uphold Class Action Settlement
Claims Administrator
P.O. Box 25226
Santa Ana, CA 92799
You may also email a scanned copy of your written statement to info@UpholdClassActionSettlement.com. You cannot exclude yourself by telephone. If you ask to be excluded, you should not submit a Claim Form, and you cannot object to the Settlement.
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No. Unless you exclude yourself, you give up the right to sue Uphold for the EFTA claims and any and all claims that were brought, or could have been brought, against Uphold in this Lawsuit. If you have a pending lawsuit, speak to your lawyer in that lawsuit immediately. You must exclude yourself from this Settlement Class to continue your own lawsuit. Remember, the exclusion deadline is August 5, 2024.
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No. If you exclude yourself, you cannot receive any of the benefits of this Settlement.
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Yes. The Court has appointed Karl Kronenberger and Leah Rosa Vulić of Kronenberger Rosenfeld LLP, as “Class Counsel” to represent you and other Settlement Class Members. 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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Class Counsel will ask the Court for attorneys’ fees of up to $320,000, and expenses of up to $43,000.00. Up to now, Class Counsel have not been compensated for the time, or reimbursed for the expense, of litigating this lawsuit.
Additionally, Class Counsel will ask for a service award of $3,500.00 each for Zachary Nero, Jesse W. Smith, Peter Maloupis, José Ramirez, and Gilles Boevi, because they are the Plaintiffs who brought this Lawsuit on behalf of all Settlement Class Members.
The cost of administering the Settlement will also be paid from the settlement fund.
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You can tell the Court that you do not agree with the Settlement, or some part of it. This is called an “objection.” You can give the reasons why you think the Court should not approve the Settlement. The Court will consider your views.
To object, you must send a letter stating that you object to the proposed Settlement in Nero, et al. v. Uphold HQ Inc., Case No. 1:22-CV-1602, pending in the United States District Court for the Southern District of New York. Be sure to include your full name, mailing address, telephone number, the specific reasons you object to the Settlement (including copies of any documents on which your objection is based, and any persons you intend to call to testify in support of your objection), and whether you intend to appear at the Final Approval Hearing. Additionally, you must provide proof that you are a member of the Settlement Class, as defined above in question 5. If you have an attorney representing you in connection with this objection, provide their name, address, and telephone number, and state whether they intend to appear at the Final Approval Hearing. Make sure to sign and date your objection. The objection must be postmarked no later than August 5, 2024, and sent to the following:
COURT | CLASS COUNSEL |
Clerk of the Court | Karl Kronenberger |
Full instructions on objecting to this Settlement may be found in the Settlement Agreement.
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Objecting is simply telling the Court that you do not like something about the Settlement. You can object only if you stay in 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.
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The Court will hold a Final Approval Hearing on October 4, 2024 in Courtroom 18B, at the United States District Court for the Southern District of New York, 500 Pearl St, New York, NY 10007. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court will listen to people who have asked to speak at the hearing. The Court may also decide how much to pay Class Counsel, and whether to grant the requests for service awards. After the hearing, the Court will decide whether to approve the Settlement.
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No. Class Counsel will answer questions the Court may have. But you are welcome to come at your own expense if you choose. If you send an objection, you do not have to come to Court to talk about it. As long as you mailed your written objection on time, the Court will consider it. You may also pay your own lawyer to attend.
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You may ask the Court for permission to speak at the Final Approval Hearing. To do so, you must send a letter stating that it is your “Notice of Intention to Appear in Nero, et al. v. Uphold HQ Inc., Case No. 1:22-CV-1602.” You may include this notice in your written objection. Be sure to include your name, telephone number, and mailing address, and sign and date your letter. Your Notice of Intention to Appear must be postmarked no later than August 5, 2024, and be sent to:
Clerk of the Court
The United States District Court for the Southern District of New York
Daniel Patrick Moynihan United States Courthouse
500 Pearl Street
New York, NY 10007
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If you do not exclude yourself and do nothing, you will not receive any of the benefits of the Settlement, and will still be bound by the terms of the Settlement.
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This website and the notice summarizes the proposed Settlement. Full details are in the Settlement Agreement and other documents available on the Important Documents page. You may also contact the Claims Administrator at 888-836-1712.
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