Basic Information

1. How do I know if I am affected by the Lawsuit and Settlement?

You are a Settlement Class Member if you were mailed notification from Spencer Gifts that your PII was potentially impacted as a result of the Data Incident that occurred between November 24, 2021 and November 26, 2021.

The Settlement Class specifically excludes: (i) Spencer Gifts, LLC (“Spencer Gifts”), the Related Entities, and their officers and directors; (ii) all Settlement Class Members who timely and validly request exclusion from the Settlement Class; (iii) the Judge assigned to this case and their staff and family; 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 criminal activity occurrence of the Data Incident or who pleads nolo contendere to any such charge. The Class Notice explains the nature of the lawsuit and claims being settled, your legal rights, and the benefits to the Class.

2. What is this case about?

This case is known as Gonshorowski v. Spencer Gifts, LLC, Case No. ATL-L-000311-22, filed in the Superior Court of New Jersey, Atlantic County. The person who sued is called the “Plaintiff” and the company they sued, Spencer Gifts, is known as the “Defendant” in this case. Spencer Gifts will be called “Defendant” in this Notice.

Plaintiff filed a lawsuit against Defendant, individually, and on behalf of anyone whose personally identifiable information (“PII”) was potentially impacted as a result of the Data Incident.

This Lawsuit arises out of unauthorized access to Spencer Gifts network which occurred between November 24, 2021 and November 26, 2021 (the “Data Incident”). The information that may have been accessed in the Data Incident includes certain files relating to payroll and enrollment in Spencer Gifts’ employee health plan, which contained personally identifying information (“PII”) such as names, Social Security Numbers, health plan selection, or financial account numbers used for direct deposit. Spencer Gifts denies any wrongdoing.  After learning of the Data Incident, notification was mailed to persons whose PII may have been impacted by the Data Incident. Subsequently, this lawsuit was filed asserting claims against Spencer Gifts relating to the Data Incident (the “Litigation”).

3. Why is there a Settlement?

By agreeing to settle, both sides avoid the cost, disruption, and distraction of further litigation. The Class Representative, Defendant, and their attorneys believe the proposed Settlement is fair, reasonable, and adequate and, thus, best for the Class Members. The Court did not decide in favor of the Plaintiff or Defendant. Full details about the proposed Settlement are found in the Settlement Agreement available here.

4. Why is this a class action?

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

5. How do I know if I am included in the Settlement?

You are included in the Settlement if you were mailed notification that your PII was potentially impacted as a result of the Data Incident that occurred between November 24, 2021 and November 26, 2021.  If you are not sure whether you are included as a Settlement Class Member, or have any other questions about the Settlement, visit www.SpencersSettlement.com, call toll free 1-833-443-1115, or write to Spencer’s Settlement Administrator, PO Box 3314 Baton Rouge, LA 70821.

The Settlement Benefits

6. What does this Settlement provide?

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

Expense Reimbursement

Documented Out of Pocket Expense Reimbursement (Ordinary Losses): All Settlement Class Members who submit a Valid Claim using the Claim Form are eligible for the following documented out-of-pocket expenses, not to exceed $500 per Settlement Class Member, that were incurred as a result of the Data Incident: (i) unreimbursed bank fees; (ii) long distance phone charges; (iii) cell phone charges (if charged by the minute); (iv) data charges (if charged based on the amount of data used); (v) postage; (vi) gasoline for local travel; and (vii) fees for credit reports, credit monitoring, or other identity theft insurance products purchased by Settlement Class Members between November 24, 2021 and the Claims Deadline. To receive reimbursement for any of the above-referenced out-of-pocket expenses, Settlement Class Members must submit a valid and timely Claim, including necessary supporting documentation, to the Claims Administrator.

Lost Time Reimbursement: Settlement Class Members are also eligible to receive reimbursement for up to three (3) hours of lost time spent dealing with the Data Incident (calculated at the rate of $20 per hour), but only if at least one (1) full hour was spent. Settlement Class Members may receive reimbursement for lost time if the Settlement Class Member (i) attests that any claimed lost time was spent related to the Data Incident; and (ii) provides a written description of how the claimed lost time was spent related to the Data Incident. Claims made for lost time can be combined with reimbursement for out-of-pocket expenses and are subject to the same $500.00 cap for all Settlement Class Members.

Documented Extraordinary Loss Reimbursement: Settlement Class Members are also eligible to receive reimbursement for extraordinary losses, not to exceed $3,000 per Settlement Class Member for documented monetary loss that: (i) is actual, documented, and unreimbursed; (ii) was more likely than not caused by the Data Incident; (iii) occurred between November 24, 2021 and the Claims Deadline; and (iv) is not already covered by any other reimbursement category covered by this Settlement. Settlement Class Members must also provide documentation that he or she 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.

California Statutory Claim Benefit: In addition to the benefits above, the approximately 1,064 California resident Settlement Class members are also eligible for a separate, California statutory damages award. California resident Settlement Class members who submit a claim shall be eligible for a $50 cash payment upon written verification that they lived at a valid California address at the time of the Data Incident. The additional amount can be combined with a claim for Reimbursement for Lost Time, with reimbursement for Out-Of-Pocket Losses, and (if applicable) with reimbursement for Extraordinary Losses, and shall be subject to the $500 cap on compensation for Ordinary Loss and Lost Time.

Credit Monitoring: If you previously signed up for monitoring offered by Spencer Gifts, your monitoring will be automatically extended for two (2) additional years. If you did not previously sign up for monitoring, you may do so before the Claims Deadline on January 25, 2023 by selecting the credit monitoring option on the Claim Form.

Business Practice Changes: Spencer Gifts will implement and keep in place various security-related measures and enhancements for a period of two years. Costs associated with these business practice commitments will be paid by Spencer Gifts separate and apart from other settlement benefits.

More details are provided in the Settlement Agreement, which is available here.

7. How to submit a Claim?

All Claims will be reviewed by the Settlement Administrator and/or a claims referee. You must file a Claim Form to get any money from the proposed Settlement. Claim Forms must be submitted online by January 25, 2023 or postmarked no later than January 25, 2023. You can submit an online Claim here, download a Claim Form here, or you can call the Claims Administrator at 1-833-443-1115.

8. What am I giving up as part of the Settlement?

If you stay in the Settlement Class, you will be eligible to receive benefits, but you will not be able to sue Spencer Gifts and its Related Entities and each of their past or present parents, subsidiaries, divisions, and related or affiliated entities, and each of their respective predecessors, successors, directors, officers, principals, agents, attorneys, insurers, and reinsurers regarding the claims in this case. The Settlement Agreement, which includes all provisions about settled claims, releases, and Released Persons, is available here.

The only way to keep the right to sue is to exclude yourself (see Question 10), otherwise you will be included in the Settlement Class, if the Settlement is approved, and you give up the right to sue for the claims in this case.

9. Will the Class Representative receive compensation?

Yes. The Class Representative will receive a service award of up to $2,500, to compensate them for their services and efforts in bringing the lawsuit. The Court will make the final decision as to the amount, if any, to be paid to the Class Representative.

Exclude Yourself

10. How do I exclude myself from the Settlement?

If you do not want to be included in the Settlement, you must send a written request for exclusion, postmarked no later than December 27, 2022 to:

Spencer’s Settlement Administrator
PO Box 3314
Baton Rouge, LA 70821

Instructions on how to submit a request for exclusion are available here or from the Settlement Administrator by calling 1-833-443-1115.

If you exclude yourself, you will not be able to receive any cash benefits from the Settlement and you cannot object to the Settlement. You will not be legally bound by anything that happens in this lawsuit and you will keep your right to sue the Defendant on your own for the claims that this Settlement resolves.

11. If I do not exclude myself, can I sue later?

No. If you do not exclude yourself from the Settlement, and the Settlement is approved by the Court, you forever give up the right to sue the Released Persons (listed in Question 8) for the claims this Settlement resolves.

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 from the Settlement, you will not be able to start or proceed with a lawsuit, or be part of any other lawsuit against the Released Persons (listed in Question 8) about the settled claims in this case at any time.

The Lawyers Representing You

13. Do I have a lawyer in the case?

Yes. The Court has appointed MILBERG COLEMAN BRYSON PHILLIPS GROSSMAN PLLC (called “Class Counsel”) to represent the interests of all 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.

14. How will the lawyers be paid?

Class Counsel will apply to the Court for an award of attorneys’ fees and litigation expenses in an amount not to exceed $195,000. A copy of Class Counsel’s Application for Attorneys’ Fees and Expenses will be posted on the Settlement Website, here, before the Final Fairness Hearing.  The Court will make the final decisions as to the amounts to be paid to Class Counsel, and may award less than the amount requested by Class Counsel.

More details are provided in the Settlement Agreement, which is available here.

Objecting To The Settlement

15. How do I tell the Court that I do not like the Settlement?

If you want to tell the Court that you do not agree with the proposed Settlement or some part of it, you can submit an Objection telling it why you do not think the Settlement should be approved. Objections must be submitted in writing and include all the following information:

Such notice shall state:

  1. the objector’s full name, address, telephone number, and e-mail address (if any);
  2. 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 notice, copy of original notice of the Data Incident);
  3. a written statement of all grounds for the objection, accompanied by any legal support for the objection the objector believes applicable;
  4. the identity of any and all counsel representing the objector in connection with the objection;
  5. a statement whether the objector and/or his or her counsel will appear at the Final Fairness Hearing;
  6. the objector’s signature and the signature of the objector’s duly authorized attorney or other duly authorized representative (along with documentation setting forth such representation); and
  7. a list, by case name, court, and docket number, of all other cases in which the objector and/or the objector’s counsel has filed an objection to any proposed class action settlement within the last three (3) years.

Your Objection must be submitted to the Clerk of the Court, Superior Court of New Jersey, Atlantic County, by First-Class mail, received no later than December 27, 2022, to:

R.J. Hughes Justice Complex
Superior Court Clerk’s Office
P.O. Box 971
Trenton, NJ 08625-0971

It must include the case name and docket number: Gonshorowski v. Spencer Gifts, LLC, Case No. ATL-L-000311-22 (the “Spencer Gifts Action”), no later than December 27, 2022.

In addition, you must mail a copy of your Objection to Class Counsel and Defense Counsel, postmarked no later than December 27, 2022:

CLASS COUNSEL DEFENSE COUNSEL

David Lietz, Gary Klinger
MILBERG COLEMAN BRYSON PHILLIPS GROSSMAN PLLC
5335 Wisconsin Ave NW
Suite 440
Washington, DC 20015

Eric R. Fish
Baker & Hostetler, LLP
45 Rockefeller Plaza
New York, New York 10111

If you do not submit your Objection with all requirements, or if your Objection is not received by December 27, 2022, you will be considered to have waived all Objections and will not be entitled to speak at the Final Fairness Hearing.

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 Class.  Excluding yourself is telling the Court that you don’t want to be part of the Class.  If you exclude yourself, you have no basis to object because the Settlement no longer affects you.

The Final Fairness Hearing

17. When and where will the Court decide whether to approve the Settlement?

The Court will hold the Final Fairness Hearing on February 17, 2023, at 10:00am Eastern Time, Court Room, 3A, 1201 Bacharach Blvd, Atlantic City, NJ.  The hearing may be moved to a different date, time, or location without additional notice, so it is recommended that you periodically check www.SpencersSettlement.com 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 Settlement Class Members, and if it should be 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 award of Attorneys’ Fees and Expenses to Class Counsel and the request for a service award to the Class Representative.

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.

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.  You cannot speak at the hearing if you exclude yourself from the Settlement.

Do Nothing

20. What happens if I do nothing?

If you do nothing, you will not get any money from the Settlement, you will not be able to sue for the claims in this case, and you release the claims against Defendant described in Question 8.

Get More Information

21. 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 lawsuit, including a copy of the Settlement Agreement, the Complaint, the Court’s Preliminary Approval Order, Class Counsel’s Application for Attorneys’ Fees and Expenses, and more, please visit the settlement website here or call 1-833-443-1115.  You may also contact the Settlement Administrator at Spencer’s Settlement Administrator, PO Box 3314 Baton Rouge, LA 70821.

PLEASE DO NOT ADDRESS ANY QUESTIONS ABOUT THE SETTLEMENT OR LITIGATION TO THE CLERK OF THE COURT OR THE JUDGE.