In re UKG Inc. Cybersecurity Litigation

KRONOS PRIVATE CLOUD

CLASS ACTION SETTLEMENT

• IF YOU WERE IMPACTED BY THE DECEMBER 2021 CYBERATTACK ON THE KRONOS PRIVATE CLOUD (“KPC”), YOU MAY BE ELIGIBLE FOR BENEFITS FROM A CLASS ACTION SETTLEMENT
    
  
  A class action settlement has been proposed in a case against UKG Inc. (with Kronos Incorporated, “UKG”) relating to a ransomware attack on the Kronos Private Cloud (“KPC”) in December of 2021 (the “December 2021 KPC Cyberattack”). If you are a Settlement Class Member, there may be benefits available to you from the proposed settlement. The easiest way to submit a claim under the Settlement is by using the Claim Form on this Website. If you are unsure of whether you are eligible for benefits, visit the Settlement Website or call 1-833-747-6267.
  Both sides agreed to a settlement after a lengthy mediation process to avoid the costs and uncertainty of a trial, while more quickly providing benefits to Settlement Class Members. UKG denies any wrongdoing and no judgment or determination of wrongdoing has been made. In addition to other benefits, as part of the proposed settlement, UKG has agreed to establish a “Settlement Fund” of five million five hundred thousand dollars ($5,500,000) which may be supplemented by up to five hundred thousand dollars ($500,000) should Approved Claims exhaust the initial funding (after the deduction of Settlement Administrator Expenses, Fee Award, Litigation Costs, and Service Awards). Depending on whether you are a Nationwide Class Member, Exfiltration Subclass Member or a California Subclass Member, settlement relief includes:

•    Nationwide Class: All natural U.S. persons who are current or former employees or contractors, including their dependents, of UKG customers, whose data was stored in the KPC at the time of the December 2021 KPC Cyberattack and who were impacted by the interruption of KPC applications resulting from the December 2021 KPC Cyberattack. Each Nationwide Class Member is eligible to receive compensation for Ordinary Losses (as defined below);
  
  
• Exfiltration Subclass:  All members of the Nationwide Class who were sent notice that their personal data was exfiltrated during the December 2021 KPC Cyberattack and were offered credit monitoring services for themselves or on behalf of their dependents. Each Exfiltration Subclass Member is eligible to receive a payment of $100 plus compensation for Ordinary Losses (as defined below) and Extraordinary Losses (as defined below);
  
  
• California Subclass:  All members of the Nationwide Class who are also California residents at the time of the December 2021 KPC Cyberattack. Each California Subclass Member is eligible to receive an additional payment of $30 plus compensation for Ordinary Losses (as defined below) and Extraordinary Losses (if also an Exfiltration Subclass Member and as defined below).
  Compensation for Ordinary Losses: UKG will provide compensation for unreimbursed personal losses, not including lost wages, up to a total of $1,000 per person, to Settlement Class Members upon submission of an Approved Claim and supporting documentation (if necessary) of the following categories of claimed losses:
  
  
• Compensation for Ordinary Losses: UKG will provide compensation for unreimbursed personal losses, not including lost wages, up to a total of $1,000 per person, to Settlement Class Members upon submission of an Approved Claim and supporting documentation (if necessary) of the following categories of claimed losses:
  
• Out-of-pocket expenses: UKG will provide compensation for long distance phone charges, cell phone charges (only if charged by the minute), data charges (only if charged based on the amount of data used), bank fees (documented), credit monitoring (documented), or late fees (documented), all of which must be more likely than not caused by and fairly traceable to the December 2021 KPC Cyberattack and subsequent interruption of applications hosted in the KPC, must not have been previously reimbursed by a third party, and are supported by documentation if necessary and sworn attestation that substantiated the full extent of the amount claimed.   
  
• Lost time: Settlement Class and Subclass Members may submit claims for up to four hours of lost personal time that has not been previously reimbursed by a third party, at $25/hour, with an attestation that they spent the claimed time responding to issues raised by the December 2021 KPC Cyberattack, including time spent responding to interruption of applications hosted in the KPC. 
  
  
• Compensation for Extraordinary Losses: UKG will provide compensation, up to a total of $7,500 per person, to Settlement Class Members in the Exfiltration Subclass, upon submission of an Approved Claim and supporting documentation for proven personal monetary loss associated with fraud or identity theft if:
• The loss is an actual, documented, and unreimbursed monetary loss;
• The loss was more likely than not caused by and fairly traceable to the December 2021 KPC Cyberattack;
• The loss is not already covered by the Compensation for Ordinary Losses outlined above; and,
• 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 services and identity theft insurance. 
  
  
• UKG Security-Hardening Measures: UKG has represented that it has taken and will continue to take measures to harden the security of KPC environment impacted by the December 2021 KPC Cyberattack. Those measures include, for various periods of time depending on the measure: expanding the scanning and monitoring program using insights from its investigation; supplementing UKG’s Security Operations Center monitoring with additional third-party managed service monitoring; deploying additional malware scanning tools across all products and UKG’s corporate IT environment; and expanding cold storage backups. The estimated cost of such measures is in excess of $1,500,000.
  
  
• This Settlement expressly excludes any statutory, contractual, or common law claims for wages brought against UKG related to the December 2021 KPC Cyberattack. UKG denies any legal obligation for wage claims of any kind related to the December 2021 KPC Cyberattack.