Today, the Kehoe Law Firm filed a class action lawsuit against Magellan Health, Inc. alleging the inadequate safeguarding of personally identifiable information (PII) and protected health information (PHI) of its current and former employees, as well as health plan participants. Magellan Health recently experienced a targeted cyberattack and data breach, resulting in the reported compromise of PII and PHI for plaintiffs and over 365,000 class members.​

The compromised information, including names, contact details, employee ID numbers, W-2 or 1099 information, Social Security Numbers, taxpayer identification numbers, treatment details, health insurance account information, member IDs, and other health-related data, is now alleged to be in the hands of cyberthieves. The complaint further alleges that Magellan Health’s reckless and negligent maintenance of this sensitive information on its computer network left it vulnerable to cyberattacks. 

Michael Yarnoff of the Kehoe Law Firm emphasized the significance of personal information and the responsibility of corporations to protect it, stating, “In an era where personal data is increasingly under threat, corporations must prioritize the protection of sensitive information. The allegations against Magellan Health underscore the importance of robust cybersecurity measures to safeguard personal and health-related details.” 

Plaintiffs contend that Magellan Health failed to provide timely and adequate notice of the unauthorized access, exposing them to the risk of identity theft and fraud. The lawsuit seeks various remedies, including compensatory damages, reimbursement of out-of-pocket costs, restitution, and injunctive relief. The latter includes demands for enhancements to the defendant’s data security systems, annual audits, and funded credit monitoring services. 

The legal claims against Magellan Health include negligence, negligence per se, breach of implied contract, unjust enrichment, violation of the Arizona Consumer Fraud Act, violation of California’s Unfair Competition Law, violation of Missouri’s Merchandising Practices Act, violation of New York’s General Business Law § 349, violation of Pennsylvania’s Unfair and Deceptive Trade Practices and Consumer Protection Law, violation of Virginia’s Personal Information Breach Notification Act, and violation of Wisconsin’s Deceptive Trade Practices Act. 

For more information about Kehoe Law Firm and its involvement in this matter, please contact Michael Yarnoff at [email protected] or call (215) 792-6676.

Kehoe Law Firm Announces that the Court Preliminarily Approved a $9,950,000 Partial Settlement with Citigroup in the FX Indirect Purchaser Litigation

Kehoe Law Firm, on behalf of its client, FX Primus Ltd., announced today that the District Court for the Southern District of New York gave preliminary approval to a partial settlement with Citigroup Inc., Citibank, N.A., Citicorp, and Citigroup Global Markets Inc. (collectively, “Citigroup”), partially settling claims in Contant, et al. v. Bank of America Corp., et al., No. 1:17-cv-03139 (LGS) (S.D.N.Y.)  and consolidated actions.​

Pursuant to terms of the settlement, Citigroup agreed to pay $9,950,000 and provide “reasonable cooperation” in the continued prosecution of the Action against the non-settling defendant banks, as set forth in the Settlement Agreement.​

The lawsuit alleges that prominent financial institutions, including Citigroup, Standard Chartered, Société Générale, Bank of America, Barclays, BNP Paribas, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley, RBC, RBS, and UBS (the “Defendants”), conspired to fix foreign currency (“FX”) instrument prices.

According to Mr. Kehoe, “as we continue to prosecute the action against other defendants, the cooperation secured from Citigroup stands as a formidable tool, empowering us to pursue justice and fair compensation for those who may have been affected by the manipulation of foreign currency instrument prices.”  

The court scheduled a final fairness hearing on a future date to be determined by the court. For more information about the case and settlements, please visit the Claims Administrator’s website at: https://www.fxindirectantitrustsettlement.com/ 

For more information about Kehoe Law Firm and its involvement in this matter, please contact John A. Kehoe at [email protected] or call (215) 792-6676.

The Kehoe Law Firm, P.C. is pleased to announce that it has successfully reached a settlement on behalf of its client, the Buffalo Grove Police Pension Fund, in the stockholder derivative action against Navient, Inc. (“Navient” or the “Company”). The settlement includes comprehensive governance reforms designed to prevent and protect against the recurrence of alleged wrongdoings, such as:​

1. 1. Loan Servicing and Collections Compliance Committee: Navient shall maintain a Loan Servicing and Collections Compliance Committee who oversee loan servicing and loan-related collections efforts and internal controls and report to the Board’s Audit Committee.
   2.  Two New Independent Directors and Improved Board Training:  Navient will add two new independent directors to the Board. All new directors will receive training on consumer protection and state collection laws, including annual training on these topics.
   3. New Limits on Board Service: The Chair of the Audit Committee shall not serve on the audit committee of more than one other public company’s board of directors. No director may serve as chairperson of one company’s committee or member of more than three committees.
   4. Greater Authority for Independent Directors: Independent directors will meet in executive session at least four times annually. Independent directors have the authority to request reports from any of the Company’s business units.
   5. ​Greater Disclosure of Risk Oversight Responsibilities: New disclosures regarding the Board’s risk oversight responsibilities. Revision of Board Charters to clearly describe each committee’s risk oversight responsibilities.
   6. ​Code of Business Conduct and Whistleblower Policy: Amendment to the Code of Business Conduct to direct executives and employees to report any loan servicing and collections violations immediately.

These governance reforms aim to enhance oversight, transparency, and accountability within Navient, providing a substantial benefit to the Company and its stockholders.

John Kehoe, Partner at Kehoe Law Firm, P.C., commented on the settlement: “We are pleased with this settlement, which reflects a significant step towards improving corporate governance at Navient. The implemented reforms address key concerns and will contribute to a more transparent and accountable framework, ultimately benefiting the Company and its shareholders.”​

For more information about Kehoe Law Firm and its involvement in this matter, please contact John A. Kehoe at [email protected] or call (215) 792-6676.​

In a significant development for stakeholders involved in the UDF Securities case, the court issued an order on February 21, 2019, approving the settlement and determining the award of attorneys’ fees and reimbursement of litigation expenses. The decision followed the Settlement Hearing held on February 15, 2019. Key Points of the Court order include:​

The court ensured due process by providing notice of the Settlement Hearing to all identifiable Settlement Class Members through approved means, including mailed notices and publications in Investor’s Business Daily and PR Newswire. 

The court approved the $10,435,725 fixed cash payment to the settlement fund and an additional contingent cash payment of $3,000,000. The contingent cash payment is dependent on certain conditions, as outlined in the settlement terms. The court also found the requested attorneys’ fees and litigation expenses to be fair and reasonable, considering the complexity of the case, the efforts invested by Lead Counsel, and the potential benefits to Settlement Class Members.​

Lead Plaintiffs Louis J. D’Annibale, Paul Brown, and Plaintiff Mark Hay were awarded $2,500, $500, and $2,500, respectively, from the Settlement Fund as reimbursement for their incurred costs and expenses related to representing the Settlement Classes. 

This court order marks a pivotal moment in the UDF Securities case, providing clarity on attorneys’ fees, expenses, and plaintiff compensation. According to Partner Michael Yarnoff, “We are pleased with the settlement and the finality it brings to the UDF Securities case. This outcome underscores our commitment to achieving positive results for our clients.” 

For more information about Kehoe Law Firm and its involvement in this matter, please contact Michael Yarnoff at [email protected] or call (215) 792-6676.

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Kehoe Law Firm, P.C. today announced a significant development in the securities class action against United Development Funding IV, United Development Funding V, and other related entities. Plaintiffs Mark Hay and Paul Brown, along with Defendant Whitley Penn LLP, have reached a settlement in principle in the matter of Hay v. United Development Funding IV, et al., Case No.: 4:16-cv-00188-M.​

This total settlement sum reflects the resolution of more than two years of rigorous litigation and thorough investigation. It comprises the fixed cash amount of $10,435,725 and an additional contingent cash payment of $3,000,000. The contingent cash payment is dependent on certain conditions, as outlined in the settlement terms. 

Kehoe Law Firm partner Michael Yarnoff expressed his optimism about the settlement, stating, “We are pleased to announce this significant step toward resolution in the UDF Securities Litigation. The settlement in principle, including both fixed and contingent amounts, reflects the hard work and dedication of all parties involved. We look forward to moving this settlement through the judicial process and hope to obtain court approval soon.” 

As part of the settlement process, the Parties have also agreed to delay submission of class settlement documentation while active discussions with other defendants continue. They remain committed to consummating the settlement in principle and are prepared to promptly notify the Court if any obstacles arise. 

For more information about Kehoe Law Firm and its involvement in this matter, please contact Michael Yarnoff at [email protected] or call (215) 792-6676.