Frequently Asked Questions

The United States District Court for the Northern District of California authorized this Notice because you have the right to know about the proposed Settlement of this class action lawsuit and about all of your rights and options before the Court decides whether to grant final approval of the Settlement. This Notice explains the lawsuit, the Settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them.

The Honorable Joseph C. Spero of the U.S. District Court for the Northern District of California is overseeing this class action. The case is known as Kamal Bitmouni v. Paysafe Payment Processing Solutions, LLC, Case No. 3:21-cv-00641-JCS (the “Action”). The person who filed this lawsuit is called the “Plaintiff” and the entity he sued, Paysafe Payment Processing Solutions, LLC (“Paysafe”), is called the “Defendant.” The Plaintiff and the Defendant agreed to this Settlement.

On or about November 6, 2020, Paysafe discovered that an unauthorized actor may have accessed a legacy server under Paysafe’s custody or control from May 2018 to October 2020. As a result, personal information of approximately 91,706 individuals who enrolled for merchant services with Paysafe’s affiliate(s) may have been accessed. Impacted personal information may have included name, contact details, Social Security number, and bank account information.

The Plaintiff claims that Paysafe failed to adequately protect his and other Settlement Class Members’ personal information and that he and other Settlement Class Members were injured as a result. Paysafe denies any wrongdoing, and no court or other entity has made any judgment or other determination of any wrongdoing or that the law has been violated. Paysafe denies these and all other claims made in the Action. By entering into the Settlement, Paysafe is not admitting that it did anything wrong.

In a class action, one or more people called the Settlement Class Representatives sue on behalf of all people who have similar claims. Together all of these people are called a Settlement Class or Class Members. One court resolves the issues for all Settlement Class Members, except for those Settlement Class Members who exclude themselves from the Settlement Class.

The Settlement Class Representative in this case is Kamal Bitmouni.

Yes, the Settlement does not include: (1) the judges presiding over this Litigation, and members of their direct families; (2) the Defendant, its subsidiaries, parent companies, successors, predecessors, and any entity in which the Defendant or its parents have a controlling interest and their current or former officers, directors, and employees; and (3) Settlement Class Members who submit a valid Request for Exclusion prior to the Opt-Out Deadline.

As a Settlement Class Member, you are eligible to make a Claim for one or more of the following:

• Reimbursement for Out-of-Pocket Losses: all Settlement Class Members may submit a Claim for up to $25,000 for reimbursement of Out-of-Pocket Losses, which must be supported by (i) third-party documentation supporting the loss; and (ii) a brief description of the nature of the loss. A Claim for Out-of-Pocket Losses may be combined with reimbursement for Attested Time but in no circumstance will a Settlement Class Member be eligible to receive more than the $25,000. A Claim for Out-of-Pocket Losses may be reduced pro rata if the aggregate value of all Approved Claims exceeds the Net Settlement Fund.

• Reimbursement for Attested Time: all Settlement Class Members may submit a Claim for reimbursement of Attested Time up to ten (10) hours at $25 per hour, which must be supported by an attestation that the time was spent in response to the Data Security Incident. A Claim for Attested Time may be combined with reimbursement for Out-of-Pocket Losses but in no circumstance will a Settlement Class Member be eligible to receive more than the $25,000. A Claim for Attested Time may be reduced pro rata if the aggregate value of all Approved Claims exceeds the Net Settlement Fund.

All Settlement Class Members are entitled to receive a Residual Cash Payment equal to a pro rata share of the Net Settlement Fund after the funds to pay for all Approved Claims for Reimbursement for Out-of-Pocket Losses and Attested Time have been deducted from it. In the event that the aggregate value of all Approved Claims for Out-of-Pocket Losses and/or Attested Time exceeds the Net Settlement Fund, then the value of such payments shall be reduced on a pro rata basis, such that the aggregate value of all Approved Claims for Out-of-Pocket Losses and/or Attested Time equals the Net Settlement Fund and no Residual Cash Payments will be made

In addition, Paysafe has undertaken and/or agreed to maintain certain remedial and enhanced security measures as a result of this Action.

You may elect to submit a Claim Form for reimbursement of Out-of-Pocket Losses. If you spent money remedying or addressing identity theft and fraud that was more likely than not related to the Data Security Incident or you spent money to protect yourself from future harm because of the Data Security Incident, and this amount was not otherwise recoverable through insurance, you may submit a Claim for Out-of-Pocket Losses for reimbursement of up to $25,000.

Out-of-Pocket Losses consist of unreimbursed losses incurred on or after May 1, 2018, that were related to identity theft and fraud and are more likely than not a result of the Data Security Incident, as well as any expenses related to the Data Security Incident. For example, credit card or debit card cancellation or replacement fees, late fees, declined payment fees, overdraft fees, returned check fees, customer service fees, credit-related costs associated with purchasing credit reports, credit monitoring or identity theft protection, costs to place a freeze or alert on credit reports, costs to replace a Social Security number, professional services, and out-of-pocket expenses for notary, fax, postage, delivery, copying, mileage, and long-distance telephone charges. Other losses or costs related to the Data Security Incident that are not insurance reimbursable may also be eligible for reimbursement. To protect the Settlement Fund and Approved Claims, all Claim Forms submitted that seek payment related to credit or debit card fraudulent transactions will be carefully scrutinized by the Settlement Administrator.

Claims for Out-of-Pocket Losses must be supported by third party documentation. Third party documentation means written documents supporting your Claim, such as credit card statements, bank statements, invoices, telephone records, and receipts.

A Claim for Out-of-Pocket Losses may be reduced pro rata if the aggregate value of all Approved Claims exceeds the Net Settlement Fund.

To receive reimbursement for Out-of-Pocket Losses, you must submit a completed Claim Form electing to receive reimbursement for Out-of-Pocket Losses. If you file a Claim Form for Out-of-Pocket Losses and it is rejected by the Settlement Administrator and you do not correct it, you will not be eligible for reimbursement of Out-of-Pocket Losses.

In addition to Reimbursement for Out-of-Pocket Losses, you may elect to submit a Claim Form for reimbursement of Attested Time. If you lost time related to your efforts undertaken to prevent or mitigate fraud and identity theft following announcement of the Data Security Incident, or otherwise respond to the Data Security Incident, you may make a Claim for Reimbursement for Attested Time for up to ten (10) hours of lost time at a rate of $25 per hour, for a maximum of $250.

A Claim for Attested Time may be reduced pro rata if the aggregate value of all Approved Claims exceeds the Net Settlement Fund.

To receive reimbursement for Attested Time you must submit a completed Claim Form electing to receive reimbursement for Attested Time. If you file a Claim Form for Attested Time and it is rejected by the Settlement Administrator and you do not correct it, you will not be eligible for reimbursement of Attested Time.

All Participating Settlement Class Members are entitled to receive a Residual Cash Payment consisting of a pro rata share of the Net Settlement Fund after the funds needed to pay all Approved Claims for Reimbursement of Out-of-Pocket Losses and Attested Time have been deducted therefrom.

You are not required to submit a Claim to receive a Residual Cash Payment; all Settlement Class Members who do not exclude themselves from the Settlement will be entitled to receive a Residual Cash Payment.

Paysafe has implemented and agreed to maintain certain reasonable steps to enhance the security of its systems and environments, including remedial and enhanced data security measures, including cybersecurity training and awareness programs, data security policies, monitoring and response capabilities, and restrictions on accessing PII. In addition, the legacy website involved in the Data Security Incident has been disabled.

In exchange for the Settlement, each of the Settlement Class Representatives and Participating Settlement Class Members, and each of their respective heirs, executors, administrators, representatives, agents, partners, successors, attorneys, and assigns, present and former (“Releasing Parties”), shall be deemed to have fully, finally, and forever released, acquitted, and discharged Paysafe and its present and former predecessors, successors, assigns, parents, subsidiaries, divisions, affiliates, departments, and any and all of their past, present, and future officers, directors, employees, stockholders, partners, servants, agents, successors, attorneys, advisors, consultants, representatives, insurers, reinsurers, subrogees and the predecessors, successors, and assigns of any of the foregoing (collectively, the “Released Persons”) from any and all Released Claims. This release expressly includes Paysafe’s insurer with respect to all obligations under any part of the insurance policy applicable to the Released Claims, and from any and all claims arising out of the investigation, handling, adjusting, defense, or settlement of the claim including, without limitation, any claims for negligence, invasion of privacy, violations of California’s Unfair Competition Law (Cal. Bus. & Prof. Code § 17200, et seq.), and violations of California’s Consumer Privacy Act (Cal. Civ. Code § 1798.150).

“Released Claims” means any and all claims or causes of action of every kind and description, including any causes of action in law, claims in equity, complaints, suits, or petitions, and any allegations of wrongdoing, demands for legal, equitable or administrative relief (including, but not limited to, any claims for injunction, rescission, reformation, restitution, disgorgement, constructive trust, declaratory relief, compensatory damages, consequential damages, penalties, exemplary damages, statutory damages, punitive damages, attorneys’ fees, costs, interest or expenses) that the Releasing Parties had, have, or may claim now or in the future to have (including, but not limited to, assigned claims and any and all “Unknown Claims” as defined below) that were or could have been asserted or alleged arising out of the same nucleus of operative facts as any of the claims alleged or asserted in the Litigation, including but not limited to the facts, transactions, occurrences, events, acts, omissions, or failures to act that were alleged, argued, raised, or asserted in any pleading or court filing in the Litigation, including but not limited to those concerning: 1) the disclosure of the Participating Settlement Class Members’ personal information in the Data Security Incident; 2) Paysafe’s maintenance of the Participating Settlement Class Members’ personal information as it relates to the Data Security Incident; 3) Paysafe’s security policies and practices as it relates to the Data Security Incident; or 4) Paysafe’s provision of notice to the Participating Settlement Class Members following the Data Security Incident.

The Released Claims include the release of Unknown Claims. “Unknown Claims” means claims that could have been raised in the Litigation and that any of the Settlement Class Representatives or Participating Settlement Class Members, and each of their respective heirs, executors, administrators, representatives, agents, partners, successors, attorneys, and assigns, does not know or suspect to exist, which, if known by him, her, or it, might affect his, her, or its agreement to release Paysafe and its present and former predecessors, successors, assigns, parents, subsidiaries, divisions, affiliates, departments, and any and all of their past, present, and future officers, directors, employees, stockholders, partners, servants, agents, successors, attorneys, advisors, consultants, representatives, insurers, reinsurers, subrogees and the predecessors, successors, and assigns of any of the foregoing, or the Released Claims, or might affect his, her, or its decision to agree, object, or not to object to the Settlement. Upon the Effective Date, each of the Settlement Class Representative and Participating Settlement Class Members, and each of their respective heirs, executors, administrators, representatives, agents, partners, successors, attorneys, and assigns shall be deemed to have, and shall have, waived any and all provisions, rights, and benefits conferred by any law of any state, the District of Columbia or territory of the United States, by federal law, or principle of common law, or the law of any jurisdiction outside of the United States. Specifically, the Settling Parties stipulate and agree that upon the Effective Date, the Representative Plaintiffs and Settlement Class Members expressly shall have and by operation of the Judgment shall have, released any and all Released Claims, including Unknown Claims, and waived the provisions, rights, and benefits conferred by California Civil Code § 1542, and also any and all provisions, rights, and benefits conferred by any law of any state, province, or territory of the United States which is similar, comparable, or equivalent to California Civil Code § 1542, which provides:

A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.

The Settlement Class Representative and Participating Settlement Class Members, and each of their respective heirs, executors, administrators, representatives, agents, partners, successors, attorneys, and assigns acknowledge that they may discover facts in addition to or different from those that they now know or believe to be true with respect to the subject matter of the Release, but that it is their intention to finally and forever settle and release the Released Claims, including but not limited to any Unknown Claims they may have, as that term is defined in this Paragraph.

More information is provided in the Class Action Settlement Agreement and Release which is available on this Settlement Website.

You do not need to do anything in order to receive a Residual Cash Payment. So long as you are on the Settlement Class List and do not exclude yourself from the Settlement, you are entitled to receive a Residual Cash Payment.

Payment for Approved Claims for Out-of-Pocket Losses and/or Attested Time, and/or a Residual Cash Payment, will be provided by the Settlement Administrator after the Settlement is approved by the judge and becomes final.You may elect to receive payment for Approved Claims for Out-of-Pocket Losses and/or Attested Time, and/or a Residual Cash Payment, via Zelle, Venmo, PayPal, eMastercard, or ACH instead of via a paper check by submitting the appropriate information with your Claim Form filed through this Settlement Website. Anyone who does not elect to receive payment via Zelle, Venmo, PayPal, eMastercard, or ACH will receive their payment via a paper check sent through U.S. Mail.The court approval process may take time.

Please be patient and check this Settlement Website for updates.

No. If you exclude yourself, you are telling the Court that you do not want to be part of the Settlement. You can only receive a Residual Cash Payment if you stay in the Settlement Class and you can only receive reimbursement for Out-of-Pocket Losses and Attested Time by submitting a valid Claim Form.

This Notice summarizes the proposed Settlement. For the precise terms and conditions of the Settlement, please see the Settlement Agreement available  in the documents section of this Settlement Website, or contact Class Counsel (see below), or access the Court docket in this case, for a fee, through the Court’s Public Access to Court Electronic Records (PACER) system at https://ecf.cand.uscourts.gov.

If you have questions about the proposed Settlement or anything in this Notice, you may contact Class Counsel at: