Anthem, Inc. Data Breach Litigation

Docket number: 5:15-MD-02617-LH (N.D. Cal.)

This class action relates to a data breach of Anthem’s computer system containing personal information of 78.8 million people, with a claims-made settlement that proposes to pay $40.95 million to class counsel, $23 million to settlement administrators, and $52 million to the class in the form of credit monitoring and cash.

On behalf of class member Adam Schulman, CCAF challenged the excessiveness of the attorneys’ fee request. In particular, CCAF argued that because this was a megafund case, any fee award should be significantly less than the 25% benchmark; the unusually sizable settlement-administration costs require reduction in the valuation of the settlement; and plaintiffs’ counsel drastically overstated their lodestar with millions of dollars of work by contract attorneys billed at excessive rates and with duplication of effort.

CCAF asked the court to investigate overbilling that was not disclosed to the court or the class. Judge Koh agreed and appointed a special master to investigate overbilling in the Anthem case on February 8, 2018.

On April 24, 2018, the U.S. District Court for the Northern District of California released retired Santa Clara County Superior Court Judge James Kleinberg’s special master report and recommendations based on his review of the time and expenses spent litigating the Anthem case.  Judge Koh ultimately reduced the fee award by $6.9 million based on the excessive rates and duplicate work billed in the case.

This case was litigated while the Center for Class Action Fairness ​was a project of the Competitive Enterprise Institute.

Case Documents

Description
Aug 16, 2018 ORDER Adopting in Part Special Master’s Report and Recommendation RE Motion for Attorneys’ Fees
Aug 15, 2018 ORDER Granting Plaintiffs’ Motion for Final Approval of Class Action Settlement
May 15, 2018 RESPONSE to Special Master’s Report and Recommendation
Apr 24, 2018 REPORT AND RECOMMENDATIONS of Special Master Judge James Kleinberg
Apr 18, 2018 ORDER Requesting Response and Additional Information
Apr 18, 2018 SUPPLEMENTAL OBJECTION of Schulman To Settling Parties’ Interpretation of the Settlement
Feb 08, 2018 ORDER Appointing Special Master
Jan 25, 2018 REPLY BRIEF In Support of Motion to Appoint Special Master
Jan 04, 2018 NOTICE of Motion to Appoint Special Master
Dec 29, 2017 OBJECTION of Adam Schulman to Plaintiffs’ Attorneys’ Fee Request

 

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