Frequently Asked Questions


BASIC INFORMATION

1. What is this lawsuit about?

This Lawsuit is about whether or not DX Enterprises, Inc. (“Defendant”) violated the Illinois Biometric Information Privacy Act (“BIPA”). BIPA prohibits private companies from capturing, obtaining, storing, transferring, and/or using an individual’s biometric identifiers and/or biometric information, including a fingerprint or palm scan, without first providing an individual with certain written disclosures and obtaining written consent.

The Lawsuit alleges that Defendant violated BIPA by:

  • Collecting and using employees’ biometric identifiers (e.g., palmprints or handprints) through its biometric timekeeping system without providing prior written notice or obtaining written consent;

  • Failing to create or follow a publicly available written retention schedule and destruction policy for biometric data, as required by BIPA; and

  • Disclosing employees’ biometric data to its timekeeping vendor without obtaining the required consent.

Defendant denies liability in the Lawsuit. Both sides agreed to the settlement to resolve the Lawsuit. The Court has not decided whether Defendant violated the law.

You can learn more about the Lawsuit by contacting the Settlement Administrator, Simpluris, at (866) 675-2905, or Settlement Class Counsel, The Garfinkel Group, LLC, at 312-736-7991 ext. 2.

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2. Who is included in the settlement?

The settlement includes all workers who allegedly used Defendant’s biometric timekeeping system in Illinois during the Class Period (“Settlement Class” or “Settlement Class Members”).

There are an estimated 586 Settlement Class Members.

In addition, the settlement also includes a Subclass of Settlement Class members who were rehired by Defendant at least once (“Settlement Subclass” or “Settlement Subclass Members”).

There are an estimated 86 Subclass Members.

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3. What does the settlement provide?

The class action settlement provides for a total payment of $1,519,796.84 that Defendant has agreed to pay to settle the claims of Settlement Class Members. Subject to Court approval, the gross settlement fund shall be reduced by the following:

  1. An award of up to thirty-five percent (35%) of the total settlement for Settlement Class Counsel’s attorney fees and litigation costs (estimated at $531,928.89);

  2. A Service Award of $15,000 to the Settlement Class Representative; and

  3. The Settlement Administrator’s costs, capped at $15,000.

Following these reductions, the remaining amount shall be the net settlement fund, which will be distributed as follows:

  • Settlement Class Members: Each member of the Settlement Class will receive a pro rata payment from the Net Settlement Fund, calculated to provide equal compensation for the alleged violations of BIPA.

  • Subclass Members: Members of the Subclass will receive additional incremental payments to account for the multiple biometric data collection events they experienced. These payments will be calculated on a pro rata basis from a designated Subclass Fund, which is a portion of the Net Settlement Fund allocated specifically for the Subclass Members.

The Parties estimate you will receive a payment in the approximate amount of $2,444.74, with Subclass Members receiving additional payments based on their rehire instances ($846.40 per instance).

Unless you exclude yourself from the settlement as explained below, you will give up any and all claims against Defendants, their employees, and their related entities, including claims under the Biometric Information Privacy Act and any and all other related federal, state, and local law claims, including under the common law, as well as related claims for liquidated damages, penalties, attorneys’ fees and costs, expenses, and interest. The full release of claims is set forth in the Settlement Agreement, which you can request from Settlement Class Counsel or the Settlement Administrator as identified below.

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4. What are your options?

  1. Receive a settlement payment. If you want to receive a settlement payment, you do not need to do anything. If you do nothing and the court grants final approval of the settlement, you will be mailed your settlement payment and be bound by the Settlement Agreement, including the release of claims. If required by law, you may also be sent a 1099 tax reporting form.

  2. Exclude yourself from the settlement and receive no money. If you do not want to be legally bound by the settlement, you must exclude yourself from the settlement by March 6, 2025. To do so, you must mail or submit here your request for exclusion to the Settlement Administrator. Your request for exclusion must include your full name, address, telephone number, the last four digits of your Social Security Number, a statement that you wish to be excluded from the settlement, and it must be signed by you. If you exclude yourself, you will not receive money from this settlement, but you will keep your legal rights regarding any claims you may have against the Defendant and the other Released Parties (as defined in the Settlement Agreement).

  3. Object to the Settlement. You may object to the settlement by March 6, 2025. If you want to object to the settlement, you must mail or email a written objection to the Settlement Administrator (contact information below), which includes your full name, address, telephone number, the last four digits of your Social Security Number, the grounds for the objection, and copies of any other documents you wish to submit in support of your objection. Any objection must also be personally signed by you. If you exclude yourself from the settlement, you cannot file an objection.

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5. How do I update my contact information?

You must notify the Settlement Administrator of any changes in your mailing address so that your settlement award will be sent to the correct address. To update your address, contact the Settlement Administrator, at the information located here.

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6. Who are the attorneys representing the Settlement Class and how will they be paid?

The Court has appointed Settlement Class Counsel, identified below, to represent Settlement Class Members in this settlement. Settlement Class Counsel will request up to thirty-five percent (35%) of the total settlement amount as attorney fees plus reimbursement of their costs. You will not have to pay Settlement Class Counsel from your settlement award or otherwise. You also have the right to hire your own attorney at your own expense.

The Garfinkel Group, LLC
Max P. Barack
701 N. Milwaukee Avenue, The CIVITAS
Chicago, Illinois 60642
Telephone: 312-736-7991

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7. When is the final approval hearing?

The Court will hold a hearing in this case on April 15, 2025, at 10:00 a.m. to consider, among other things, (1) whether to finally approve the settlement; (2) a request by the lawyers representing Settlement Class Members for an award of up to thirty-five percent (35%) of the settlement as attorneys’ fees plus litigation costs; and (3) a request for a Service Award of $15,000 for Settlement Class Representative Heather McClaine; and (4) a request for up to $15,000 to the Settlement Administrator. You may appear at the hearing, but you are not required to do so.

If you have any questions or need more information, contact the Settlement Administrator or Settlement Class Counsel at:

PLEASE DO NOT CONTACT THE COURT OR DEFENDANT ABOUT THIS SETTLEMENT.

Settlement Administrator

Settlement Class Counsel

McClaine v. DX Enterprises, Inc.
Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799

The Garfinkel Group, LLC
Max P. Barack
701 N. Milwaukee Avenue, The CIVITAS
Chicago, IL 60642
max@garfinkelgroup.com

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