Frequently Asked Questions
- What is the Notice and why should I read it?
- What is a class action lawsuit?
- What is this lawsuit about?
- Why is there a settlement?
- How do I know if I am in the Settlement Class?
- What does the Settlement provide?
- How do I make a Claim?
- When will I get my payment?
- Did I have a lawyer in this case?
- Should I get my own lawyer?
- How were the lawyers paid?
- What claims do I give up by participating in this Settlement?
- What happens if I did nothing at all?
- What happens if I asked to be excluded?
- How do I ask to be excluded?
- If I didn't exclude myself, can I sue Defendants for the same thing later?
- If I excluded myself, can I get anything from this Settlement?
- How do I object to the Settlement?
- What’s the difference between objecting and excluding myself from the Settlement?
- When and where did the Court hold a hearing on the fairness of the Settlement?
- Where can I get additional information?
What is the Notice and why should I read it?
The Court authorized the Notice to inform you about a proposed Settlement with Defendants. You had legal rights and options that you could have acted on before the Court decided whether to approve the proposed Settlement. You were eligible to receive a cash payment as part of the Settlement. The Notice explains the lawsuit, the Settlement, and your legal rights.
Judge Haywood S. Gilliam Jr. of the U.S. District Court for the Northern District of California oversaw this class action. The case is called Richards, et al, v. Chime Financial, Inc., Case No. 4:19-cv-06864 (N.D. Cal.).
The persons who filed the lawsuits, Ryan Richards, Ruba Ayoub, Brandy Terbay, and Tracy Cummings, were the Plaintiffs or Class Representatives. The companies they sued, Chime Financial, Inc., The Bancorp Inc., and Galileo Financial Technologies LLC (formerly Galileo Technologies Inc.), were the Defendants.
To view a copy of the Notice, click here.Back To Top
What is a class action lawsuit?
A class action is a lawsuit in which one or more plaintiffs—in this case, Ryan Richards, Ruba Ayoub, Brandy Terbay, and Tracy Cummings—sue on behalf of a group of people who have similar claims. Together, this group is called a “Class” and consists of “Class Members.” In a class action, the court resolves the issues for all class members, except those who exclude themselves from the class. After the Parties reached an agreement to settle this case, the Court granted preliminary approval of the Settlement and recognized it as a case that should be treated as a class action for settlement purposes.Back To Top
What is this lawsuit about?
The lawsuit alleged that some holders of Chime deposit accounts experienced an intermittent disruption in service for portions of the period of time between October 16, 2019, and October 19, 2019, and accountholders experienced damages and losses as a result. The lawsuit alleged that Defendants are liable for various consumer protection, unjust enrichment, conversion, contract, and negligence claims. Defendants denied that they were or could be held liable for the claims made in the lawsuit. More information about the complaint in the lawsuit and Defendants’ responses can be found on the "Important Documents" page of this website.Back To Top
Why is there a settlement?
The Court did not decide whether the Plaintiffs or Defendants should have won this case. Instead, both sides agreed to this Settlement. That way, they could avoid the uncertainty and expense of ongoing litigation, and Settlement Class Members could get compensation immediately rather than years later—if ever. The Class Representatives and their attorneys (“Class Counsel”) believe that the Settlement is in the best interests of the Settlement Class Members. The Settlement is not an admission of wrongdoing by any of the Defendants.Back To Top
How do I know if I am in the Settlement Class?
The Court decided that this Settlement includes a Class of all accountholders, as identified in Chime’s business records, who were unable to access their Chime deposit accounts for portions of a period of time between October 16, 2019, and October 19, 2019, as a result of the Service Disruption. Eligible Settlement Class Members have been emailed notice of their eligibility, and Settlement Class membership was verified against that emailed list. Not all accountholders are Settlement Class Members. The Settlement Class does not include individuals who attempted to, and were unable to, access or spend their funds for reasons other than problems caused by technical issues arising during the Service Disruption (like insufficient balances).
This Settlement Class does not include (a) any Judge or Magistrate who presided over this Action and members of their immediate families; (b) Defendants, Defendants’ subsidiaries, parent companies, successors, predecessors, and any entity in which Defendants had a controlling interest, and any of their current or former officers, directors, employees, representatives, managers, members, and any other Person who acted for or on behalf of Defendants; (c) Persons who properly executed and filed a timely request for exclusion from the Settlement Class; (d) Persons who were separately represented by counsel for matters of, and have settled, claims related to the Service Disruption with any of Defendants; and (e) the legal representatives, successors, or assigns of any such excluded Persons.Back To Top
What does the Settlement provide?
This Settlement provided eligible Settlement Class Members with:
Cash payments for losses due to the Service Disruption. A Claim Form had to be timely filed in order to receive this benefit. Claims Forms had to be submitted or postmarked by February 15, 2021.
A Claim Form had to be timely submitted by mail or online at this website to receive this benefit. Claim Forms had to be submitted under the penalty of perjury.
Tier One: If you are a Settlement Class Member and you suffered a financial or other loss as a result of the Service Disruption, but did not have or did not wish to provide Reasonable Documentation of losses, you were eligible for a payment of up to twenty-five dollars ($25.00). Payments were reduced by amounts you already received from Defendants as a result of the Service Disruption. If the total amount of timely, valid Claims exceeded four million dollars ($4,000,000.00), then each valid Claim was reduced proportionally depending on the number of valid Claims submitted by the Settlement Class. Subject to the Terms of the Agreement, if the amount of valid claims was less than four million dollars ($4,000,000.00), Defendants were not obligated to make these funds available and kept these funds, (“Tier 1 Residue”), except to the extent that such funds were necessary to fully or partially satisfy Tier 2 claims, as described below. For additional information, please see the Settlement Agreement. Claims were subject to a verification process. The Settlement Administrator posted additional information about the payment amount on this website.
Tier Two: If you are a Settlement Class Member and you suffered a financial or other loss as a result of the Service Disruption and provide Reasonable Documentation of losses, you were eligible for a payment of up to seven-hundred and fifty dollars ($750.00). Payments were reduced by amounts you already received from Defendants as a result of the Service Disruption. If the total amount of timely, valid, documented Claims exceeded one and one-half million dollars ($1,500,000.00), plus the Tier 1 Residue, if any, then each valid, documented Claim was reduced proportionally depending on the number of valid Claims submitted by the Settlement Class. If the amount of valid claims was less than one and one-half million dollars ($1,500,000.00), Defendants were not obligated to make these funds available and kept these funds. For additional information, please see the Settlement Agreement. Claims were subject to a verification process. The Settlement Administrator posted additional information about the payment amount on this website.
Minimum Payment: The Claims submitted for financial or other losses did not equal or exceed the minimum of one and one-half million dollars ($1,500,000.00). As a result, the difference of $1.162,129.68 was donated by Defendants to the East Bay Community Law Center as approved and directed by the Court.
To receive a cash payment, a Claim Form had to be timely submitted by mail or online at this website by eligible Settlement Class Members. Claim Forms had to be submitted under the penalty of perjury, no later than February 15, 2021, per the instructions in FAQ 7.
Additional Benefits Provided by Defendants Pursuant to This Settlement:
To compensate accountholders for inconveniences and losses as a result of the Service Disruption, Defendants previously provided the following relief without requiring Settlement Class Members to submit a Claim:
- Settlement Class Members with an active account already received a credit to their account in the amount of ten dollars ($10.00). If you are one of the Settlement Class Members who received this credit, your Claim for losses will be reduced by ten dollars ($10.00).
- Settlement Class Members with an active account who incurred certain transaction fees during the Service Disruption received a credit to cover those fees.
How do I make a Claim?
The deadline to file a claim was February 15, 2021. We are no longer accepting claim submissions.Back To Top
When will I get my payment?
The Class Action Settlement Agreement is now final. If you were a Settlement Class Member who submitted a valid claim, please note that payments were mailed or deposited into Chime accounts on November 19, 2021. Only those Settlement Class Members who submitted valid claims will receive a payment, which will be reduced by any credits previously provided.Back To Top
Did I have a lawyer in this case?
Yes, the Court has appointed John A. Yanchunis Sr. of Morgan & Morgan as “Lead Counsel” and Patrick A. Barthle II of Morgan & Morgan and Joshua H. Watson of Clayeo C. Arnold, APC as “Class Counsel.” In addition, the Court appointed Plaintiffs Ryan Richards, Ruba Ayoub, Brandy Terbay, and Tracy Cummings to serve as the Class Representatives. They are Settlement Class Members like you. Class Counsel can be reached by calling 1-813-275-5272.Back To Top
Should I get my own lawyer?
You didn’t need to hire your own lawyer because Class Counsel was working on your behalf. But, if you wanted to hire your own lawyer, you could have. For example, you could have asked your lawyer to appear in Court for you if you wanted someone other than Class Counsel to represent you.Back To Top
How were the lawyers paid?
Class Counsel asked the Court for attorneys’ fees, costs, and expenses to be paid by or on behalf of Defendants separately. The Court determined that the proper amount of any attorneys’ fees, costs, and expenses to award Class Counsel was $346,857.31 and denied any service award to the Class Representatives. The Court did not reduce the benefits provided to you under this Settlement.Back To Top
What claims do I give up by participating in this Settlement?
If you did not exclude yourself from the Settlement, are not able to sue any of Defendants about the issues in this case, and you are bound by all decisions made by the Court in this case, the Settlement, and its included Release. This is true regardless whether you submitted a Claim Form. Please click here to view the Settlement Agreement.Back To Top
What happens if I did nothing at all?
If you did nothing, you will receive no payment under the Settlement for any losses incurred as a result of the Service Disruption. You are in the Settlement Class, you are also bound by all orders and judgments of the Court, the Settlement, and its included Release. You are deemed to have participated in the Settlement and are subject to the provisions of the Settlement Agreement as described in FAQ 12. Unless you excluded yourself, you are not able to file a lawsuit or be part of any other lawsuit against Defendants for the claims or legal issues resolved in this Settlement.Back To Top
What happens if I asked to be excluded?
If you excluded yourself from the Settlement, you will receive no benefits or payment under the Settlement. However, you are not in the Settlement Class and are not legally bound by the Court’s judgments related to the Settlement Class and Defendants in this class action.Back To Top
How do I ask to be excluded?
The deadline to exclude yourself was February 1, 2021. If you excluded yourself by this deadline, you will receive no payment but have retained any rights you currently had with respect to Defendants and the issues in this case.Back To Top
If I didn't exclude myself, can I sue Defendants for the same thing later?
No. Unless you excluded yourself, you gave up any right to sue Defendants for the claims being resolved by this Settlement.Back To Top
If I excluded myself, can I get anything from this Settlement?
No. If you excluded yourself, you were not eligible to submit a Claim Form to ask for a payment.Back To Top
How do I object to the Settlement?
The deadline to object to the Settlement was February 1, 2021.Back To Top
What’s the difference between objecting and excluding myself from the Settlement?
Objecting simply means telling the Court that you don’t like something about the Settlement. You can object only if you stay in the Settlement Class. Excluding yourself from the Settlement Class is telling the Court that you don’t want to be part of the Settlement Class. If you excluded yourself, you had no basis to object because the case no longer affected you.Back To Top
When and where did the Court hold a hearing on the fairness of the Settlement?
The Court held the Final Approval Hearing on April 1, 2021, and a continued hearing on April 29, 2021, to determine whether the Settlement is fair, reasonable, adequate, and in the best interests of the Settlement Class. The Court has issued its Final Approval.Back To Top
Where can I get additional information?
This website and the Notice summarize the Settlement. For the precise terms and conditions of the Settlement, please visit the Important Documents page to view the Settlement Agreement and other Settlement related documents. You can also access the Court docket in this case through the Court’s PACER system at www.pacer.gov, or visit the office of the Clerk of the Court for the United States District Court for the Northern District of California, Clerk of Court, United States Courthouse, 450 Golden Gate Avenue, San Francisco, CA 94102, between 9:00 a.m. and 4:00 p.m., Monday through Friday, excluding Court holidays.
If you have further questions you can contact Class Counsel at 1-813-275-5272, or the Settlement Administrator at 1-855-917-3581 (Toll-free).
Please do not contact the Court or Chime regarding this Settlement.Back To Top