Epsilon Data Management, KBM Group Fraud $161M Deferred Prosecution Agreements

Epsilon Data Management and KBM Group agreed to pay a combined $161 million to resolve fraud charges with the federal government.

The two deferred prosecution agreements (DPAs) benefit victims of fraudulent mass mailing schemes as a result of shared information from Epsilon Data Management and/or KBM Group. 

The U.S. Department of Justice sent notices with payment estimates to consumers affected by fraud. Individuals who believe they are eligible but did not receive a notice can file a fraud report with the federal government.

According to the Department of Justice, Epsilon Data Management and KBM Group unlawfully shared customer information with third parties. These entities then used this sensitive information in mass-mailing schemes targeting elder individuals. These schemes promised large cash prizes and other rewards if victims paid a fee.

Epsilon Data Management agreed to pay $150 million in its DPA with the federal government. $127.5 million of this is funding consumer payments. 

KBM similarly agreed to pay $42 million, $33.5 million of which is funding consumer payments.

Under the terms of the DPAs, consumers can receive a cash payment for fraud experienced as a result of their information being shared. Payment amounts have been calculated by the Department of Justice but will vary depending on each customer’s situation. Eligible individuals should have received a mailed notice with a payment estimate. There is no process in place to appeal for higher payments.

Any unclaimed funds will revert to the U.S. Postal Inspection Service Consumer Fraud Fund.

The DPAs do not note any injunctive relief, but consumers have the ability to contact Epsilon Data Management and/or KBM Group to request their information be removed from any lists.

The deadline to change contact information and addresses with the Epsilon Data Management fraud settlement administrator is May 4, 2022. 

Class Members who do not provide a current address may not receive their check as intended. In order to change an address on file, consumers must use the unique ID listed on their notice.

Class Members do not need to file a claim form in order to benefit from the Epsilon Data Management fraud settlement. Payments will be automatically distributed to the address on file. 

It is estimated checks will be mailed in May 2022.

Who’s Eligible

The two deferred prosecution agreements (DPAs) benefit victims of fraudulent mass mailing schemes as a result of shared information from Epsilon Data Management and/or KBM Group. 

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable.

Change Contact Info Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Contact Info Change Deadline

05/04/2022

Case Name

USA v. Epsilon Data Mgmt, LLC & KBM Group LLC, Case No. 21-cr-00198-PAB, Case No. 1:21-cr-00006-RM, in the United States District Court for the District of Colorado 

Final Hearing

NA

Settlement Website

ConsumerDataVictimCompensation.com

Claims Administrator

USA v. Epsilon/KBM
c/o Kroll Settlement Administration
PO Box 5324
New York, NY 10150-5324
833-910-4494

Class Counsel

Jason Dunn
Matthew T. Kirsch
UNITED STATES ATTORNEY
Hental Doshi
Rebecca Weber
ASSISTANT UNITED STATES ATTORNEY
UNITED STATES ATTORNEY’S OFFICE

Defense Counsel

Christopher Davies
April M. Elliott
Joss Berteaud
WILMER CUTLER PICKERING HALE AND DORR LLP

Lisa Gallerano
GENERAL COUNSEL
EPSILON DATA MANAGEMENT LLC

Shawn Cleveland
BAKERHOSTETLER