District Court approves $1.75 million data breach settlement

District Court approves $1.75 million data breach settlement

On March 3, the U.S. District Court for the Central District of California granted final approval of a $1.75 million class action settlement resolving allegations related to a 2020 data breach that compromised nearly 100,000 individuals’ personally identifiable information, including financial information, social security numbers, health records, and other personal data. The affected individuals are students, parents, and guardians who were enrolled in a system used to manage student data in a California school district. According to class members, by failing to adequately safeguard users’ login credentials and by failing to timely notify individuals of the breach, the company violated, among other things, California’s unfair competition law, the California Customer Records Act, and the California Consumer Privacy Act.

Under the terms of the settlement, the company is required to pay a non-reversionary settlement amount of $1.75 million, which will be used to compensate class members and pay for attorney fees and costs, service awards, and administrative expenses. Additionally, as outlined in the motion for preliminary approval of the class action settlement, class members are eligible to submit claims for “ordinary losses” (capped at $1,000 per person), as well as “extraordinary losses” (capped at $10,000 per person). Ordinary losses include expenses such as bank fees, long distance phone charges, certain cell phone charges, postage, gasoline for local travel, “[f]ees for additional credit reports, credit monitoring, or other identity theft insurance products,” and up to 40 hours of time, at $25/hour, for at least one full hou ..

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