Americans Eligible for Compensation in $1.5M Data Breach Settlement – Check How to Claim
According to The Sun, Americans can now claim thousands of dollars from a class action settlement related to a significant data breach. The breach, which involved a software company, has led to a $1.5 million settlement aimed at compensating affected consumers.
The settlement benefits those who received a data breach notification from CGM, a software solutions provider serving wireless and broadband companies. In December 2022, CGM experienced a security breach, which potentially compromised sensitive consumer data.
The class action lawsuit alleged that CGM failed to implement adequate cybersecurity measures, leaving consumers vulnerable to the breach. During the incident, hackers reportedly gained access to personal information, prompting the lawsuit. While CGM has not admitted to any wrongdoing, the company has agreed to a $1.5 million settlement to resolve the claims.
Consumers impacted by the breach are eligible to receive both monetary compensation and credit monitoring benefits. Under the settlement terms, class members can access three years of credit monitoring and identity theft protection services. These services include three-bureau monitoring and up to $1 million in identity theft insurance.
Additionally, class members may receive cash payments. Individuals with documented data breach-related expenses can claim up to $400 for ordinary losses, $20 per hour for up to four hours of lost time, and up to $4,000 for extraordinary losses. For those without documented losses, an alternate cash payment, estimated at around $20, is available. The final payout amount may vary depending on the number of valid claims filed.
To qualify for compensation, affected individuals should provide receipts, invoices, account statements, credit reports, insurance claims, or other documentation proving data breach-related losses. The deadline to opt out or object to the settlement is June 27, 2024. The final approval hearing is scheduled for August 26, 2024, and class members must submit a valid claim form by that same date to receive settlement benefits.
This settlement highlights a growing concern about data security as more companies store sensitive information in the cloud. According to the Harvard Business Review, data breaches spiked last year, with over 80% involving cloud-stored data. Misconfigured cloud settings, excessive access permissions, and unsecured backups have contributed to this rise in breaches.
In related news, Cash App has agreed to pay up to $2,500 per person in a $15 million data breach settlement, and LensCrafters settled for $39 million to resolve a class action lawsuit over deceptive advertising practices.