PERSONAL PASS: Americans to get up to $5k from $4.76m data breach settlement – but you only have weeks left to fill out a claim form

According to THE SUN, Americans impacted by a data breach involving Group 1001 Insurance have a limited window to claim their share of a $4 million settlement. The deadline to submit a claim form is approaching fast, with all forms needing to be postmarked by October 10, 2024.

Background of the Data Breach

Group 1001 Insurance, an insurance and annuity company with nearly 1,400 employees and over 950,000 customers, experienced a significant data breach on or around February 9, 2023. The incident potentially exposed the confidential personal information of approximately 475,000 customers. The breach has led to a class-action lawsuit, with allegations that the company failed to implement adequate cybersecurity measures.

Although Group 1001 Insurance has not admitted to any wrongdoing, they have agreed to a settlement of $4.76 million to resolve the lawsuit.

How to Claim Your Settlement

To receive compensation, affected individuals must submit a claim form by the October 10 deadline. Claims can be submitted online or by requesting a form via phone at (833) 522-7100.

Settlement Benefits

Those affected by the breach have several options for compensation:

• Up to $5,000 for out-of-pocket losses and/or lost time, including expenses for bank fees, communication charges, travel, credit costs, and up to four hours of lost time at $20 per hour.
• Pro-rata cash payment: Payments will be at least $5 but will vary depending on the number of valid claims submitted.
• Identity theft protection: Eligible claimants can receive identity theft protection services, including $1 million in insurance.

Claimants must provide documentation of their losses, such as bills, receipts, invoices, account statements, and credit reports.

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Your Options

Affected individuals can:

• Exclude themselves from the settlement by “opting out,” which means they will not receive any payments but retain the right to pursue separate legal action.
• Object to the settlement: Those who disagree with the settlement can submit written objections or request to speak at the final approval hearing about the fairness of the settlement.

The final approval hearing is scheduled for October 3, 2024.

Data Breach Trends

Data breaches have become more common, with a significant increase last year due to widespread cloud adoption. According to the Harvard Business Review, over 80% of data breaches in 2023 involved cloud-stored data, often due to excessive permissions, unrestricted ports, and unsecured backups.

In addition to the Group 1001 settlement, Americans could also be eligible for cash distributions from other recent data breach settlements, including one involving a restaurant services company. BuzzFeed has also agreed to pay $9 million in a class action lawsuit related to privacy law violations.