You may be entitled to a potential windfall of up to $10,000 from a class action settlement. National Student Clearinghouse is facing a $9.95 million settlement after it failed to safeguard consumers’ sensitive information during the MOVEit data breach in 2023. If you qualify for a payout, you only have a few weeks left to claim your share of the damages. Below are details regarding eligibility and the deadline.
Your chance to claim $10,000 in a $9.95 million data breach settlement
A data breach took place between May 28 and May 31, 2023, involving the MOVEit file transfer software, which resulted in the access of National Student Clearinghouse files. The accessed information included individuals’ Social Security numbers and other sensitive data, which may be utilized by hackers for criminal activities such as fraud and identity theft.
The plaintiffs in the class action contend that National Student Clearinghouse (NSC), a nonprofit organization providing educational data to schools, students, and employers, could have prevented the breach with more robust cybersecurity measures.
NSC has consented to a $9.95 million settlement to resolve the lawsuit but has not admitted to any misconduct regarding the data breach. The settlement terms allow class action members to seek reimbursement for ordinary or extraordinary losses resulting from the breach and the theft of sensitive information.
What can class action members claim, and which losses are covered?
Claims for ordinary losses are capped at $2,500, which includes bank fees, costs for credit monitoring, and communication expenses. Individuals can also claim $25 per hour for up to four hours of time spent dealing with the data breach. For those experiencing extraordinary losses, claims can go up to $10,000, covering damages from fraud, professional fees, credit rehabilitation costs, and unreimbursed financial losses.
Affected individuals who prefer not to join the class action may opt for a $100 alternative cash payment. However, this amount may adjust based on the number of claims submitted.
Settlement benefits do not stop at cash payouts. Each class action member is also entitled to two years of complimentary identity theft protection or credit monitoring, which includes real-time alerts, monitoring by three credit bureaus, and identity theft insurance up to $1 million.
Who qualifies for payout under the National Student Clearinghouse settlement?
To be eligible to file a claim in the National Student Clearinghouse settlement, you must have had your Social Security number accessed during the MOVEit data breach occurring between May 28 and May 31, 2023.
You will also need to provide “proof of purchase” through documentation that verifies your losses, such as phone records, bank statements, receipts, or invoices.
It’s essential to remember that individuals who are unsure of their eligibility should refrain from filing a claim until they can confirm they were affected by the breach.
What is the deadline for filing a class action settlement claim?
The deadline for exclusion or objection is April 25, 2025. The final approval hearing for the settlement is slated for May 12, 2025. The final deadline for claimants to be eligible for settlement benefits is May 26, 2025, and a valid claim form must be completed.
You can find frequently asked questions on the settlement administrator’s website to ensure you qualify to claim a portion of the $9.95 million payout. If you do not qualify for this settlement, consider checking your eligibility for the Apple Federal Credit Union class action settlement regarding unfair overdraft fees.
For additional information about this class action, please refer to the MOVEit National Student Clearinghouse website.
