District Court grants preliminary approval of $1.5M class action settlement for insurance company data breach

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On August 27, the U.S. District Court for the Eastern District of North Carolina granted a plaintiff’s unopposed motion for preliminary approval of a class action settlement related to an insurance company’s data breach that occurred in December 2022. The court certified a plaintiff class, including all individuals in the U.S. whose private information was compromised in the breach.

The court found the proposed $1.5 million settlement to be “fair, reasonable, and adequate.” The settlement included both monetary and non-monetary benefits and according to the court, the parties agreed to the settlement through “good faith, arms’ length negotiations.” The court has approved the proposed notice program, which included informing class members of their rights and the process for submitting claims, objecting to the settlement, or opting out. Class members wishing to exclude themselves must submit a written request by the specified opt-out date, while those wishing to object must file a written notice by the objection deadline. Participating class members can claim a period of free credit monitoring and request up to $10,000.

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