NY Court Approves $4.95 Million Settlement for Poor Security

A New York District Court has granted final approval of a class action settlement. This resolves complaints against Deloitte Consulting following a data breach in May 2020. Deloitte has agreed a settlement of $4.95 million after the data breach led to the disclosure of individual’s personal information.

Background

The original case was presented by Plaintiff’s who alleged Deloitte failed to use reasonable data security measures when designing web-based portals for state employment agencies in Illinois, Colorado and Ohio. There was subsequently a data breach that led to unauthorized access to unemployment seekers’ personally identifiable information. This included:

  • Names
  • Addresses
  • Unemployment claimant ID numbers
  • Social Security numbers

Both parties agreed to a nationwide settlement class of 237,675 individuals in the affected states.

Settlement

The agreement established a settlement fund of $4,950,000 for the benefit of the settlement class. Alongside this, Deloitte will be required to pay $1,649,835 in attorneys’ fees.

Settlement class members will benefit from the remediation measures in the settlement agreement, regardless of whether they submit a claim form or not. Deloitte is offering “each notified claimant 12 months of free credit monitoring through Experian Identity Works”.

The Settlement Class Representatives will be awarded £1,500 each for their active participation in this action. This was justified by:

  • Risks faced in bringing this lawsuit, financial and otherwise
  • Amount of time and effort spent on this action
  • The benefits they helped obtain for the settlement class members under the settlement agreement.

Cybersecurity has never been more important. With latest studies showing just how quickly files can be stolen, it must not take a back seat. Value Privacy can assess your security systems and also tell you where you may be at risk. Contact us today to find out how we can help you.

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