You may be in line for a windfall of up to $10,000 in a class action settlement. National Student Clearinghouse has been hit with a $9.95 million settlement after failing to protect consumers’ sensitive information in a 2023 MOVEit data breach. If you are eligible for a payout, you only have a few weeks left to claim your shares of the damages payouts. The information about eligibility and the deadline date is below.
$10,000 could be yours in a data breach settlement of $9.95 million
Between May 28 and May 31, 2023, a data breach occurred involving the file transfer software MOVEit, and National Student Clearinghouse files were accessed. The information accessed included people’s Social Security numbers, among other sensitive details, which hackers may use for criminal activity such as fraud and identity theft.
The class action plaintiffs argue that National Student Clearinghouse (NSC), which is a nonprofit organization that makes educational data available to schools, students, and employers, could have prevented the breach with adequate cybersecurity features.
NSC has agreed to a $9.95 million settlement to resolve the case, but has not admitted to any wrongdoing concerning the data breach. The terms of the settlement dictate that the members of the class action may claim reimbursement for ordinary or extraordinary losses incurred by the data breach and theft of sensitive info.
How much can class action members claim, and what losses are covered?
There’s a cap of $2,500 on ordinary losses, which include bank fees, credit monitoring costs, and communications expenses. Consumers can also claim $25 an hour for up to four hours of time lost due to the data breach. People whose losses may be classed as extraordinary can claim up to $10,000. Losses in this category include fraud damages, professional fees, credit rehabilitation fees, and unreimbursed monetary losses.
Some affected individuals may not want to claim as a class member, and they are eligible for a $100 alternative cash payment. However, this amount may go up or down on a pro rata basis depending on how many claims are filed.
Benefits are not limited to cash payouts. Every class action member is also entitled to two years of identity theft protection ot credit monitoring at no cost under the settlement. These services include alerts in real time, monitoring by three credit bureaus, and identity theft insurance of up to $1 million.
Who’s eligible to be paid out 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 in the MOVEit data breach that took place between May 28 and May 31, 2023.
You will also need to provide “proof of purchase” in the form of documentation to prove you incurred losses. These could be phone records, bank statements, receipts, or invoices.
It’s important to note that people who are not sure whether they qualify or not should not file a claim until they are certain that they were affected by the breach.
What is the deadline to file a class action settlement claim?
April 25, 2025, is the deadline for exclusion or objection. The final approval hearing for the settlement is scheduled for May 12, 2025. The deadline date is May 26, 2025, for claimants to be eligible for settlement benefits, and the valid claim form must be filled in.
There are frequently asked questions on the settlement administrator’s website where you can make sure you qualify to claim a portion of the $9.95 million payout. If you don’t qualify for this settlement, check if you’re eligible for the Apple Federal Credit Union class action settlement over unfair overdraft fees.
For more information about this class action, you can check the MOVEit National Student Clearinghouse website.