Thousands of Americans could be entitled to a portion of a $1.6 million settlement following a class action lawsuit against Nonstop Administration and Insurance Services, which is accused of failing to protect its clients from a data breach.
The breach, which occurred in 2022, exposed sensitive information, including names, Social Security numbers, medical record numbers, health plan IDs, addresses, and prescription details. The lawsuit, filed in San Francisco in 2023, claims that the company kept this data “unprotected” and is responsible for the “massive and preventable” cyberattack. While the breach was discovered in December 2022, victims were not informed until February 22, 2023.
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Though the company has agreed to pay $1.6 million to settle the case, it does not admit to any wrongdoing. Those whose information was compromised in the breach may be eligible for a payout from the settlement, with amounts varying depending on the nature of the claim filed.
Class members who experienced financial losses due to the breach will be given priority and can claim up to $5,000 for out-of-pocket expenses, such as bank fees, charges related to identity theft, fraud, or misuse of their personal information. They must provide proof, such as bank statements, invoices, or credit reports, to substantiate their claims.
Alternatively, those who choose an “alternative cash payment” option can receive a pro-rata sum, estimated to be around $50, though this could change depending on the total number of claims filed.
California residents who lived in the state between December 22, 2022, and February 12, 2025, can also claim an additional $100 under the California Consumer Privacy Act. To receive this payment, claimants must submit proof of address.
In addition to the financial compensation, Nonstop Administration has agreed to improve its security measures to prevent future cyber attacks.
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Claims must be submitted by February 12, 2025. Those who fail to file a claim or who opted out of the class action will not receive any compensation and will be barred from taking future legal action related to this issue.
The final approval hearing for the settlement will take place on March 18, 2025, after which payments will be issued.
Meanwhile, the parent company of Oreo is issuing checks of up to $7,000 each—check to see if you qualify.
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