$3.25M USAA Settlement Aims to Resolve Data Breach Lawsuit Over May 2021 Cyberattack
In re: USAA Data Security Litigation
Filed: January 31, 2022 ◆§ 7:21-cv-05813
The USAA has agreed to pay a $3.25 million settlement that, if approved by the court, will resolve a class action over a May 2021 data breach.
New York
The United Services Automobile Association (USAA) has agreed to pay a $3.25 million settlement that, if approved by the court, will resolve a consolidated class action lawsuit over a May 2021 data breach involving the company’s online insurance quotation system.
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The proposed USAA data breach settlement covers anyone in the United States whose personal information was accessed, stolen or compromised as a result of the incident, which USAA reportedly detected around May 6, 2021.
The lawsuit against USAA claimed that negligent cybersecurity on the company’s part resulted in the data breach, during which an unauthorized third party fraudulently obtained auto insurance quotes from USAA.com using victims’ names and dates of birth.
According to the data breach lawsuit, the auto insurance quotes USAA provided disclosed individuals’ driver’s license numbers to fraudsters, putting consumers at an increased risk of identity theft and other cybercrimes.
The plaintiffs notified the court of the agreement with USAA, and filed a motion and memo detailing the terms of the $3,250,000 deal, on December 11, 2024. The court must now determine whether to grant preliminary approval to the settlement terms.
Per the agreement, if the deal is initially approved, class members will be eligible to receive a pro-rated share of the settlement fund.
Related Reading: USAA Data Breach Lawsuit Claims ‘System Error’ Exposed Info of 32K Customers in April 2024
Consumers will not have to do anything to receive a USAA settlement payout, though they will be asked to submit a settlement payment election form to confirm their contact details and indicate a preferred payment method, the agreement relays.
The form will be available to submit by mail or online through the official settlement website—USAADataSettlement.com—once it is launched.
ClassAction.org will update this page if and when the official USAA settlement website is established.
The plaintiffs’ memo states that the settlement, if approved, may provide class members with approximately $143.51, though a final payout amount has not yet been determined.
According to the agreement, notice of the USAA class action settlement will be mailed out, and the official website will be established, within 45 days following preliminary approval of the deal.
Head to ClassAction.org’s settlements page for a complete list of data breach settlements.
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