$9.95 Million National Student Clearinghouse Settlement Reached to Resolve Data Breach Lawsuit

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National Student Clearinghouse (NSC) has agreed to settle for $9.95 million a proposed class action lawsuit it faced over the May 2023 MOVEit data breach.

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The data breach case was filed against National Student Clearinghouse and Progress Software Corporation in Virginia in November 2023. The plaintiff’s claims against Progress Software Corporation have yet to be resolved.

The proposed National Student Clearinghouse settlement received preliminary approval from the court in October 2024. The deal covers approximately 1.5 million NSC clients in the United States whose Social Security numbers were included in the files affected by the 2023 MOVEit data breach, an international cyberattack whereby a ransomware group gained access to the file transfer service’s servers.

The official website for the deal can be found at NSCSettlement.com.

Related Reading: National Student Clearinghouse, Progress Software Corporation Facing Class Action Over May 2023 MOVEit Data Breach

According to court documents, the proposed National Student Clearinghouse settlement “resolves one piece of a complex puzzle of related litigation arising out of the MOVEit security incident.”

To receive benefits from the deal, class members must submit a valid, timely claim online or by mail by May 26, 2025.

Click here to file a claim form online. You’ll be asked to provide the unique ID and PIN found in the email settlement notice you received.

Class members who file a timely, valid claim will be eligible for two years of credit monitoring and identity theft protection. Covered individuals can also submit a claim for reimbursement for out-of-pocket expenses incurred as a result of the breach, including up to $2,500 for “ordinary losses” and up to $10,000 for “extraordinary losses.” Alternatively, class members can choose to receive a $100 cash payment.

Typically, class members begin receiving benefits from a class action settlement only after the deal receives final approval from the court and any appeals or objections are resolved. A final approval hearing is set for May 12, 2025.

The initial class action suit against NSC, an educational nonprofit, and Progress Software Corporation, a third-party IT company, alleged the companies disregarded consumers’ privacy by failing to implement reasonable cybersecurity safeguards to protect sensitive data, and stored class members’ information unsecured and unencrypted.

Are you owed unclaimed settlement money? Check out our class action rebates page full of open class action settlements.