$900K Settlement Resolves Paycom Payroll Data Breach Lawsuit
Trimble et al. v. Paycom Payroll LLC
Filed: February 8, 2024 ◆§ 5:24-cv-00154
Paycom Payroll faces a class action lawsuit over a 2023 data breach during which an unknown party accessed the company’s systems and stole thousands from customers’ accounts.
A $900,000 settlement has been reached to resolve a proposed class action lawsuit that claimed inadequate cybersecurity on the part of Paycom Payroll resulted in a data breach between May 28 and June 2, 2023.
Don’t miss the next class action settlement deadline. Sign up for ClassAction.org’s free weekly newsletter.
The official website for the Paycom data breach settlement can be found at PaycomDataSettlement.com.
The deal, which was preliminarily approved by the court on August 9, 2024, covers anyone in the United States whose personal information was accessed or acquired in the Paycom data security incident—a class of 21,451 people, according to the settlement agreement.
To receive a Paycom settlement payout, eligible class members must file a valid claim form online or by mail by November 7, 2024.
Claim forms can be submitted online on this page, or you may download a PDF claim form to print and return by mail.
In order to file a claim, you will need the unique Claim Login ID and Claim Login PIN found on the personalized postcard notice you should have received in the mail, the website says.
Related Reading: Paycom Payroll Data Breach Lawsuit Claims Hacker Stole Thousands by Re-Routing Direct Deposits
Per the site, class members may submit a claim for reimbursement of out-of-pocket losses that are supported by documentation and reasonably traceable to the Paycom data breach, for up to $2,500 per person.
Additionally, class members can file a claim for up to four hours of lost time spent dealing with issues related to the incident, at a rate of $25 per hour, and capped at $100 each, the website shares.
Claims for out-of-pocket losses can be combined with claims for lost time, but these benefits are subject to a combined $2,500 cap per person, the settlement site notes.
As the website explains, class members may also make a claim for reimbursement of documented “extraordinary” losses that are reasonably linked to the data breach, up to $4,200 per individual.
In addition to the aforementioned cash benefits, class members may elect to receive three years of credit monitoring services, the site relays.
Alternatively, in lieu of any reimbursements and/or credit monitoring services, individuals may file a claim for a $25 cash payment, the website adds.
The site points out that cash benefits may decrease on a pro rata basis depending on how many valid claims are submitted.
Lastly, as part of the $900,000 settlement, Paycom has also agreed to enhance certain data security measures, the settlement agreement states.
The court will decide whether to grant final approval to the terms of the Paycom deal during a hearing on December 13, 2024 in Oklahoma City. Typically, benefits are issued to eligible class members once a settlement receives final approval from the court, and after any objections or appeals are resolved.
According to the class action lawsuit against Paycom, the online payroll and human resources company fell victim to a massive cyberattack that targeted third-party file transfer platform MOVEit in May and June 2023. The case claimed that Paycom, which used the MOVEit platform for secure file transfers, failed to prevent the exposure of personal data belonging to thousands of people.
Per the data breach suit, the incident compromised individuals’ full names, Social Security numbers, dates of birth, passport details and employment authorization card information.
Check out ClassAction.org’s lawsuit list for current class action lawsuits and investigations.
Hair Relaxer Lawsuits
Women who developed ovarian or uterine cancer after using hair relaxers such as Dark & Lovely and Motions may now have an opportunity to take legal action.
Read more here: Hair Relaxer Cancer Lawsuits
How Do I Join a Class Action Lawsuit?
Did you know there's usually nothing you need to do to join, sign up for, or add your name to new class action lawsuits when they're initially filed?
Read more here: How Do I Join a Class Action Lawsuit?
Stay Current
Sign Up For
Our Newsletter
New cases and investigations, settlement deadlines, and news straight to your inbox.
Before commenting, please review our comment policy.