$1.9M Netgain Settlement Wraps Up Data Breach Class Action Lawsuit [UPDATE]

New to ClassAction.org? Read our Newswire Disclaimer

Netgain Technology has agreed to pay a $1.9 million class action settlement to resolve consolidated litigation over a major 2020 data breach. 

Don’t miss out on class action settlement news like this. Sign up for ClassAction.org’s free weekly newsletter. 

If preliminarily approved by the court, the Netgain settlement will cover all United States residents whose personal information was stored by Netgain clients on Netgain servers and was compromised in the data breach, including all consumers who received a notice from a Netgain client that their information may have been compromised in the cyberattack.

A memo submitted in support of the proposed deal states that each Netgain settlement class member will have the option to submit a claim form for documented out-of-pocket losses or lost time or, alternatively, a cash payout. 

Netgain settlement class members who file a timely, valid claim form may recover up to $5,000 for documented losses and/or lost time traceable to the data breach. Any money remaining in the class action settlement fund after the payment of these claims, and certain administration expenses, service awards and attorneys’ fees, will be distributed on a pro-rated basis among Netgain class members who submit a valid claim form for an alternative cash payment. 

ClassAction.org will update this page when the court-approved Netgain settlement website is launched.

“No portion of the Settlement Fund will revert back to Netgain unless there is a Termination of the Settlement,” court documents state. 

Related Reading: Open Class Action Settlements

In addition, Netgain, a cloud-enabled IT solutions and managed services provider, has agreed to adopt, continue or implement, for at least three years, upgraded firewalls, geo-blocking, routing through secured gateways, virus protection, multi-factor authentication, and data protection back-up, among other measures. 

According to court documents, a “primary basis” for the class action settlement was Netgain’s financial condition, as represented by the company’s attorneys. The settlement agreement states that Netgain’s insurance coverage for the data breach has been “exhausted,” and the company’s financial liabilities “greatly exceed its available liquid assets.” 

Threat actors gained access to Netgain Technology’s digital environment in late September 2020, compromising the personally identifiable information of hundreds of thousands of people, class action lawsuits alleged. Subsequent class action lawsuits alleged consumers’ Social Security numbers, medical information, driver’s license numbers and bank account numbers, among other data, were compromised in the attack.

Check out ClassAction.org’s lawsuit list for the latest top class action lawsuits.