The National Student Clearinghouse has agreed to pay nearly $10 million to settle multidistrict litigation over the 2023 breach of Progress Software’s MOVEit file transfer tool. This settlement, outlined in a Massachusetts federal court filing on Friday, aims to resolve a November 2023 class action that alleged weak security practices by National Student Clearinghouse and Progress Software exposed personal information, including Social Security numbers, of roughly 1.5 million individuals.
National Student $10M MOVEit Hack Settlement : Impact on Affected Class Members
The settlement creates a $9.95 million fund to compensate class members, offering two years of credit monitoring and payments for losses resulting from the breach. Affected individuals can claim up to $12,500 for documented damages or receive a cash payment of $100. The amount may fluctuate depending on how many people file claims.
Losses covered include unreimbursed fraud, internet usage, credit monitoring costs, and fraudulent charges. In addition, the fund will pay attorney fees, administrative costs, and an award for lead plaintiff Michael Evangelista, a Georgia resident.
Significant Litigation Risks Avoided
“The settlement provides immediate and guaranteed relief in the face of difficult, extensive, and expensive litigation that poses a significant risk that plaintiff and the settlement class might recover nothing from NSC,” the plaintiff’s legal team explained in the motion for approval.
