One of the biggest data breaches of both financial and personal information in the history of America occurred in 2017 involving a big chunk of the country’s population. The plaintiffs filed an Equifax lawsuit in November 2017 claiming that adequate protection to consumer information was not offered by the credit bureau. Additionally, the plaintiffs also argued that Equifax did not properly respond either during or after the breach as it didn’t take quick action and didn’t implement adequate security measures following the breach. News sources reported that the data breach was bigger than what was reported by Equifax to the public. It exposed sensitive information like names, birth dates, email addresses, social security numbers, address history, tax identification numbers, driver’s license numbers, and phone numbers. This information was accessed by unauthorized parties between May and June.
Though Equifax doesn’t admit to any wrongdoing, they agreed to resolve the claims of plaintiffs that their private credentials were breached due to inadequate cybersecurity for avoiding the risks of continued litigation and the potential costs associated with the same.
Equifax agreed to create a restitution fund by paying at least $380.5 million and an additional $125 million which will cover all out-of-pocket costs incurred by the 48 states that filed separate lawsuits against Equifax if the restitution fund gets depleted. The credit bureau has also decided to alter its business practices for securing consumer information. Under the Equifax class action lawsuit settlement, consumers can avail of a $125 cash payment or free credit monitoring services. The terms of the settlement will also provide free identity restoration services for at least seven years and up to $20000 in expense reimbursement.
The Federal Trade Commission reported on 31st July 2019 that the claimants who have chosen cash pay-out from the Equifax Data Breach Class Action Settlement shall receive less pay-out than $125 due to overwhelming public response. Only $31 million was earmarked against the claimants who selected cash payment out of the total settlement pool of more than $300 million. An objection was filed to the Equifax data breach class action settlement on 19th November 2019 by the Center for Class Action Fairness who claimed that the attorney fee request should be reduced and that the claims process was suppressed by the settling parties.
Eligibility for Making Claim: The claim can be filed by the 147 million people who were affected by the Equifax data breach that took place in September 2017.
Proof of Purchase: Not Needed.
Potential Claim Amount: Class Members are eligible for either $125 cash payment or free credit monitoring. Three bureau credit monitoring shall be offered for a minimum of four years through Experian and one bureau credit monitoring will be offered for an incremental of six years. Class Members having credit monitoring can get cash payments for at least six months. The potential reimbursement amount is up to $20000 for expenses including the time spent in finding a remedy to the fraud which can be claimed at $25 hourly for up to 20 hours, cost of credit monitoring for up to 25% of these costs, and out-of-pocket expenses. Free identity restoration services shall be offered for a minimum of seven years.
Claim Form: EquifaxBreachSettlement.com
Deadline for Submitting Claim: The last date of submitting claims for alternative reimbursement compensation, credit monitoring services, and Equifax subscription product reimbursement is 22nd January 2020. The claims for time spent and out-of-pocket expenses incurred should be filed within 22nd January 2020 although Class members have up to 22nd January 2024 to file claims for future losses. Class members can either object to or exclude themselves from the claim within 19th November 2019.
Final Hearing Date: The final approval hearing date is 19th November 2019.
Settlement Pool: Equifax has agreed to resolve the class action claims associated with the massive data breach of 2017 by paying at least $380.5 million. The Equifax class action settlement attained the final approval of a federal judge on 13th January 2020 for $425 million irrespective of the objections received from various consumer advocacy groups.