For all the convenience and speed technology has brought us in this day and age, it comes with data breach risks that have an equal footing. Depending on how sensitive the leaked information or data is, hackers could quite literally hold you hostage without ever even being in the same country as you. It appears that there is quite the market for people’s personal data as several companies have been facing class action lawsuits with steep settlement payouts as a result of data breaches in recent months.
Hackers cracked the code to your data – claim your $6,000
One of the world’s largest insurance firms is currently embroiled in a class action lawsuit as a result of data breach allegations. Victims of this breach can be entitled to up to $6000 dollars as compensation once the case is approved.
The insurance company that is now liable to pay approximately 3.5 million of its clients is Arthur J. Gallagher & Co. The insurance firm reached a settlement agreement for a total payout of $21 million last year according to Arnold Law Firm who has been leading the class action suit against the company.
Data breach lawsuit details
The data breach occurred over several months between June 3 and September 26 of 2020 resulting in sensitive data being exposed. The compromised data included Social Security numbers, credit card details, and other personally identifiable data belonging to Gallagher’s customers and employees. Allegations in the lawsuit include claims of negligence, failure to implement adequate security measures, and a delayed response in notifying those affected, according to Arnold Law Firm.
In September, the $21 million settlement received preliminary approval from U.S. District Judge Mary Rowland as the terms were deemed fair and reasonable. The hearing for final approval of the suit has been scheduled for February 6.
The plaintiffs have also shared that Gallagher did not notify customers of the breach until June 2021, nearly a year after the breach occurred. This is almost a year after the data breach occurred meaning clients were at risk for an incredibly lengthy period and the data breachers could have done a lot with the stolen information during that time.
The lawsuit brought against Gallagher consolidated multiple claims of negligence, breach of contract, and violations of state privacy laws, the plaintiffs noted.
Victims of this case have until Feb 10 to file their claims via the claim website. Claimants will need to submit proof of money damages if they wish to claim their $6000 dollar piece of the $21 million settlement payout. If you are a member of the class action lawsuit who did not experience financial losses, you may claim three years of financial account monitoring services and a minimum of $1 million in fraud and identity theft insurance. A pro rata settlement payment will also be given to people.
Company accountability
One of the key components of the settlement is Arthur J. Gallagher’s commitment to enhancing their data security protocols moving forward, addressing the vulnerabilities that led to the breach.
This cases serves as a good example of how companies need to go the extra mile when it comes to holding itself accountable and protecting client data. In this tech-driven age, just about everything is now digitized meaning that companies can hold a vastly larger scale of information and data than it previously could in the paper file era.
Although Arthur J. Gallagher & Co. has not admitted to any wrongdoing, the hefty payout that they will be making serves as a good lesson for all companies to take heed. It is definitely a more economic choice to invest more in cyber security to ensure the safety of your data rather than paying out settlement fees and legal fees.