National Student Clearinghouse Data Breach Settlement: $9.95M

Individuals whose Social Security number was included in the compromised files during the May 2023 MOVEit breach involving National Student Clearinghouse.

Bank statements, receipts, credit reports, invoices, or other documentation supporting claimed losses.

National Student Clearinghouse has agreed to a $9.95 million class action lawsuit settlement to resolve claims that it failed to secure sensitive personal information during a major data breach in May 2023. The breach stemmed from a vulnerability in the MOVEit file transfer software, which hackers exploited to access files containing Social Security numbers and other private information.

Plaintiffs allege the breach could have been prevented if National Student Clearinghouse had implemented appropriate cybersecurity protections. They argue that the nonprofit organization, which provides data services to schools and employers, failed to take reasonable steps to safeguard student and consumer information.

National Student Clearinghouse has not admitted any wrongdoing but agreed to the multimillion-dollar settlement to resolve the litigation.

Under the Terms of the Settlement

Class members can receive up to $2,500 in reimbursement for ordinary losses such as credit monitoring costs, communication expenses, and up to four hours of lost time at $25 per hour. Those with more substantial harm may qualify for up to $10,000 in extraordinary loss reimbursement, including documented instances of fraud, identity theft, or professional recovery costs.

Individuals who do not claim expenses may opt for a $100 alternative cash payment. All class members are also eligible for two years of three-bureau credit monitoring and identity theft protection, which includes real-time alerts and up to $1 million in insurance coverage. Payment amounts may be adjusted based on the total number of approved claims.