ClearBalance data breach $2.65M class action settlement - Top Class Actions
ClearBalance data breach $2.65M class action settlement
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4101
By Top Class Actions
September 16, 2022
Hand of businessman on dark background with security glowing sign - ClearBalance settlement
(Photo Credit: Sergey Nivens/Shutterstock)
CSI Financial Services will pay $2.65 million to resolve claims it mismanaged a 2021 data breach.
The settlement benefits a nationwide class of individuals whose personal identifying information was compromised in the CSI Financial Services data breach between March 8 and April 26, 2021. The settlement also covers a subclass of class members who lived in California at the time of the data breach.
In April 2021, CSI Financial Services — also known as ClearBalance — learned of a data breach when it detected and prevented an unauthorized wire transfer from a ClearBalance account. An investigation into the issue reportedly revealed that a third party gained access to ClearBalance email accounts in March and April of 2021.
According to a data breach notice, patients of certain hospitals or healthcare providers could have had their information compromised. This includes names, Social Security numbers, birth dates, ID numbers, contact information, banking information, clinical data, health insurance information and more.
Affected consumers took legal action against CSI Financial Services in a class action lawsuit, arguing the company failed to prevent the data breach or, once the breach was discovered, inform consumers in a timely fashion.
Plaintiffs say that CSI Financial could have prevented or mitigated the data breach by taking reasonable cybersecurity measures to protect its systems from third parties.
The class action lawsuit also contends CSI Financial Services should have informed consumers of the breach as soon as they learned of the issue instead of waiting months to inform authorities and affected individuals.
CSI Financial Services hasn’t admitted any wrongdoing but agreed to a $2.65 million settlement deal to resolve these allegations.
Under the terms of the ClearBalance settlement, class members can receive a cash payment for losses resulting from the data breach.
Class members who spent time remedying the data breach can claim up to three hours of lost time at a rate of $22.50 per hour, for a maximum lost time payment of $67.50.
Class members can claim up to $1,000 in out-of-pocket expenses such as credit monitoring, miscellaneous expenses, credit freeze costs and more.
Additional payments of $5,000 are available to class members who experienced extraordinary out-of-pocket losses such as falsified tax returns, fraudulent government or medical claims and more.
Class members from California can recover an additional $100 to resolve claims CSI Financial Services violated California privacy laws.
In addition to receiving cash payments as described above, class members can receive two years of identity-theft protection free of charge.
The deadline for exclusion and objection is Nov. 9, 2022.
The final approval hearing for the ClearBalance settlement is scheduled for Jan. 20, 2023.
In order to receive settlement benefits, class members must submit a valid claim form by Nov. 24, 2022.
FOLLOW ARTICLE
4101
By Top Class Actions
September 16, 2022
Hand of businessman on dark background with security glowing sign - ClearBalance settlement
(Photo Credit: Sergey Nivens/Shutterstock)
CSI Financial Services will pay $2.65 million to resolve claims it mismanaged a 2021 data breach.
The settlement benefits a nationwide class of individuals whose personal identifying information was compromised in the CSI Financial Services data breach between March 8 and April 26, 2021. The settlement also covers a subclass of class members who lived in California at the time of the data breach.
In April 2021, CSI Financial Services — also known as ClearBalance — learned of a data breach when it detected and prevented an unauthorized wire transfer from a ClearBalance account. An investigation into the issue reportedly revealed that a third party gained access to ClearBalance email accounts in March and April of 2021.
According to a data breach notice, patients of certain hospitals or healthcare providers could have had their information compromised. This includes names, Social Security numbers, birth dates, ID numbers, contact information, banking information, clinical data, health insurance information and more.
Affected consumers took legal action against CSI Financial Services in a class action lawsuit, arguing the company failed to prevent the data breach or, once the breach was discovered, inform consumers in a timely fashion.
Plaintiffs say that CSI Financial could have prevented or mitigated the data breach by taking reasonable cybersecurity measures to protect its systems from third parties.
The class action lawsuit also contends CSI Financial Services should have informed consumers of the breach as soon as they learned of the issue instead of waiting months to inform authorities and affected individuals.
CSI Financial Services hasn’t admitted any wrongdoing but agreed to a $2.65 million settlement deal to resolve these allegations.
Under the terms of the ClearBalance settlement, class members can receive a cash payment for losses resulting from the data breach.
Class members who spent time remedying the data breach can claim up to three hours of lost time at a rate of $22.50 per hour, for a maximum lost time payment of $67.50.
Class members can claim up to $1,000 in out-of-pocket expenses such as credit monitoring, miscellaneous expenses, credit freeze costs and more.
Additional payments of $5,000 are available to class members who experienced extraordinary out-of-pocket losses such as falsified tax returns, fraudulent government or medical claims and more.
Class members from California can recover an additional $100 to resolve claims CSI Financial Services violated California privacy laws.
In addition to receiving cash payments as described above, class members can receive two years of identity-theft protection free of charge.
The deadline for exclusion and objection is Nov. 9, 2022.
The final approval hearing for the ClearBalance settlement is scheduled for Jan. 20, 2023.
In order to receive settlement benefits, class members must submit a valid claim form by Nov. 24, 2022.
