A financial software provider is preparing to distribute millions of dollars to consumers impacted by a data security incident.
The company has agreed to the $5.5 million class action resolution in federal court, reports Claim Depot.
The underlying lawsuit alleged inadequate protection of sensitive files at Doxim Inc., a Michigan-based third-party service provider serving credit unions and related financial clients.
Plaintiffs claimed an unauthorized access to the firm’s computer network allowed removal of names, addresses, account numbers and Social Security numbers from the company’s systems.
The company sent notices informing clients of the breach.
“On December 30, 2023, Doxim detected suspicious activity within the portion of its computer network supporting its credit union services. Upon discovering the situation, we promptly took these systems offline, notified law enforcement, and engaged industry-leading cybersecurity experts to investigate. As part of our investigation, we determined that files had been removed from our network.”
Doxim has denied any liability throughout the proceedings yet chose to settle to limit ongoing expenses and uncertainties.
Qualifying US residents who received breach notices qualify for reimbursement of up to $5,000 in proven out-of-pocket costs tied to identity theft or fraud.
Claimants without documentation may receive an estimated $100 pro rata cash distribution instead.
One year of credit monitoring services is available to everyone who submits a valid claim.
The settlement fund will also cover attorney fees, expenses and modest service awards to named plaintiffs before distributions occur.
Claims must reach the administrator by the October 13th deadline for consideration. The court is set to give final approval of the settlement on October 28th.
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The post Michigan-based Financial Software Provider Preparing To Pay Out $5.5 Million In Data Breach Settlement appeared first on The Daily Hodl.
