Netgain Data Breach Settlement: $1.9M

Individuals whose personal or health-related information may have been shared with a third party as a result of a data breach between September 2020 and November 2020.

Required for reimbursement claims. Acceptable documentation includes receipts, account statements, credit reports, tax forms, invoices, or other paperwork showing breach-related losses.

Netgain Technology has agreed to a $1.9 million class action settlement to resolve claims that it failed to protect personal and health-related information during a cybersecurity breach. The breach occurred between September and November 2020 but was discovered in March 2021. Plaintiffs say the incident compromised sensitive data belonging to individuals who interacted with healthcare and accounting providers that used Netgain’s IT and cloud services.

The lawsuit alleges that Netgain did not implement adequate security measures, putting consumers at risk of identity theft and fraud. Plaintiffs claim they were forced to spend time and money on credit monitoring, fraud prevention, and account protection as a result of the incident.

Netgain denies any wrongdoing but agreed to the settlement to resolve the litigation.

What Settlement Class Members Can Receive

Eligible individuals may receive the following benefits:

• Expense Reimbursement: Up to $5,000 for documented out-of-pocket losses related to the data breach. This includes identity theft costs, credit monitoring expenses, fraudulent charges, bank fees, and up to three hours of lost time at $25 per hour.

• Pro Rata Cash Payment: Class members who do not submit documentation of losses or who prefer not to submit claims for reimbursement can instead receive a pro rata cash payment. The exact amount will depend on the number of claims filed.

To receive any settlement benefit, eligible class members must submit a valid claim form by September 17, 2025.

The settlement provides financial relief to those affected by the 2020 Netgain data breach and helps compensate for the time and expenses related to managing the risks of identity theft and fraud.