A North Carolina federal judge has granted preliminary approval for a $1.5 million settlement in a class action lawsuit against Builders Mutual Insurance Co. The lawsuit stems from a 2022 data breach that compromised the personal information of tens of thousands of individuals, including insurance claimants, stakeholders, and employees. The plaintiffs accused the company of negligence in its data security practices and delayed notification to affected parties.
The settlement provides class members with three years of free credit monitoring and the possibility of claiming up to $10,000 for economic losses resulting from the breach. In addition, individuals can be compensated for up to six hours of lost time at a rate of $25 per hour. U.S. District Judge Richard E. Myers II stated that the settlement appeared to be “fair, reasonable, and adequate”.
The breach occurred between December 14 and 15, 2022, when unauthorized parties gained access to personal data. The class action lawsuit was initially filed in January 2023, and the settlement offer was submitted to the court in August 2023. The final approval hearing for the settlement is scheduled for January 17, 2025.
This case adds to a growing trend of class action lawsuits against companies accused of failing to safeguard customer data. In a separate case, Prudential Financial Inc. also faces a similar lawsuit related to a breach affecting nearly 37,000 individuals. The plaintiffs in the Builders Mutual case are represented by several law firms, including Rhine Law Firm PC and Strauss Borrelli PLLC.
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