San Antonio-based Pape-Dawson Engineers Inc. has reached a settlement in a class-action lawsuit stemming from a data breach that occurred in February 2022. The breach allegedly resulted in cybercriminals gaining access to the personally identifiable information of 2,790 current and former employees.
The proposed settlement, subject to court approval, allows class members to claim losses from the breach, with a cap of $250,000 on claims. Class members can seek compensation for ordinary losses up to $325, including identity theft and fraud, as well as up to $4,000 for documented economic losses from fraud or identity misuse.
If the total claims exceed the cap, the settlement agreement specifies that payments to settlement class members will be reduced on a pro rata basis according to the number of claims made. As part of the settlement, class members will also have access to up to a year of free credit monitoring from Aura, including fraud insurance of up to $1 million and monitoring of the dark web for potential misuse of personal information. Pape-Dawson Engineers Inc. has committed to enhancing its cybersecurity measures following the data breach and ensuring the security of employee private information and protected health information.
The settlement agreement includes a denial of wrongdoing and liability by Pape-Dawson Engineers Inc. The lawsuit was originally filed in federal court in San Antonio but later refiled in state District Court. The plaintiff, Richard Charitat, accused the company of failing to safeguard its computer systems.
Pape-Dawson responded by seeking the dismissal of Charitat’s claims and requested attorney’s fees and costs. The company stated that Charitat had not been a victim of identity theft and that there were no allegations of cybercriminals using personal information for fraudulent purposes.
The settlement was mediated on March 29, and the agreement was executed in May. Charitat has requested a $2,500 service award for initiating the action and has asked the court to certify the class for settlement purposes. A court hearing on final approval is expected within 120 days of the preliminary approval order.
