Bradford-Scott reaches $2.39 million settlement over 2023 data breach

Bradford-Scott has reached a settlement in a class action lawsuit arising from a 2023 cybersecurity breach that compromised the personal data of over 40,000 people.

 

In April 2023, Indiana-based software solution provider Bradford-Scott experienced a significant data breach that exposed the personal information of more than 40,000 individuals. The incident prompted an investigation into the unauthorised access to the company’s systems and raised concerns about the security of sensitive customer and employee data.

 

Following the cyber attack, a class action lawsuit was filed against Bradford-Scott in the District Court for Northern District of Indiana. The plaintiffs alleged that Bradford-Scott failed to implement reasonable security measures to protect their personal information. The lawsuit also alleged that the company failed to implement reasonable and appropriate cyber security measures, resulting in the data breach. 

 

While Bradford-Scott denied any wrongdoing or negligence, both sides agreed to settle the case to avoid the costs and risks of continued litigation and allow Class members to receive benefits under the settlement.

 

As part of the settlement, Bradford-Scott will create a $2.39 million settlement fund to pay eligible claims submitted by class members, in addition to covering settlement administration expenses, attorneys’ fees and costs, and any court-approved service awards.

 

Under the settlement, eligible Class Members will receive 3 years of CyEx Financial Shield Complete, including $1 million in financial fraud insurance, monitoring for fraud, identity theft, unauthorised transactions, and high-risk use of personal information, plus access to fraud resolution support.

 

The settlement also provides up to $5,000 for documented losses from the incident, including fraud losses, credit monitoring fees, ID replacement costs, and related expenses incurred between July 2, 2023, and October 7, 2026. Members may also receive a one-time Pro Rata Cash Payment from remaining settlement funds, estimated at $100, depending on the number of valid claims.

 

The proposed settlement has been granted preliminary approval by the court but has not yet become final. A final approval hearing is scheduled for October 15, when the court will decide whether to approve the settlement.