Telmate reaches $4.22 million settlement over 2020 cyber attack

Telmate has agreed to pay $4.22 million to settle a 2020 data breach that exposed the personal information of more than 430,000 individuals.

 

Telmate provides secure communication services for correctional facilities across North America, including monitored calls, digital messaging, photo sharing, educational resources, and video visitation. Its technology also helps staff monitor communications, record calls, and verify user identities.

 

In August 2020, Telmate reported a data breach affecting a database containing the personal information of users of its services, including GettingOut, VisitNow, Command, Telmate Inmate Telephone, and Guardian. An investigation found that data belonging to 868,969 individuals was compromised, including names, birth dates, phone numbers, addresses, driver’s license and passport details.

 

After the cyberattack, a class action lawsuit was brought before the United States District Court for the Eastern District of Virginia. The plaintiffs claimed that Telmate did not take adequate and reasonable precautions to safeguard their personal information and failed to implement sufficient cybersecurity protections, which they alleged helped lead to the data breach.

 

While Telmate 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, Telmate will create a $4.22 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 who submit a valid claim may receive a pro rata cash payment. The amount will depend on the number of valid claims, approved out-of-pocket loss claims, and the remaining settlement funds after court-approved deductions. No documentation is required for this payment.

 

Eligible individuals may also seek reimbursement of up to $5,000 for documented out-of-pocket expenses reasonably linked to the security incident. Supporting documents, such as receipts, telephone records, or correspondence, are required. Class members may submit one claim form for either or both payment options. Claims for documented out-of-pocket losses must be submitted by December 21, with the required documentation.

 

The proposed settlement has been granted preliminary approval by the court but has not yet become final. A final approval hearing is scheduled for February 12, 2027, when the court will decide whether to approve the settlement.