Hundreds of Americans are now eligible for millions of dollars in compensation for a data breach. The settlement comes after a class-action lawsuit was filed against the trade union UNITE HERE because personal information was compromised during the data breach in 2023.
The laborers who are the victims of this data breach are eligible to receive up to $5,000 from the payout with just one document. The class members accused the union, which failed to protect them from this breach, of eventually violating the New York Deceptive Trade Practices Act and not adhering to FTC guidelines.
UNITE has agreed to a $6 million settlement to resolve this ongoing issue. However, they have also admitted no wrongdoing.
This data breach occurred around October 20, 2023; however, the union didn’t inform the members until four months later, in February 2024, as per The Sun.
The breach occurred when an unauthorized party tried to access UNITE’s systems and eventually gained access to the information, including the names of the club members, dates of birth, medical numbers, and social security numbers. People who join the hospitality industry union are required to submit their personal and health information at the time of signing up.
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According to the suit, the organization’s failure to follow and enforce basic safety measures led to this non-compliance with the FTC guidelines, and a breach of the Deceptive Trade Practices Act also occurred.
When filing any claim, class members must provide a document including the details of out-of-pocket expenses resulting from the breach. These can be bank statements, credit card statements, communication charges, receipts showing bank fees, invoices, travel expenses, etc.
However, members can also claim standard cash payments if they don’t have proper documentation or do not incur out-of-pocket expenses. This amount will vary based on the number of claims filed.
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What is a Class-Action Settlement?
Class Action lawsuits are where a group of people or classes are offered a way to band together in court. These suits are often brought by one or a few people who allege an organization that has wronged many people.
However, money is not the only thing the class members will receive; two years of free credit monitoring services will also be provided. This doesn’t depend on any documented losses.
To be eligible for the payout, members must submit all completed claims forms to the settlement administrator by April 28. A final approval hearing will be held on May 12, at which the amount of the pro-rata cash payment will be determined. Also, people who want to object to or exclude themselves from this settlement must do so by April 11.
Meanwhile, another data breach occurred, where the class members had less than a month to claim part of a $3.25 million payout.
