Insurance brokerage Arthur J. Gallagher & Co. has reached a $21 million settlement to resolve a class-action lawsuit stemming from a data breach in 2020.
AM Best reported that court documents indicate that about one-third of the settlement amount will go toward legal fees, with final approval still pending.
The breach, which occurred in June 2020, exposed personal identifiable information, including Social Security numbers, tax identification numbers, and driver’s licence details. The lawsuit, initially proposed in 2021 and officially filed in 2022, was brought on behalf of individuals affected by the cyberattack.
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Gallagher identified the breach in September 2020 and took steps to mitigate the impact, including taking its systems offline, initiating response protocols, and engaging a third-party cybersecurity firm to investigate.
However, the complaint alleged that the company not only failed to adequately protect consumer data, but also waited a year before informing those affected.
Read more: Gallagher warns about the flow-on effects of a data breach
Under the terms of the settlement, impacted individuals may be eligible for compensation of up to $6,000 for documented losses, according to information provided by Kroll Settlement Administration LLC, which is managing the claims process.
Class members can also choose between three years of financial monitoring or a pro-rated cash payout.
Legal filings indicate that the class includes more than three million individuals.
A final court hearing to approve the settlement is set for February 27.
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