Citizens whose personal data was compromised in a recent cyberattack could be entitled to compensation, however, time seems to be running out. Citizens who were affected by the National Student Clearinghouse (NSC) data breach will have until May 26, 2025, to file a claim to be part of the $9.95 million class action settlement. Eligible citizens could receive up to $12,500 in compensation which will be determined according to extent of their losses incurred. Citizens will need to check their eligibility in order to claim their share.
More details about the data breach
Hackers gained access to sensitive information from May 28 to May 31, 2023, due to a vulnerability in MOVEit, a file transfer software used by NSC. The NSC is a nonprofit organization that provides educational verification and data services to schools, students, and employers. During this data breach, the Social Security numbers of thousands of individuals were compromised.
According to the plaintiffs in the case, the National Student Clearinghouse failed to take enough cybersecurity measures to prevent the breach. Thus far, NSC has not admitted fault, however, it has agreed to a $9.95 million settlement to resolve all allegations. This case is part of the broader MOVEit Customer Data Security Breach Litigation.
Who qualifies and what can you claim?
Citizens who qualify for this settlement are those whose Social Security numbers were included in the compromised data between May 28 and May 31, 2023.
Eligible class members will receive compensation based on documented losses tied to the breach:
- Up to $2,500 for ordinary losses such as bank fees, communication charges, credit monitoring services and up to 4 hours of lost time (compensated at $25/h).
- Up to $10,000 for extraordinary losses such as unreimbursed financial losses, identity theft damages, professional services and credit repair expenses.
Those who don’t have documented losses but wish to participate can also be eligible for a $100 alternative cash payment, though this final amount may vary depending on the number of claims filed. Class members regardless of financial loss are eligible for two years of free credit monitoring and identity theft protection.
Extra services provided to claimants include:
- Monitoring of all three credit bureaus
- Up to $1 million in identity theft insurance coverage
- Real-time fraud alerts
It is important for citizens to claim their share of this settlement in the same way as they would for the Cash App settlement.
Filing claim and other important deadlines
All eligible individuals need to submit a valid claim form by May 26, 2025. When filing the claim all documentation of any losses (e.g., bank statements, receipts, or communication records) need to be provided if a citizen wants reimbursement beyond the $100 cash payment. The claim form information can be found on the official website: NSCSettlement.com.
Should citizens disagree with the settlement terms, the deadline to opt out or file an objection was April 25, 2025. The final approval hearing is set to take place on May 12, 2025, in the U.S. District Court for the District of Massachusetts. Citizens who submit a claim even if they don’t qualify for the settlement agreement could be sending fraudulent claims that could hurt other eligible claimants. Thus, citizens need to be very sure if they are eligible and review the FAQs on the settlement case.
All of the citizens who had their personal data compromised due to the data breach should be sure to file a claim by May 26. Filing a claim is the best way to receive up to $12,500 in reimbursement while receiving protection at the same time from future identity threats. Another settlement that can make citizens rich is the T-Mobile settlement.
For more information about this settlement, you can visit Top Class Actions and get informed about how to file a claim.
