National Student Clearinghouse Data Breach Settlement

This deadline has passed, but here’s another class action for you.

In May 2023, the National Student Clearinghouse (NSC) experienced a data breach resulting from a vulnerability in the third-party file transfer software, MOVEit Transfer. This incident potentially compromised the personally identifying information (PII), including Social Security numbers, of numerous individuals. A class action lawsuit was subsequently filed against NSC, alleging inadequate protection of this sensitive data. While NSC denies any wrongdoing, a settlement has been proposed to resolve these claims.

Who Is Included in the Settlement Class?

You are considered a member of the Settlement Class if you received a notice from NSC indicating that your PII was potentially compromised in the 2023 MOVEit Security Incident. Specifically, this includes individuals whose Social Security numbers were provided to NSC by data owners and were affected by the breach.

Settlement Benefits

Eligible Settlement Class Members may receive the following benefits:

  1. Credit Monitoring and Identity Theft Protection Services: Two years of credit monitoring and identity theft protection services.
  2. Reimbursement for Losses:
    • Ordinary Losses: Reimbursement of up to $2,500 for out-of-pocket expenses related to the data breach.
    • Extraordinary Losses: Reimbursement of up to $10,000 for significant financial losses directly attributable to the data breach.
  3. Alternative Cash Payment: An alternative cash payment of up to $100, subject to pro rata adjustment based on the number of valid claims submitted.

How to Submit a Claim

To receive any of the settlement benefits, you must submit a valid Claim Form by the specified deadline. Claims can be submitted online or by mail.

  • Online Submission: Complete the Claim Form available on the official settlement website: NSC Settlement
  • Mail Submission: Download and print the Claim Form from the settlement website, then mail the completed form to the address provided.

Important Deadlines

  • Claim Form Submission Deadline: May 26, 2025
  • Exclusion (Opt-Out) Deadline: April 25, 2025
  • Objection Deadline: April 25, 2025
  • Final Approval Hearing: May 12, 2025, at 10:00 a.m. Eastern Time

Your Legal Rights and Options

As a Settlement Class Member, you have several options:

  1. Submit a Claim Form: To receive settlement benefits, you must submit a Claim Form by May 26, 2025.
  2. Exclude Yourself (Opt-Out): If you do not wish to participate in the settlement and want to retain the right to sue NSC separately for claims related to this data breach, you must request exclusion by April 25, 2025. By opting out, you will not receive any benefits from this settlement.
  3. Object to the Settlement: If you have concerns about the settlement’s terms, you can file an objection with the court by April 25, 2025. If you object, you may still submit a Claim Form to receive benefits if the settlement is approved.
  4. Do Nothing: If you do not take any action, you will not receive any settlement benefits and will lose the right to sue NSC separately for claims related to this data breach.

Final Approval Hearing

The court will hold a Final Approval Hearing to determine whether to approve the settlement on May 12, 2025, at 10:00 a.m. Eastern Time. The hearing will take place at the United States District Court for the District of Massachusetts. You may attend this hearing, but it is not required.

Additional Information

For more detailed information about the settlement, including frequently asked questions, important documents, and updates, please visit the official settlement website: NSC Settlement

By staying informed and taking timely action, you can protect your rights and potentially receive compensation if you were affected by the NSC data breach.