Data breach settlements are becoming more regular by the day, and the only thing impacted persons can do afterward is try to better protect their data and seek compensation. This is what happened with the latest Paycom data hack.
Paycom provides payroll and human resources solutions to hundreds of organizations, and in 2023, it experienced a data breach in which all customer personal information saved on its systems was hacked. We know for certain that data from clients was obtained during the hack via MOVEit Transfer, a secure file transfer program, compromising the identities of those affected.
Following the hack, a class action lawsuit was filed against Paycom, claiming that the firm failed to take adequate cybersecurity measures to prevent the data leak and holding them liable for any repercussions that occurred afterward.
Class action lawsuits are typically filed by one or more individuals on behalf of a larger group of people who have comparable concerns about a business or organization. When the litigation becomes a class action, it applies to everyone who has been affected in the same way.
Companies frequently choose to settle these disputes by paying compensation to class members, who subsequently waive their ability to pursue future litigation. These agreements often contain declarations from the firm denying all wrongdoing.
The Paycom complaint is no exception since the business agreed to settle for $900,000 on the condition that it not admit fault and that the judicial processes be stayed. Those harmed by the breach will be able to claim a portion of the settlement soon, but a few requirements must be completed before accessing the funds.
Paycom Settlement Eligibility Criteria
The first criterion for receiving a reimbursement is that the impacted individual live in the United States. The second, and possibly most crucial, criterion is that the individual seeking to claim a portion of the compensation has been affected by the breach, which in this case implies that their personal information with Paycom was accessed between July and October of 2023.
Paycom promptly contacted all impacted persons whose data had been stolen by the hack, therefore if you were not told, you are unlikely to have a claim.
Some of the individuals may not have been notified directly by the corporation, but instead received a postcard notice about the settlement with a Claim Login ID and Claim Login PIN printed on it. This implies you should probably contact the class administrator at (844) 804-3284 or [email protected] to confirm your participation in the settlement.
The Amount to Claim in the Settlement
Those who wish to claim a portion of the settlement can do so using the website and credentials provided in the postcard. No additional documentation is required because the organization is aware of who was affected.
However, not everyone will be able to claim the same amount of money. Those who have verified out-of-pocket damages as a result of the breach can claim a maximum of $2,500 per person, while those who have lost money due to identity theft after the breach revealed their information can claim $4,200 plus three years of credit monitoring services.
Affected individuals should be aware of two deadlines, both of which fall on November 7, 2024. These dates apply to both the filing of the claim and the exclusion and objection deadline. Those who choose neither will miss out on the current payment as well as the opportunity to claim in the future if their status differs from that described in this complaint.