Data breach settlements and lawsuits have become increasingly prevalent in recent years, often leading to substantial settlements. As organizations collect and store vast amounts of personal and sensitive information, the risk of cyberattacks and breaches has grown significantly. When these breaches occur, individuals whose data has been compromised may seek legal recourse, resulting in lawsuits against companies for failing to adequately protect their customers’ information. The CGM data breach settlement has recently reached its conclusion following a data breach incident in 2022.
Class action lawsuit for CGM over 2022 data breach
In a data breach case, pursuing a class action lawsuit offers several advantages over an individual lawsuit. One of the primary benefits is that it allows individuals who may not have the resources or motivation to file a suit on their own to join together, increasing the collective strength of the case. A class action consolidates many similar claims into one legal proceeding, which can result in more efficient handling of the case and a stronger negotiating position with the defendant.
Plaintiffs in the class action lawsuit against CGM allege that CGM failed to implement adequate cybersecurity measures that could have prevented a 2022 data breach. During the incident, hackers reportedly gained access to sensitive consumer data. CGM delivers solutions to wireless and broadband companies. CGM has not admitted to any wrongdoing but has agreed to pay $1.5 million to settle the data breach class action lawsuit.
Class actions often lead to large settlements, as the combined number of affected individuals can drive the potential financial recovery. This not only makes it easier for victims to receive compensation but also helps to hold the responsible party accountable on a larger scale. Class actions like the one against CGM help to level the playing field, allowing those who have suffered from a data breach to seek justice without having to bear the high costs of individual legal proceedings.
Next steps for plaintiffs
Under the terms of the CGM data breach settlement, class members are eligible for three years of credit monitoring and identity theft protection. This includes monitoring from all three credit bureaus and $1 million in identity theft insurance. Class members may also receive cash payments from the settlement.
Those with documented data breach-related expenses can claim up to $400 for ordinary losses, $20 per hour for up to four hours of lost time, and up to $4,000 for extraordinary losses. For class members without documented losses, an alternate cash payment is available, estimated to be around $20, though the final amount may vary depending on the number of valid claims submitted.
Individuals are eligible to receive the benefits of the settlement if they received a data breach notification from CGM informing them their information may have been compromised in a December 2022 data breach. Receipts, invoices, account statements, credit reports, insurance claims and other documentation of data breach-related losses must have been provided to prove lose and damages. Individuals must have claimed before August 26 2024 to be approved.
Cybersecurity remains a concern in an increasingly digital world
Cybersecurity is becoming an increasingly critical concern as more aspects of our daily lives and business operations move online. With the rise of digital platforms, cloud services, and interconnected devices, the volume of sensitive data being exchanged and stored has grown exponentially. This creates ample opportunities for cybercriminals to exploit vulnerabilities leading to data breaches, identity theft, financial loss, and even national security threats. T
The evolving nature of cyberattacks, including sophisticated phishing schemes, ransomware, and advanced persistent threats, makes it harder for organizations to stay ahead of potential risks. As a result, both businesses and individuals are under growing pressure to adopt stronger cybersecurity measures and protocols to protect valuable data and prevent devastating consequences.
