$1.9M Netgain data breach class action settlement

Netgain Technology agreed to pay $1.9 million as part of a class action lawsuit settlement to resolve claims that it failed to protect consumer information during a data breach.

The Netgain settlement benefits individuals whose personal or health-related information may have been shared with a third party as a result of a data breach between September 2020 and November 2020.

According to a class action lawsuit, Netgain failed to protect personal and health-related information of consumers in a data breach discovered in March 2021. Netgain is a service provider that manages IT and cloud computing services for healthcare and accounting companies.

Plaintiffs in the lawsuit say they are at an increased risk of identity theft and fraud due to the breach and had to spend time and money to monitor their accounts and protect themselves from fraud.

Netgain has not admitted any wrongdoing but agreed to a $1.9 million class action settlement to resolve these allegations.

Under the terms of the Netgain settlement, class members can receive up to $5,000 for documented ordinary losses and time spent related to the data breach. This includes unreimbursed fraud or identity theft losses, credit monitoring costs, bank fees, communication charges, travel expenses and up to three hours of time at a rate of $25 per hour.

Class members who do not have documented expenses, or who do not wish to claim expense reimbursement, can choose an alternative pro rata cash payment instead. Exact payments will vary depending on the number of participating class members.

The deadline for exclusion and objection is Sept. 2, 2025.

The final approval hearing for the settlement is scheduled for Oct. 30, 2025.

To receive settlement benefits, class members must submit a valid claim form by Sept. 17, 2025.

Who’s Eligible

Individuals whose personal or health-related information may have been shared with a third party as a result of a data breach between September 2020 and November 2020.

Potential Award

Up to $5,000 in documented losses, or a pro rata cash payout.

Proof of Purchase

Receipts, invoices, tax forms, financial documents, account statements, legal letters, credit reports and other documentation of data breach-related losses.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

09/17/2025

Case Name

In re: Netgain Technology LLC Consumer Data Breach Litigation, Case No. 21-cv-1210 (SRN/LIB), in the U.S. District Court for the District of Minnesota

Final Hearing

10/30/2025

Settlement Website

NetgainClassActionSettlement.com

Claims Administrator

In re Netgain Technology, LLC Consumer Data Breach Litigation
c/o CPT Group, Inc.
50 Corporate Park
Irvine, CA 92606
[email protected]

888-678-2591

Class Counsel

Brian C. Gudmundson
Michael J. Laird
Rachel K. Tack
ZIMMERMAN REED LLP

Bryan L. Bleichner
Christopher P. Renz
CHESTNUT CAMBRONNE PA

Gayle M. Blatt
CASEY GERRY FRANCAVILLA BLATT & PENFIELD LLP

Defense Counsel

Paul R. Smith
R. Henry Pfutzenreuter
LARKIN HOFFMAN DALY & LINDGREN LTD