AAA Collections data breach $865K class action settlement

Update:

• The court granted this settlement final approval March 26, 2024.
• Let Top Class Actions know when you receive a check in the comments section below or on our Settlements & Payouts Facebook group.

AAA Collections agreed to a $865,000 class action lawsuit settlement to resolve claims that it could have prevented a 2022 data breach that compromised sensitive employee information.

The settlement benefits individuals who receive a data breach notification from AAA Collections Inc. informing them that their information may have been compromised in a September 2022 data breach.

According to the class action lawsuit, AAA Collections could have prevented a cyberattack in September 2022 if it implemented reasonable cybersecurity measures. Plaintiffs in the case claim that, because of AAA Collections’ alleged failures, cybercriminals were able to access employee names and Social Security numbers.

Advanced Asset Alliance (AAA) Collections is a debt-collection agency.

AAA Collections hasn’t admitted wrongdoing but agreed to pay $865,000 to resolve the class action lawsuit.

Under the terms of the settlement, class members can receive reimbursement for up to five hours of lost time compensated at a rate of $25 per hour, for a maximum lost-time payment of $125. 

Class members can also recover a $50 pro rata payment, although this amount may be adjusted higher or lower depending on the number of participating claimants.

Class members who experienced documented out-of-pocket losses as a result of the breach can submit a claim for up to $5,000 in additional reimbursement for these losses. This could compensate class members for unreimbursed damages sustained through identity theft or fraud. In order to be eligible for reimbursement, the losses must be reasonably traceable to the 2022 data breach.

The deadline for exclusion and objection is Jan. 15, 2024.

The final approval hearing for the class action lawsuit settlement is scheduled for March 25, 2024.

In order to receive settlement payments, class members must submit a valid claim form by Feb. 13, 2024.

Who’s Eligible

Individuals who receive a data breach notification from AAA Collections Inc. informing them that their information may have been compromised in a September 2022 data breach

Potential Award

$5,175

Proof of Purchase

Copies of receipts, bank statements or other documentation. “Self-prepared” documents are insufficient to receive a payment.

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

02/13/2024

Case Name

Pederson, et al. v. AAA Collections Inc., Case No. 4:22-cv-04166, in the U.S. District Court for the District of South Dakota

Final Hearing

03/25/2024

Settlement Website

AAADataSettlement.com

Claims Administrator

Pederson, et al. v. AAA Collections Inc.
c/o Settlement Administrator
PO Box 2007
Chanhassen, MN 55317-2007
info@AAAdatasettlement.com
833-743-9638

Class Counsel

Terence R Coates
Dylan J Gould
MARKOVITS STOCK & DEMARCO LLC

Joseph Lyon
THE LYON FIRM LLC

Raina Borrelli
TURKE & STRAUSS LLP

Pamela Reiter
REITER LAW FIRM LLC

Defense Counsel

Andy Damgaard
WOODS FULLER

Claudia D McCarron
Michael Jervis
Catherin M Contino
MULLEN COUGHLIN LLC