Sovos Compliance data breach $3.53M class action settlement

Sovos Compliance agreed to pay more than $3.53 million as part of a settlement to resolve claims it failed to prevent a 2023 data breach incident that compromised about 490,000 consumers’ information.

The settlement benefits individuals who received a data breach notice from Sovos or a Sovos customer indicating their information was compromised. 

Plaintiffs in the class action lawsuit claim Sovos failed to prevent a 2023 data breach of its MOVEit Transfer application. As a result, hackers were allegedly able to gain access to information stored by Sovos customers, including some within the financial industry.

The Sovos MOVEit Transfer software is intended for securely transferring sensitive files.

Sovos Compliance has not admitted wrongdoing but agreed to a $3.53 million settlement to resolve the data breach class action lawsuit.

Under the terms of the settlement, class members have two payment options. 

For the first payment option, claimants can receive up to $2,000 for unreimbursed ordinary losses incurred between May 31, 2023, and June 10, 2024, that were fairly traceable to the breach; up to $125 for lost time; and up to $10,000 for extraordinary expenses. 

Ordinary expenses include out-of-pocket costs such as bank fees, communication charges, travel expenses, credit costs and identity theft protection services. Class members can claim up to five hours of lost time at a rate of $25 per hour and must provide a description of the actions they took in response to the data breach. Extraordinary expenses include documented, unreimbursed losses resulting from fraud or identity theft that are fairly traceable to the Sovos Compliance data breach, occurred between the date of the breach and before the claim form deadline and are not already covered by the ordinary expense category. Class members must have made a reasonable effort to avoid or seek reimbursement for the loss.

For the second payment option, class members can receive a flat rate payment of $150.

For both payment options, class members who are California residents can receive an additional statutory reward of $100.

All class members are eligible for up to three years of credit monitoring. Class members who received two years of credit monitoring and identity theft protection from Sovos or a Sovos connection following the initial data breach notification can receive an additional year of services under the settlement.

The deadline for exclusion and objection is June 24, 2024.

The final approval hearing for the Sovos Compliance data breach settlement is scheduled for July 23, 2024.

To receive settlement benefits, class members must submit a valid claim form by June 10, 2024.

Who’s Eligible

Individuals who received a data breach notice from Sovos or a Sovos customer indicating their information was compromised.

Potential Award

$12,125

Proof of Purchase

Protection service bills, expense receipts, credit reports, police reports or other documentation is needed for certain claims.

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

06/10/2024

Case Name

In re: Sovos Compliance Data Security Incident Litigation, Case No. 1:23-cv-12100-AK, in the U.S. District Court for the District of Massachusetts

Final Hearing

07/23/2024

Settlement Website

SovosDataIncidentSettlement.com

Claims Administrator

In re: Sovos Compliance Data Security Incident Litigation 
c/o Kroll Settlement Administration LLC
PO Box 5324
New York, NY 10150-5324
833-462-4282

Class Counsel

Mason Barney 
Tyler Bean
SIRI & GLIMSTAD LLP 

Jeff Ostrow 
KOPELOWITZ OSTROW PA

Defense Counsel

Michelle L Visser
ORRICK HERRINGTON & SUTCLIFFE LLP