$3.2M USAA settlement to resolve data breach class action

USAA data breach settlement overview: 

• UPDATE: The USAA data breach settlement website is live. You have until April 7, 2025, to file a claim.
• Who: United Services Automobile Association has agreed to a $3.25 million settlement.
• Why: The settlement would end class action claims brought by people whose data was exposed in a USAA data breach. 
• Where: The USAA settlement was filed in a New York federal court.

United Services Automobile Association has agreed to a $3.25 million settlement to end class action claims that USAA’s negligence led to a 2021 data breach that exposed people’s personal information.

Plaintiff Vincent Dolan filed the request for preliminary approval of the settlement on Dec. 11 in a New York federal court.

According to the court filing, the data breach happened around May 6, 2021, when USAA’s insurance quotation system was attacked, exposing sensitive information including people’s driver’s license numbers. Victims were notified about the breach a month later. 

After the breach, Dolan filed a lawsuit accusing USAA of negligence and violations of consumer protection and privacy laws. A second lawsuit was subsequently filed, with both cases later consolidated.

USAA does not admit liability, court docs say

The settlement proposed by Dolan would establish a $3.25 million fund which would be distributed among all eligible class members without requiring claim forms, court documents say. 

Eligible individuals who do not opt out of the settlement would receive equal shares of the fund, while any remaining funds may be redistributed or donated to public interest organizations. 

“This settlement provides significant cash benefits to Settlement Class Members whose information was potentially exposed,” the court filing says.

The motion also seeks to appoint Dolan as class representative and schedule further hearings to evaluate final approval. USAA said it will not admit liability, but supports the settlement.

“By not opposing this relief, USAA does not concede the factual basis for any claim and denies liability,” it said in the court filing.

The court must grant preliminary approval before the USAA data breach settlement can proceed. 

Meanwhile, in September, a North Carolina federal judge granted preliminary approval to a $64 million settlement agreement resolving claims USAA Federal Savings Bank failed to provide service members with reduced interest rates as legally required. 

What do you think of this USAA settlement? Let us know in the comments.

The plaintiffs are represented by Chris!an Levis, Amanda G. Fiorilla and Anthony M. Chris!na of Lowey Dannenberg PC, Thomas J. McKenna, Gregory M. Egleston and Christopher M. Brain of Gainey McKenna & Egleston, and Gary F. Lynch and Nicholas A. Colella of Lynch Carpenter LLP.

The USAA settlement is Vincent Dolan et al. v. United Services Automobile Association, Case No. 7:21-cv05813 in the U.S. District Court for the Southern District of New York.

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