Builders Mutual Insurance Co. data breach class action to proceed with settlement

Builders Mutual Insurance Co. data breach class action overview: 

• Who: Builders Mutual Insurance Co. has reached a settlement with individuals affected by a 2022 breach of its data systems.
• Why: The plaintiffs alleged the company was negligent with its security and allowed the breach to happen.
• Where: The Builders Mutual Insurance Co. settlement was filed in a North Carolina federal court.

A North Carolina federal judge has given preliminary approval to a settlement that would end class action claims that Builders Mutual Insurance Co. was negligent with its data security, allowing a 2022 breach that affected tens of thousands of people.

U.S. District Judge Richard E. Myers II on Aug. 27 granted preliminary approval to the $1.5 million deal between the company and plaintiffs affected by the breach. 

The settlement offers class members three years of free credit monitoring and up to $10,000 for economic losses tied to the breach. 

According to court filings, the breach occurred between Dec. 14 and 15, 2022, when unauthorized parties accessed the personal information of tens of thousands of insurance claimants, stakeholders, and employees. 

The plaintiffs accused Builders of delaying notification to those impacted for months.

In his ruling, Judge Myers said the settlement appeared “fair, reasonable, and adequate.”

Class members can claim up to $10K for economic losses

The approval came less than a month after the named plaintiffs — Matthew Kocher, Mark Rogolino, and James Jackson — submitted the proposed deal to the court. 

The plaintiffs initially filed the class action lawsuit in January. 

Under the terms of the settlement, in addition to credit monitoring, class members can claim up to $10,000 for any economic losses resulting from the data breach and compensation of up to six hours of lost time at $25 per hour.

​​A final approval hearing for the settlement will be held on Jan. 17, 2025, the judge wrote. 

In June, plaintiffs filed a class action lawsuit against Prudential Financial Inc. alleging it failed to adequately safeguard client data, leaving it vulnerable to a Feb. 4 data breach affecting nearly 37,000 individuals.

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

The plaintiffs are represented by Joel R. Rhine and Ruth A. Sheehan of Rhine Law Firm PC, Dana Smith, Mason A. Barney and Tyler J. Bean of Siri & Glimstad LLP, Raina C. Borrelli of Strauss Borrelli PLLC and Daniel Srourian of Srourian Law Firm PC.

The Builders Mutual Insurance Co. settlement is In re Builders Mutual Data Security Incident Litigation, Case No. 5:23-CV-00579, in the U.S. District Court for the Eastern District of North Carolina

Read About More Class Action Lawsuits & Class Action Settlements:

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• T-Mobile fined $60M following data breach
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