Zywave, Insurance Technologies Corp. data breach $11M class action lawsuit settlement

Insurance Technologies Corp. (ITC) and Zywave Inc. agreed to pay a combined $11 million as part of a class action lawsuit settlement to resolve claims surrounding a 2021 data breach that compromised sensitive consumer information.

The Insurance Technologies Corp. and Zywave settlement benefits consumers whose personal information was compromised in the Zywave data breach in February 2021. Eligible consumers had an address on file at the time of the data breach and should have received a mailed or email notice of settlement eligibility.

Zywave is an insurance technology company that offers digital services to insurance companies. Insurance Technologies is a similar company Zywave acquired in 2020, according to Zywave’s website.

According to a 2021 class action lawsuit, Zywave and ITC put consumers at risk by failing to implement reasonable cyber security measures. As a result, in February 2021, cyber criminals reportedly hacked Zywave’s cloud-based systems and stole consumer names, Social Security numbers, driver’s license numbers, passwords, and other sensitive personal information.

“Not only did hackers steal the [personally identifiable information] of Plaintiffs and class members, but, upon information and belief, criminals have already used the PII to attempt to steal certain of Plaintiffs’ and class members’ identities,” the data breach class action lawsuit contends.

The defendants also allegedly failed to tell consumers about the breach until May 2021 — despite knowing of the incident as early as March. According to the plaintiffs, this valuable time could have been used by data breach victims to monitor their credit reports and take steps to protect themselves from identity theft and fraud.

Insurance Technologies and Zywave haven’t admitted any wrongdoing in the data breach. However, the companies agreed to resolve the class action lawsuit against them with an $11 million settlement.

Under the terms of the settlement, Class Members can recover a cash payment. 

Payments include a flat payment of up to $100 for California residents whose Social Security number and/or driver’s license number was compromised in the breach. If funds remain in this portion of the settlement, payments could be increased to a maximum of $300.

The settlement also provides reimbursement of up to $5,000 in out-of-pocket expenses relating to the data breach. Expenses could include fraudulent charges, costs related to identity theft, fees, miscellaneous expenses, and up to eight hours of lost time at a rate of $25 per hour.

In addition to providing cash benefits, the ITC and Zywave settlement allows Class Members to collect 12 months of identity theft protection services and 12 months of identity restoration services. 

The deadline for exclusion and objection in the Insurance Technologies Corp. and Zywave data breach lawsuit settlement is June 9, 2022. 

The final approval hearing for the ITC and Zywave data breach settlement is scheduled for Sept. 7, 2022.

All Class Members can receive 12 months of identity protection and repair services through Aura without needing to file a claim. 

In order to receive a cash payment from the settlement, Class Members must submit a valid claim form by July 5, 2022.

Who’s Eligible

Consumers whose personal information was compromised in the Zywave data breach in February 2021. Eligible consumers had an address on file at the time of the data breach and should have received a mailed or email notice of settlement eligibility.

Potential Award

Up to $5,300.

• Payments include a flat payment of up to $100 for California residents whose Social Security number and/or driver’s license number was compromised in the breach. If funds remain in this portion of the settlement, payments could be increased to a maximum of $300.
• The settlement also provides reimbursement of up to $5,000 in out-of-pocket expenses relating to the data breach.

Proof of Purchase

Unique claim number

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

07/05/2022

Case Name

Heath, et al. v. Insurance Technologies Corp., et al., Case No. 3:21-cv-01444-N in the U.S. District Court for the Northern District of Texas

Final Hearing

09/07/2022

Settlement Website

ITCSettlement.com

Claims Administrator

ITC and Zywave Data Breach
Settlement Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
1-855-944-3456
info@ITCSettlement.com

Class Counsel

John A. Yanchunis Sr.
Ryan D. Maxey
MORGAN & MORGAN

Gary E. Mason
David K. Lietz
Gary M. Klinger
MILBERG COLEMAN BRYSON PHILLIPS GROSSMAN PLLC

M. Anderson Berry
CLAYEO C. ARNOLD, A PROFESSIONAL LAW CORP.

Joe Kendall
KENDALL LAW GROUP PLLC

Defense Counsel

Eileen Ridley
Peter Loh
Sara Brown
FOLEY & LARDNER LLP