Sovos Compliance $3.5M Settlement for Data Incident

Sovos Compliance, LLC has agreed to pay $3,534,128.50 to settle a class action lawsuit for alleged unauthorized access to or acquisition of private information through the MOVEit Transfer application. This settlement affects approximately 490,000 individuals whose data may have been compromised. Eligible individuals can receive various forms of compensation, including cash payments and credit monitoring services.

Who Benefits?

All living individuals residing in the United States who were sent a notice by Sovos or by a Sovos Customer indicating that their private information may have been impacted in the Data Incident.

How much can I get?

Settlement Class Members may elect to receive Cash Payment A or Cash Payment B, and if applicable, the California Statutory Award. Cash Payment A includes compensation for unreimbursed ordinary losses up to $2,000, compensation for lost time up to $125, and compensation for extraordinary losses up to $10,000. Cash Payment B is a flat payment of $150. California Settlement Subclass members may also receive an additional $100.

Important Dates

• Deadline to File a Claim: June 10, 2024
• Opt-Out Period: June 24, 2024
• Objection Period: June 24, 2024
• Final Approval Hearing Date: July 23, 2024

Can I Claim an Award?

You are a Settlement Class Member if you are an individual residing in the United States who was sent a notice by Sovos or by a Sovos Customer indicating that your private information may have been impacted in the Data Incident. This includes approximately 490,000 individuals whose data was potentially accessed or acquired without authorization.

California Settlement Subclass members are included if they were residing in California as of May 30, 2023. The Settlement Class specifically excludes employees, directors, officers, and agents of Sovos or a Sovos Customer, governmental entities, and the Judge assigned to the Action, along with their immediate family and Court staff.

• Settlement Class Members: All living individuals residing in the United States who were sent a notice by Sovos or by a Sovos Customer indicating that their private information may have been impacted in the Data Incident.
• California Settlement Subclass Members: All Settlement Class Members residing in California as of May 30, 2023.

Who is Excluded?

Excluded from the Settlement Class are:

• All persons who are employees, directors, officers, and agents of Sovos or a Sovos Customer, or their respective subsidiaries and affiliated companies.
• Governmental entities.
• The Judge assigned to the Action, that Judge’s immediate family, and Court staff.

What Awards Can Class Members Claim?

The proposed Settlement provides several benefits to Settlement Class Members:

Cash Payment A includes compensation for unreimbursed ordinary losses up to $2,000, compensation for lost time up to $125, and compensation for extraordinary losses up to $10,000. Ordinary losses can include out-of-pocket expenses such as bank fees, phone charges, postage, and gasoline for local travel, as well as fees for credit reports, credit monitoring, or other identity theft insurance products purchased as a result of the Data Incident.

Cash Payment B is a flat payment of $150. California Settlement Subclass members may also receive an additional $100.

• Cash Payment A: Compensation for unreimbursed ordinary losses up to $2,000, compensation for lost time up to $125, and compensation for extraordinary losses up to $10,000.
• Cash Payment B: A flat payment of $150.
• California Statutory Claim Payment: An additional $100 for California Settlement Subclass members.

MOVEit Transfer Application Data Incident

The Data Incident involved the unauthorized access to or acquisition of private information through the MOVEit Transfer application used by Sovos Compliance, LLC. This application is utilized to help various customers deliver unclaimed property services.

Is Proof Required to Claim the Reward?

Yes, proof is required to claim certain awards. Settlement Class Members must submit documentation supporting their Claims for ordinary losses, which may include receipts or other documentation not “self-prepared” by the Claimant. For lost time compensation, an attestation including a brief description of the action(s) taken in response to the Data Incident is required. No documentation is required for the lost time compensation.

• Cash Payment A: Documentation supporting Claims for ordinary losses.
• Cash Payment B: No documentation required.
• California Statutory Claim Payment: No documentation required.

How to Claim Your Award

To claim your award, you must submit a Claim online at the Settlement Website or send a hard copy Claim Form to the Settlement Administrator at the provided address. Claim Forms must be postmarked or submitted online no later than June 10, 2024.

Ensure that your Claim Form is complete and includes all necessary supporting documentation. For more information, visit the Settlement Website or contact the Settlement Administrator.

$3,534,128.50 Settlement Fund

The total settlement amount is $3,534,128.50. This amount will be used to cover Cash Payments, Credit Monitoring, California Statutory Awards, Settlement Administration Costs, Service Awards to Class Representatives, attorneys’ fees, and reimbursement of reasonable costs to Class Counsel.

The amount of Cash Payments and California Statutory Awards may be subject to a pro rata increase or decrease depending upon the number of Valid Claims submitted. If the amount of Valid Claims exhausts the Net Settlement Fund, the amount of the Cash Payments and California Statutory Awards may be reduced pro rata accordingly.

Why Is There a Class Action Settlement?

The class action settlement was reached to avoid the burden, expense, risk, and uncertainty of continuing to litigate the Action. The Plaintiffs, Defendant, and their attorneys believe the proposed Settlement is fair, reasonable, and adequate and in the best interest of the Settlement Class.

The Court did not decide in favor of the Plaintiffs or Defendant. The next steps include the Final Approval Hearing, scheduled for July 23, 2024, where the Court will consider whether the proposed Settlement is fair, reasonable, adequate, and in the best interests of the Settlement Class Members.