Overview
Netgain Technology LLC has agreed to a $1.9 million settlement to resolve claims stemming from a 2020 data breach that allegedly exposed personal and health information of consumers. Affected individuals may be eligible for up to $5,000 in compensation.
The class action lawsuit accused Netgain of failing to protect sensitive data stored on behalf of clients such as healthcare and accounting organizations. The breach occurred between September and November 2020, when unauthorized parties accessed the company’s systems.
Who Is Eligible to File a Claim?
You may qualify if:
- You are a natural person residing in the United States, and
- Your personal or health information was potentially compromised during the 2020 Netgain breach.
Compensation Details
Eligible class members may receive:
- Ordinary Losses: Up to $5,000 for documented, unreimbursed expenses directly related to the breach. This may include:
- Identity theft-related costs
- Credit monitoring services
- Bank fees
- Postage or travel costs related to resolving the issue
- Time Spent: Up to $75 (calculated at $25/hour for up to 3 hours) for time spent dealing with breach-related issues like password changes, contacting banks, or account monitoring.
- Alternative Cash Payment: A pro rata share of the remaining funds for those who don’t claim losses or time spent.
How to File a Claim
- Deadline: September 17, 2025
- File online or mail a completed claim form to:
In re Netgain Technology LLC, Consumer Data Breach Litigation
c/o CPT Group Inc., 50 Corporate Park, Irvine, CA 92606
Required Documentation
- For expenses: Provide receipts, bank or credit card statements linking the loss to the breach. Self-written documents alone are not accepted but can support other evidence.
- For time spent: Submit a written statement explaining actions taken and how they relate to the breach.
Payment Options
Online claimants can choose:
- PayPal
- Venmo
- Zelle
- Direct deposit
- Virtual Visa card
- Or request a paper check by mail
Settlement Breakdown
The $1.9 million fund covers:
- Administration costs: $195,000
- Attorneys’ fees: Up to $633,333.33
- Class representative awards: Up to $1,500 each
- Remaining funds go to eligible claimants
Key Dates
- Claim deadline: September 17, 2025
- Opt-out deadline: September 2, 2025
- Final approval hearing: October 30, 2025
- Payout timeline: Approximately 30 days after final court approval and resolution of any appeals
Why the Settlement?
The lawsuit alleged Netgain’s inadequate security led to a breach that exposed sensitive consumer data. The settlement allows the company to resolve the case without further litigation and provides compensation to those potentially harmed.
Sources
Settlement Status: Open for Claims
Potential Award: Varies
Claim Deadline: September 17, 2025
