In an era where personal information is a highly valuable commodity, data breaches have become an unfortunate and increasingly common threat, leaving countless individuals vulnerable to identity theft and financial fraud. Responding to one such event, a significant settlement has been reached in a class action lawsuit filed against Word & Brown Insurance Administrators Inc. following a data incident. The company has agreed to establish a $330,000 settlement fund to resolve allegations that it failed to adequately protect the sensitive personal information of its clients, which was compromised during a security breach discovered in October 2024. Individuals who were notified that their data may have been exposed in this incident are now able to submit claims for financial compensation and other protective benefits, marking a crucial step toward remediation for those affected.
1. Eligibility and Compensation Options
To qualify for benefits under this settlement, an individual must be a class member, a designation that comes with specific criteria. The primary requirement is that the person must be a living resident of the United States who was sent an official notification letter from Word & Brown Insurance Administrators. This notice would have informed them that their personal information was potentially impacted by the data security incident that the company identified on or around October 23, 2024. Being a recipient of this specific communication is the key determinant of eligibility, as it officially identifies an individual as part of the group affected by the breach. The settlement is designed exclusively for these notified individuals, ensuring that the relief is directed to those who were confirmed by the company to be at risk. It is therefore essential for potential claimants to have received and retained this notice as it serves as their entry point into the claims process.
For those who meet the eligibility requirements, the settlement offers several tiers of compensation designed to address the various ways individuals may have been affected by the breach. Class members can claim reimbursement for documented out-of-pocket losses up to a maximum of $1,500. These eligible expenses must be directly traceable to the data incident and include costs such as bank fees from fraudulent activity, expenses for freezing or unfreezing credit reports, and other charges incurred while resolving identity theft. In addition to monetary reimbursement, claimants can opt for two years of complimentary credit monitoring and identity theft protection services, which come with a $1,000,000 identity theft insurance policy. This benefit can be claimed alongside reimbursement for out-of-pocket losses. Alternatively, for individuals who did not suffer direct financial losses or do not wish to enroll in credit monitoring, there is an option for an alternative cash payment of $45. However, this amount is subject to a pro-rata reduction if the total value of all valid claims surpasses the funds available after other expenses are paid.
2. The Claims Process and Required Documentation
Affected individuals who wish to receive benefits from the settlement must complete and submit a valid claim form before the established deadline of February 19, 2026. The settlement administrator has provided two convenient methods for filing a claim. The first option is to use the secure online portal, where class members can fill out and submit the form electronically. The second option is to download a PDF version of the claim form from the settlement website, print it, complete it by hand, and mail it to the designated address. The mailing address for the settlement administrator is: Goodwin v. Word & Brown Insurance Administrators Inc., c/o CPT Group Inc., PO Box 19504, Irvine, CA 92623. It is crucial for claimants to choose one of these methods and ensure their submission is postmarked or received by the deadline, as late claims will not be accepted. The process is designed to be straightforward, but adherence to the deadline is non-negotiable for participation in the settlement.
To successfully file a claim, class members must provide specific information to verify their identity and eligibility. Every settlement notice sent to affected individuals included a unique CPT ID, which must be provided on the claim form. For those filing online, a corresponding passcode, also found on the notice, is required to access the portal. Individuals who have lost or did not receive their notice containing these credentials should contact the settlement administrator directly via email at WBIASettlement@cptgroup.com to request their information. For class members seeking reimbursement for out-of-pocket expenses, providing thorough documentation is mandatory. This includes submitting copies of receipts, bank statements, invoices, or other records that clearly demonstrate the financial loss and its connection to the data breach. Claimants opting for either the credit monitoring service or the alternative cash payment are not required to provide proof of loss but must attest under penalty of perjury that their information was affected by the incident as stated in their notice.
3. Settlement Fund Allocation and Key Dates
The $330,000 settlement fund is structured to cover various costs associated with resolving the class action lawsuit, with the remaining balance distributed among eligible claimants. A significant portion of the fund is designated for legal and administrative expenses. Up to $110,000 is allocated for attorneys’ fees and costs, and an estimated $20,500 will cover the costs of administering the settlement, including sending notices and processing claims. Additionally, a service award of $1,500 has been designated for the class representative who initiated the lawsuit on behalf of all affected individuals. The costs associated with providing the two-year credit monitoring and identity theft protection service will also be deducted from the fund, with the total amount dependent on how many class members select this benefit. After all these expenses are paid, the remainder of the $330,000 fund will be used to pay for the documented out-of-pocket losses and the alternative cash payments for all valid claims submitted by the deadline.
Class members should be aware of several important dates that will dictate the timeline of the settlement process. The court has scheduled a final fairness hearing for January 7, 2026, where it will review the terms of the agreement and decide whether to grant final approval. Following that, class members have until January 20, 2026, to opt out of the settlement if they wish to retain their right to pursue individual litigation against the company. The deadline for submitting a claim for benefits is February 19, 2026. Once the claim deadline has passed and the court has granted final approval, the settlement administrator will begin distributing payments. The expected payout date is approximately 30 days after all claims are approved or 45 days after the resolution of any potential appeals, whichever date is later. This schedule provides a clear framework for claimants to follow as the settlement moves toward its final resolution.
4. The Rationale Behind the Settlement
The class action lawsuit was initiated based on allegations that Word & Brown Insurance Administrators Inc. had failed to implement and maintain reasonable cybersecurity measures, which ultimately led to the data breach. The plaintiffs contended that this negligence resulted in unauthorized access to the company’s computer systems, potentially exposing the personally identifiable information (PII) of a large number of individuals. By agreeing to the $330,000 settlement, Word & Brown moved to resolve these claims without admitting any wrongdoing or liability. This decision allowed the company to avoid the inherent risks, substantial costs, and prolonged timeline associated with continuing litigation. The settlement represented a compromise between the parties, providing a structured and efficient path to deliver compensation and protective services to those affected by the data security incident, thereby bringing the legal dispute to a conclusive end.
