Educational Computer Systems $6.5M Data Breach Settlement

Individuals whose personal information a cyberattack on Educational Computer Systems Inc. between Oct. 29, 2023, and Feb. 12, 2024, may have compromised could be eligible to claim up to $5,000 from a class action settlement.

ECSI agreed to pay $6.5 million to settle a class action lawsuit alleging the company failed to implement adequate data security measures, leading to a criminal cyberattack that may have exposed the personal information of individuals who interacted with ECSI’s website during the specified period. The exposed information included Social Security numbers, names and financial information, such as tuition and student loan interest paid and scholarships received.

Who can file a claim?

Class members are anyone who lived in the United States at the time of the incident and whose personal information the ECSI security incident that occurred between Oct. 29, 2023, and Feb. 12, 2024, potentially exposed.

How much can class members receive?

Class members can claim one of two types of compensation, but not both. The settlement fund provides:

• Reimbursement for out-of-pocket losses: Up to $5,000 for documented, unreimbursed losses that the security incident most likely caused. Eligible losses include:
• Monetary losses that occurred between Oct. 29, 2023, and Dec. 21, 2026
• Out-of-pocket expenses, such as bank fees, phone charges, postage or travel costs related to the incident
• Fees for credit reports, credit monitoring or identity theft services purchased due to the incident
• Other actual, documented and unreimbursed monetary losses tied to the security incident

• Alternative cash payment: Class members who do not claim out-of-pocket losses may instead request a pro rata cash payment estimated to be about $100. The actual amount may increase or decrease depending on the total number of approved claims.

How to claim an ECSI payment

To receive compensation, class members must file an online claim form or print and complete the PDF claim form and mail it to the settlement administrator.

Settlement administrator's mailing address: ECSI Security Incident Settlement Administrator, 1650 Arch St., Suite 2210, Philadelphia, PA 19103

The deadline to submit a claim is dec. 21, 2026.

Required proof/documentation

• Class members claiming reimbursement for out-of-pocket losses must provide documentation to support their claim. This can include bank statements, receipts, invoices and other records showing the loss and its connection to the security incident. Self-prepared documents, such as handwritten receipts, are not sufficient on their own, but class members may use them to supplement other proof.
• Class members claiming the alternative cash payment do not need to provide documentation of losses, but they must still complete the claim form and attest to their eligibility.
• Class members using the online claim form must provide the ID and confirmation code they received in their settlement notice.

Payout options

• Zelle
• PayPal
• Venmo
• Physical check mailed to the address provided

$6.5 million settlement fund breakdown

The $6,500,000 settlement fund includes:

• Settlement administrator fees: Estimated $300,000
• Attorneys' fees and expenses: Up to $2,166,666.66
• Service awards to class representatives: $2,500 each ($12,500 total)
• Payments to eligible class members: Remaining settlement funds

Important dates

• Deadline to opt out: Nov. 20, 2026
• Deadline to file a claim: Dec. 21, 2026
• Final approval hearing: Jan. 11, 2027

When is the ECSI security incident settlement payout date?

The settlement administrator will issue payments to eligible class members after the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit claimed a criminal cyberattack on ECSI’s website potentially exposed personal information of individuals in the United States. The plaintiffs alleged ECSI failed to maintain adequate data security practices.

ECSI denied any wrongdoing but agreed to settle to avoid the costs and risks of continued litigation.

Sources

1. Claim form
2. Class notice
3. Settlement agreement.pdf)
4. Settlement website FAQ page