Fairmont Federal Credit Union $1.78M Data Breach Settlement

Current and former customers whose private information the Fairmont Federal Credit Union data breach that occurred between Sept. 30, 2023, and Oct. 18, 2023, affected may be eligible to claim up to $7,640 plus credit monitoring from a class action settlement.

Fairmont Federal Credit Union agreed to pay $1.78 million to settle a class action lawsuit alleging it failed to adequately protect the personal and health information of its customers and others impacted by the data security incident that affected approximately 187,038 individuals. The exposed information included names, dates of birth, Social Security numbers, passport numbers and driver's license or state ID numbers, as well as financial, insurance and medical information.

Who can file a claim?

Class members are all individuals in the United States whose private information the Fairmont Federal Credit Union data breach that occurred between Sept. 30, 2023, and Oct. 18, 2023, potentially impacted, including current and former customers, and anyone who engaged in financial transactions with those customers.

How much can class members receive?

Settlement class members may claim several types of awards:

• Reimbursement for documented out-of-pocket losses: Up to $7,500 per person for actual, unreimbursed costs that are fairly traceable to the data incident. These may include:
• Monetary losses directly caused by the breach, incurred between Sept. 30, 2023, and Dec. 18, 2026
• Out-of-pocket expenses such as bank fees, long distance phone calls, cell/data charges, postage or gasoline for local travel
• Fees for credit reports, credit monitoring or identity theft insurance purchased after Sept. 30, 2023
• Any other unreimbursed loss that is documented, directly caused by the incident and occurred within the claim period

• Reimbursement for attested time: Up to four hours of time spent remedying issues related to the data incident at $35 per hour up to a maximum of $140
• Alternative cash payment: Up to $150, available to those who do not claim out-of-pocket losses or attested time. The final amount may be adjusted on a pro rata basis depending on the number of valid claims.
• Credit monitoring and identity restoration services: Three years of one-bureau credit monitoring and identity restoration services, including $1,000,000 in identity theft insurance. This benefit is available even if a class member previously accepted free credit monitoring from Fairmont Federal Credit Union.

How to claim a settlement payment

To claim a settlement payment, class members must submit an online claim form or print and complete the PDF claim form and mail it to the settlement administrator.

Settlement administrator's mailing address: Butler v. Fairmont Federal Credit Union, c/o Kroll Settlement Administration, P.O. Box 225391 New York, NY 10150-5391

The deadline to file a claim is Dec. 18, 2026.

Required proof and documentation

• Out-of-pocket losses: Class members must provide reasonable, third-party documentation such as receipts, invoices, credit card statements or phone bills. Self-prepared documents such as handwritten receipts are not sufficient.
• Attested time: Class members must submit a written description of the time spent and how it relates to the data incident.
• Online claim form: Class members using the online claim form must provide the class member ID they received with their settlement notice.

Payout options

• Class members who file a claim online may choose an electronic payment or check.
• Class members who file by mail will receive payment by check sent to the address on file.

$1.78 million settlement fund

The $1,783,857.64 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $594,599 plus documented costs and expenses.
• Service awards to class representatives: Up to $5,000 each ($10,000 total)
• Service awards to state court plaintiffs: Up to $3,500 each ($7,000 total)
• Service awards to tag-along plaintiffs: Up to $1,000 each
• Payments to eligible class members: Remainder of the fund

Important dates

• Deadline to opt out: Dec. 18, 2026
• Deadline to file a claim: Dec. 18, 2026
• Final approval hearing: Feb. 8, 2027

When is the Fairmont Federal Credit Union data breach settlement payout date?

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

Why is there a class action settlement?

The lawsuit alleged Fairmont Federal Credit Union failed to adequately protect private information on its IT systems, resulting in unauthorized access to personally identifiable and protected health information. Plaintiffs alleged negligence, negligence per se, breach of implied contract and breach of fiduciary duty.

Fairmont Federal Credit Union denied all allegations and any wrongdoing but agreed to settle to avoid the costs and risks of further litigation.

Sources

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