Netgain Technology $1.9M Data Breach Class Action Settlement

Consumers whose personal or health information was potentially exposed during the 2020 Netgain Technology LLC data breach may qualify to claim up to $5,000 from a class action settlement.

Netgain Technology LLC agreed to pay $1.9 million to settle a class action lawsuit alleging it failed to adequately protect sensitive personal and health-related information. The plaintiffs claim that during a data breach in late 2020, unauthorized individuals accessed Netgain’s computer systems and obtained information stored on behalf of its clients, which include health care and accounting organizations.

Who is eligible for a Netgain Technology payout?

Class members can file a claim if:

• They are a natural person residing in the United States.
• Their personal or health information was potentially disclosed to a third party due to the Netgain data breach that occurred September-November 2020.

How much is the data breach payout?

• Reimbursement for documented ordinary losses: Up to $5,000 for documented, unreimbursed out-of-pocket expenses traceable to the data breach. Examples of ordinary losses include unreimbursed losses from fraud or identity theft, out-of-pocket credit monitoring costs after the breach, unreimbursed bank fees, postage or gasoline for local travel.
• Time spent: Up to three hours at $25 per hour (maximum $75 and subject to the $5,000 ordinary losses cop) for time spent addressing issues related to the breach, including changing passwords, monitoring accounts, contacting financial institutions or researching the incident.
• Alternative cash payment: A pro rata payment from the net settlement fund after all other costs and claims are paid. Class members who claim ordinary losses or time spent cannot also claim an alternative cash payment.

How to claim a cybersecurity class action rebate

Class members can file a claim online or download, complete and mail the PDF claim form to the settlement administrator. The claim deadline is Sept. 17, 2025.

Settlement administrator's mailing address: In re Netgain Technology LLC, Consumer Data Breach Litigation c/o CPT Group Inc., 50 Corporate Park, Irvine, CA 92606

Proof and documentation required

• Documented ordinary losses: Receipts, bank statements, credit card statements or other documentation showing the expense and its connection to the data incident. Self-prepared documents (like handwritten receipts) alone are not sufficient but may be submitted to clarify other documentation.
• Attested time spent: A description of the activities and how they relate to the data breach.

Payout options

• PayPal (online claims only)
• Venmo (online claims only)
• Zelle (online claims only)
• Direct deposit (online claims only)
• Virtual Visa card (online claims only)
• Paper check mailed to the provided address

$1.9 million Netgain Technology settlement fund breakdown

The $1,900,000 settlement fund includes:

• Settlement administration costs: $195,000
• Attorneys' fees and costs: Up to $633,333.33
• Service awards to class representatives: Up to $1,500 each
• Payments to eligible class members: The remainder of the fund

Important dates

• Claim deadline: Sept. 17, 2025
• Exclusion deadline: Sept. 2, 2025
• Final fairness approval hearing: Oct. 30, 2025

When is the data breach settlement payout date?

Payments will be distributed approximately 30 days after the settlement receives final approval from the court and any appeals are resolved.

Why is there a class action settlement?

The class action lawsuit alleged Netgain Technology LLC experienced a data breach in late 2020 during which unauthorized individuals accessed its computer systems and obtained personal and health information stored on behalf of its clients. The plaintiffs claimed Netgain failed to adequately protect this sensitive information, leading to potential fraud, identity theft and other harms.

The parties agreed to settle the lawsuit to avoid the expense, delay and uncertainty of further litigation and to provide compensation and benefits to affected individuals.

Sources

1. Class notice
2. Settlement agreement