Claim Your Share: Paycom Lawsuit Settlement Offers $4,200 Direct Payments
A recent Paycom lawsuit settlement offers eligible individuals up to $4,200 in direct payments following a significant data security incident. The settlement addresses unauthorized access to personal information through the MOVEit Transfer platform, affecting numerous Paycom users and their data security.
The settlement provides multiple compensation options for affected individuals, including cash reimbursement and credit monitoring services. Class members can submit claims for various expenses related to the data breach, such as identity theft protection costs and lost time. The settlement also includes specific deadlines for claim submission, opt-out requests, and the final approval hearing that affected individuals need to consider.
Understanding the Paycom MOVEit Transfer Data Incident
The Paycom data security incident emerged when threat actors exploited a vulnerability in Progress Software Corporation's MOVEit Transfer application, a secure file transfer platform used by thousands of organizations worldwide. Between May 28 and June 2, 2023, unauthorized attackers gained access to Paycom's MOVEit server, compromising sensitive data.
Timeline of the data breach
The incident unfolded in several stages:
May 31, 2023: Progress Software disclosed the zero-day vulnerability in MOVEit Transfer
Early June 2023: Unauthorized access occurred through MOVEit's systems
July 2023: Paycom identified and investigated the incident
July-October 2023: Affected individuals received notifications
Types of personal information compromised
The data breach impacted approximately 7,000 individuals, affecting employee records from roughly 127 former and current clients, representing about 0.7% of Paycom's client base. The compromised information included:
Names and Social Security numbers
Dates of birth
Passport information
Employment authorization card details
Paycom's response and legal stance
In response to the breach, Paycom implemented several security measures, including:
Advanced encryption techniques
Multi-factor authentication
Enhanced firewalls and intrusion detection systems
The company engaged external cybersecurity experts to conduct forensic investigations and promptly notified affected users. While maintaining its preparedness to defend against the lawsuit vigorously, Paycom agreed to a settlement without admitting wrongdoing. The company has emphasized its commitment to data security and initiated immediate steps to prevent similar occurrences in the future.
Breakdown of Settlement Benefits
The settlement agreement establishes a substantial compensation fund of $900,000 to address various types of losses experienced by affected individuals. Settlement class members can choose from multiple reimbursement options, with some eligible for combined benefits reaching up to $4,200 per person.
Cash reimbursement options
The settlement provides three distinct categories of reimbursement:
Out-of-pocket losses: Up to $2,500 per person for documented expenses such as credit freezing costs and monitoring services
Time compensation: Maximum of four hours at $25 per hour (total $100) for time spent addressing identity theft issues
Extraordinary losses: Up to $4,200 per person for documented fraud or identity theft directly linked to the data incident
It's important to note that the combined maximum for out-of-pocket losses and time spent compensation is capped at $2,500 per person. For extraordinary losses, claimants must demonstrate that the losses occurred after the data incident and weren't covered by other reimbursement categories.
Credit monitoring services offered
In addition to monetary compensation, settlement class members can claim three years of credit monitoring services. This benefit includes:
Credit monitoring for one credit bureau
Access to credit reports
Identity theft insurance coverage
Alternative cash payment of $25
For class members who prefer a simpler option, the settlement offers an alternative cash payment of $25. This option is available to those who choose not to file claims for other reimbursements or credit monitoring services. However, potential claimants should note that all settlement payments may be subject to pro-rata reduction if the total valid claims exceed the settlement cap.
Navigating the Claims Process
Filing a claim for the Paycom data breach settlement involves a structured process designed to ensure eligible individuals receive appropriate compensation. Settlement class members must follow specific procedures and meet documentation requirements to successfully submit their claims.
Step-by-step guide to filing a claim
The claim submission process follows these essential steps:
Access the Settlement Website
Visit PaycomDataSettlement.com
Alternatively, request a paper claim form
Choose Compensation Type
Select from available benefits
Determine documentation needs
Complete Required Information
Provide personal details
Specify claim amount
Submit Documentation
Upload or mail supporting documents
Ensure all requirements are met
Submit by Deadline
Documentation requirements for different claim types
Different compensation categories require specific documentation:
Out-of-Pocket Losses (up to $2,500):
Receipts for credit monitoring costs
Documentation of credit freeze expenses
Proof of other related expenses
Extraordinary Losses (up to $4,200):
Evidence of actual monetary loss
Proof of connection to data incident
Documentation of attempts to seek reimbursement
Time Spent Claims (up to $100):
No documentation required
Simple attestation of time spent
Potential pro rata adjustments to payouts
The settlement administrator will review all claims for completeness and validity. Important considerations regarding payment adjustments include:
Total settlement benefits are capped at $900,000
Claims may be reduced proportionally if total valid claims exceed the cap
Credit monitoring services take priority in fund allocation
Cash benefits will be reduced equally if necessary to stay within the aggregate cap
The settlement administrator must first allocate funds for credit monitoring services before calculating any necessary reductions to cash payments. This ensures fair distribution of available funds among all valid claimants while maintaining the settlement's financial limits.
Key Dates and Deadlines for Claimants
Settlement class members must adhere to crucial deadlines in the Paycom data breach settlement process to preserve their rights and potential compensation eligibility. The settlement administrator has established specific cutoff dates for various actions related to the settlement claims.
Claim submission deadline
Class members have until November 7, 2024 to submit their settlement claims. The settlement administrator requires all claim forms to be either:
Submitted online through the official settlement website
Postmarked by mail no later than the deadline date
Completed with all necessary documentation
Failing to meet this deadline will result in the forfeiture of rights to any compensation from the settlement. The administrator emphasizes that no extensions will be granted after this date.
Opt-out and objection cutoff dates
The settlement agreement sets November 7, 2024 as the final date for both opting out of the settlement and filing objections. Class members considering these options should note:
Those wishing to exclude themselves from the settlement must ensure their opt-out requests are postmarked by the deadline. Similarly, any objections to the settlement terms must be filed with the Court and postmarked no later than the same date. Missing these deadlines will limit future claims related to this particular breach.
Final approval hearing schedule
The Court has scheduled the Final Fairness Hearing for December 13, 2024, at 9:00 a.m. CT (10:00 a.m. ET). During this hearing, the Court will:
Review the settlement terms
Consider any filed objections
Determine whether to grant final approval
Make decisions regarding the proposed settlement in Oklahoma City
The hearing represents the final step in the settlement approval process, after which approved claims can proceed to the payment phase. Class members should note that the hearing date may be subject to change without direct notice to settlement class members.
Those who take no action by the specified deadlines will automatically forfeit their rights to current payment options and future claims related to this specific data breach incident. The settlement administrator emphasizes that these deadlines are firm, and no exceptions will be made for late submissions.
Conclusion
The Paycom data breach settlement represents a significant response to unauthorized access affecting thousands of individuals through the MOVEit Transfer platform. Settlement benefits address various impacts of the breach, offering eligible class members multiple paths to compensation - from straightforward $25 payments to comprehensive reimbursement packages reaching $4,200. These options, combined with three years of credit monitoring services, demonstrate a structured approach to addressing both immediate and long-term effects of the data compromise.
Affected individuals must act promptly to secure their rightful compensation under this settlement agreement. The November 7, 2024 deadline applies to all claims, opt-out requests, and objections, making timely action essential for preserving legal rights. Class members should carefully review their eligibility, gather necessary documentation, and submit their claims through the official settlement website to ensure their interests remain protected under this agreement. The final approval hearing on December 13, 2024, will mark the culmination of this settlement process, potentially leading to disbursement of approved claims.