Progressive Data Breach Settlement: Americans Eligible for $5,000 Claims

Company
Progressive

Why
Data breach

Total Settlement Amount
$3.25M

Maximum Individual Claimant Award
$5,000

Opt-out & Objection Deadline
February 17, 2025

Claim Deadline
February 18, 2025

A massive Progressive class action lawsuit has reached a $3.25 million settlement, affecting approximately 347,100 Americans whose personal information was compromised between May 2021 and May 2023. We've learned that this security event occurred through one of Progressive's third-party call center vendors, consequently leading to unauthorized access of sensitive customer data.

Furthermore, affected individuals can claim up to $5,000 for documented losses through this data breach settlement. The Progressive settlement payout covers various damages, including fraudulent charges, identity theft, and credit expenses. Additionally, all class members are eligible for three years of credit monitoring services and $1 million in identity theft insurance protection.

Understanding the Progressive Data Breach Settlement

The security breach originated when call center representatives at TTEC, Progressive's third-party call center vendor, improperly shared their access credentials with unauthorized individuals. This security event spanned from May 2021 to May 2023, during which unauthorized parties gained access to sensitive customer information.

Specifically, the compromised data included names, dates of birth, email addresses, Social Security numbers, driver's license numbers, and financial data such as account numbers and credit card information. According to the class action lawsuit, Progressive could have prevented this data leak by implementing reasonable data security practices.

The class action settlement received preliminary approval from United States District Judge Patricia A. Gaughan on September 19, 2024. Moreover, while Progressive Casualty Insurance Company has not admitted to any wrongdoing, they have agreed to resolve the lawsuit through this $3.25 million settlement.

The final approval hearing is scheduled for February 25, 2025, where the court will determine whether to grant final approval to the settlement terms. Primarily, the settlement benefits will be distributed to eligible class members only after the court's final approval and resolution of any appeals.

How to File Your Settlement Claim

Filing a claim for the Progressive data breach settlement involves a straightforward process. Primarily, affected individuals must submit their claims by the settlement deadline of February 18, 2025.

For those seeking compensation for documented losses, you must submit supporting evidence such as account statements, invoices, credit reports, or proof of purchase. Alternatively, affected individuals can mail the tear-off claim form attached to their postcard notice or request a paper copy from the claims administrator.

In addition to online submission, class members can download a PDF claim form or contact the claims administrator for a paper version. The claims administrator will process claims based on the documentation provided and determine payment amounts on a pro-rata basis.

For those unable to provide documentation, a cash payment option remains available, though the exact amount depends on the total number of claims filed. Therefore, all class members should carefully review their options and submit claims before the settlement deadline to ensure eligibility for compensation.

Types of Compensation Available

Under the Progressive class action settlement, multiple compensation options await eligible class members. Initially, all affected individuals qualify for three years of credit monitoring services, which notably includes $1 million in identity theft insurance and three-bureau credit monitoring.

Primarily, class members can claim up to $5,000 in reimbursement payment per person for documented losses stemming from the data breach. These reimbursements cover fraudulent charges, identity theft damages, and credit expenses. To secure these payments, individuals must provide proof of their losses.

Alternatively, class members who cannot document specific losses can opt for a pro-rated cash payout. The exact amount of these alternative payments will fluctuate based on the total number of valid claims filed and the remaining settlement funds after distributing documented loss payments.

The claims administrator will determine individual payment amounts through a pro rata calculation, ensuring fair distribution among all valid claims. This class action settlement aims to address both immediate financial impacts and long-term protection needs.

For those wondering how long does Progressive take to pay out claims or how does Progressive pay out claims, the process typically begins after the final approval hearing and resolution of any appeals. The class action lawsuit settlement check distribution timeline will be communicated through the settlement website and by the claims administrator.

It's worth noting that this Progressive data breach settlement is part of a broader trend in negligent security settlements and identity theft lawsuit settlements. For instance, the recent T-Mobile breach settlement highlighted similar issues in data protection across the insurance and telecommunications industries.