UPDATE: The Court has granted preliminary approval to a $10 million settlement reached with the defendants. A notice program has commenced pursuant to the settlement agreement and the court’s order to notify class members of the settlement.
To review the terms of the settlement, the notice documents, and other information relating to the case and settlement please visit:
BACKGROUND: In July 2022 Nebraska-based student loan servicing company Nelnet experienced a “security incident” (the “Nelnet Data Breach”) which resulted in an unauthorized third-party accessing 2.5 million student loan borrowers’ names, address, email address, phone number, and Social Security number.
On August 26, 2022, EdFinancial and OSLA began notifying over 2.5 million of their customers that that their sensitive personal information—including social security numbers, full names, physical addresses, email addresses, and phone numbers—had been exposed as a result of unauthorized access to Nelnet's computer systems.
Shortly thereafter, SGT’s clients and several others filed a total of 23 putative class action complaints against Nelnet seeking compensation for the harm the Nelnet Data Breach had already caused and was almost certain to cause in the future. SGT’s clients, on behalf of themselves and the putative class, allege that the breach was caused by Nelnet’s negligent and/or inadequate security systems and protocols, and that Nelnet’s delay in notifying the 2.5 million caused significant damage, as the information was almost immediately used to steal people’s identities, file fraudulent tax returns, and apply for credit cards in the names of members of the putative class. As a result, the complaints bring claims against Nelnet for negligence, invasion of privacy, and violations of the consumer protection laws of several states seeking damages and injunctive relief.
On January 30, 2023, United States Magistrate Judge Cheryl Zwart granted SGT and co-counsel Lowey Dannenberg's motion to consolidate the 23 pending actions and appoint SGT and Lowey Dannenberg as Interim Co-Lead Class Counsel. Magistrate Judge Cheryl Zwart’s Memorandum and Order appointing SGT and Lowey Dannenberg Interim Co-Lead Class Counsel can be found here.
The case is Spearman et al. v. Nelnet Servicing, LLC, No. 22-cv- 03191-JMG-CRZ and is pending in the United States District Court for the District of Nebraska.
