SGT Appointed Interim Co-Lead Class Counsel in Data Breach Class Action Against Nelnet

January 30, 2023

On January 30, 2023, Hon. Cheryl R. Zwart, United States Magistrate Judge for the United States District Court for the District of Nebraska, appointed Silver Golub & Teitell LLP and Lowey Dannenberg, P.C. Interim Co-Lead Class Counsel for a putative class of student loan borrowers alleging harm arising out of the a data breach experienced by Nelnet Servicing LLC (“Nelnet”) in July 2022 which exposed the names, addresses, emails, and social security numbers of over 2.5 million student loan borrowers.

Judge Zwart’s Memorandum and Order appointing SGT and Lowey Dannenberg Interim Co-Lead Class Counsel can be found here.

Nelnet is a Nebraska-based student loan servicing company that serves as a student loan servicer and web portal provider for EdFinancial and the Oklahoma Student Loan Authority (OSLA). In July 2022 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. SGT’s clients have brought claims against Nelnet for negligence, invasion of privacy, and violations of the consumer protection laws of several states seeking damages and injunctive relief.

On December 13, 2022 SGT and Lowey Dannenberg filed a motion requesting consolidation of the 23 pending related cases against Nelnet and the appointment of SGT and Lowey Dannenberg as interim co-lead class counsel on behalf of the proposed class. Our motion was granted on January 30, 2023.

If you have received a notice from Nelnet that your information has been compromised in the Nelnet Data Breach and wish to learn more about the case, contact SGT attorney Brett Burgs via email at bburgs@sgtlaw.com or by telephone at (203) 325-4491. You can also learn more on SGT’s website here.