View this article online: https://www.insurancejournal.com/news/national/2023/01/09/702301.htm
A federal judge last week approved an $11 million deal to end a proposed class action lawsuit against insurance technology provider Zywave.
The lawsuit filed in U.S. District Court for the Northern District of Texas in June 2021 alleged Insurance Technologies Corp. (ITC) – a company Zywave acquired in November 2020 – did not notify customers of a data breach in a timely manner.
Carrollton, Texas-based ITC had more than 250 insurance companies and more than 9,000 agencies as clients when it was bought by Zywave, and it claimed to be the largest provider of insurance agency websites in the U.S. ITC also supported millions of auto and home quotes through its comparative rater called TurboRater.
According to court records, ITC in February 2021 first learned of the breach that gave hackers access to names, Social Security numbers, driver’s license numbers, dates of birth, and other information belonging to thousands of ITC customers, potential customers, and other individuals. The company said it contained the data breach in early March 2021 but did not begin to notify customers and attorneys general of the breach until May 10, 2021.
The settlement approval filed January 4 included an award of more than $3 million in attorneys’ fees. Zywave agreed to the $11 million settlement in March.