SELECT Americans will be getting financial compensation soon, so long as they received a special notice.

The extra money will arrive after a class action lawsuit was filed against the United Services Automobile Association (USAA).

Plaintiffs claimed in the suit that USAA failed to prevent a data breach in May 2021.

As a result of the breach, some personal information and sensitive details from around 22,000 clients were compromised.

Court documents argued that USAA had been using vehicle records to auto-populate information like drivers’ license numbers in insurance quote systems.

A scammer then gained access to customer Vincent Dolan’s personal information and created a membership under his name, according to the suit.

Dolan sued in July 2021, but the case sat in a New York federal court until August last year when a second settlement negotiation was conducted and finalized, per MySA.

USAA has not admitted any wrongdoing in the case but recently agreed to a settlement pot worth $3.25 million to resolve the claims and avoid further legal costs.

It also insisted that the data breach happened across the insurance industry and that it immediately contacted customers afterward.

USAA STATEMENT

“USAA takes our responsibility of protecting personal information seriously and our security measures are continuously strengthened to prevent unauthorized access and use,” a spokesperson told the publication in December.

“This event occurred in 2021 and was part of industry-wide targeting by cyber criminals.”

“At that time, USAA contacted all affected consumers and provided complimentary identity theft detection and resolution services,” they continued.

“This settlement is in the best interest of our membership and allows USAA to avoid lengthy and expensive litigation.”

Those who qualify for payment from the pot must meet at least two crucial criteria.

First, they must be or have been a USSA member during the breach in May 2021.

Secondly, they must’ve had personal details accessed, stolen, or compromised due to the breach.

What’s a class-action settlement?

Class action lawsuits offer groups of people, or ‘classes,’ a way to band together in court.

These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.

When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.

Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.

These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.

Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.

This would’ve already been verified through a notice sent out by mail or email to class members.

It was sent out after the settlement was officially reached in December 2024, and contains essential information for filing a claim.

FILING A CLAIM

Claimant ID and confirmation codes found on the notice must be used to file.

They can be entered on the settlement website to complete a form that must be submitted online.

It’s important to note that claim forms must be filed soon, or applicants might miss out on their share of the USAA settlement pot.

A deadline to file of April 7, 2025, is currently set.

There will also be a final hearing for the case on May 21.

PAYMENT

An estimated distribution amount for each eligible claimant has not been provided.

Dolan himself will get around $10,000.

After that, there is expected to be an “equal share” sent out per person after deductions from the pot for litigation expenses and other costs.

Americans should also remain aware of other settlements with approaching deadlines.

For example, a popular cold and flu medicine brand has a claim deadline approaching after it recently reached a $6 million settlement for allegedly “misleading” consumers.

ParkMobile is also sending out direct payments from a $32.8 million data breach settlement soon.