By Isha Marathe

Feb 7 - (The Insurer) - New York District Judge Vincent Bricceti ended a proposed class action suit against Travelers regarding a 2021 data breach with the insurer liable to pay $6mn.

Members of the class who opt in for settlement payment agree to release all claims against Travelers in Jennifer Rand v The Travelers Indemnity Company filed in the Southern District of New York White Plains Division, according to the settlement agreement filed in August 2024, and agreed upon without objection on Wednesday.

The suit is a result of a data incident in November 2021, when Travelers detected and responded to a third-party attack involving its online portal. In March 2022, the plaintiff, Jennifer Rand, filed a class action stating that Travelers' lax data security practices exposed consumers' personally identifiable information and were tantamount to negligence and therefore violated the deceptive practices section of New York General Business Law, and the Driver’s Privacy Protection Act (DPPA), as per the complaint.

Rand sought declaratory and injunctive relief on behalf of the class.

Travelers denied all material allegations including that it failed to properly protect any personal data, had inadequate data security, or that it violated any state or federal laws, including the DPPA, according to according to the stipulation and agreement of the class settlement filed in August 2024.

Upon mediation in April 2024, "the Parties have considered the uncertainty and risk of further litigation of the Action – including through further motion practice, discovery, trial, and any possible appeals – and the duration, expense, difficulties, and delays inherent in such litigation," the August 2024 agreement said.

"The Parties have therefore agreed to settle the claims asserted in the Action pursuant to the terms and provisions of this Agreement, subject to Court approval."

The claimants will not file, commence, prosecute, intervene in, or participate in any lawsuits relating to the claim in any jurisdiction, the agreement stated.

Travelers agreed to pay an initial $350,000 from within the settlement amount into the settlement fund, which will pay taxes, administration and notice costs, attorneys fees, and a service award, according to the final approval.

Neither class counsel nor Travelers immediately responded to requests for comment from The Insurer.