Consumer class actions have been filed against Nebraska-based student loan servicer Nelnet Servicing, LLC over an apparent data breach that allegedly impacted 2.5 million account holders whose personal data were accessed unlawfully.  As alleged, although Nelnet discovered unauthorized access to user accounts on July 21, 2022, then closed that access on July 22, the company did not notify the Department of Education until August 17, and Nelnet did not begin notifying impacted customers until August 26. Consumers allege that the unauthorized access resulted from negligence, and the delay in notifying affected customers was unreasonable.

The particular PII allegedly included putative account holders’ names, addresses, email addresses, phone numbers, and Social Security numbers. It is alleged that the release of that information resulted from Nelnet’s (1) failure to secure the data, (2) failure to comply with industry standards, (3) unlawful disclosure, and (4) failure to provide adequate notice of the incident.

If you are Nelnet shareholder, you may be able seek corporate reforms, the return of funds back to company coffers, and potentially a court approved incentive award if appropriate.

If you would like to learn more about this matter at no cost to you, contact us at jgrabar@grabarlaw.com or call 267-507-6085.