Gallagher settles cyber breach suit for $21 million

A federal court Thursday granted preliminary approval for a $21 million settlement in a class-action case against Arthur J. Gallagher & Co. over a 2020 cyber breach at the brokerage.

Under the settlement terms in In Re Arthur J. Gallagher data breach litigation, filed in U.S. District Court in Chicago, nearly 3.5 million class members will have up to $6,000 of documented monetary losses reimbursed.

In addition, they will be eligible for three years of identity theft protection and credit monitoring, or a pro rata share of any amount remaining in the settlement fund, after costs and expenses, court documents say.

Gallagher also agreed to enhance its data security procedures.

The plaintiffs alleged that personal information, including Social Security numbers, credit card information, and medical records, was exposed in an incident involving the brokerage’s third-party administrator, Gallagher Bassett Services Inc.

The first plaintiff sued Gallagher in July 2021, and the case was subsequently consolidated with similar lawsuits, court papers say.