In the latest in a series of cybersecurity incidents affecting consumer data, Netgain Technology LLC has reached a $1.9 million class action settlement after a significant breach exposed the personal and health-related information of thousands of individuals. The Netgain data breach affected information stored by Netgain on behalf of healthcare and accounting companies—industries that rely on strict data security standards due to the sensitivity of client records.
If you received a notification letter from Netgain, or if your data was affected between September 2020 and November 2020, you may be eligible for compensation. This article breaks down everything you need to know: who qualifies, how much you could receive, and how to take action now.
For updates on similar breaches, read our detailed articles on the Navvis data breach settlement and Retina Group of Washington breach.
Table of Contents
- What is the Netgain Data Breach?
- Who is Eligible for the Netgain Settlement?
- Settlement Benefits and Compensation
- How to File a Claim
- Deadlines and Key Dates
- Final Thoughts on the Netgain Data Breach Settlement
What is the Netgain Data Breach?
In March 2021, Netgain Technology disclosed a cybersecurity incident that had occurred months earlier, between September and November 2020. Netgain is an IT and cloud service provider for sectors with high data privacy requirements—including medical and accounting firms.
According to court filings, unauthorized parties accessed sensitive consumer data during this breach, including potentially:
- Full names
- Social Security numbers (SSNs)
- Dates of birth
- Medical information
- Insurance details
Many affected individuals were unaware of the incident until they received official notification letters.
The class action lawsuit alleged that Netgain failed to implement reasonable data security practices and delayed public disclosure of the breach. As a result, plaintiffs claimed they faced heightened risks of identity theft, financial loss, and unauthorized medical claims.
For another case involving healthcare-related data, check out our update on the Coastal Orthopedics class action settlement.
Who is Eligible for the Netgain Settlement?
The Netgain data breach class action settlement applies to anyone whose personal or health-related data was shared with unauthorized parties during the breach window from September 2020 to November 2020.
To be included, you must have received a breach notification letter from Netgain or one of its clients.
Affected groups may include:
- Patients of healthcare providers who used Netgain’s cloud services
- Clients of accounting firms serviced by Netgain
- Employees or contractors whose data was hosted on Netgain servers
You do not need to be a direct customer of Netgain to qualify—many impacted individuals were clients or patients of organizations that contracted with Netgain.
Settlement Benefits and Compensation
Under the terms of the settlement, eligible class members can receive either:
1. Documented Expense Reimbursement (Up to $5,000)
If you spent money due to the breach, such as:
- Costs for credit monitoring
- Bank fees or bounced check charges
- Unreimbursed fraudulent transactions
- Travel expenses or notary fees
- Lost wages or time spent (up to 3 hours at $25/hour)
You may be reimbursed up to $5,000 with proof.
2. Alternative Cash Payment (Pro Rata Share)
If you don’t have receipts or prefer a simplified process, you can opt for a pro rata cash payment. The final amount depends on how many people file claims.
How to File a Claim
To participate in the Netgain data breach settlement, you must submit a valid claim form by the deadline.
Claim Form Deadline: September 17, 2025
Steps:
- Visit the NetgainClassActionSettlement.com website
- Download or complete the claim form online
- Provide basic contact info and select your compensation option
- Upload documentation (if applicable)
- Submit the form online or by mail before the deadline
No proof of purchase? You can still file a claim for the alternative cash payout.
For more guidance, see how to claim in cases like the Christie’s data breach settlement.
Deadlines and Key Dates
| Event | Date |
|---|---|
| Objection Deadline | September 2, 2025 |
| Claim Form Deadline | September 17, 2025 |
| Final Approval Hearing | October 30, 2025 |
After approval, payments will be sent by check or direct deposit.
Final Thoughts on the Netgain Data Breach Settlement
The Netgain data breach settlement provides a valuable opportunity for affected individuals to recover compensation and take control of their data privacy. Whether you’ve suffered monetary losses or simply want peace of mind, this class action could offer meaningful resolution.
To avoid missing out, act before September 17, 2025. Visit the official claim site or browse more open data breach settlements on Sparrow to check your eligibility.
✅ Submit your claim today and protect your rights.
Stay informed. Stay protected. And claim what’s rightfully yours.
