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Arrowhead Regional Computing Consortium (ARCC) has agreed to a class action settlement resolving claims stemming from a February 6, 2023 data breach that compromised the personal identifying information of approximately 65,379 individuals, including Minnesota public school students, parents, and staff.
If you received a notice that your personal information was exposed in a February 2023 data breach involving Arrowhead Regional Computing Consortium, you may be eligible to receive cash reimbursement and free credit monitoring under a new class action settlement. The lawsuit claims the school administrative services vendor failed to implement basic cybersecurity protections, leaving sensitive files containing Social Security numbers and student records vulnerable to hackers. Impacted individuals have until October 8, 2026, to file a claim.
When you trust a public school district with your family’s most sensitive information, you expect the vendors handling that data to protect it. A data breach can leave students and school staff vulnerable to identity theft, financial fraud, and privacy violations for years to come. At ClassActionU.org, we believe everyday people deserve justice when corporations fail to safeguard private data, and we empower consumers to hold negligent companies accountable.
The settlement resolves a consolidated class action lawsuit titled In re Arrowhead Regional Computing Consortium Data Breach Litigation (Case No. 69DU-CV-24-184), filed in the Sixth Judicial District Court in Minnesota.
Arrowhead Regional Computing Consortium (ARCC) provides critical administrative, payroll, and software system services to public school districts across Minnesota. According to court filings, an unauthorized third party breached ARCC’s internal computer systems on February 6, 2023, and exfiltrated confidential data stored on its servers.
Plaintiffs in the lawsuit alleged that ARCC failed to maintain reasonable and adequate cybersecurity standards to protect the personal information entrusted to it by school districts. The court documents reveal that the compromised files contained highly sensitive personal identifying information belonging to approximately 65,379 individuals nationwide, including:
Full legal names
Social Security numbers
Confidential student educational records
The lawsuit claimed that ARCC was negligent in protecting this sensitive data, exposing students, parents, and school staff to an ongoing risk of fraud and identity theft. ARCC denies all allegations of wrongdoing and maintains that its security protocols were reasonable, but agreed to the class action settlement to end the litigation and avoid the expense of a trial.
You may be eligible to participate in the settlement if you reside in the United States and received a written breach notification letter directly from Arrowhead Regional Computing Consortium informing you that your private information was compromised in the February 6, 2023 data incident.
The settlement class covers approximately 65,379 people, including current and former public school students, parents, teachers, and school administrative staff whose records were processed by ARCC.
If you received a notice in the mail from ARCC or the settlement administrator, your name is already included on the official class list. The notice contains a unique Claim ID and PIN, which you will need to submit your claim quickly online. If you are unsure whether you are included, you can contact the official settlement administrator to check your status.
Under the court-approved settlement terms, eligible class members who submit a valid, timely claim form can select cash compensation, free credit monitoring, or both.
The settlement provides two primary benefits:
Cash Payout for Lost Time: You can claim reimbursement for up to four hours of lost time spent addressing the impacts of the data breach (such as checking credit reports, freezing accounts, or monitoring bank statements) at a rate of $20.00 per hour, for a maximum cash payout of $80.00 per person.
Two Years of Free Credit Monitoring: Every qualifying class member can enroll in two years of comprehensive, three-bureau credit monitoring services to help detect and prevent identity theft.
In addition to financial compensation and credit protection, ARCC has agreed to submit a formal declaration to the court detailing enhanced data-security procedures and business safety practices it has implemented since the breach to protect user information going forward.
Data breach class actions serve as a vital tool for enforcing consumer privacy rights and holding third-party vendors accountable. When organizations collect and store sensitive personal data—especially sensitive records involving minors and educators—they are legally obligated to implement industry-standard safeguards.
Under state consumer protection and privacy laws, companies that handle personal identifying information must maintain reasonable security measures to prevent unauthorized access. When data vendors fail to update their security practices or delay notifying affected individuals, victims have the right to seek financial relief for their lost time, out-of-pocket expenses, and diminished privacy.
By joining together in a class action lawsuit, individual consumers and families can hold large corporations and technology vendors accountable without incurring personal legal fees.
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