June 11 is the deadline for more than one million current and former members and employees of the $9.6 billion Patelco Credit Union in Dublin, Calif., to file a monetary claim under a $7.2 million class action settlement stemming from a 2024 ransomware attack that disrupted online and mobile services for more than two weeks.
A California Superior Court judge in Alameda County granted the preliminary approval of the class action settlement in late February. Payments will be distributed if the settlement receives final approval at a May 20 hearing.
Under the settlement, class members may receive up to $5,000 if they provide documentation – such as receipts or bills – showing their losses directly tied to the breach.
California residents affected by the incident may alternatively file claims of up to $200, while nonresidents may seek $100 without documentation, according to the settlement agreement. However, those payments are subject to pro rata adjustments based on the total number of claims filed and the amount paid for documented losses, according to the settlement.
To receive compensation, claim forms must be submitted by June 11. Individuals who do not file a claim form will not receive payment. For additional information, visit the Patelco settlement website.
On May 23, 2024, ransomware hackers breached Patelco's systems. By June 29, they had shut down most of the credit union's online and mobile banking services, which were not fully restored until July 16. Patelco said it did not pay a ransom.
The credit union disclosed the breach in August 2024, stating that the compromised data may have included first and last names, Social Security numbers, driver's license numbers, dates of birth and/or email addresses, though not every data element was exposed for every individual.
In a public filing, Patelco reported more than one million current and former members and employees were affected by the ransomware attack. The credit union currently serves nearly 530,000 members and a staff of 848 employees.
During the outage, the credit union continued with in-person services at its 36 locations, allowing members to withdraw up to $500 daily. At ATMs, members were able to use their credit and debit cards and checks, and make ACH and wire transfers.
Carl Cordell filed the first proposed class action lawsuit on July 2, 2024. Several additional lawsuits were also filed in state and federal courts.
Cordell and 11 other plaintiffs are expected to each receive a $2,500 service award for their roles during the litigation.
Attorneys may receive up to 35% or $2,537,500 of the settlement fund, plus reasonable litigation costs.
In February 2025, the credit union agreed to a consent order with state regulators to pay a $100,000 penalty and implement a new cybersecurity program. The ransomware attack caused more than $39 million in losses, according to Patelco's 2024 financial filing.
READ MORE: Patelco Credit Union's Settlement Agreement.
Peter Strozniak can be reached at peter.strozniak@arc-network.com.
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