SAN ANTONIO-–A Bexar County, Texas state district judge has approved a class-action settlement in a data breach lawsuit against Generations Federal Credit Union that affects more than 18,000 members, despite objections from a credit union board member who argued he was unfairly excluded from the deal.
Anthony Rogers, a then-board member at the San Antonio institution, filed an objection after the settlement was finalized in a 2022 cybersecurity breach case, contending he was improperly barred from participating as a class member, according to the San Antonio Express-News. Rogers said officers and directors — including himself — were unfairly excluded from the class even though they suffered similar harms as regular members.
The report stated Rogers argued that as a credit union member first, he experienced losses due to the breach and should be eligible to seek compensation under the settlement, which provides up to $500 for ordinary losses, up to $4,500 for fraud-related losses, and up to $80 for lost time, in addition to two years of free credit monitoring.
Judge Rejects Objection
But, as the Express-News reported, the judge rejected Rogers’ objection, determining that credit union officers and directors such as Rogers did not have standing as members of the certified class and therefore could not challenge the settlement. Court filings show the exclusion was based on potential conflicts of interest inherent in allowing institutional insiders to participate in the class, the report stated.
“It’s a strange situation I’ve never had happen before,” one of the attorneys for the class noted at the hearing, told the Express-News.
Rogers also raised concerns that the notice of the settlement was provided only in English, pointing to the sizable Spanish-speaking population among the credit union’s membership. He resigned from the board Jan. 1, the Express News said.
Settlement Details
Under the terms approved by the court, Generations agreed to bolster its data security protocols over the next two years, though it denied liability in the underlying lawsuit, the report stated.
Members affected by the December 2022 breach — which exposed names, addresses, Social Security numbers, driver’s license and passport numbers, and other financial data — can file claims for reimbursement under the settlement.
According to the Express-News, the named plaintiff, former employee and credit union member Jamarius Davis, will receive a $2,500 service award for representing the class, and class attorneys are to receive $120,000 in legal fees. Two members opted out of the settlement; aside from Rogers, no other objections were raised, the report stated.
