Credit Control Corporation – Court Grants Final Approval of $1.61M Settlement in Data Breach Class Action
Data Breach at the R&B Corporation
On May 4, 2023, the R&B Corporation of Virginia, a Newport News-based cash recovery vendor doing business as the Credit Control Corporation (“CCC”), began notifying individuals that their information was involved in a data breach that exposed personal identification information and financial information.
The company learned of the security breach on March 7, 2023 and immediately conducted an investigation. CCC determined that between March 2, 2023 and March 7, 2023, a cybersecurity incident resulted in client files being copied from CCC’s network. Through further investigation, CCC discovered that approximately 286,700 individuals’ information was affected.
Information including client’s name, address, Social Security number, and information relating to the individual’s account(s) such as account number, account balance, and date of service may have been affected.
Shub Johns & Holbrook attorneys filed a class action lawsuit against the CCC on June 24, 2023 in the United States District Court for the Eastern District of Virginia. On August 18, 2023, Plaintiffs in the case filed a Consolidated Amended Complaint following the Court’s order consolidating all actions against CCC related to the data breach. In the Court’s consolidation order, the Judge also appointed Shub Johns & Holbrook’s attorney, Benjamin F. Johns, as Interim Co-lead Class Counsel.
Final Approval of the CCC Settlement
Parties in the case engaged in arm’s length negotiations following the consolidation of the case, and reached a $1.61 million settlement. On July 12, 2024, The Virginia Eastern District Court granted Plaintiffs’ motion for preliminary approval of a $1.61 million class action settlement in the consolidated CCC data breach litigation. Class members and impacted consumers were provided notice and given until October 11, 2024 to submit a claim seeking compensation or recourse from effects caused by the data breach.
SJ&H Partner Benjamin F. Johns attended the settlement’s final approval hearing held by the Court on January 29, 2025 in Newport News, VA before the Honorable Judge Jamar K. Walker, where Judge Walker approved the $1.61 million settlement from the Bench. Class members who submitted a valid claim for compensation can expect to receive their portion of the settlement fund in the months following the Court’s order.
The case is captioned In Re R&B Corporation of Virginia d/b/a Credit Control Corporation, Data Security Breach Litigation, No. 4:23-cv-0066. You may review the final approval order here.
