Court grants $1.61 M Settlement in Credit Control Corporation 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.

Preliminary Approval of the Credit Control Corporation Settlement

On June 24, 2023, Shub & Johns LLC filed a class action lawsuit against the R&B Corporation of Virginia for the potential impact that the data breach could have or has already had on affected individuals. On July 19, 2023, the United States Court for the Eastern District of Virginia ordered that putative class action cases against R&B doing business as the Credit Control Corporation were to be consolidated and appointed Shub & Johns attorney, Benjamin F. Johns, as Interim co-Lead Class Counsel.

Following the consolidation of these data breach cases against CCC, Plaintiffs counsel filed a consolidated amended complaint on August 18, 2023. Plaintiffs’ attorneys continued to make progress on resolving this case on a class-wide basis, and after months of negotiating with Defense counsel the Parties agreed to a tentative settlement agreement.

On May 6, 2024, Plaintiffs filed a motion for preliminary approval of a class action settlement, with a $1.61M settlement fund. On July 12, 2024, the Virginia Court granted Plaintiffs’ unopposed motion for settlement. Individuals impacted by the breach will be notified and have the chance to submit a claim before the final approval hearing set on January 15, 2025. The deadline for impacted and eligible consumers to submit a claim in this settlement is October 11, 2024. Class members may submit a claim via mail or via the settlement site, which you can visit here.

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 can read the Preliminary Approval Order here.