IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEBRASKA
In re Case No. 4:22-cv-3191
Data Security Cases Against NELNET The Honorable John M. Gerrard, U.S.D.J.
SERVICING, LLC
The Honorable Jacqueline M. DeLuca,
U.S.M.J.
NOTICE OF PROPOSED CLASS ACTION SETTLEMENT, MAY 5, 2026, FAIRNESS HEARING
THEREON, AND CLASS MEMBERS’ RIGHTS
This Notice of Proposed Class Action Settlement, May 5, 2026, Fairness Hearing Thereon, and Class
Members’ Rights (“Notice”) is given pursuant to Rule 23 of the Federal Rules of Civil Procedure and an
Order of the United States District Court for the District of Nebraska (the “Court”). It is not an
advertisement, or a solicitation from a lawyer. You have not been sued.
PLEASE READ THIS ENTIRE NOTICE CAREFULLY. YOUR RIGHTS MAY BE AFFECTED BY
THE PROCEEDINGS IN THE ABOVE-CAPTIONED CONSOLIDATED LITIGATION. THIS NOTICE
ADVISES YOU OF YOUR RIGHTS AND OPTIONS WITH RESPECT TO THIS ACTION,
INCLUDING WHAT YOU MUST DO IF YOU WISH TO SHARE IN THE PROCEEDS OF THE
SETTLEMENT. TO CLAIM YOUR SHARE OF THE SETTLEMENT, YOU MUST
ELECTRONICALLY SUBMIT YOUR SETTLEMENT CLAIM FORM (“CLAIM FORM”) ON OR
BEFORE MARCH 5, 2026, OR MAIL YOUR CLAIM FORM TO THE ADDRESS IN QUESTION 11 SO
THAT IT IS RECEIVED NO LATER THAN MARCH 5, 2026.
TO: ALL PERSONS IN THE UNITED STATES WHOSE PERSONAL INFORMATION WAS
COMPROMISED IN THE UNAUTHORIZED THIRD-PARTY ACCESS TO NELNET’S SYSTEMS
THAT WAS MADE PUBLIC BY NELNET SERVICING, LLC IN AUGUST 2022 (THE “DATA
SECURITY INCIDENT”).
The purpose of this Notice is to inform Settlement Class Members of a proposed settlement (the “Settlement”)
with Settling Entities Nelnet Servicing, LLC (“Nelnet”), Edfinancial Services, LLC (“Edfinancial”), and the
Oklahoma Student Loan Authority (“OSLA,” and together with Nelnet and Edfinancial, the “Settling Entities”).
Plaintiffs entered into the Settlement Agreement with Nelnet, Edfinancial, and OSLA on August 16, 2024.
This Notice is available because Settlement Class Members’ Personal Information may have been accessed by an
unauthorized third party during a data intrusion security incident that Nelnet made public on August 26, 2022.
Please do not contact the Court regarding this Notice. Inquiries concerning this Notice, the Claim Form, or
any other questions by Settlement Class Members should be directed to:
Nelnet Data Security Settlement
c/o A.B. Data, Ltd.
P.O. Box 173032
Milwaukee, WI 53217
Tel: 1-877-388-1763
Email: [email protected]
Website: www.NelnetSettlement.com
Plaintiffs allege that the Settling Entities failed to implement reasonable data security measures to protect
consumers’ personally identifiable information and, as a result of the Data Security Incident, Plaintiffs and
Settlement Class Members have experienced or have been exposed to fraud and identity theft and have otherwise
been injured. Plaintiffs sued Defendants and asserted claims of negligence, negligence per se, breach of implied
contract, unjust enrichment, breach of confidence, intrusion upon seclusion, violation of the California Consumer
Privacy Act, and violations of state consumer protection statutes relating to the Data Security Incident. The
Settling Entities deny they violated any law and dispute Plaintiffs’ allegations but have agreed to the Settlement
to avoid the expenses and uncertainties associated with continuing this case.
Under the Settlement, the Settling Entities have agreed to pay a sum of ten million U.S. Dollars ($10,000,000)
(the “Settlement Amount”) into a Settlement Fund that will be used to provide Settlement Benefits to eligible
Settlement Class Members. The Settlement Fund will also be used to pay for the Claims Administration Costs,
Service Awards for named Plaintiffs, and Class Counsel’s attorneys’ fees and expenses.
The following table contains a summary of your rights and options regarding the Settlement. More detailed
information about your rights and options can be found in the Settlement Agreement, which is available at
www.NelnetSettlement.com (the “Settlement Website”).
YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT
If you do nothing in connection with this Settlement, you will receive no payment
from the Settlement and you will be bound by past and any future Court rulings,
DO NOTHING including rulings on the Settlement, if approved, and the Settlement release. See
Question 16.
The only way to receive your share of the Settlement Fund is to complete and file a
FILE A CLAIM timely and valid Claim Form electronically by no later than March 5, 2026, or to mail
FORM your Claim Form so that it is received no later than March 5, 2026. See Question 11.
If you wish to exclude yourself from the Settlement, you must submit a written request
EXCLUDE
by U.S. Mail or other delivery service so that it is received by March 5, 2026. If you
YOURSELF
exclude yourself, you will not be bound by the Settlement, if approved, or the
FROM THE
Settlement release, and you will not be eligible for any Settlement Benefits from the
SETTLEMENT
Settlement. See Questions 17 – 21.
If you wish to object to the Settlement, you must file a written objection with the Court
OBJECT TO THE and serve copies on Class Counsel and Settling Entities’ Counsel by March 5, 2026.
SETTLEMENT You must be and remain a Settlement Class Member to object. See Questions 22 and
23.
You may ask the Court for permission to speak about the Settlement at the Fairness
GO TO THE
Hearing by including such a request in your written objection, which you must file
FAIRNESS
with the Court and serve on Class Counsel and Settling Entities’ Counsel by March
HEARING
5, 2026. The Fairness Hearing is scheduled for May 5, 2026. See Questions 26 - 28.
APPEAR
You may enter an appearance through your own counsel at your own expense. See
THROUGH
Question 28.
AN ATTORNEY
These rights and options, and the deadlines to exercise them, are explained in this Notice. The capitalized terms
used in this Notice are explained or defined below or in the Settlement Agreement, which is available on the
Settlement Website, www.NelnetSettlement.com.
The Court has appointed the lawyers listed below (“Class Counsel”) to represent you and the Settlement Class in
this Action:
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Christian Levis Ian W. Sloss
Amanda Fiorilla Johnathan Seredynski
LOWEY DANNENBERG, P.C. Steven L. Bloch
44 South Broadway, Suite 1100 SILVER GOLUB & TEITELL LLP
White Plains, NY 10601 One Landmark Square, Floor 15
Telephone: (914) 733-7205 Stamford, CT 06901
Fax: (914) 997-0035 Telephone: (203) 325-4491
[email protected] Fax: (203) 325-3769
[email protected]
Anthony M. Christina [email protected]
LOWEY DANNENBERG, P.C. [email protected]
One Tower Bridge
100 Front Street, Suite 520
West Conshohocken, PA 19428
Telephone: (914) 733-7205
Fax: (914) 997-0035
[email protected]
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WHAT THIS NOTICE CONTAINS
BASIC INFORMATION ........................................................................................................................................................ 5
1. What Is A Class Action Lawsuit? .................................................................................................................................. 5
2. Why Was There A Notice? ............................................................................................................................................ 5
3. What Are The Definitions Used In This Notice? ........................................................................................................... 5
4. What Is This Action About?........................................................................................................................................... 5
5. What Is The History Of This Action? ............................................................................................................................ 6
6. Why Is There A Settlement? .......................................................................................................................................... 8
WHO GETS MONEY FROM THE SETTLEMENT ............................................................................................................. 8
7. How Do I Know If I Am A Settlement Class Member? ................................................................................................ 8
8. Are There Exceptions to Being Included In The Settlement Class? .............................................................................. 8
9. What If I Am Still Not Sure If I Am Included In The Settlement Class? ...................................................................... 8
THE SETTLEMENT BENEFITS .......................................................................................................................................... 9
10. What Does The Settlement Provide? ......................................................................................................................... 9
11. How Will I Get A Payment? ...................................................................................................................................... 9
12. How Much Will My Payment Be? ............................................................................................................................. 9
13. When Will I Receive A Payment? ............................................................................................................................. 9
14. What Do I Have To Do After I File A Claim Form? ................................................................................................. 9
15. What Am I Giving Up To Receive A Payment? ...................................................................................................... 10
16. What If I Do Nothing? ............................................................................................................................................. 10
EXCLUDING YOURSELF FROM THE SETTLEMENT .................................................................................................. 10
17. What If I Do Not Want To Be In The Settlement Class?......................................................................................... 10
18. How Do I Exclude Myself? ..................................................................................................................................... 11
19. If I Do Not Exclude Myself, Can I Sue Any Of The Settling Entities For The Same Thing Later? ....................... 11
20. If I Exclude Myself, Can I Get Money From The Settlement? ................................................................................ 11
21. If I Exclude Myself, Can I Still Object? .................................................................................................................. 11
OBJECTING TO THE SETTLEMENT ............................................................................................................................... 12
22. How Do I Tell The Court What I Think About The Settlement? ............................................................................ 12
23. What Is The Difference Between Objecting And Excluding Myself? ..................................................................... 13
THE LAWYERS REPRESENTING YOU .......................................................................................................................... 13
24. Do I Have A Lawyer In This Case? ......................................................................................................................... 13
25. How Will The Lawyers Be Paid? ............................................................................................................................ 14
THE COURT’S FAIRNESS HEARING .............................................................................................................................. 14
26. When And Where Will The Court Decide Whether To Approve The Settlement? ................................................. 14
27. Do I Have To Come To The Fairness Hearing? ...................................................................................................... 15
28. May I Speak At The Fairness Hearing? ................................................................................................................... 15
GETTING MORE INFORMATION .................................................................................................................................... 15
29. How Do I Get More Information? ........................................................................................................................... 15
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BASIC INFORMATION
1. What Is A Class Action Lawsuit?
A class action is a lawsuit in which one or more representative plaintiffs (in this case, Plaintiffs) bring a lawsuit
on behalf of themselves and other similarly situated persons (i.e., a class) who have similar claims against the
defendants. The representative plaintiffs, the court, and counsel appointed to represent the class all have a
responsibility to make sure that the interests of all class members are adequately represented.
Importantly, class members are NOT individually responsible for payment of attorneys’ fees or litigation
expenses. In a class action, attorneys’ fees and litigation expenses are paid directly by the defendants, from the
court-awarded judgment amount, or, as in this case, from the settlement fund, and such payment must be approved
by the court. If there is no recovery on behalf of the class, the attorneys do not get paid.
When a representative plaintiff enters into a settlement with a defendant on behalf of a class, such as in this
Settlement with Nelnet, Edfinancial, and OSLA, the court will require that the members of the class be given
notice of the settlement and an opportunity to be heard with respect to the settlement. The court then conducts a
hearing (called a Fairness Hearing) to determine, among other things, if the settlement is fair, reasonable, and
adequate.
2. Why Was There A Notice?
Potential Settlement Class Members have a right to know about the proposed Settlement with Nelnet, Edfinancial,
and OSLA before the Court decides whether to approve the Settlement.
This Notice explains the cases in the consolidated litigation, In re Data Security Cases Against Nelnet Servicing,
LLC, No. 4:22-cv-3191, pending in the U.S. District Court for the District of Nebraska (the “Action”), including
Spearman, et al. v. Nelnet Servicing, LLC, Case No. 4:22-cv-03191 (JMG) (JMD) (D. Neb.), and any related
litigation arising from the same facts and circumstances, including Carr v. Oklahoma Student Loan Authority, et
al., No. 5:23-cv-00099-R, before the U.S. District Court for the Western District of Oklahoma (“Carr”), the
Settlement, your legal rights, what benefits are available, who is eligible for them, and how you can apply to
receive your portion of the benefits if you are eligible. The purpose of this Notice is also to inform you of the
Fairness Hearing to be held by the Court to consider the fairness, reasonableness, and adequacy of the Settlement,
and to consider requests for awards of attorneys’ fees and litigation expenses, and any Service Awards for
Plaintiffs.
3. What Are The Definitions Used In This Notice?
This Notice incorporates by reference the definitions in the Stipulation and Agreement of Settlement with Nelnet,
Edfinancial, and OSLA as amended by the Addendum to the Stipulation and Agreement of Class Action
Settlement Dated August 16, 2024 (“Addendum”), executed on September 26, 2025 (collectively, the “Settlement
Agreement”).
The Settlement Agreement and the Court’s Preliminary Approval Order are posted on the Settlement Website.
All capitalized terms used in this Notice, but not otherwise defined, shall have the same meanings as in the
Settlement Agreement and the Court’s Preliminary Approval Order.
4. What Is This Action About?
Nelnet is one of the largest student loan servicers in the United States. In addition to servicing student loans,
Nelnet provides online technology services such as web portal and payment processing services to other student
loan servicers, including Edfinancial and OSLA. The Action arises out of a data security incident that Nelnet
made public on August 26, 2022, in which an unauthorized third party accessed Personal Information in Nelnet’s
systems. Plaintiffs and other individuals sued Nelnet, Edfinancial, and OSLA in various courts alleging that the
Data Security Incident caused student loan account registration information, including names, addresses, email
addresses, phone numbers, and Social Security Numbers, to be improperly exposed.
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The lawsuits claim that the Settling Entities were responsible for the Data Security Incident, and assert claims for
negligence, negligence per se, breach of implied contract, unjust enrichment, breach of confidence, intrusion upon
seclusion, violation of the California Consumer Privacy Act, and violations of state consumer protection statutes
relating to the Data Security Incident. The lawsuits seek compensation for people whose information was exposed
in the Data Security Incident.
The Settling Entities dispute Plaintiffs’ allegations and deny that they violated any law. The Settling Entities
further maintain that they have good and meritorious defenses to Plaintiffs’ claims and would prevail if the case
were to proceed. Nevertheless, to avoid the expense and uncertainty of further litigation, the Settling Entities have
agreed to settle the claims in this lawsuit, and to pay a total of ten million U.S. Dollars ($10,000,000) for the
benefit of the proposed Settlement Class to resolve the Settlement Class’s claims. If the Settlement is approved,
each Authorized Claimant will receive a share of the Settlement Amount plus any interest that may accrue, less
any Court-approved disbursements, including: (i) Taxes; (ii) Claims Administration Costs; (iii) attorneys’ fees
and expenses approved by the Court; and (iv) any Service Awards approved by the Court (the “Net Settlement
Fund”). The share of the Net Settlement Fund received by each Authorized Claimant in the form of Settlement
Benefits will depend on the total number of eligible claims that receive approval to participate in the Settlement
and the type of Settlement Benefit sought. If the Settlement is approved, the Action and related litigation will be
resolved against the Settling Entities. If the Settlement is not approved, the Action and related litigation will
continue, and Plaintiffs will continue to pursue their claims against all Settling Entities.
5. What Is The History Of This Action?
On August 26, 2022, Nelnet began publicly notifying state Attorneys General and approximately 2,501,324
impacted current and former Edfinancial and OSLA account holders that Personal Information, including, without
limitation, their names, addresses, email addresses, phone numbers, and Social Security Numbers, had been
accessed by an unauthorized third party.
Beginning on August 30, 2022, 23 putative class action complaints were filed against Nelnet, with two actions
naming both Nelnet and Edfinancial. All but three actions were filed in or removed to the District of Nebraska.
Plaintiffs’ complaints involved a total of 23 plaintiffs from 16 states (Arizona, California, Connecticut, Colorado,
Florida, Illinois, Indiana, Massachusetts, Michigan, New Mexico, New York, Pennsylvania, South Carolina,
Texas, Utah, and Wisconsin).
Plaintiffs initiated proceedings before the U.S. Judicial Panel on Multidistrict Litigation (“JPML”) to centralize
the various cases before the Court. The JPML denied the motion to centralize the litigation on December 13,
2022. Plaintiffs immediately filed a motion to consolidate the then-filed actions in the Court, and to appoint
Lowey Dannenberg, P.C. (“Lowey”) and Silver Golub & Teitell LLP (“SGT”) as Interim Co-Lead Class Counsel.
While the consolidation motion was pending, a separate action was initiated against OSLA and Nelnet in
Oklahoma state court arising out of the same Data Security Incident, which was later removed to the U.S. District
Court of the Western District of Oklahoma on January 20, 2023 (Carr, No. 5:23-cv-00099-R, ECF No. 1 (W.D.
Okla.)).
After additional briefing, on January 30, 2023, the Court consolidated the cases filed in Nebraska under In re
Data Security Cases Against Nelnet Servicing, LLC, No. 4:22-cv-3191 and appointed Lowey and SGT as Interim
Co-Lead Class Counsel.
On March 10, 2023, Lowey/SGT filed a Consolidated Amended Class Action Complaint (the “Amended
Complaint”) against Nelnet and Edfinancial on behalf of 26 plaintiffs from 17 states, asserting, inter alia, claims
arising out of the Data Security Incident for negligence, negligence per se, breach of implied contract, unjust
enrichment, breach of confidence, invasion of privacy, violations of state consumer protection and notification
statutes, and declaratory and injunctive relief.
On April 9, 2023, Edfinancial moved to stay the claims against it until resolution of the claims against Nelnet. On
April 24, 2023, Nelnet moved to dismiss the Amended Complaint. The motion to dismiss was fully briefed as of
July 10, 2023.
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OSLA and Nelnet moved the Carr court to transfer the case to the District of Nebraska on April 28, 2023. After
briefing, the Carr court denied OSLA’s and Nelnet’s transfer motion.
On June 5, 2023, the Court entered an Order staying the claims against Edfinancial pending resolution of Nelnet’s
motion to dismiss.
On October 26, 2023, Plaintiffs filed a Notice of Supplemental Authority to apprise the Court of recent
developments in Carr. Specifically, Plaintiffs brought the Court’s attention to recent opinions by the U.S. District
Court for the Western District of Oklahoma in Carr sustaining various claims against both Nelnet and OSLA.
Plaintiffs urged the Court to sustain claims against Nelnet as well as remove the stay against Edfinancial and
order it to submit a responsive pleading.
In November 2023, Plaintiffs and Nelnet decided they would attempt to mediate their dispute and agreed on the
selection of the Honorable Jay C. Gandhi (Ret.), U.S. Magistrate Judge (C.D. Cal.), as a mediator. Because Nelnet
believed Edfinancial and OSLA were necessary parties to the mediation, the parties agreed that Edfinancial and
OSLA could participate in the mediation session.
On December 8, 2023, the Parties engaged in a full day of mediation with Judge Gandhi. The parties made
significant progress in their first mediation session with Judge Gandhi on December 8, 2023. However, as several
issues remained outstanding, the Parties agreed to reconvene later to continue negotiations.
On January 26, 2024, the Parties engaged in a second full day of mediation with Judge Gandhi. Again, the parties
made significant progress, but no settlement was reached in the mediation session. Following the second, January
26, 2024, mediation session, the Parties continued their negotiations.
On January 29, 2024, counsel for the Parties jointly emailed the chambers of Magistrate Judge Jacqueline M.
DeLuca and alerted the Court that a potential settlement was likely contingent on the resolution of some
outstanding issues. Thereafter, the Parties continued their discussions, which included multiple meetings and
email exchanges.
On March 13, 2024, counsel for the plaintiffs in Carr moved to intervene in the instant case. Plaintiffs and Nelnet
each filed briefs opposing the proposed intervenors’ motion, and the proposed intervenors filed a reply brief. On
March 27, 2024, the District of Nebraska entered an Order terminating Nelnet’s motion to dismiss, subject to
reopening after resolution of the proposed intervenors’ motion to intervene.
On June 11, 2024, Plaintiffs filed a Notice of Settlement to apprise the District of Nebraska that they had reached
a settlement in principle with Nelnet, Edfinancial, and OSLA, and that the Parties were in the process of preparing
a written settlement agreement and anticipated filing a motion for preliminary approval within 45 days.
On June 12, 2024, Plaintiffs filed a Supplemental Notice of Settlement and Intervention in the Oklahoma Action
to apprise the District of Nebraska that: (1) the Parties had executed a binding term sheet outlining the terms of
the Settlement and that (2) Plaintiffs had filed a Motion to Intervene and Stay Pending Final Approval of the
Settlement in Related Class Action and Memorandum of Law in Support in Carr. Thereafter, Plaintiffs, Nelnet,
and Edfinancial jointly sought, and the District of Nebraska granted, an extension of the deadline for filing a
motion for preliminary approval.
On June 18, 2024, Magistrate Judge DeLuca issued a report and recommendation concluding that the proposed
intervenors’ motion should be denied in part and granted in part and, specifically, that the proposed intervenors
should be joined as parties to the action solely for the limited purpose of objecting to the preliminary approval of
the proposed settlement on subject matter jurisdiction grounds. On July 3, 2024, the District of Nebraska entered
an Order adopting Magistrate Judge DeLuca’s report and recommendation.
On July 12, 2024, Plaintiffs filed a Notice of Supplemental Authority to apprise the District of Nebraska of an
Order issued by the U.S. District Judge David L. Russell of the Western District of Oklahoma in Carr granting
motions to stay proceedings, filed by Nelnet and OSLA, pending resolution of the settlement proceedings in the
instant case.
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On March 31, 2025, the Court in the District of Nebraska granted Preliminary Approval of the Settlement. On
September 26, 2025, the Parties executed the Addendum to the Settlement Agreement. The Court issued an
Amended Preliminary Approval Order regarding the Settlement on December 4, 2025.
6. Why Is There A Settlement?
Plaintiffs and Class Counsel believe that Settlement Class Members have been damaged by the Settling Entities’
conduct. The Settling Entities do not admit the allegations made by Plaintiffs, believe that they have meritorious
defenses to Plaintiffs’ allegations, and believe that Plaintiffs’ claims would have been rejected prior to trial, at
trial (had Plaintiffs successfully certified a class and survived summary judgment motions), or on appeal. As a
result, the Settling Entities believe Plaintiffs would have received nothing if the litigation had continued to trial.
The Court has not decided in favor of either Plaintiffs or the Settling Entities. Instead, Class Counsel engaged in
negotiations with the Settling Entities to reach a negotiated resolution of the Action. The Settlement allows both
sides to avoid the risks and costs of lengthy litigation and the uncertainty of pre-trial proceedings, a trial, and
appeals, and, if approved, will permit Settling Class Members who file timely and valid Claim Forms to receive
some compensation, rather than risk ultimately receiving nothing. Plaintiffs and Class Counsel believe the
Settlement is in the best interest of all Settlement Class Members.
The Settling Entities have agreed to pay a total of ten million U.S. Dollars ($10,000,000) in cash for the benefit
of the proposed Settlement Class. If the Settlement is approved, each Settling Class Member who submits a timely
and valid Settlement Claim Form may be eligible to receive a credit monitoring and a cash payment from the Net
Settlement Fund (the “Settlement Benefits”).
If the Settlement is approved, the Action and related litigation will be resolved against all Settling Entities, and
all Released Claims against the Released Parties will be released by the Releasing Parties. If the Settlement is not
approved, the Settling Entities will remain as defendants in the respective cases related to the Data Security
Incident, and Plaintiffs will continue to pursue their claims against all the Settling Entities.
WHO GETS MONEY FROM THE SETTLEMENT
7. How Do I Know If I Am A Settlement Class Member?
In the Preliminary Approval Order, the Court preliminarily approved the following Settlement Class:
All Persons in the United States whose Personal Information was compromised in the Data Security
Incident.
Not everyone who fits the description will be a Settlement Class Member. Please see Question 8 for a discussion
of exclusions from the Settlement Class.
8. Are There Exceptions to Being Included In The Settlement Class?
Yes. Excluded from the Settlement Class are: (i) the Settling Entities, any Person in which the Settling Entities
have a controlling interest, and the Settling Entities’ officers, directors, legal representatives, successors,
subsidiaries, and assigns; (ii) any judge, justice, or judicial officer presiding over the Action and the members of
their immediate families and judicial staff; (iii) any Person that timely and validly opts out of the Settlement; and
(iv) any Person found by a court of competent jurisdiction to be guilty under criminal law of initiating, causing,
aiding, or abetting the Data Security Incident or who pleads guilty or nolo contendere to any such charge.
9. What If I Am Still Not Sure If I Am Included In The Settlement Class?
If you are still not sure whether you are included in the Settlement Class, you can ask for free help. You can email
[email protected], call toll-free 1-877-388-1763, or visit the Settlement Website,
www.NelnetSettlement.com, for more information.
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THE SETTLEMENT BENEFITS
10. What Does The Settlement Provide?
The Settling Entities have agreed to pay a sum of ten million U.S. Dollars ($10,000,000) for the benefit of the
proposed Settlement Class. If the Settlement is approved, each Settling Class Member who submits a timely and
valid Claim Form will receive a portion of the Settlement Benefits, including Credit Monitoring and Identity
Theft Protection and cash payments (the “Settlement Payment”), made available after the Settlement Fund is used
to pay any Court-approved disbursements, including: (i) Taxes; (ii) Claims Administration Costs; (iii) attorneys’
fees and expenses awarded by the Court; and (iv) any Service Awards approved by the Court. All Settling Class
Members may choose to receive two (2) years of a credit monitoring product that includes identity restoration
services and one million U.S. Dollars ($1,000,000) of identity theft insurance. This has an approximate retail
value of $187 per year. Settling Class Members may choose a Settlement Payment reflecting either (a) the amount
of his/her Out-of-Pocket Losses (the “Cash Payment for Reimbursement of Documented Out-of-Pocket Losses”)
and Lost Time (the “Cash Payment for Lost Time”) based on the documentation and information provided on the
Claim Form and approved by the Claims Administrator; or (b) a share of the Net Settlement Fund minus all
Approved Claims for credit monitoring, Cash Payments for Reimbursement of Documented Out-of-Pocket
Losses, and Cash Payments for Lost Time (the “Remaining Cash Payment Fund”), the share calculated based on
the number of Settling Class Members who submit a Claim Form and will not be paid for Out-of-Pocket Losses
or Lost Time (i.e., the “Pro Rata Cash Payment”). Eligible Settling Class Members that were California residents
at the time of the Data Security Incident and opt to receive the Pro Rata Cash Payment will receive two times the
base amount of the pro rata calculation as their Pro Rata Cash Payment. The Settlement gives the Settling Entities
the right, but not the obligation, in their sole discretion to terminate the Settlement in the event that the number
of Settlement Class Members who timely exercise their right to request exclusion from the Settlement Class
exceeds an agreed upon number.
11. How Will I Get A Payment?
If you are a Settlement Class Member and do not exclude yourself, you are eligible to submit a Claim Form to
receive your share of money from the Net Settlement Fund. Claim Forms must be submitted online at the
Settlement Website on or before 11:59 p.m. Eastern Time on March 5, 2026, OR mailed to and received by March
5, 2026, at:
Nelnet Data Security Settlement
c/o A.B. Data, Ltd.
P.O. Box 173032
Milwaukee, WI 53217
Following the timely submission and receipt of your Claim Form online, a printable “Confirmation of Claim
Receipt” will be displayed on the screen, which will acknowledge receipt of your Claim. If you do not submit a
Claim Form, you will not receive any payments under the Settlement.
12. How Much Will My Payment Be?
At this time, it is not known precisely how much each Authorized Claimant will receive from the Settlement
Payment or when payments will be made. The amount of the Settlement Payment will depend on the types of
relief selected and the number of claims that receive approval.
13. When Will I Receive A Payment?
The Court will hold the Fairness Hearing on May 5, 2026, to decide whether to approve the Settlement. If the
Court approves the Settlement, there may be appeals after that. It can sometimes take a year or more for the
appellate process to conclude.
Please be patient; status updates will be posted on the Settlement Website.
14. What Do I Have To Do After I File A Claim Form?
After you file a Claim Form, the Claims Administrator will evaluate your Claim Form to determine if you have
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provided sufficient information to validate your membership in the Settlement Class and to approve the claim
submitted. If the Claims Administrator determines that your Claim Form is deficient or defective, it may contact
you. If you subsequently provide information that satisfies the Claims Administrator concerning the validity of
your Claim Form, you will not have to do anything else. If any disputes cannot be resolved, Class Counsel will
submit them to the Court, and the Court will make a final determination of the validity of your Claim Form.
15. What Am I Giving Up To Receive A Payment?
Unless you exclude yourself, you remain a Settlement Class Member. That means you cannot sue, continue to
sue, or be part of any other lawsuit about the Released Claims in this Action or any other action against the Settling
Entities, arising from the same facts and circumstances, including, but not limited to, Carr. Upon the Effective
Date of the Settlement, Plaintiffs and the Releasing Parties shall release and be deemed to release and forever
discharge and shall be forever enjoined from prosecuting the Released Claims against the Released Parties.
The capitalized terms used in this paragraph are defined in the Settlement Agreement, Preliminary Approval
Order, or this Notice. For easy reference, certain of these terms are copied below:
“Releasing Parties” means each and every Plaintiff and each and every Settling Class Member on his or her own
behalf or on behalf of his or her respective predecessors, successors, and assigns.
“Released Parties” means the Settling Entities, their predecessors, successors, and assigns, their direct and
indirect parents, subsidiaries, affiliates, and joint ventures, and each of their respective current and former officers,
directors, employees, managers, members, partners, agents (in their capacity as agents of Nelnet, Edfinancial, or
OSLA), shareholders (in their capacity as shareholders of Nelnet, Edfinancial, or OSLA), attorneys, insurers,
reinsurers, or legal representatives, and the predecessors, successors, heirs, executors, administrators, and assigns
of each of the foregoing. As used in this provision, “affiliates” means entities controlling, controlled by, or under
common control with a Released Party. Released Parties includes, without limitation, any Person related to any
such entity who is, was, or could have been named as a defendant in any action arising from the Data Security
Incident, other than any Person who is found by a court of competent jurisdiction to be guilty under criminal law
of initiating, causing, aiding, or abetting the Data Security Incident or who pleads guilty or nolo contendere to
any such charge.
“Released Claims” means any and all manner of claims, including unknown claims, causes of action, cross-
claims, counter-claims, charges, liabilities, demands, judgments, suits, obligations, debts, setoffs, rights of
recovery, or liabilities for any obligations of any kind whatsoever (however denominated), whether class,
derivative, or individual, in law or equity or arising under constitution, statute, regulation, ordinance, contract,
common law, or otherwise in nature, for fees, costs, penalties, fines, debts, expenses, attorneys’ fees, interest, and
damages, whenever incurred, for restitution or any other payment of money, and for liabilities of any nature
whatsoever (including joint and several), known or unknown, suspected or unsuspected, asserted or unasserted,
in any jurisdiction which Releasing Parties or any of them ever had, now has, or hereafter can, shall, or may have,
representatively, derivatively, or in any other capacity, against the Released Parties arising from or relating in any
way to conduct alleged in the Action, or which could have been alleged in the Action against the Released Parties.
16. What If I Do Nothing?
You are automatically a member of a Settlement Class if you fit the Settlement Class description. However, if
you do not submit a timely and valid Claim Form, you will not receive any payment from the Settlement. You
will be bound by past and any future Court rulings, including rulings on the Settlement and release. Unless you
exclude yourself, you will not be able to start a lawsuit, continue with a lawsuit, or be a part of any other lawsuit
against the Settling Entities on the basis of the Released Claims. Please see Question 15 for a description of the
Released Claims.
EXCLUDING YOURSELF FROM THE SETTLEMENT
17. What If I Do Not Want To Be In The Settlement Class?
If you are a Settlement Class Member, do not want to remain in the Settlement Class, and do not want a payment
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from the Settlement, then you must take steps to exclude yourself from the Settlement. This is also sometimes
referred to as “opting out” of a class. See Question 18.
If you validly exclude yourself from the Settlement Class of which you would otherwise be a member, you will
be free to sue the Settling Entities on your own for the claims being resolved by the Settlement. However, you
will not receive any money from the Settlement, and Class Counsel will no longer represent you with respect to
any claims against the Settling Entities.
If you want to receive money from the Settlement, do not exclude yourself. You must file a Claim Form in order
to receive any payment from the Settlement.
18. How Do I Exclude Myself?
You can exclude yourself by sending a written “Request for Exclusion.” You cannot exclude yourself by
telephone. Your written Request for Exclusion must be received by the Claims Administrator no later than March
5, 2026, and sent by U.S. Mail or other delivery service to:
Nelnet Data Security Settlement
Attn: Exclusions
P.O. Box 173001
Milwaukee, WI 53217
The written Request for Exclusion must (i) identify the case name of the consolidated litigation (In re Data
Security Cases Against Nelnet Servicing, LLC, No. 4:22-cv-03191 (D. Neb.) (JMG) (JMD) OR Spearman v.
Nelnet Servicing, LLC, No. 4:22-cv-03191 (JMG)(JMD) (D. Neb.)); (ii) identify the full name and address of the
Person seeking exclusion from the Settlement, and, if represented by counsel, the name and address of his/her
counsel; (iii) include the claimant ID code and other information included on the Short-Form Notice provided by
the Claims Administrator that identifies the Person as a Settlement Class Member; (iv) be personally signed by
the Person seeking exclusion, and, if represented by counsel, also be signed by his/her counsel; (v) include a
statement clearly indicating the Person’s intent to be excluded from the Settlement; and (vi) request exclusion
only for that one Person whose personal signature appears on the request.
A Request for Exclusion that does not include all of the foregoing information, that does not contain the proper
signature, that is sent to an address other than the ones designated above, or that is not sent within the time
specified shall be invalid and the person(s) filing such an invalid request shall be a Settling Class Member and
shall be bound by the Settlement, if approved.
All persons who submit valid and timely Requests for Exclusion in the manner set forth above shall have no rights
under the Settlement, shall not share in the distribution of the Settlement Payment, and shall not be bound by the
Settlement. In addition, such persons will not be entitled to object to the Settlement or appear at the Fairness
Hearing.
19. If I Do Not Exclude Myself, Can I Sue Any Of The Settling Entities For The Same Thing Later?
No. Unless you exclude yourself from this Settlement, you give up any right to sue any of the Settling Entities
for the Released Claims that the Settlement resolves.
20. If I Exclude Myself, Can I Get Money From The Settlement?
No. You will not get any money from the Settlement if you exclude yourself.
21. If I Exclude Myself, Can I Still Object?
No. If you exclude yourself, you are no longer a Settlement Class Member and may not object to any aspect of
the Settlement.
OBJECTING TO THE SETTLEMENT
22. How Do I Tell The Court What I Think About The Settlement?
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If you are a Settlement Class Member and you do not exclude yourself, you can tell the Court what you think
about the Settlement. You can object to all or any part of the Settlement, the application for attorneys’ fees and
reimbursement of litigation expenses, and/or the motion for any Service Awards for Plaintiffs. You can give
reasons why you think the Court should approve them or not. The Court will consider your views. If you want to
make an objection, you may enter an appearance in the Action, at your own expense, individually or through
counsel of your own choice, by electronically filing or mailing a notice of appearance and your objection to the
Clerk of United States District Court for the District of Nebraska at the Roman L. Hruska Federal Courthouse,
111 South 18th Plaza, Suite 1152, Omaha, NE 68102 and serving copies of your objection on Class Counsel and
the Settling Entities’ Counsel by March 5, 2026, to the following physical addresses:
Class Counsel:
Christian Levis Ian W. Sloss
Amanda Fiorilla Johnathan Seredynski
LOWEY DANNENBERG, P.C. Steven L. Bloch
44 South Broadway, Suite 1100 SILVER GOLUB & TEITELL LLP
White Plains, NY 10601 One Landmark Square, Floor 15
Telephone: (914) 733-7205 Stamford, CT 06901
Fax: (914) 997-0035 Telephone: (203) 325-4491
Fax: (203) 325-3769
Anthony M. Christina
LOWEY DANNENBERG, P.C.
One Tower Bridge
100 Front Street, Suite 520
West Conshohocken, PA 19428
Telephone: (914) 733-7205
Fax: (914) 997-0035
Settling Entities’ Counsel:
Counsel for Nelnet Servicing, LLC
Claudia D. McCarron Charles F. Kaplan
MULLEN COUGHLIN LLC PERRY, GUTHERY LAW FIRM
426 W. Lancaster Avenue, Suite 200 233 South 13th Street, Suite 1400
Devon, PA 19333 Lincoln, NE 68508
Telephone: (267) 930-4787 Telephone: (402) 476-9200
Counsel for Edfinancial Services, LLC
Casie D. Collignon
Sarah A. Ballard
BAKER & HOSTETLER LLP
1801 California Street, Suite 4400
Denver, CO 80202-2662
Telephone: (303) 861-0600
Counsel for Oklahoma Student Loan Authority
Jill H. Fertel
Conor Hafertepe
CIPRIANI & WERNER
450 Sentry Parkway, Suite 200
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Blue Bell, PA 19422
Telephone: (610) 567-0700
Any Settlement Class Member who does not enter an appearance will be represented by Class Counsel. If you
choose to object, you must file a written objection. You cannot make an objection by telephone or email. Your
written objection must be signed by the Settlement Class Member (and, if applicable, signed by the Settlement
Class Member’s duly authorized attorney or other duly authorized representative along with appropriate
documentation setting forth such representation) and must include: (i) the case name and number of the
consolidated litigation (In re Data Security Cases Against Nelnet Servicing, LLC, No. 4:22-cv-03191 (JMG)
(JMD) (D. Neb.) OR Spearman v. Nelnet Servicing, LLC, No. 4:22-cv-03191 (JMG)(JMD) (D. Neb.)); (ii) the
full name, address, and telephone number of the objecting Settlement Class Member and, if represented by
counsel, the name, address, and telephone number of his/her counsel; (iii) the claimant ID code and other
information on the Short-Form Notice provided by the Claims Administrator that identifies the objector as a
Settlement Class Member; (iv) a statement of whether the objection applies only to the objector, to a specific
subset of the class, or to the entire class; (v) a statement of the number of times in which the objector (and,
where applicable, objector’s counsel) has objected to a class action settlement within the three years preceding
the date that the objector files the objection, along with the caption of each case in which the objector (or the
objector’s counsel) has made such objection; (vi) a statement of the specific grounds for the objection; and (vii)
a statement of whether the objecting Settlement Class Member intends to appear at the Fairness Hearing, and
if so, whether personally or through counsel.
If you enter an appearance and intend to speak at the Fairness Hearing (whether pro se or through an attorney),
the written objection must include a detailed description of any evidence the objecting Settlement Class
Member may offer at the Fairness Hearing, as well as copies of any exhibits the objecting Settlement Class
Member may introduce at the Fairness Hearing.
If you do not timely and validly submit your objection, your views will not be considered by the Court or any
court on appeal. Check the Settlement Website, www.NelnetSettlement.com, for updates on important dates
and deadlines relating to the Settlement.
23. What Is The Difference Between Objecting And Excluding Myself?
Objecting is telling the Court that you do not like something about the Settlement. You can object to the Settlement
only if you remain a Settlement Class Member and do not exclude yourself from the Settlement. Excluding
yourself from the Settlement is telling the Court that you do not want to be a part of the Settlement Class. If you
exclude yourself, you have no right to object to the Settlement because it no longer affects you.
Note that all documents sent to the Court by any Settlement Class Member, including any letter or document
expressing the Settlement Class Member’s desire to be excluded from the Settlement Class and any objection to
the proposed Settlement, voluntary dismissal, or compromise, are filed electronically by the clerk and therefore
will be available for public review.
THE LAWYERS REPRESENTING YOU
24. Do I Have A Lawyer In This Case?
The Court has appointed the lawyers listed below to represent you and the Settlement Class in this Action:
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Christian Levis Ian W. Sloss
Amanda Fiorilla Johnathan Seredynski
LOWEY DANNENBERG, P.C. Steven L. Bloch
44 South Broadway, Suite 1100 Zachary Rynar
White Plains, NY 10601 SILVER GOLUB & TEITELL LLP
Telephone: (914) 733-7205 One Landmark Square, Floor 15
Fax: (914) 997-0035 Stamford, CT 06901
[email protected] Telephone: (203) 325-4491
Fax: (203) 325-3769
Anthony M. Christina [email protected]
LOWEY DANNENBERG, P.C. [email protected]
One Tower Bridge [email protected]
100 Front Street, Suite 520 [email protected]
West Conshohocken, PA 19428
Telephone: (914) 733-7205
Fax: (914) 997-0035
[email protected]
These lawyers are called Class Counsel. Class Counsel may apply to the Court for payment of attorneys’ fees and
litigation expenses that will be paid from the Settlement Fund. You will not otherwise be charged for Class
Counsel’s services. If you want to be represented by your own lawyer, you may hire one at your own expense.
25. How Will The Lawyers Be Paid?
To date, Class Counsel have not been paid any attorneys’ fees or reimbursed for any out-of-pocket costs. Any
attorneys’ fees and litigation expenses will be awarded only as approved by the Court in amounts determined to
be fair and reasonable. The Settlement provides that Class Counsel may apply to the Court for an award of
attorneys’ fees and litigation expenses from the Settlement Payment. Prior to the Fairness Hearing, Class Counsel
will move for an attorneys’ fee award not to exceed one-third of the Settlement Fund and sixty-five thousand U.S.
Dollars ($65,000) in litigation expenses. Plaintiffs may also seek Service Awards separate from the Settlement
Payment not to exceed one thousand five hundred U.S. Dollars ($1,500) for each named Plaintiff, for a total of
forty thousand five hundred U.S. Dollars ($40,500).
This is only a summary of the request for attorneys’ fees and litigation expenses. Any motions in support of the
requests will be available for viewing on the Settlement Website after they are filed by February 19, 2026. If you
wish to review the motion papers, you may do so by viewing them at the Settlement Website,
www.NelnetSettlement.com.
The Court will consider the motion for attorneys’ fees and litigation expenses at or after the Fairness Hearing.
THE COURT’S FAIRNESS HEARING
26. When And Where Will The Court Decide Whether To Approve The Settlement?
The Court will hold the Fairness Hearing on May 5, 2026, at 10:00 a.m., at the United States District Court for
the District of Nebraska, Robert V. Denney Federal Building, 100 Centennial Mall North, Courtroom 3, Lincoln,
NE 68508. The Fairness Hearing may be moved to a different date or time without notice to you. The Fairness
Hearing could also be conducted remotely. Although you do not need to attend, if you plan to do so, you should
check the Settlement Website before making travel plans.
At the Fairness Hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. The
Court will also consider whether to approve the requests for attorneys’ fees and litigation expenses, and any
Service Awards for Plaintiffs. If there are any objections, the Court will consider them at this time. We do not
know how long the Fairness Hearing will take or when the Court will make its decision. The Court’s decision
may be appealed.
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27. Do I Have To Come To The Fairness Hearing?
No. Class Counsel will answer any questions the Court may have. You are, however, welcome to come at your
own expense. If you send an objection, you do not have to come to Court to talk about it. As long as you file and
serve your written objection on time, the Court will consider it. You may also hire your own lawyer to attend, but
you are not required to do so.
28. May I Speak At The Fairness Hearing?
You may ask the Court for permission to speak at the Fairness Hearing. If you want to appear at the Fairness
Hearing, you may enter an appearance in the Action at your own expense, individually, or through counsel your
own choice, by filing with the Clerk of Court a notice of appearance and your objection, and serving copies of
your objection on Class Counsel and Settling Entities’ Counsel at the addresses set forth in Question 22, such that
they are received no later than March 5, 2026, or as the Court may otherwise direct. All documents sent to the
Court by any Settlement Class Member, including any letter or document expressing the Settlement Class
Member’s desire to be excluded from the Settlement Class and any objection to the proposed Settlement,
voluntary dismissal, or compromise, are filed electronically by the clerk and therefore will be available for public
review. Any Settlement Class Member who does not enter an appearance will be represented by Class Counsel.
You cannot request to speak at the Fairness Hearing by telephone or email.
GETTING MORE INFORMATION
29. How Do I Get More Information?
The Court has appointed A.B. Data, Ltd. as the Claims Administrator. Among other things, the Claims
Administrator is responsible for providing this Notice of the Settlement and processing Claim Forms.
This Notice summarizes the Settlement Agreement. More details are in the Settlement Agreement, which is
available for your review at the Settlement Website, www.NelnetSettlement.com. The Settlement Website also
has answers to common questions about the Settlement, Claim Form, and other information to help you determine
whether you are a Settlement Class Member and whether you are eligible for a payment. You may contact the
Claims Administrator at:
Nelnet Data Security Settlement
c/o A.B. Data, Ltd.
P.O. Box 173032
Milwaukee, WI 53217
Tel: 1-877-388-1763
Email: [email protected]
If your contact information changes, please enter your current information online at the Settlement Website, or
send it to the Claims Administrator at the address set forth above in the event the Claims Administrator needs to
contact you.
*Please do not contact the Court or the Clerk’s Office regarding this Notice or for additional information.*
DATED: January 5, 2026 BY ORDER OF THE COURT
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