Xceligent trustee looks to settle W-2 information disclosure claims

By Caroline Salls

Pittsburgh, April 5 – Xceligent, Inc. Chapter 7 trustee Alfred T. Giuliano requested court approval of a settlement that resolves potentially more than $4 million in claims filed against the company as part of a class-action lawsuit, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The trustee said the lawsuit alleges that W-2 form information for a class of former Xceligent employees was improperly disclosed through a phishing attack and “alleges that Xceligent was negligent in failing to prevent the phishing attack and in its conduct following the phishing attack.”

The plaintiffs asked a Missouri state court to hold Xceligent responsible for paying the retail cost of credit monitoring for all class members for at least 30 years.

Under the proposed settlement, a total of $563,000 in insurance proceeds, representing $1,000 per class member, will be paid to the plaintiffs.

In addition, Xceligent’s insurers will pay $4,000 to the lead plaintiff and $546,985 in attorney’s fees and costs.

The insurers will also reimburse up to $1,200 of each class member’s out-of-pocket expenses that are directly related to the data disclosure and will pay for three years of extended identity theft protection for all settlement class members, for an estimated cost of no more than $75,000.

A hearing is scheduled for May 15.

Xceligent is a Blue Springs, Mo.-based real estate data company. The company filed bankruptcy on Dec. 14, 2017 under Chapter 7 case number 17-12937.

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