Joel Hood, Elias Nemiri, Gideon Bauers, Elizabeth Golec, Alexys Taylor, Elias Nemiri, and Gideon Bauers, individually and on behalf of all others similarly situated v. Educational Computer Systems, Inc.

District Court, W.D. Pennsylvania·Decided August 5, 2026·No. 2:24-cv-00666·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA JOEL HOOD, ELIAS NEMIRI, GIDEON BAUER, ELIZABETH GOLEC, ALEXYS 2:24-CV-00666-CCW TAYLOR, ELIAS NEMIRI, and GIDEON BAUERS, individually and on behalf of all others similarly situated, Plaintiffs, v. EDUCATIONAL COMPUTER SYSTEMS, INC., Defendant.

OPINION Before the Court is an Unopposed Motion for Preliminary Approval of a class action settlement between Plaintiffs Joel Hood, Elizabeth Golec, Alexys Taylor, Elias Nemiri, and Gideon Bauers, and Defendant Educational Computer Systems, Inc. ECF No. 59. For the reasons that follow, the Motion will be GRANTED. I. Background On May 3, 2024, Mr. Hood filed a class action complaint in this Court, asserting claims against Defendant Educational Computer Systems, Inc. including negligence, negligence per se under the FTC Act, 15 U.S.C. § 45, breach of implied contract, unjust enrichment, and invasion of privacy. ECF No. 1 at 21–29. Educational Computer Systems, Inc. (“ECSI”) is a student loan and tax servicing vendor that provides services to universities in the United States. Id. ¶ 2. The claims here center on a data breach that occurred between October 29, 2023 and February 12, 2024 at ECSI. Id. ¶ 4. Mr. Hood and other class members are current and former students of academic institutions that use ECSI’s services. Mr. Hood alleges that ECSI failed to safeguard its clients’ and their students’ personally identifiable information (“PII”) stored within ECSI’s information network. Id. ¶¶ 6–9. Mr. Hood and other current and former students of ECSI’s clients’ PII, such as full name, address, Social Security number, and other personal and financial information, was stored on ECSI’s systems. Id. ¶¶ 2–3. Mr. Hood alleges that ECSI “failed to carry out its duty to safeguard sensitive Private Information and provide adequate data security[,]” resulting in a

cyberattack and data breach that included Mr. Hood and others’ PII. Id. ¶ 22. Thus, Mr. Hood contends that ECSI’s alleged failure to take sufficient precautions and the subsequent data breach that occurred constitutes, inter alia, negligence and negligence per se under the FTC Act. Id. at 21–24. On September 13, 2024, Plaintiffs Joel Hood, Elias Nemiri, Gideon Bauer, Elizabeth Golec, and Alexys Taylor filed the operative Consolidated Amended Class Action Complaint, alleging substantially similar facts and claims. ECF No. 30. On May 2, 2025, the Court granted in part and denied in part ECSI’s motion to dismiss, dismissing Plaintiffs’ claims for breach of implied contract and invasion of privacy, but permitting the remainder of the claims to proceed. ECF Nos. 38, 39. ECSI filed its answer to the remaining claims, and the parties proceeded with discovery. ECF Nos. 42, 47.

On October 9, 2025, following a mediation session before Jill Sperber, Esq., the parties filed a notice advising the Court that they had reached a tentative settlement agreement. ECF No. 52. On January 16, 2026, Plaintiffs filed the present Unopposed Motion for Preliminary Approval of Class Action Settlement, ECF No. 59, and a settlement agreement. See ECF No. 60-2. The settlement, if approved, would reimburse settlement class members as follows: “Reimbursement of Out-Of-Pocket Losses” of up to $5,000 per person for class members who provide documentation in support of their claims, or an “Alternative Cash Payment” of approximately $100 for class members unable to provide documentation of their losses incurred as a result of the data breach, subject to pro rata increase or decrease depending on the total number of approved claims. ECF No. 60-2 at 15–16. Remaining funds of checks uncashed after 180 days would be re- distributed to class members who redeemed or cashed their initial payments if sufficient funds exist to distribute payments of at least $5.00 to each recipient; otherwise, the residual funds would be donated to a cy pres recipient mutually agreed upon by the parties and approved by the Court.

Id. at 19. Claims would be paid from a settlement fund totaling $6,500,000. Id. at 12. Under the agreement, class representatives Joel Hood, Elias Nemiri, Gideon Bauer, Elizabeth Golec, and Alexys Taylor would each receive a $2,500 service award. Id. at 29. Additionally, proposed class counsel may apply to the Court for payment of one third of the settlement fund in attorneys’ fees. Id. at 28–32. Plaintiffs’ Unopposed Motion for Settlement seeks preliminary approval of the settlement under Federal Rule of Civil Procedure 23. ECF No. 59. II. Standard of Review “The claims, issues, or defenses of a certified class—or a class proposed to be certified for purposes of settlement—may be settled . . . only with the court’s approval.” Fed. R. Civ. P. 23(e). Furthermore, where the settlement would bind class members, “the court may approve [the

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Joel Hood, Elias Nemiri, Gideon Bauers, Elizabeth Golec, Alexys Taylor, Elias Nemiri, and Gideon Bauers, individually and on behalf of all others similarly situated v. Educational Computer Systems, Inc., (W.D. Pa. 2026).

Joel Hood, Elias Nemiri, Gideon Bauers, Elizabeth Golec, Alexys Taylor, Elias Nemiri, and Gideon Bauers, individually and on behalf of all others similarly situated v. Educational Computer Systems, Inc. (Joel Hood, Elias Nemiri, Gideon Bauers, Elizabeth Golec, Alexys Taylor, Elias Nemiri, and Gideon Bauers, individually and on behalf of all others similarly situated v. Educational Computer Systems, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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