SAN ANTONIO—A state judge has approved a final settlement in a class-action lawsuit over a 2022 data breach at Generations FCU here, a case that drew scrutiny after a sitting board member objected to the deal but was barred from participating in it, according to the San Antonio Express-News.
State District Judge Rosie Alvarado said this week she would grant final approval of the agreement, clearing the way for compensation and remediation measures.
The ruling came over objections from then-Generations board member Anthony Rogers, who argued he should have been included in the settlement class because he was also impacted by the breach. The court determined Rogers lacked standing to object because officers and directors were expressly excluded from the class, a decision that ultimately barred his participation despite his claims of personal financial loss, San Antonio Express-News said.
Rogers said he objected in part because the settlement excluded board members who were affected as consumers and because notice of the agreement was provided only in English, even though a significant portion of the credit union’s membership speaks Spanish. Class counsel told the court that representing both Rogers and the credit union would present a conflict of interest, and noted that his exclusion from the class did not prevent Generations from offering him similar relief separately. Rogers resigned from the board effective Jan. 1, San Antonio Express-News noted.
Generations Federal Credit Union, founded in 1940 and originally serving city employees and later public-safety personnel, reported nearly 47,200 members and about 170 employees as of mid-2023. The credit union reported approximately $1.2 billion in assets, placing it among the larger community-based financial institutions in the San Antonio market. A Generations spokesperson declined to comment on the settlement or Rogers’ departure.
The breach, disclosed to the Texas Attorney General’s Office in June 2023, involved sensitive personal and financial information, including Social Security numbers, government identification data, payment card information, and some medical and health details. Attorneys for Generations told the court forensic investigators could not conclusively determine whether data was exfiltrated, but acknowledged they could not rule it out, San Antonio Express-News said.
Under the settlement, eligible class members may seek reimbursement for ordinary and fraud-related losses tied to the breach, compensation for lost time, and up to two years of free credit monitoring and identity-theft protection. Generations also agreed to maintain enhanced data-security practices for at least two years, while continuing to deny any wrongdoing. Class counsel will receive up to $120,000 in combined legal fees and expenses, and the named plaintiff will receive a $2,500 service award for bringing the case, San Antonio Express-News added.