PowerSchool/Naviance court settlement: your child may be eligible for a payment

Update: More on the settlement here.

April 2, 2026

It was recently announced that as part of a class action court settlement, the ed tech company PowerSchool and the Chicago Public Schools agreed to pay a total of $17.25 million to students whose privacy was violated by Naviance, a college advising company acquired  by PowerSchool in 2021. In turn, PowerSchool was bought by Bain Capital for $5.6 billion in 2024.

The lawsuit alleged that the Naviance platform contained ad tracking technology that transmitted a wide range of personal data to Google, Microsoft and a company called Heap, including student names, ID numbers, graduation years,  demographic information, photographs and survey responses, as well as  their private communications with teachers.

These practices, the attorneys argued, amounted to  “unlawful wiretapping” and “eavesdropping,” in violation of several federal and state privacy laws.

Naviance is widely used in schools throughout the country for college application and advising purposes, including in many NYC high schools.  Any student who logged into this platform at least once at school or at home between August 18, 2021 through January 23, 2026 is eligible for payment through the court settlement. A preliminary estimate by the attorney is that each student may receive about  $50, depending on how many apply.

You (or your child if they are over 18) is supposed to have been sent a notice by snail mail or email already on how to file a claim as part of the court settlement, along with a Class Member ID number.  But if you haven’t received this notice, you can still submit a claim here.

We have long been concerned about the privacy and safety of PowerSchool programs in general and Naviance in particular, and we have communicated our concerns with DOE’s Chief Privacy Officer, to no avail.

Several years ago, we had shared reports in the publication The Markup, showing how Naviance had been found to allow colleges to send targeted ads to students through its platform, in some cases ads that discriminated by their race.  These ads were purportedly disguised as objective college recommendations.  Using personal data to send targeted ads violates the provisions of the NY Student Privacy Law.

Then, as you may recall, in December 2024,  a massive breach of the PowerSchool student information system exposed the personal data of millions of students nationwide, including  thousands of current and former NYC students.  As a result of this breach, the company has been sued by  many states and districts for failing to implement the most basic data security and privacy protections.   After this occurred, I again urged DOE to cancel its contracts with PowerSchool, which offers many different, highly invasive programs to NYC schools, but received no response.

If your child uses Naviance, beware of any recommendations or other communications that they may receive through this platform.

I’d appreciate it if any parents whose child currently uses the platform might help us investigate the way Naviance works in more detail, to assess whether the company may still be continuing to violate our privacy laws and basic ethical standards, including through their new AI-powered chatbot called “PowerBuddy”.  If you and your child are willing, please email us at info@studentprivacymatters.org..  Please also let us know if you or your child has not received notice of this settlement, so we can inform the plaintiff’s attorneys.

Finally, whether or not you receive a settlement payout, it would be great if you would consider donating to Class Size Matters, earmarked to help fund the Parent Coalition for Student Privacy. Our amazing PCSP co-chair, Cassie Creswell, executive director of Illinois Families for Public Schools, worked with the attorneys on the class action lawsuit and helped identify the original plaintiff. We could really use your support.

AI Moratorium Coalition Rejects DOE Inadequate AI Guidance

See alsos articles in the media in the Daily News here, Gothamist here,  and again in the Daily News here.

FOR IMMEDIATE RELEASE;       3/24/2026

Media contact:
Edgar Alfonseca, NYC-DSA, tech.action@socialists.nyc, +12015891241
Liat Olenick, Climate Families NYC, Liat@climatefamiliesnyc.org, 917-930-2788
Kelly Clancy, PhD, PACES, parentsforaicaution@gmail.com, 512-589-6302
Martina Meijer, MORE-UFT, more@morecaucusnyc.org

New York: In response to the guidance on A.I. in schools released today, the AIM Coalition including NYC-DSA Tech Action, Climate Families NYC, Alliance for Quality Education, Parent Coalition for Student Privacy, MORE-UFT, the Coalition for Racially Just Public Schools, Class Size Matters, Parents for AI Caution and NY Kids PAC released the following statement:

The one indisputable statement in the AI guidance released by the Department of Education today is that ‘The long-term effects on how children learn,think, and develop in the era of AI are not fully understood. No school system in the world has accounted for all the implications.’  It is for this reason that more than 1500 parents and educators have signed our petition calling for a moratorium on its use, and the reason five Community Education Councils have approved resolutions in support this moratorium – to prevent the multiple, serious, and documented risks to children, including the growing evidence that its use in the classroom undermines student privacy, cognitive development, creativity, mental health and the environment.

As a coalition of parents, advocates, educators and community leaders we reject the DOE’s sham 45 day process and inadequate, cramped survey for what is clearly a foregone conclusion to embrace big tech at the expense of our students.   We call on Mayor Mamdani to act immediately in alignment with his own commitment to parent and community involvement as well as green and healthy schools and declare a moratorium on any implementation of AI, while holding in person feedback sessions to hear our concerns and those of the other members of the NYC Public School community. 

“The DOE is exposing kids to AI without any protection, let alone real understanding of impact on student learning, privacy, emotional health, equity or algorithmic bias. This is a reckless decision, making children guinea pigs when we should be acting carefully and judiciously,” said Zephyr Teachout, Professor at Fordham Law School. 

Said Katie Anskat, high school teacher and UFT member, “This guidance creates a structure where authority is centralized but accountability is pushed down to the school level. The DOE determines which AI tools are approved and sets systemwide rules, but the responsibility for how those tools are used is placed on educators and leaders in individual schools. By requiring human judgment, oversight, and review in all cases, the policy ensures that when something goes wrong, whether it is inaccurate information, bias, or a privacy issue, the burden falls on school based staff rather than the system that approved and promoted the tool.“

“I and other parents do not want taxpayers paying AI companies for products that use the data from our students and teachers to enhance their own bottom line. It’s predatory,” said Shannon Ritchey, a District 14 parent.

“We are pleased to see that NYCPS acknowledges the potential harms of AI, and has prohibited its use to create IEPs.  However, the  guidance admits that further evaluation is needed to assess the risks of various AI products with regard to algorithmic bias, negative impacts on instruction, inequitable outputs, and more.  DOE must first assess these products before recommending them to be used with any students in NYC schools. NYCPS must take more intentional steps towards engaging families and other stakeholders in these conversations, and we look forward to more in-depth community involvement in this ongoing process. In the interim, we will continue our call to pause the use of AI products in our schools,” said Smitha Varghese Milich, Senior Campaign Strategist of the Alliance for Quality Education 

Unregulated Big Tech AI companies are on the verge of convincing the Mamdani NYC government to spend precious public tax dollars on their anti-democratic, pollution-generating, and education-undermining AI products. Just like renters had a meaningful opportunity to inform housing policy in the Rental Ripoff Hearings, NYC parents deserve the same level of care and investment to have a genuine opportunity to influence AI policy in NYC schools. Mayor Zohran Mamdani must listen to the advocates and immediately instruct Chancellor Samuels to impose a two-year moratorium on the use of all AI products that are currently unregulated and pedagogically untested and could cause untold damage to 900,000 public school students,” said Edgar Alfonseca, NYC-DSA Tech Action Working Group & NYC-DSA Comrades with Kids.

“This guidance is confusing, contradictory in many places, and doesn’t address most of the serious concerns of parents and teachers.  The existing privacy practices of the NYC Department of Education have been shown to be ineffective as evidenced by repeated student data breaches. The ERMA process outlined in the document is nothing but a checklist that companies have often abused without sufficient verification or oversight by the DOE privacy office. For example, some of the AI products currently used in schools data-mine student information to improve their products according to their Privacy Policies, a practice  specifically outlawed by the NY State student privacy law.  Others collect biometric data which the State Education Department has said should not be allowed without parent input – though parents have denied any voice in their use. To make things worse, this document has been released without any feedback from the Chancellor’s appointed AI Working Group, despite repeated promises to the contrary, and despite Mayor Mamdani’s vow to strengthen parent and community collaboration, “ said Leonie Haimson, co-chair of the Parent Coalition for Student Privacy. 

“AI is driving climate collapse and global water bankruptcy. If the largest school system in the country uses its purchasing power to fuel more reckless and dangerous AI expansion, what future are we preparing our kids for? Mayor Mamdani made a commitment to Green and Healthy Schools for all NYC children. Fueling climate collapse at the expense of student privacy, mental health and ability to learn is the opposite of that commitment. Parents and students deserve concrete answers and real engagement not vague platitudes about the environment and listening to stakeholders. And our children deserve leaders who will use their moral authority to protect them, not corporate apologists who subject them to a surveillance experiment that will leave them a world on fire,” said Liat Olenick, MsEd, Public teacher and parent, Program Director, Climate Families NYC,

“The guidance document continues to allow  the classroom to be the Wild West in terms of how AI is used for student learning. It contains assertions about how AI can improve learning for students and prevent cognitive offloading, but there is no research behind these claims. Importantly, they quote from the Brookings report, but miss the most important conclusion:”at this point in its trajectory, the risks of utilizing generative AI in children’s education overshadow its benefits. This is largely because the risks of AI differ in nature from its benefits—that is, these risks undermine children’s foundational development—and may prevent the benefits from being realized,” said Kelly Clancy, PhD, Parents for AI Caution in Educational Spaces, D20 CEC.

“CECs from across the city have passed resolutions calling for a moratorium on AI to protect student learning and have asked to meet with the chancellor. Despite the Mayor’s campaign promises to listen to parents, those requests have been ignored, and it’s clear from this document that the DOE is failing to listen to the concerns parents have about AI in the classroom. The lack of any engagement with CECs on this issue before releasing this document makes the failure of mayoral control clear. Parents need real decision making power over decisions like this that affect their children’s  lives,” said Alina Lewis, member of the CEC in District 20, which passed a resolution in favor of the moratorium.

“The MORE-UFT caucus sees the encroachment of AI into our schools as a labor issue. Educators face an unsustainable workload, and AI is not the solution to this problem. The AI guidelines fail to address the resistance from parents, students and teachers related to a myriad of concerns. These concerns include the impacts of cognitive offloading, the deskilling and deprofessionalization of teaching, the horrific environmental impacts of AI, racism embedded into the programming, and the connections of the supply chain to enslaved labor and environmental racism. The data “protection” is the same (ERMA) that the DOE uses now, and it’s not effective. We have seen far too many data leaks and a lack of accountability for the corporations profiting off of educator and student data, said Martina Meijer, teacher,  MORE-UFT.

“Goals like ‘responsible AI integration’ are meaningless. Is there any responsible way to use a technology that’s fundamentally unaccountable, prone to racial & gender bias, emotionally manipulative, environmentally disastrous, and frequently wrong?” asked Craig Garrett, parent and SLT member, District 14 .

“Science has a growing body of work on the harms of the use of AI on the brain, physical and mental health, bias of racial groups, and hallucinations resulting in cognitive decline in children and adults. Giving our vulnerable communities a faulty narrative on the so-called benefits of AI because the Department of Education doesn’t want to admit to harms they are already exposing children to is negligent and irresponsible. More and more parents and educators are asking for a moratorium on the use of AI in classrooms as we don’t have guardrails put in place. While we should be providing opportunities for our students to learn and understand engineering, technology and science, we should not be doing it at the expense of their cognitive development and their abilities to be problem-solvers, critical thinkers and innovators,” said Kaliris Salas-Ramirez, PhD, neuroscientist, medical educator and parent leader in East Harlem.

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Protest Demanding Two Year Moratorium on AI Use in NYC Schools

credit: Big Education Ape

MEDIA ADVISORY

For immediate release: March 13, 2026
Contact: Liat Olenick,  Liat@climatefamiliesnyc.org, 917-930-2788
Kelly Clancy, kelly.a.clancy@gmail.com, ‪512- 589‑6302‬

Protest Demanding Two Year Moratorium on AI Use in NYC Schools

Parents, Educators, Kids to speak out and flyer outside NYC Schools Chancellor event 

What: Members of the AI Moratorium for NYC schools coalition with their children will be speaking out about the need to pause the use of AI in schools, while holding signs and handing out flyers to parents before the start of the  Manhattan forum entitled Our Schools. Our Future: Conversations with the Chancellor.

Where and when:   Saturday, March 14  at 10 AM, in front of the Martin Luther King Jr. Educational Campus at 122 Amsterdam Avenue  

Who: Parents, educators and children affiliated with the Coalition for an AI Moratorium (AIM NYC) include the Alliance for Quality Education, Class Size Matters, Climate Families NYC, Distraction Free Schools NY,  DSA Tech Action, MORE-UFT,  NYC Kids PAC, Parent Coalition for Student Privacy, Parents for AI Caution in Educational Spaces, and Racially Just Public Schools.

Why:  NYC Department of Education is continuing to expand the use of Generative AI in schools, despite growing opposition and evidence that it represents substantial risk to student privacy, cognitive development and skills, critical thinking, creativity, mental health, and the environment.

More than 1300 NYC parents, teachers and concerned community members have now signed a petition to Mayor Mamdani and Chancellor Samuels, calling for a two year moratorium on the use of AI, until rigorous guardrails can be established to prevent these serious harms.

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Keep ICE’s Big Tech partners out of our kids’ counseling services!

Mental health is a prerequisite for learning, and all kids deserve access to mental healthcare. As the Trump administration ramps up its mass deportation campaign across the country, the already urgent need for mental health services for students is only increasing.

Chicago has been the focus of this campaign for many weeks, and, concerningly, Chicago Public Schools (CPS) is directing families and students to a for-profit mental health tech company, Hazel Health, that’s just merged with another startup with deep connections to one of ICE’s Big Tech partners, Palantir.

The Parent Coalition for Student Privacy wrote to the Chicago Board of Education along with other advocacy groups to urge the Board to address the inadequate protection for student data in Hazel Health’s contract with CPS just last week. After sending that letter, news emerged about Hazel Health’s merger.

Here’s what we know so far…

What to know about Hazel Health

Last fall, CPS signed a no-cost contract for Hazel Health’s telehealth counseling services for high school students and rolled out these services in March. The services Hazel is providing to CPS students are being underwritten by United Healthcare for students’ whose own public or private insurance doesn’t cover these counseling sessions. Hazel is privately-held, and its venture capital investors include Bain Capital and the firm of a heiress in the Walton family.

CPS’ contract with Hazel is set to renew automatically for two years on December 31, 2025. But if the Board of Ed gives notice by December 1st, the contract can be modified or canceled.

As mentioned above, last week, Illinois Families for Public Schools, Legal Action Chicago, Legal Council for Health Justice, NAMI Chicago, NASW-Illinois Chapter, and the Parent Coalition for Student Privacy, sent a letter to the Chicago Board of Ed and CEO/Superintendent urging them to review, rectify and—if necessary—cancel their contract with Hazel Health because of major issues with student data protection. You can read that letter here.

Why would advocates urge the Board to consider ending a contract for “free” mental health services for students at a time when there is ever increasing need and demand for counseling services?

First and foremost—nothing is free; it’s a truism at this point that free tech means you’re the product, not the customer, and Hazel’s parental consent form raises numerous red flags along these lines. It is both broad and vague—parents must agree that Hazel can use their child’s identifiable data for any research and development purposes. On top of that, parents also must agree that their child’s sensitive mental health and other data may be stolen (“illegally accessed”) once Hazel holds it.

Hazel’s website also has marketing trackers from Amazon, Google and Facebook—something that ed tech vendors can’t use under Illinois’ Student Online Personal Protection Act (SOPPA).

And Hazel’s contract doesn’t provide any details about what sort of highly sensitive data Hazel is collecting—even though that’s something required by SOPPA! As a result, families don’t know: Are these counseling sessions recorded? Are they transcribed? Are students’ eye movement, facial expressions and keystrokes tracked? Is any of this information combined with the medical data and screening assessments Hazel holds? No information about any of these types of data are even disclosed in CPS’ contract. IL-FPS has a more detailed explainer on Hazel’s privacy issues here.

And now Hazel has merged with Palantir-partner Little Otter…

Hazel announced this week that it merged with another mental health tech startup, Little Otter. Little Otter has an AI-based platform and uses the data from its clients to train its algorithms. All of Little Otter therapy sessions are recorded, and it’s unclear whether information from those recordings is being utilized as input for its AI platform.

Little Otter’s founder and CEO, Rebecca Egger, is one of the so-called “Palantir mafia”, having gotten her start in Silicon Valley at Palantir. Little Otter’s tech leads, including their previous CTO, COO and head of data engineering, are also all former Palantir employees.

Little Otter still has close ties to Palantir as one of its Global Builder startups that “use Palantir as a product multiplier to accelerate their missions.”

If you’re not familiar with surveillance tech behemoth Palantir, it’s been a major federal contractor for many years, and is now playing a key role in the Trump administration’s plan to merge data across federal agencies, including the IRS and the Social Security Administration.

One of those agencies is ICE. Palantir has been described as “the corporate backbone of ICE that the agency is relying on for surveillance and deportations,” and they are a—if not the—major tech partner in the Trump administration’s mass deportation plan.

What does this mean for CPS’ contract with Hazel?

Is data from CPS students’ online counseling sessions already being used to train AI algorithms? Will it be used that way in the future because of Hazel’s merger with Little Otter?

In response to the Trump administration’s ramping up federal law enforcement and military presence in Chicago, CPS has highlighted Hazel as a resource for students experiencing fear, anxiety and trauma, as communities across the city are terrorized by ICE’s secret police.

Which leads to another question: Could information from recordings or transcriptions of children’s counseling sessions eventually end up in a federal database? (The Chief Information Officer at the Department of Health and Human Services is also ex-Palantir.)

In light of all these questions, it’s simply not ok for the Chicago Board to allow the contract with Hazel automatically renew. CPS should review it, fix it—if that’s even possible—and if it can’t be fixed, cancel it.

Handing students’ most sensitive data over to tech broligarchs building the surveillance state to hunt down those students or their families is entirely unacceptable.

Free tech is never free, and that’s especially true in 2025.

What can you do?

If you are a Chicagoan, please advocate with their school district leaders about the existing contract with Hazel!

If you are not in Chicago, find out if your school district or state already has a contract with Hazel Health or is considering signing one. Hazel is in 19 states and 180 school districts, including many of the largest in the country: Los Angeles Unified School District, Miami-Dade and Broward County in Florida, Houston and Dallas ISDs in Texas, Fairfax Co VA, Clark Co NV, Jeffco CO, and the School District of Philadelphia.

You can check the Hazel website, and also Google for “Hazel Health” along with the name of your school district, state department of education or health or state’s lobbyist registration site. The North Carolina Department of Health and Human Services just signed a contract with Hazel which covers about 1/3 of the state. Iowa has a partnership with Hazel, as does Rhode Island. In both Virginia and in Georgia, Hazel is an approved vendor for the states’ respective departments of education.

Any and all of these type of contracts need scrutiny, as do any consent forms Hazel is using.

Hazel is also not the only tech company pushing to increase its market share in this space, any outsourcing to third-party tech firms merits a closer look. The data involved is extremely sensitive. There have been several significant ransomware attacks on school districts’ mental health data in recent years including  Los Angeles and Minneapolis, with devastating information released about students and staff on the dark web. A major breach of a Finnish mental healthcare startup in 2020 resulted in blackmail attempts and deaths by suicide. CPS itself had a ransomware attack that exposed data of more than 700K students’ in early 2025, including Medicaid ID numbers.

Please reach out if you need assistance with researching what is happening in your district or state:  info@studentprivacymatters.org. Even if your state does not have especially robust student privacy laws, your advocacy alone can make a difference!