PowerSchool settles $17.25m Naviance lawsuit with Chicago schools

PowerSchool has faced significant data breaches, including a notable incident starting in 2021. An email distributed to students in April 2024 informed them about a lawsuit settlement related to PowerSchool's Naviance platform, which allegedly used third-party tracking software (Heap) to capture private communications and data without consent. The lawsuit claimed that this software recorded student keystrokes, clicks, and messages, sending this information to companies like Google and Microsoft.

In February 2026, a settlement of $17.25 million was reached between PowerSchool, the City of Chicago School District, and affected students, with provisions for deleting all stored data by the involved parties.