Backchecked $535,000 Data Breach Class Action Settlement

United States residents whose private information the September 2024 Backchecked data breach may have impacted could be eligible to claim up to $2,500 plus credit monitoring from a class action settlement.

Backchecked LLC agreed to pay $535,000 to settle a class action lawsuit alleging a targeted cyberattack compromised its computer systems. The complaint alleges the attack exposed files containing personal information, including names, addresses, dates of birth, Social Security numbers and driver’s license numbers.

Who can file a claim for a data breach payout?

Class members are individuals residing in the United States whose personal information the September 2024 Backchecked data breach may have impacted.

How much are settlement payments?

Class members have the following benefit options:

• Cash payment A – documented losses: Class members can claim up to $2,500 for documented losses traceable to the data breach that occurred between Sept. 26, 2024, and Aug. 26, 2026. Eligible losses include monetary losses caused by identity theft or fraud, fees for credit reports or credit monitoring, costs to replace IDs and postage to contact financial institutions.
• Cash payment B – alternative cash payment: Class members who do not submit a documented losses claim can submit a claim to receive a one-time pro rata cash payment of up to $50. The settlement administrator will determine the final payment amount by the number of claims filed.
• Credit monitoring: All class members can enroll in one year of three-bureau credit monitoring and identity protection services, which includes $1 million in identity theft insurance, real-time credit file and public records monitoring and dark web scanning.

How to claim a class action rebate

To receive a settlement payment, class members can file a claim online or print the PDF claim form to complete and mail to the settlement administrator.

Settlement administrator’s mailing address: Backchecked Data Incident Settlement, c/o Settlement Administrator, P.O. Box 25226, Santa Ana, CA 92799-9958

The claim deadline is Aug. 26, 2026.

Required proof and claim information

• Online claims require the unique ID and PIN from the settlement notice.
• Documented losses claims require supporting documentation, which may include receipts, invoices, bank or credit card statements showing unreimbursed fees of fraudulent charges and other proof of identity theft or fraud.

Payout options

• PayPal
• Venmo
• Zelle
• Virtual prepaid card
• Paper check mailed to the address provided

Settlement fund breakdown

The $535,000 settlement fund will include:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $178,333
• Attorneys' costs: To be determined
• Service awards to class representatives: $2,500 each
• Credit monitoring: Cost determined by number of claims filed
• Payments to approved claimants: Remaining settlement funds

Important dates

• Deadline to opt out: Aug. 26, 2026
• Deadline to file a claim: Aug. 26, 2026
• Final approval hearing: Sept. 10, 2026

When is the Backchecked data breach settlement payout date?

The settlement administrator will issue payments and credit monitoring benefits to approved claimants no later than 55 days after the court grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit claimed a targeted cyberattack on Backchecked’s computer systems in September 2024 may have exposed files containing private information, including names, addresses, dates of birth, Social Security numbers and driver’s license numbers. The plaintiffs alleged Backchecked failed to adequately protect this sensitive data.

Backchecked denies the allegations but agreed to settle to avoid the expense and risk of continued litigation.

Sources

1. Settlement notice
2. Settlement website FAQ page
3. Claim form
4. Settlement agreement