Hafetz & Associates $505K Data Breach Class Action Settlement

Individuals who previously received a notice letter informing them that their personal information may have been compromised in the Hafetz & Associates data breach discovered in October 2023, may be eligible to submit a claim for up to $10,000 and credit monitoring, from a class action settlement. The data incident affected approximately 31,590 individuals.

Hafetz & Associates LLC has agreed to pay $505,000 to settle a class action lawsuit. The class action claimed that the company failed to adequately protect personal information after a cybersecurity incident. Compromised information included names, Social Security numbers, driver’s license numbers, financial account details and insurance benefit information.

Who is eligible for a data breach settlement payout?

Class members are individuals who reside in the United States and received a notice from Hafetz & Associates informing them that their personally identifiable information (PII) may have been accessed during a data breach, which occurred between July 24, 2023, and Oct. 12, 2023.

How much is the class action settlement payment?

Class members can claim one or more of the following:

• Reimbursement for economic losses: Class members can claim up to $10,000 for actual, documented out-of-pocket expenses directly related to the data incident. Eligible expenses include:
• Fraud or identity theft losses
• Professional fees, such as attorneys, accountants, or credit repair services
• Costs to freeze or unfreeze credit
• Credit monitoring costs incurred after the incident

• Pro rata cash payment: Class members can also claim a pro rata cash payment estimated at $50, from remaining settlement funds after claims and other fees and costs are paid. Final payment amount will be determined by the total number of claims filed.
• Credit monitoring: All class members can elect to receive two years of single-bureau credit monitoring services, which includes at least $1,000,000 in identity theft insurance.

How to claim a class action rebate

To receive a settlement payment, a claim form must be submitted by the Jan. 22, 2026 deadline. Class members can file a claim online or print and mail the PDF claim form to the settlement administrator.

Settlement administrator's mailing address: Hafetz and Associates Data Incident Settlement Administrator, PO Box 25191, Santa Ana, CA 92799

Required proof and claim information

• Unique ID and PIN from official settlement notice required to submit a claim online or by mail.
• Unreimbursed economic losses claims require supporting documentation, which may include bank and credit card statements showing unreimbursed fees or fraudulent charges, invoices for services, proof of falsified tax returns, police report and other proof of fraud or identity theft.

Payout options (how class members can get paid)

• Check mailed to the address provided
• Electronic payment, available only for online claims

$505,000 data breach settlement fund

The settlement fund of $505,000 will include:

• Settlement administration costs: Amount not specified, but paid from the fund
• Attorneys’ fees: Up to $168,316.50
• Attorneys’ expenses: Up to $20,000
• Service award to class representative: Up to $5,000
• Credit monitoring services: Cost determined by the number of claims filed
• Payments to approved claimants: Remaining settlement funds

Important dates

• Opt-out deadline: Dec. 23, 2025
• Deadline to file a claim: Jan. 22, 2026
• Final approval hearing: Feb. 25, 2026

When is the Hafetz & Associates data breach settlement payout date?

Payments and credit monitoring codes will be issued to class members with valid claims after the court grants final approval of the settlement and claim processing is completed.

Why did this class action settlement happen?

The class action lawsuit was filed after Hafetz & Associates discovered a cybersecurity incident in October 2023. Plaintiffs alleged that Hafetz failed to adequately protect this information, resulting in claims for negligence, breach of contract, unjust enrichment, breach of fiduciary duty, invasion of privacy and violations of the New Jersey Consumer Fraud Act.

Hafetz denies the allegations but agreed to settle to avoid the expense and uncertainty of continued litigation and a possible trial.

Sources

1. Class notice
2. Settlement website FAQ page
3. Claim form