
Individuals who received a notice stating the May 2025 Nova Recovery Center data breach compromised their personal information may be eligible to claim up to $5,000 plus data monitoring from a class action settlement.
Nova Recovery LLC, doing business as Nova Recovery Center, agreed to resolve a class action lawsuit alleging a targeted cyberattack exposed its clients' sensitive personal data. The lawsuit claimed Nova Recovery failed to adequately safeguard private information, including names, addresses, dates of birth, Social Security numbers and financial payment details.
Who can file a claim?
The class includes individuals who meet all of the following criteria:
- They reside in the United States.
- The Nova Recovery data incident that began around May 22, 2025, compromised their private information.
- They received notice of the data incident from Nova Recovery or the settlement administrator.
How much can class members receive?
The settlement provides several options for compensation, depending on the circumstances of each class member.
- Out-of-pocket loss reimbursement: Class members who experienced actual, documented out-of-pocket losses as a result of the data breach can claim up to $5,000 in reimbursement. They must provide documentation, such as bank statements or receipts. Notes or explanations can supplement other documentation but cannot serve as the sole proof. Covered expenses include:
- Losses due to identity theft or fraud
- Fees for credit reports, credit monitoring or freezing/unfreezing credit
- Costs to replace identification documents
- Postage expenses for contacting banks or other institutions
- Alternative cash payment: An alternative cash payment of $85 if the class member does not claim out-of-pocket losses. This option does not require documentation.
- Credit monitoring: Three years of CyEx Financial Shield Total credit monitoring services, which includes three-bureau credit monitoring, $1 million in financial fraud insurance and access to fraud resolution agents
How to claim a settlement payment
Class members can file the online claim form or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is May 12, 2026.
Settlement administrator's mailing address: Nova Recovery Data Incident Settlement, c/o Settlement Administrator, P.O. Box 25226, Santa Ana, CA 92799
What proof or documentation is required to submit a claim?
- To file an online claim, class members must log in with the unique ID and PIN located on the settlement notice they received. Those who are unable to locate their ID and PIN should contact the settlement administrator by emailing info@NovaDataSettlement.com and providing their full name and mailing address.
- To file for reimbursement of out-of-pocket losses, class members must provide documentation, such as receipts, bank statements or other proof of expenses.
- To file for the $85 alternative cash payment or credit data monitoring, class members need only select the appropriate option.
Payout options
- PayPal
- Venmo
- Zelle
- Physical check
- Credit monitoring enrollment information
Settlement fund breakdown
The settlement fund includes:
- Settlement administration costs: To be determined
- Attorneys' fees and costs: Up to $200,000
- Service award to class representative: Up to $2,500
- Credit monitoring costs: Determined by number of valid claims
- Payments to eligible class members: The remainder of the fund
Important dates
- Opt-out deadline: April 13, 2026
- Final approval hearing: April 22, 2026
- Claim deadline: May 12, 2026
When is the Nova Recovery Center data incident settlement payout date?
The settlement administrator will distribute payments and credit monitoring enrollment information after the court resolves any appeals and grants final approval of the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged a targeted cyberattack on Nova Recovery’s computer systems in May 2025 resulted in unauthorized access to files containing sensitive personal information. The plaintiff claimed Nova Recovery failed to adequately protect this information.
Nova Recovery denies any wrongdoing but agreed to settle to avoid the costs, risks and uncertainty of further litigation.
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