Pathways Inc. $285,000 Data Breach Class Action Settlement
Pathways Inc.
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Consumers who received a written notification from Pathways Inc. about a data breach that occurred on or around Feb. 7, 2023, may qualify to claim up to $2,500 from a class action settlement.

Pathways Inc. agreed to pay $285,000 to settle a class action lawsuit alleging it failed to adequately protect sensitive personal information, including W-2 forms and Social Security numbers, which unauthorized individuals accessed during the data incident.

Who can file a Pathways claim?

Class members must meet the following criteria:

  • They are a U.S. resident
  • They received a written notification from Pathways Inc. regarding the Feb. 7, 2023, data breach.

How much is the data breach payout?

  • Ordinary out-of-pocket losses: Up to $500 for unreimbursed costs or expenditures related to the data breach and incurred between Feb. 7, 2023, and the claim deadline.
  • Attested time: Up to five hours of time at $30 per hour spent remedying issues related to the data breach. This includes identity theft, fraud or misuse of information. Attested time claims are included in the $2,500 maximum for out-of-pocket losses.
  • Extraordinary losses: Up to $2,500 for proven monetary losses likely caused by the data incident and not already covered by out-of-pocket or attested time.
  • Credit monitoring: All class members can claim one year of one-bureau credit monitoring services.
  • Cash payment: If money remains in the settlement fund after all other claims and costs are paid, the remainder will be distributed equally among all class members who submit valid claims.

How to claim a cybersecurity class action rebate

Consumers can file a claim online or download, print and complete a PDF claim form to mail in. The claim deadline is Sept. 11, 2025.

Settlement administrator's mailing address: Pathways Inc. Data Incident Litigation c/o Settlement Administrator, P.O. Box 25226 Santa Ana, CA 92799

Proof and documentation required

  • All class members must provide the unique ID number located in the notice they received. Online claimants must also provide their PIN.
  • For ordinary out-of-pocket losses, claimants must provide receipts or non-self-prepared documentation, such as bills and statements.
  • For attested time, claimants must provide a written description and attestation of hours spent.
  • For extraordinary losses, claimants must provide receipts or other documentation and a description of the loss and proof they sought reimbursement from other sources.

Payout options

  • PayPal
  • Venmo
  • Zelle
  • Paper check

$285,000 Pathways Inc. settlement fund breakdown

The $285,000 settlement fund includes:

  • Settlement administration costs: To be determined
  • Attorneys' fees: Up to $100,000
  • Attorneys' expenses: Up to $10,000
  • Service award to class representative: Up to $2,500
  • Payments to eligible class members: The remainder of the settlement

Important dates

  • Opt-out deadline: Aug. 12, 2025
  • Claim deadline: Sept. 11, 2025
  • Final approval hearing: Jan. 7, 2026

When is the Carson v. Pathways Inc. settlement payout date?

Payments will be distributed approximately 60 days after the court grants final approval of the settlement and any appeals are resolved.

Why did this class action settlement happen?

The class action lawsuit alleged unauthorized individuals accessed W-2 forms and other sensitive information belonging to Pathways Inc. employees. The plaintiffs claimed Pathways was legally responsible for the data breach, asserting claims for negligence and breach of implied contract.

Pathways denied any wrongdoing but agreed to settle to avoid the costs and risks of litigation.

Sources

  1. Class notice
  2. Settlement agreement
  3. Settlement website FAQ
Settlement Open for Claims
Award:
Varies
Deadline:
September 11, 2025
SUBMIT CLAIM