Peerstar LLC 2023 Data Breach Class Action Settlement

Individuals whom Peerstar LLC notified that a data breach that began in February 2023 compromised their personal information may be eligible to claim up to $5,000 plus additional benefits from a class action settlement.

Peerstar agreed to settle a class action lawsuit alleging hackers accessed and potentially exposed the personal and health information of current and former patients during a cyberattack that began in February 2023.

Who can file a claim?

The settlement class includes all individuals whose personal information the Peerstar LLC data breach that began in or around February 2023 potentially compromised. The impacted information may include:

• Full names
• Social Security numbers
• Dates of birth
• State-issued identification numbers
• Financial account information
• Digital signatures
• Birth or marriage certificates
• Medical and health insurance information

To qualify, individuals must have received a notice from Peerstar LLC confirming the data breach affected their information.

How much is the class action payout?

Class members can claim one or more of the following:

• Out-of-pocket losses: Up to $500 for documented, unreimbursed expenses related to the breach, including:
• Losses from fraud or identity theft
• Professional fees, such as those for attorneys, accountants or credit repair services
• Costs to freeze or unfreeze credit with any credit reporting agency
• Credit monitoring costs incurred after receiving notice of the breach
• Miscellaneous expenses, including notary, postage, copying or mileage

• Lost time reimbursement: Up to four hours of time spent dealing with the breach compensated at $21.50 per hour (up to $86 total). Lost time reimbursement is subject to the $500 cap for out-of-pocket losses.
• Extraordinary loss reimbursement: Up to $5,000 for documented, unreimbursed monetary losses not covered under the ordinary loss or lost time categories. To qualify, the loss must be:
• Actual, documented and unreimbursed
• Most likely caused by the Peerstar data breach
• Incurred between Feb. 22, 2023, and the claim deadline
• Not already covered by another category of compensation
• Supported by proof of reasonable efforts to recover the loss elsewhere, such as through insurance

• Credit monitoring: Two years of credit monitoring services through CyEx, which include $1 million in identity theft insurance

How to claim a class action payment

To receive a settlement payment, class members must submit a claim form by the Jan. 30, 2026, deadline. Class members can file a claim online or print and complete the PDF claim form to mail to the settlement administrator.

Settlement administrator's mailing address: Palasz v. Peerstar LLC, c/o Settlement Administrator, P.O. Box 25226, Santa Ana, CA 92799

What proof or documentation is required to submit a claim?

• All claimants must provide the notice ID and confirmation code from their settlement notice to submit a claim.
• To claim reimbursement for documented monetary losses, class members must provide reasonable documentation supporting their claim. This may include receipts, invoices, bank or credit card statements, or other evidence of out-of-pocket expenses related to the data breach.
• To claim credit monitoring or reimbursement for lost time, class members only need to select the appropriate option on the claim form.

Payout options

Class members can choose one of the following payment options:

• PayPal
• Venmo
• Zelle
• Virtual prepaid card
• Physical check

Peerstar data breach settlement fund

The settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys’ fees, costs and expenses: Up to $120,000
• Service award to class representative: Up to $3,000
• Credit monitoring services: Determined by number of valid claims
• Payments to eligible class members: Determined by number of valid claims

Important dates

• Opt-out deadline: Dec. 9, 2025
• Deadline to file a claim: Jan. 30, 2026
• Final approval hearing: Feb. 12, 2026

When is the Peerstar data breach settlement payout date?

The settlement administrator will distribute payments to class members with valid claims after the court grants final approval of the settlement and resolves any appeals.

Why is there a class action settlement?

This class action lawsuit alleged Peerstar experienced a data breach in February 2023 that exposed the sensitive personal and health information of patients. The plaintiffs claimed Peerstar failed to implement adequate cybersecurity safeguards to protect that information.

Peerstar denies any wrongdoing but agreed to settle to avoid the costs and uncertainty of continued litigation.

Sources

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