Hafetz & Associates Settle $505K Data Breach Class Action Lawsuit

Individuals who were notified of their potential involvement in the Hafetz & Associates data breach that occurred in October 2023 may be entitled to compensation through a class action settlement. Approximately 31,590 people were affected by this data incident, leading to a lawsuit against Hafetz & Associates LLC. The lawsuit alleged that the company did not adequately safeguard personal information following a cybersecurity breach, which exposed sensitive details such as names, Social Security numbers, driver’s license numbers, financial account information, and insurance benefit data.

Individuals eligible for the data breach settlement payout must reside in the United States and have received a notification from Hafetz & Associates about their potentially compromised personally identifiable information (PII) during the breach that occurred between July 24, 2023, and Oct. 12, 2023. Claimants may be eligible to receive up to $10,000 for documented out-of-pocket expenses related to the data incident, including losses from fraud or identity theft, professional fees like attorney services, credit monitoring costs, and expenses to freeze or unfreeze credit. Additionally, claimants can request a pro rata cash payment estimated at $50 from the remaining settlement funds or elect to receive two years of single-bureau credit monitoring services with identity theft insurance coverage of at least $1,000,000.

To receive a settlement payment, individuals must submit a claim form by the Jan. 22, 2026 deadline to the settlement administrator. Claimants can either file their claim online or print and mail the PDF claim form. The claim filing process requires a unique ID and PIN from the official settlement notice, along with supporting documentation for unreimbursed economic losses, such as bank statements, credit card statements, service invoices, and proof of fraud or identity theft. Payment options for approved claims include receiving a check by mail or electronic payment for online claims.

The $505,000 data breach settlement fund will cover settlement administration costs, up to $168,316.50 for attorneys’ fees, up to $20,000 for attorneys’ expenses, a service award of up to $5,000 for the class representative, credit monitoring services based on the number of claims filed, and payouts to approved claimants from the remaining funds. Important deadlines for the settlement include opting out by Dec. 23, 2025, filing a claim by Jan. 22, 2026, and attending the final approval hearing on Feb. 25, 2026 to determine the settlement payout date.

The class action lawsuit against Hafetz & Associates stemmed from their failure to adequately protect personal information post-cybersecurity incident, leading to claims of negligence, breach of contract, unjust enrichment, breach of fiduciary duty, invasion of privacy, and violations of the New Jersey Consumer Fraud Act. Although Hafetz disputed the allegations, they chose to settle to avoid additional litigation costs and uncertainties. Payments and credit monitoring codes will be distributed to eligible class members after the court grants final approval of the settlement.