Hafetz & Associates $505K Data Breach Class Action Settlement

Individuals who received a notice informing them that their personal information may have been compromised in the Hafetz & Associates data breach could be eligible to receive up to $10,000 and credit monitoring services from a new class action settlement.

Overview

Hafetz & Associates LLC has agreed to pay $505,000 to resolve claims that it failed to properly safeguard personal information impacted in a cybersecurity incident discovered in October 2023. Approximately 31,590 people were affected. Exposed data included names, Social Security numbers, driver’s license numbers, financial account information, and insurance benefit details.

Who Is Eligible?

Eligibility is limited to U.S. residents who received a notice from Hafetz & Associates stating their personally identifiable information may have been accessed during the breach, which occurred between July 24, 2023 and October 12, 2023.

Available Settlement Benefits

Reimbursement for Economic Losses
Eligible class members may claim up to $10,000 for documented, unreimbursed expenses related to the data incident. Qualifying expenses may include:

  • Fraud or identity theft losses
  • Attorney, accountant, or credit repair service fees
  • Credit freeze or unfreeze costs
  • Credit monitoring expenses incurred after the breach

Pro Rata Cash Payment
Class members may also qualify for an estimated payment of about $50, depending on the number of approved claims and remaining funds.

Credit Monitoring
All class members may elect to receive two years of single-bureau credit monitoring, including at least $1,000,000 in identity theft insurance.

How to File a Claim

A claim form must be submitted by January 22, 2026. Claims may be filed online or by mailing a printed form to the settlement administrator.

Mailing address:
Hafetz and Associates Data Incident Settlement Administrator
PO Box 25191
Santa Ana, CA 92799

Required Information

  • A Unique ID and PIN from the official notice letter are required.
  • Claims for economic losses must include documentation such as bank or credit card statements, invoices, tax records, police reports, or other evidence of fraud or identity theft.

Payment Options

  • Mailed check
  • Electronic payment (available for online claims only)

How the $505,000 Settlement Fund Will Be Used

The fund will cover settlement administration costs, attorneys’ fees (up to $168,316.50), attorneys’ expenses (up to $20,000), a service award of up to $5,000 for the class representative, credit monitoring costs, and payments to approved claimants.

Key Deadlines

  • Opt-out deadline: December 23, 2025
  • Claim filing deadline: January 22, 2026
  • Final approval hearing: February 25, 2026

When Will Payments Be Sent?

Payments and credit monitoring codes will be distributed after the court grants final approval and the settlement administrator completes claim processing.

Why the Settlement Was Filed

The lawsuit followed the discovery of a cybersecurity incident in October 2023. Plaintiffs alleged that Hafetz & Associates failed to adequately protect personal information, bringing claims including negligence, breach of contract, unjust enrichment, breach of fiduciary duty, invasion of privacy, and violations of the New Jersey Consumer Fraud Act.
Hafetz denies wrongdoing but agreed to settle to avoid the expense and uncertainty of continuing litigation.

Settlement Details

  • Expected payout range: $50 to $10,000 or more
  • Claim deadline: January 22, 2026