$2.6M Complete Payroll Solutions Settlement Resolves Class Action Lawsuit Over Early 2024 Data Breach

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Complete Payroll Solutions has agreed to a $2,600,000 settlement to resolve a class action lawsuit that alleged the payroll processing service failed to protect the confidential information stored on its systems from a data breach discovered by the company in March 2024.

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The $2.6 million Complete Payroll Solutions class action settlement received preliminary approval from the court on February 18, 2026 and covers all individuals who were sent a notice from the payroll company regarding potential impact from the data breach discovered on or around March 10, 2024 or otherwise determined to have potentially had their personal information impacted by the breach.

According to court documents, approximately 376,943 individuals may have been affected by the data breach.

The court-approved website for the Complete Payroll Solutions (CPS) class action settlement can be found at CPSSettlement.com.

The agreement states that CPS settlement class members who submit a timely, valid claim form are eligible to receive multiple settlement benefits.

Class members who submit a claim form with proof of documented monetary losses traceable to the data breach are eligible to receive up to $5,000 in reimbursement. The agreement states that class members must provide supporting third-party documentation, such as bank statements or phone bills, to receive reimbursement for out-of-pocket expenses related to identity theft, fraud, bank fees, credit monitoring costs incurred between March 10, 2024 and June 18, 2026 and miscellaneous expenses like postage.

Further, the agreement relays that class members may not receive compensation for losses that have been previously reimbursed by another source, including through the credit monitoring and identity theft protection product offered by CPS as part of the data breach notice letter.

Additionally, all class members may submit a claim form to receive a one-time pro-rated cash payment from the settlement fund with no proof required, which court documents say will be approximately $100.

Court documents state that the final amount of the pro rata, or equal share, cash payment will depend on the number of valid claims filed and the amount remaining in the settlement fund after the payment of attorneys’ fees, administration expenses, lead plaintiff service awards and all other settlement benefits.

In addition to monetary benefits, all class members may submit a claim form to receive an enrollment code for three free years of one-bureau credit monitoring, which includes dark web monitoring, identity theft insurance and identity recovery services, per the agreement.

Moreover, CPS has agreed to implement certain business practice changes related to information security to better safeguard the sensitive information stored in its systems as part of the settlement.

To submit a CPS settlement claim form online, class members can head to this page and enter the class member ID as found on their copy of the settlement notice. Alternatively, class members can download a PDF claim form to print, complete and return by mail to the address of the settlement administrator listed on the first page.

All CPS settlement claim forms must be submitted online or postmarked no later than June 18, 2026.

The court will determine whether to grant final approval to the CPS settlement following a hearing on June 25, 2026. Compensation will only begin to be distributed to class members after final approval has been granted and any appeals have been resolved.

The Complete Payroll Solutions class action lawsuit claimed that the payroll processing service failed to implement appropriate cybersecurity measures to prevent a data breach discovered on or around March 10, 2024. Per the filing, personal information that may have been compromised in the breach includes names, addresses, Social Security numbers, driver’s license numbers, financial information and health insurance information.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest current class action settlements.