$505K Hafetz and Associates Class Action Settlement Ends Litigation Over 2023 Data Breach

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Hafetz and Associates has agreed to a $505,000 class action settlement to resolve a lawsuit that alleged that the email accounts of some employees of the New Jersey insurance agency were accessed by an unauthorized party between July 24, 2023 and October 12, 2023, compromising consumers’ personal information.

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The Hafetz class action settlement received preliminary approval from the court on September 24, 2025 and covers approximately 31,590 United States residents whose private information may have been compromised as a result of the data breach, including anyone who received a notice from Hafetz about the incident.

The court-approved website for the Hafetz data breach settlement can be found at https://www.HafetzDataSettlement.com/.

Per the website, Hafetz settlement class members who submit a valid, timely claim form have multiple options for reimbursement. Those who submit with their claim form documented proof of out-of-pocket losses are eligible to receive a one-time cash payment of up to $10,000, the site relays. The website further outlines that reimbursable losses must have been incurred as a result of the 2023 Hafetz data incident, and include expenses related to identity theft, fraud, freezing credit and credit monitoring costs.

In lieu of a documented-loss payment, class members may file a claim form to receive a one-time, pro-rated cash payout of approximately $50, which may increase or decrease depending on the total number of valid claims that are submitted, the class action settlement website says.

According to the settlement agreement, class members may elect to receive their payout via check or electronic payment. All settlement checks must be cashed within 60 days of issuance before expiration, the document says.

In addition to either or both monetary reimbursement options, all class members are also eligible to enroll in two free years of one-bureau credit monitoring.

To submit a Hafetz settlement claim form online, class members can head to this page and enter the class member ID and PIN found on their copy of the settlement notice. Consumers who believe they may be a class member but did not receive a settlement notice should contact the settlement administrator to confirm their identity and receive their login ID.

Alternatively, class members can download a PDF of the claim form to print, fill out, and return by mail to the address listed near the top of the document.

All Hafetz settlement claim forms must be submitted online or by mail by January 22, 2026.

The court will determine whether to grant final approval to the Hafetz settlement at a hearing on February 25, 2026. Compensation will begin to be distributed to class members only after final approval is granted and any appeals are resolved.

The Hafetz and Associates class action lawsuit alleged that the company failed to implement proper security measures and training procedures, which led to the nearly three-month data breach in 2023 that may have compromised personal information stored on the insurance agency’s systems. According to court documents, the consumer data accessed during the data incident included, but was not limited to, names, Social Security numbers, driver’s license numbers, financial account information and insurance plans.

Head to ClassAction.org’s settlements page for a complete list of data breach settlements.