$535K BackChecked Settlement Resolves Class Action Lawsuit Over September 2024 Data Breach

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BackChecked has agreed to a $535,000 settlement to resolve a class action lawsuit that alleged the background screening platform failed to protect sensitive information in its care from a September 2024 data breach. 

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The $535,000 BackChecked class action settlement received preliminary approval from the court on April 2, 2026. The agreement covers all living United States residents whose private information may have been compromised in the September 2024 data breach.

The court-approved website for the BackChecked class action settlement can be found at BackCheckedDataSettlement.com.

BackChecked settlement class members who submit a timely, valid claim form can receive up to $2,500 for documented out-of-pocket losses incurred between September 26, 2024 and August 26, 2026 due to the data breach. This benefit covers losses from identity theft or fraud and costs for credit reports, credit monitoring services, freezing or unfreezing credit, replacement IDs, postage, and more.

Class members must submit proof, such as bank statements or receipts, to receive a documented-loss payment.

In lieu of a documented-loss payment, class members can instead file a claim form to receive an estimated $50 cash payment, with no proof required.

The final amount of both cash payments may increase or decrease based on the total number of valid claims filed, among other factors.

Additionally, all class members can elect on their claim form to enroll in one year of three-bureau credit monitoring and identity protection services, which include dark web scanning, identity theft insurance, and public records monitoring.

To submit a BackChecked settlement claim form online, class members can head to this page and enter the unique ID and PIN 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 settlement administrator.

All BackChecked claim forms must be submitted online or postmarked by August 26, 2026.

The court will determine whether to grant the BackChecked settlement final approval following a hearing on September 10, 2026. Compensation will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The BackChecked class action lawsuit alleged that the background screening service failed to implement reasonable cybersecurity measures to safeguard private information on its systems from a September 2024 data breach.

Per court documents, sensitive information that may have been compromised in the breach included names, addresses, dates of birth, Social Security numbers, and driver’s license numbers.

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