$5M Kelly Benefits Data Breach Settlement Ends Lawsuit Over 2024 Cyber Incident

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Kelly Benefits has agreed to a $5 million class action settlement to end a lawsuit that alleged the payroll and employee benefits administrator failed to adequately protect confidential information from a December 2024 data breach.

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The Kelly Benefits class action settlement received preliminary approval from the court on August 28, 2026. Eligible for the settlement are all United States residents whose private information was compromised in the data breach experienced by Kelly & Associates Insurance Group, Inc. (Kelly Benefits) from December 12 through December 17, 2024.

The court-authorized Kelly Benefits class action settlement website can be found at KellyBenefitsSettlement.com.

Settlement class members who submit a timely, valid claim form can receive up to $5,000 for documented out-of-pocket losses incurred due to the data breach. This benefit covers unreimbursed losses from identity theft or fraud; costs for credit monitoring services between December 12, 2024 and December 28, 2026; and bank fees, long-distance phone charges, postage, mileage, and more.

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

In addition, class members can file a claim form to receive an estimated $50 pro rata (proportional) cash payment, with no proof required. The final amount of this payment may be higher or lower, depending on the total number of valid claims filed, among other factors.

Further, class members who had a California address on December 12, 2024 can submit a claim form to receive an estimated $100 statutory cash payment. California statutory cash payments may be reduced on a pro rata basis, depending on the total number of all valid claims filed.

Lastly, class members can elect on their claim form to receive three years of single-bureau credit monitoring, which includes dark web monitoring, identity theft insurance, and identity recovery services.

To file a Kelly Benefits settlement claim form online, class members can head to this page and enter the class member ID 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 Kelly Benefits settlement claim forms must be submitted online by December 28, 2026, or postmarked no later than December 31, 2026.

The court will determine whether to grant final approval to the Kelly Benefits data breach settlement following a hearing on January 12, 2027. Benefits will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The Kelly Benefits class action lawsuit alleged that the Maryland company, which administers employee benefits for employers and insurers, failed to implement adequate cybersecurity safeguards to protect private information from a data breach that occurred between December 12 and December 17, 2024.

Court documents state that personal information that may have been compromised during the Kelly Benefits data breach included names, Social Security numbers, tax ID numbers, dates of birth, medical information, health insurance information, financial account information, and more.

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