$610K The Computer Merchant Settlement Ends Class Action Lawsuit Over July 2024 Data Breach

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The Computer Merchant has agreed to a $610,000 settlement to resolve a class action lawsuit that alleged the IT software engineering staffing and services company failed to protect the private information of its current, former and prospective employees from a July 2024 data breach.

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The $610K Computer Merchant class action settlement received preliminary approval from the court on February 18, 2026 and covers all individuals in the United States whose private information was potentially compromised as a result of the July 2024 data breach and who were sent notice from the company.

Per court documents, approximately 34,127 individuals are covered by the deal.

The court-approved website for the Computer Merchant data breach settlement can be found at ComputerMerchantClassSettlement.com.

According to the website, all Computer Merchant settlement class members are automatically eligible to enroll in one free year of CyEx Financial Shield Complete, which includes monitoring for financial fraud, identity theft, unauthorized transactions and high-risk transactions.

The settlement agreement states that class members can find a credit monitoring enrollment code in their copy of the settlement notice, and that activation instructions will be provided by the settlement administrator after the deal receives final approval.

Settlement class members who file a valid, timely claim form have several options for monetary compensation and may claim multiple benefits.

Class members who file a claim form with proof of out-of-pocket losses stemming from the breach are eligible to receive up to $500 in reimbursement. Class members must submit third-party documentation, like receipts, showing that the expenses were actual, unreimbursed, and incurred between July 1, 2024 and June 24, 2026.

The agreement states that reimbursable expenses include costs to obtain credit reports, credit monitoring, credit freezes, replacement IDs, and miscellaneous expenses, such as postage.

Moreover, class members who submit a claim form with documented proof of extraordinary expenses stemming from the breach are eligible to receive up to $3,000 in reimbursement for expenses related to identity theft or fraud incurred because of the Computer Merchant data breach.

The agreement states that class members must provide third-party documentation demonstrating that their losses were actual, unreimbursed, and incurred between July 1, 2024 and June 24, 2026, and that the class member made reasonable efforts to avoid the loss.

Class members may also file a claim form to receive reimbursement for up to five hours of lost time spent responding to the breach, at a rate of $20 per hour, subject to the $500 out-of-pocket-loss cap.

In lieu of claiming any out-of-pocket losses, class members may file a claim form to receive a one-time alternative cash payment of approximately $40, with no proof required. The final amount of this payment is subject to a pro rata, or equally shared, increase or decrease, depending on the number of valid claims filed, the agreement says.

Finally, class members who were California residents at the time of the breach are eligible to receive an additional one-time cash payment of approximately $75, in accordance with statutory provisions under the California Consumer Privacy Act.

Class members may claim as many settlement benefits as they qualify for, but may not receive both the out-of-pocket loss payment and the alternative cash payment, the agreement states.

The settlement agreement further notes that all payments may be subject to a pro-rated increase or reduction, depending on the number of valid claims filed and the amount remaining in the net settlement fund after the payment of attorneys’ fees, administration costs, taxes and lead plaintiff service awards.

Court documents state that class members may receive their settlement payout via check or electronic payment, and all checks must be cashed within 90 days of issuance before expiration.

To file a Computer Merchant data breach claim form online, class members can head to this page and log in using the unique ID and PIN found on their copy of the settlement notice. Alternatively, class members may download a PDF of the claim form from the site to print, fill out and return by mail to the address of the settlement administrator on the third page of the document.

All Computer Merchant settlement claim forms must be submitted online or by mail by June 24, 2026.

The court will determine whether to grant final approval to the Computer Merchant settlement following a hearing on July 9, 2026. Compensation will begin to be distributed to class members only after final approval is granted and any appeals are resolved.

The Computer Merchant class action lawsuit claimed that the information technology company failed to implement reasonable cybersecurity measures to protect the sensitive information of its current, former and prospective employees from a July 2024 data breach. Per court documents, private information that may have been compromised in the breach includes names, Social Security numbers, dates of birth, financial information and health information.

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