$8.7M Sequoia Settlement Resolves Data Breach Lawsuit Over 2022 Cloud System Hack

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Sequoia Group and Sequoia One have agreed to pay an $8.7 million settlement to resolve a consolidated class action lawsuit over a 2022 data breach involving the human resources management companies’ cloud storage system.

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The deal with Sequoia One PEO, LLC and Sequoia Benefits and Insurance Services, LLC, which does business as Sequoia Group, received preliminary approval from United States District Judge Rita F. Lin on September 9, 2025.

The class action settlement covers all consumers in the United States who appear on Sequoia’s list of individuals whose information was compromised in the data breach, which occurred between September 22 and October 6, 2022. According to the settlement agreement, 584,109 people were notified about the incident.

To receive a Sequoia settlement payment, eligible class members must submit a timely, valid claim form by March 11, 2026.

Consumers will be able to file a claim form by mail or online through the court-approved settlement website once it is launched.

ClassAction.org will update this page when the official Sequoia settlement website is established.

Under the terms of the agreement, class members can submit a claim form to receive up to $7,500 per person in reimbursement for out-of-pocket losses that were incurred on or after September 22, 2022 and are reasonably traceable to the incident. Court documents share that qualifying expenses must be supported by documentation and may include unreimbursed costs incurred as a result of identity theft, fraud or other misuse of personal data; fees for credit monitoring or other mitigative measures; notary, fax, postage, mileage or phone charges; and other miscellaneous expenses.

Related Reading: Sequoia Benefits, Sequoia One Failed to Protect Private Customer Data from Cyberattack, Class Action Alleges

In addition, consumers may file a claim form for compensation for up to four hours of time spent handling issues related to the data breach, at a rate of $30 per hour, the settlement agreement says.

Combined claims for reimbursement of out-of-pocket expenses and lost time are subject to the $7,500 cap, the document notes.

Alternatively, the settlement agreement states that class members can forgo the above-mentioned benefit in favor of an estimated $75 cash payment. Those who were California residents between September 22 and October 6, 2022 are eligible for an additional payment projected to be $150 per person, the document says.

Per the agreement, if a consumer’s expense reimbursement and/or lost time payment is less than what they would receive by making a claim for an alternative cash benefit, the individual will be awarded the larger amount.

Court documents relay that all Sequoia settlement payments are subject to adjustment on a pro rata basis depending on how many valid claims are submitted, among other factors.

A hearing is set for April 7, 2026, at which time the court will determine whether to grant final approval to the terms of the Sequoia class action settlement.

The agreement relays that, should the deal be ultimately approved, settlement checks will be issued to eligible class members within 60 days following the date it goes into effect, or within 30 days after the date that a validity review is completed for all claims, whichever is later.

According to the Sequoia class action lawsuit, negligent data security on the part of the California-based companies was to blame for the cyberattack, which reportedly exposed Social Security numbers, driver’s license numbers, medical information and other sensitive data housed in the defendants’ cloud storage system.

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