Nova Recovery Settlement Ends Litigation Over May 2025 Data Breach

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Nova Recovery has agreed to a settlement offering cash and credit monitoring to resolve a class action lawsuit over a May 2025 data breach in which an unauthorized third party potentially accessed private information stored on its systems.

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The Nova Recovery class action settlement received preliminary approval from the court on January 12, 2026 and covers all individuals residing in the United States whose private data was potentially disclosed during the May 22, 2025 data breach, including all who received notice of the breach from the company.

The court-approved website for the Nova Recovery data breach settlement can be found at NovaDataSettlement.com.

According to court documents, Nova Recovery settlement class members who submit a timely, valid claim form are eligible for multiple benefits.

The agreement states that class members who submit a claim form with documented proof of out-of-pocket losses incurred because of the data breach are eligible to receive up to $5,000 in reimbursement. The agreement adds that reimbursable expenses include those related to identity theft or fraud, such as fees for credit reporting and monitoring, credit freezes, costs to replace IDs, and postage.

Court documents state that claims for documented losses must be supported by documentation such as receipts, invoices, or bank statements.

Class members who do not submit a claim for documented losses may submit a claim form to receive a one-time alternative cash payment expected to be $85, according to settlement documents.

Nova Recovery class members may elect to receive their payout by check or electronic payment upon filing a claim, the agreement explains, and all checks must be cashed within 90 days of issuance before expiration.

In addition to any monetary benefits, all settlement class members may submit a claim form to receive an enrollment code for three free years of CyEx Financial Shield Complete, which includes three-bureau credit monitoring, financial fraud insurance and access to fraud resolution agents, per the agreement.

To submit a Nova Recovery claim form online, class members can head to this page and enter the unique ID and PIN as found on their received copy of the settlement notice. Alternatively, class members can download a PDF claim form from the same page to print, fill out and return by mail to the settlement administrator.

All Nova Recovery claim forms must be submitted online or postmarked by May 12, 2026.

Finally, as part of the settlement, Nova Recovery has also agreed to certain business practices changes to enhance its information security system to prevent any future data breaches.

The court will determine whether to grant final approval to the Nova Recovery settlement at a hearing on April 22, 2026. Compensation will begin to be distributed only after final approval has been granted and any appeals have been resolved.

The Nova Recovery class action lawsuit claimed that the addiction treatment service provider failed to safeguard the confidential information in its care, leading to a May 2025 data breach. According to the complaint, the information potentially compromised included names, addresses, dates of birth, Social Security numbers, and documentation with financial payment information associated with services provided by Nova.

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