A US lender has agreed to pay millions of dollars to settle a lawsuit over a major data breach.
According to the settlement administrator’s portal, Purpose Financial will pay $7.75 million to victims of a data breach that happened in 2023 and exposed names, social security numbers and other personally identifying information.
Victims who suffered documented out-of-pocket expenses that can be linked to the data breach could be reimbursed up to $5,100.
The settlement will also include cash payments that are tentatively estimated to be approximately $50. The amount will be determined on a pro rata basis and could be adjusted either upward or downward.
Victims who were residing in California at the time of the cybersecurity incident are eligible to receive an additional cash payment of $50. The final amount will be determined on a pro rata basis.
Named plaintiffs in the lawsuit could also receive a service award of up to $3,000, as part of the settlement.
Data breach victims who agree with the settlement must submit their claims by February 2nd of 2026. A final approval hearing for the settlement will be conducted on March 17th of 2026.
Purpose Financial is a consumer financial services company that offers a wide range of financial solutions and credit products, including payday loans through brands like Advance America.
Despite agreeing to settle, the company denies any wrongdoing.
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The post US Lender Handing Up To $5,100 To Customers After Data Breach Exposes Names, Social Security Numbers and Other Sensitive Material appeared first on The Daily Hodl.
