American Financial Resources $2.5M Data Breach Settlement

If you were notified of a data incident involving American Financial Resources, Inc. (AFR) in or around March 2022 in which personal information may have been exposed to unauthorized activity, you may be eligible to claim a cash payment from a class action settlement.

American Financial Resources, Inc. has agreed to pay $2,500,000 to settle a class action lawsuit for alleged unauthorized access to personal data stored on AFR’s network.

Can I Claim an Award?

To be eligible for an award, you must be a Settlement Class Member. This means you were notified in or around March 2022 that your personal information may have been impacted by the cybersecurity incident that occurred in or around December 2021.

The Settlement Class specifically includes those whose Personally Identifiable Information (PII) was maintained on AFR’s system and who received a Notice of Data Breach in or around March 2022. The Settlement Class excludes AFR and its respective officers and directors, all Settlement Class Members who timely and validly request exclusion from the Settlement Class, the Judge and/or Magistrate assigned to evaluate the fairness of this settlement, and any other person found by a court of competent jurisdiction to be guilty under criminal law of initiating, causing, aiding, or abetting the Incident or who pleads nolo contendere to any such charge.

What Awards Can Class Members Claim?

The settlement provides several benefits to Settlement Class Members:

• Common Fund Benefit: Settlement Class Members may submit a claim for a cash payment from the $2,500,000 Common Fund. The Settlement Administrator will make pro rata settlement payments, which may increase or decrease the cash payment, subject to the total amount of the Common Fund, less Co-Lead Counsel’s award of attorneys’ fees and expenses and Plaintiffs’ service awards.
• Out-of-Pocket Loss Benefit: Settlement Class Members may submit a claim for reimbursement of up to $7,500 per person, subject to an aggregate cap of $1,000,000, in documented, unreimbursed Out-of-Pocket Losses reasonably and fairly traceable to the Incident. Out-of-Pocket Loss Benefit Claims can include costs, expenses, losses, or charges incurred as a result of identity theft or identity fraud or other misuse of a Settlement Class Member’s PII after December 20, 2021; costs incurred on or after December 20, 2021, associated with accessing or freezing/unfreezing credit reports with any credit reporting agency; miscellaneous expenses such as notary, postage, copying, mileage, and other charges; and charges for credit monitoring or other mitigative expenditures incurred on or after December 20, 2021, through March 1, 2024.
• Credit Monitoring Benefit: Settlement Class Members may elect to receive one year of one-credit bureau monitoring with up to $1 million in identity theft insurance.

Calculations and Examples

For the Common Fund Benefit, let's assume the total amount available for distribution after deducting attorneys' fees and expenses is $1,625,000 (assuming 33% for attorneys' fees and $125,000 for expenses). If there are 10,000 valid claims, each claimant would receive approximately $162.50 ($1,625,000 / 10,000).

For the Out-of-Pocket Loss Benefit, if a claimant submits documented losses of $5,000 and the total claims do not exceed the $1,000,000 cap, the claimant would receive the full $5,000. However, if the total claims exceed $1,000,000, the reimbursement would be prorated.

Is Proof Required to Claim the Reward?

Yes, proof is required to claim the reward.

Settlement Class Members must submit documentation and attestation supporting their claims for the Out-of-Pocket Loss Benefit. This may include receipts or other documentation, not self-prepared by the claimant, that documents the costs incurred. Self-prepared documents such as handwritten receipts are, by themselves, insufficient to receive reimbursement, but may be considered to add clarity or support to other submitted documentation. Out-of-Pocket Loss Benefit Claims must include an attestation that the monetary losses were caused or otherwise incurred as a result of the Incident and were not incurred due to some other event or reason.

How to Claim Your Award

To claim your award, you must submit a valid Claim Form. The easiest way to submit a claim online. You can also complete and mail the Claim Form to the following address:

American Financial Resources Data Breach

Settlement Administrator

P.O. Box 4418

Portland, OR 97208-4418

If you change your mailing address or email address after you submit a Claim Form, it is your responsibility to inform the Settlement Administrator of your updated information. You may notify the Settlement Administrator of any changes by calling 877-959-9469 or by writing to the address above.

Submitting a Claim

Follow these steps to submit a claim:

1. Visit the settlement website at .
2. Enter the Unique ID provided on your Email or Postcard Notice. If you lost or do not know your Unique ID, contact the Settlement Administrator at info@AFRClassActionSettlement.com.
3. Provide your contact information, detailed information about the losses you incurred, and any documentation you wish to provide.
4. Submit your completed Claim Form online or mail it to the Settlement Administrator at the address provided above.
5. After submitting your completed Claim Form online, you will receive an email with a confirmation code for your completed submission. Receipt of a confirmation code means your Claim Form was successfully submitted. If additional information is required to complete your claim, you will be contacted by the Settlement Administrator.

How do I Get Paid?

Settlement Class Members can choose from several payment options, including PayPal, Venmo, Zelle, Amazon Gift Card, or a physical check. Ensure you provide the necessary information for your chosen payment method on the Claim Form.

$2,500,000 Settlement Fund Breakdown

The settlement amount of $2,500,000 will be distributed as follows:

• Common Fund: $2,500,000
• Attorneys’ fees and expenses: Up to 33% of the Common Fund and reasonable expenses not to exceed $125,000
• Service awards for Settlement Class Representatives: Up to $7,500 each
• Remaining funds: Distributed pro rata to Settlement Class Members who submit valid claims

Important Dates

• Deadline to File a Claim: September 17, 2024
• Deadline to Exclude Yourself from the Settlement: September 11, 2024
• Final Fairness Hearing: October 2, 2024, at 3:00 p.m.

When will Awards be Paid?

Awards will be paid after the Court approves the settlement and it becomes final.

Why is There a Class Action Settlement?

The case arises from a cybersecurity incident involving AFR that occurred in or around December 2021. Plaintiffs allege that the Incident resulted in unauthorized access by a third party to data stored on AFR’s network, including the Personally Identifiable Information (PII) of AFR’s current and former loan customers and employees.

The class action settlement was reached to avoid the cost, disruption, and distraction of further litigation. Plaintiffs, AFR, and their attorneys believe the proposed settlement is fair, reasonable, and adequate and, thus, in the best interests of Settlement Class Members. The Court did not decide in favor of Plaintiffs or Defendant.

What Happens Next?

The next steps include the Final Fairness Hearing scheduled for October 2, 2024, at 3:00 p.m. The Court will decide whether to approve the settlement. If approved, the settlement will become final, and awards will be distributed to eligible Settlement Class Members.