People whose information was compromised in the December 2024 Kelly Benefits data breach may qualify to claim an estimated $50 cash payment, up to $5,000 in documented losses and three years of credit monitoring from the $5 million Kelly Benefits data breach class action settlement, plus an estimated $100 for California residents. Claims close December 28, 2026, and the final approval hearing is set for January 12, 2027.
Current Status
Claims are open. Claim Forms must be submitted online by December 28, 2026. The court has preliminarily approved the settlement, and the final fairness hearing is scheduled for 10:00 a.m. Eastern time on January 12, 2027; no payment date had been announced as of October 7, 2026, and payments come only after final approval. The deadline to opt out or object is November 27, 2026. Class members who do nothing receive no benefits and still give up their claims against Kelly Benefits.Free settlement alerts
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What Changed Recently?
Kelly & Associates Insurance Group, Inc., which does business as Kelly Benefits, agreed to pay $5 million to settle In re: Kelly Benefits Data Breach Litigation, No. 1:25-cv-01304-SAG, a consolidated class action in the U.S. District Court for the District of Maryland before Judge Stephanie A. Gallagher. The settlement was reached after a June 15, 2026 mediation, the agreement was signed in late August 2026, and the court’s preliminary approval opened the claim period.The case grew out of a December 2024 cyberattack. According to the settlement notice, unauthorized parties had access to Kelly Benefits’ systems from December 12 to December 17, 2024, and copied files containing names, Social Security numbers, tax ID numbers, dates of birth, medical and health insurance information, and financial account information. The settlement agreement says the attackers got in by impersonating a client’s help desk. Kelly Benefits began notifying affected people in April 2025, and the count it reported to the Maine Attorney General grew with each update, passing 400,000 people, as SecurityWeek reported. Kelly Benefits denies any wrongdoing, and the settlement is not an admission of liability.
Who Qualifies?
The Settlement Class is all individuals residing in the United States whose private information was compromised in the Kelly Benefits data breach between December 12 and December 17, 2024. Kelly Benefits administers benefits and insurance for employers and insurance carriers, so most class members are employees or plan members of its clients rather than Kelly Benefits’ own customers. The notice states that people who receive it have been identified from Kelly Benefits’ records as class members.Excluded are Kelly Benefits and entities it controls, its officers and directors, the judge and court staff assigned to the case, and anyone who validly opts out. The extra California payment is limited to class members who had a California address on December 12, 2024.
How Much Can You Get?
Class members can claim any combination of these benefits:- Pro rata cash payment. An equal share of what is left in the fund after every other benefit is paid, estimated at $50. No documentation is needed. The amount rises or falls with the number of valid claims.
- Documented losses, up to $5,000. Reimbursement for unreimbursed losses reasonably related to the breach, such as fraud or identity theft losses, credit monitoring bought on or after December 12, 2024, bank fees, long-distance phone charges, postage and local mileage. Losses already reimbursed from another source do not count.
- Credit monitoring. Three years of single-bureau credit monitoring with dark web monitoring, up to $1 million in identity theft insurance and identity recovery services.
- California payment. An additional payment estimated at $100 for class members who had a California address on December 12, 2024. It can be reduced if there is not enough money to pay every claim in full.
The $5 million fund is non-reversionary. Before claims are paid it covers administration costs, attorneys’ fees of up to one-third of the fund ($1,666,666) plus costs, and service awards of $2,500 for each of the eight class representatives, all subject to court approval. What remains pays credit monitoring, documented losses and California payments first; the pro rata cash payments are then divided from the rest. If those first three benefits used up the net fund, they would be reduced proportionally and no pro rata cash payments would be made.
What Proof or Notice ID Is Required?
The online Claim Form opens with a login page that asks for the Class Member ID printed on the notice. The paper Claim Form asks for the Class Member ID “if known,” and the mailed postcard notice includes a tear-off claim form with the ID already printed on it, which can be used to claim the cash payment, the California payment and credit monitoring. Because filing online is gated on that administrator-issued ID, this settlement is treated as Proof Required. Class members who did not receive a notice or lost it can reach the Settlement Administrator through the contact page on the official website.The cash payment, credit monitoring and California payment need no documents. A documented-loss claim does: it must be signed under penalty of perjury and supported by records such as bank or credit card statements, invoices, phone records, screenshots or receipts. A personal statement alone is not enough. If a loss claim is incomplete, the administrator asks for more information and allows 21 days to fix it.
What Is the Deadline?
Online Claim Forms must be submitted by December 28, 2026. For mailed Claim Forms, the official website gives a postmark deadline of December 31, 2026, while the court-approved notice and Claim Form say December 28, 2026; a paper form postmarked by December 28 meets both. The deadline to opt out or object is November 27, 2026, and both must be mailed and postmarked by that date. People who opt out receive nothing but keep their right to sue Kelly Benefits separately.How Do You Take Action?
Claims are filed through the official Kelly Benefits Settlement website by logging in with the Class Member ID, choosing the benefits wanted and uploading documents for any losses. Filing online is the only way to choose an electronic payment; paper claims are paid by check. A printable Claim Form is also available on the official website.What Happens Next?
The next milestone is the January 12, 2027 final fairness hearing in Baltimore, where Judge Gallagher will decide whether to approve the settlement and the requested fees and service awards. The court can move the hearing, so the official website is the place to confirm the date. Holding the hearing is not the same as granting approval.Under the settlement agreement, payments are issued within 45 days after the Effective Date, which follows final approval and the end of any appeals, or within 21 days after a claim is approved, whichever is later. Credit monitoring activation codes are sent within 30 days of the Effective Date. Checks expire 90 days after they are issued, and leftover money is redistributed to claimants where practical, then sent to a nonprofit chosen by the parties, not back to Kelly Benefits.
Another benefits administrator, CBIZ, is also paying class members over a 2024 breach; its terms are on the CBIZ data breach settlement page.
Sources and Verification
- Official Kelly Benefits Settlement website
- Court-authorized notice and Claim Form (PDF)
- Class Action Settlement Agreement and Release, In re: Kelly Benefits Data Breach Litigation, No. 1:25-cv-01304-SAG (D. Md.), ECF No. 55-2, filed August 26, 2026
- Case docket on CourtListener
- SecurityWeek: Kelly Benefits data breach impact grows to 400,000 individuals
Questions
Why did Kelly Benefits have my information?
Kelly & Associates Insurance Group, which does business as Kelly Benefits, is a Maryland benefits administration and insurance firm that works with employers and insurance carriers. People affected by the breach are largely employees and plan members of Kelly Benefits’ clients, which is why many class members never dealt with Kelly Benefits directly. Class membership depends on whether your information was compromised in the December 2024 breach, which the notice confirms.
Can I claim the $50 cash payment and documented losses?
Yes. A class member can claim both the pro rata cash payment and up to $5,000 in documented losses, and can also request three years of credit monitoring. Class members who had a California address on December 12, 2024 can add the California payment estimated at $100.
Why might the cash payment be more or less than $50?
The $50 figure is an estimate. The cash payments are paid last, from whatever remains of the $5 million fund after fees, administration, credit monitoring, documented-loss claims and California payments. Fewer valid claims mean a larger share, and if the earlier benefits used up the fund there would be no cash payments at all.
What happens if my documented loss claim is rejected?
The administrator first asks for missing information and gives 21 days to fix it. If a documented-loss claim is denied in full and not fixed, it is treated as a claim for the pro rata cash payment instead. A claim that is only partly approved is not automatically converted, so the cash payment has to be selected on the Claim Form to receive it.
How will Kelly Benefits settlement payments be sent?
Claims filed online can choose an electronic payment; claims mailed on paper are paid by check. Payments go out after final approval: within 45 days of the settlement’s Effective Date or 21 days after a claim is approved, whichever is later. Checks expire 90 days after they are issued.
