$7.75M Purpose Financial data breach class action settlement

Purpose Financial, formerly known as Advance America, has agreed to a $7.75 million class action lawsuit settlement to resolve claims it failed to protect consumers from a 2023 data breach.

The class action settlement benefits consumers whose names and Social Security numbers were included in the files accessed during the Purpose Financial data breach on Feb. 7, 2023.

The Purpose Financial class action settlement resolves claims that the cash advance company could have prevented the data breach through reasonable cybersecurity measures. As a result of the data breach, consumers’ sensitive information was allegedly compromised.

Purpose Financial is a financial services company that offers payday loans, cash advances and other short-term lending products.

Purpose Financial has not admitted any wrongdoing but agreed to a $7.75 million settlement to resolve the data breach class action lawsuit.

Under the terms of the Purpose Financial settlement, class members can receive up to $5,000 for out-of-pocket expenses related to the data breach. This includes unreimbursed fraud or identity theft losses, professional fees, credit expenses and other losses.

Class members can also receive a pro rata cash payment estimated to be $50. This payment may be increased or decreased depending on the number of claims filed with the settlement.

California residents are eligible for an additional $50 pro rata cash payment from the settlement.

The deadline for exclusion and objection is Jan. 2, 2026.

The final approval hearing for the Purpose Financial data breach settlement is scheduled for March 17, 2026.

To receive settlement benefits, class members must submit a valid claim form by Feb. 2, 2026.

Who’s Eligible

Consumers who received a data breach notification letter from Purpose Financial informing them that their information may have been compromised in a data breach that occurred in February 2023, and whose names and Social Security numbers appeared in Purpose Financial’s impacted files.

Potential Award

Up to $5,000 in out-of-pocket expenses, a pro rata cash payment of approximately $50 and an additional $50 cash payment for California residents.

Proof of Purchase

Documentation of out-of-pocket expenses, such as bank statements, credit card statements, invoices, receipts and bills. Claimants must also provide a description of the expenses and how they were incurred as a result of the data breach.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

02/02/2026

Case Name

Hernandez, et al. v. Purpose Financial Inc. f/k/a Advance America Cash Advance Centers Inc., et al., Case No. 7:23-CV-04256-JDA, in the U.S. District Court for the District of South Carolina

Final Hearing

03/17/2026

Settlement Website

PurposeFinancialSettlement.com

Claims Administrator

Purpose Financial Data Incident
c/o Simpluris Inc.
P.O. Box 25226
Santa Ana, CA 92799
833-417-4921

Class Counsel

Patrick A. Barthle II
MORGAN & MORGAN COMPLEX LITIGATION GROUP

Terence R. Coates
MARKOVITS STOCK & DEMARCO LLC

Gary M. Klinger
MILBERG BRYSON PHILLIPS GROSSMAN PLLC

Defense Counsel

Mark Melodia
Ashley Shively
HOLLAND AND KNIGHT LLP