Gulshan Management Services Data Breach Lawsuit: 377,082 People, No Settlement Yet
Active Litigation
Gulshan Management Services runs about 150 Texas gas stations, including Handi Plus and Handi Stop, from Sugar Land. In September 2025 a phishing email let an intruder into its network. The company later notified 377,082 people that names, Social Security numbers and driver’s license numbers were exposed. The lawsuits are now one consolidated federal case in Houston. As of October 2026 there is no settlement and no claim form.
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What Happened and What the Lawsuit Says
According to Gulshan’s breach notice filed with the Maine Attorney General, a phishing attack on September 17, 2025 gave an outside party access to its systems. The company spotted unauthorized activity on September 27, 2025 — about ten days later. By then the intruder had reached servers holding personal data and encrypted parts of the network. Gulshan says it rebuilt its systems from known-safe backups.
The Gulshan Management Services data breach exposed names, addresses, dates of birth, Social Security numbers and driver’s license or similar ID numbers, per the company’s notice to the Iowa Attorney General. The consolidated complaint alleges more, including financial account and payment card data, and says the company’s notice left that out. The victims include customers and employees.
The lawsuit alleges Gulshan failed to use basic safeguards, such as encryption, phishing training and email filtering. It also alleges that stolen data has already shown up on the dark web, along with attempts to get into bank accounts and more spam calls and texts. Gulshan moved to dismiss the claims.
Case details
The case is In re Gulshan Management Services Data Breach Litigation, No. 4:26-cv-00200 (Civil Action No. H-26-200), U.S. District Court for the Southern District of Texas, Houston Division. The judge is Senior U.S. District Judge Lee H. Rosenthal. The lead case started as Ceja v. Gulshan Management Services Inc., and other individual suits were folded into it. The plaintiffs filed one 92-page consolidated class complaint. It pleads negligence, breach of implied contract, unjust enrichment and a claim under Illinois consumer-fraud law.
Status: Case Trimmed in June 2026, No Settlement
On June 29, 2026 Judge Rosenthal granted Gulshan’s motion to dismiss in part and denied it in part:
— Negligence survives for now. The court found the plaintiffs adequately alleged a breach of the duty of care and causation. It rejected Gulshan’s duty argument without prejudice, so the company can raise it again.
— Contract and unjust-enrichment claims were dismissed with prejudice. They cannot be refiled.
— The Illinois claim and the request for emotional-distress damages were dismissed without prejudice.
— On the request for an injunction, the court found nothing showing a second attack on Gulshan is imminent.
The plaintiffs had until July 17, 2026 to file an amended complaint. We could not confirm on the public docket what was filed after that date.
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Who Could Be Covered
The plaintiffs seek to represent a class of people whose information was exposed — 377,082 people, per the company’s notification. That includes both customers and employees. No class has been certified. You do not sign up to join a class action; if a class is certified or a settlement is reached, notice goes to class members.
Your proof is the letter. Gulshan mailed breach notices in early January 2026 offering one year of free identity protection and credit monitoring through Kroll. Keep that letter. It shows you are in the affected group and lists which of your data was involved.
Is There Money?
How cases like this one end
Our copy of the federal courts’ own case database covers 129,730 other contract casesclosed in U.S. federal district courts between 2015 and 2026, 6% of them filed as class actions:
- 30.7% ended in a settlement recorded by the court. Another 20.2% were dismissed voluntarily, which often follows a private settlement — so the real settlement share sits between 30.7% and 50.9%.
- 7.5% were decided on a motion before any trial.
- 1 in 72 reached a trial (1.4%), after a median of 29.3 months.
- Median time from filing to the end of the case: 7.6 months.
- Only 7,691 of them (5.9%) record a money award at all; the median of those is $407,000.
These are base rates for this type of case (federal other contract cases) — not a prediction about this lawsuit, and not legal advice. Source: Federal Judicial Center, Integrated Database (civil), analysed by Settlement Insight. Cases heard in state courts are not included.
Gulshan Breach and Lawsuit Timeline
September 17, 2025 — Phishing Attack
Per Gulshan’s breach notice, a successful phishing attack against an employee gives an outside party access to its network.
September 27, 2025 — Breach Detected
Gulshan identifies unauthorized activity about ten days later, after parts of its network were encrypted. Systems are rebuilt from backups.
Early January 2026 — 377,082 People Notified
Notices go out and filings reach state attorneys general, offering one year of Kroll identity protection. Comparitech reports the 377,082 count on January 7, 2026.
Early 2026 — Suits Filed and Consolidated
Class actions are filed in federal court in Houston and combined as In re Gulshan Management Services Data Breach Litigation, No. 4:26-cv-00200.
June 29, 2026 — Judge Trims the Case
Judge Lee H. Rosenthal keeps the negligence claim alive for now and dismisses the contract and unjust-enrichment claims with prejudice.
July 17, 2026 — Amended Complaint Deadline
Plaintiffs were given until this date to amend. As of October 2026, no settlement, fund or claim form exists.
Three Things to Watch For
A 377,082-person breach with Social Security numbers and no settlement attracts imposters:
Treating the Kroll letter as a settlement
Kroll appears in the Gulshan notice only as the company providing free identity monitoring. Kroll also runs settlement websites for other cases, but it is not handling any Gulshan settlement because none exists. Enrolling in monitoring is not filing a claim.
“Claim your Gulshan payout” sites
Searches for a Gulshan payout lead to sites that collect your name, address and Social Security number. There is no settlement fund or claims portal. Do not hand over the same data that was stolen.
Calls or texts naming Handi Plus or Handi Stop
Scammers can use the store names to sound legitimate. No court administrator calls to ask for your full Social Security number, bank login or a fee to release money.
Gulshan Data Breach — Questions People Ask
Short answers to the questions people ask most about this case.
What is the Gulshan Management Services data breach lawsuit?
It is a consolidated proposed class action, In re Gulshan Management Services Data Breach Litigation, No. 4:26-cv-00200, in federal court in Houston. It alleges Gulshan failed to protect customer and employee data that was stolen after a September 2025 phishing attack.
Is there a Gulshan settlement or payout?
No. As of October 2026 there is no settlement, no fund, no claim form and no deadline. The case is still at the pleading stage after the June 29, 2026 ruling on Gulshan’s motion to dismiss.
How many people were affected?
377,082 people, according to Gulshan’s breach notification as reported from its Maine Attorney General filing. The court described the group as more than 377,000 customers and employees.
What data was exposed?
Gulshan’s notice to the Iowa Attorney General lists names, addresses, dates of birth, Social Security numbers and driver’s license or similar government ID numbers. The lawsuit alleges that financial account and payment card data was taken too; that is an allegation.
What did the judge decide in June 2026?
On June 29, 2026 Judge Lee H. Rosenthal granted the motion to dismiss in part. Negligence survived for now. The contract and unjust-enrichment claims were dismissed with prejudice. The Illinois claim and emotional-distress damages were dismissed without prejudice. An amended complaint was due July 17, 2026.
How much can I get from a data breach settlement?
For Gulshan, nothing yet, because there is no settlement. Amounts in other cases depend on the fund size, how many people file and whether you document losses. The payout calculator explains how those factors interact.
Do I need to do anything to be included?
No. If a class is certified or a settlement is approved, notice goes to class members, usually by mail or email. Keep your January 2026 notice letter as proof that you were affected.
What should I do now?
If the enrollment window in your letter is still open, sign up for the free Kroll monitoring. Freeze your credit at all three bureaus, which is free. Watch bank and card statements, since the lawsuit alleges payment data was taken.
About This Information
Editorially Reviewed — Content reviewed for accuracy using published legal research, government data, and verified court records. See our methodology. Reviewed by Leonard Goldberg, Editor · Last updated - $236 billion in real payouts analyzed · See what we found
This page is for general information only and is not legal advice. Lawsuit status, eligibility, and compensation can change. Settlement Insight is not a law firm and does not represent any party. Consult a licensed attorney about your specific situation.
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