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Kelly Benefits Data Breach Settlement: $5 Million for a Breach Reported at 553,660 People — the $50 Cash Estimate Is Paid Last and Can Drop to Zero, While California Residents Can Add About $100

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AI Legal Assistant · free · answers in seconds · general information, not legal advice

In re: Kelly Benefits Data Breach Litigation, Case No. 1:25-cv-01304-SAG, U.S. District Court for the District of Maryland. Kelly & Associates Insurance Group, Inc., the Sparks, Maryland employee-benefits administrator that does business as Kelly Benefits, will pay $5,000,000 into a non-reversionary fund over a break-in to its systems between December 12 and 17, 2024, when files containing names, Social Security numbers, dates of birth and health insurance, medical and financial account information were copied. The breach was reported to the Maine Attorney General as affecting 553,660 people. Class members can claim a cash payment estimated at $50 with no paperwork, up to $5,000 for documented losses, three years of credit monitoring and, with a California address on December 12, 2024, a payment estimated at $100. Judge Stephanie A. Gallagher granted preliminary approval on August 28, 2026. Claims are due December 28, 2026.

By Settlement Insight Data Desk · October 4, 2026

Kelly Benefits Data Breach Settlement: $5 Million for a Breach Reported at 553,660 People — the $50 Cash Estimate Is Paid Last and Can Drop to Zero, While California Residents Can Add About $100 — key figures at a glance

Is the Kelly Benefits settlement real — and why you may never have heard of the company

Yes. The official website, KellyBenefitsSettlement.com, is run by the court-approved administrator Kroll Settlement Administration and calls itself “the only authorized website for this case.” Its phone number is (833) 453-3640; the mailing address is In re: Kelly Benefits Data Breach Litigation, c/o Kroll Settlement Administration LLC, P.O. Box 5324, New York, NY 10150-5324.

The class covers “all individuals residing in the United States whose Private Information was compromised in the Data Breach of Kelly Benefits during the period December 12, 2024 through December 17, 2024.” The claim form adds: “If you received notice of this Settlement, you have been identified as a Settlement Class Member.” The Class Member ID is asked for only “if known.”

Many class members are not Kelly Benefits customers themselves. The company administers benefits for employers and insurance carriers; according to HIPAA Journal, Kelly Benefits listed 45 affected clients and carriers, among them The Guardian Life Insurance Company of America, Humana Insurance, UnitedHealthcare, Reliance Standard Life Insurance Company and United of Omaha Life Insurance Company. The count was raised several times: according to HIPAA Journal, Kelly Benefits first reported 32,234 people in April 2025, then 263,893 and 413,032, and most recently told the Maine Attorney General that 553,660 people were affected.

What you can claim: four benefits

  • Pro rata cash payment, estimated at $50. No documentation required. The amount goes up or down depending on the number of valid claims.
  • Documented losses up to $5,000. Unreimbursed losses reasonably related to the breach, such as fraud or identity theft losses, bank fees, credit monitoring you paid for between December 12, 2024 and December 28, 2026, postage, phone charges or mileage. You must attest under penalty of perjury and attach real documentation; the claim form says a personal certification alone is not enough.
  • Three years of credit monitoring from one bureau, with dark-web monitoring, identity theft insurance of up to $1,000,000 and identity recovery services. Activation codes are sent after final approval.
  • California Statutory Payment, estimated at $100, if you had a California address on December 12, 2024. It is also reduced pro rata if needed.

You can claim the cash payment, the monitoring and, if eligible, the California payment and documented losses together on one form. Electronic payment is available only if you file online; paper claim forms are paid by check.

The payout order: why the $50 is the least certain part

The $50 is an estimate, and it comes last. The official FAQ explains that after fees, service awards and administration costs, the rest of the fund pays benefits “in the following order: Credit Monitoring, Documented Monetary Losses, California Statutory Payments, and Pro Rata Cash Payments.” It continues: if those first three benefits use up the net fund, “the duration of the Credit Monitoring benefit and amount of the cash payments will be reduced pro rata (proportionally), and no Pro Rata Cash Payments will be distributed.”

Our arithmetic: $5,000,000 minus the requested maximum fee of $1,666,666 and eight service awards of $2,500 ($20,000) leaves about $3,313,334, before administration costs and the lawyers’ expenses, which the documents we read do not estimate. If nobody claimed anything else, $50 per claim would cover about 66,000 claims, roughly 12% of the 553,660 people reported. Every monitoring enrollment, documented-loss claim and California payment is paid first, so the more of those there are, the less is left for the $50 payments. If few people file, the pro rata payment can also rise above $50.

Two different postmark dates on the official website

The online deadline is the same everywhere: December 28, 2026. For paper forms the official sources differ. The website’s home page says a mailed claim form must be “postmarked no later than December 31, 2026,” while the FAQ, the long notice and the claim form itself say “postmarked by December 28, 2026.”

Until the administrator clarifies it, treat December 28, 2026 as the deadline for both online and mailed claims; filing online also gives you the electronic payment options.

Deadlines, the hearing and the lawyers’ fees

  • November 27, 2026 — opt-out requests and objections must be postmarked. Objections are mailed to the settlement administrator and must include proof that you are a class member, such as your settlement notice or breach letter.
  • December 28, 2026 — claim deadline.
  • January 12, 2027, 10:00 a.m. ET — final fairness hearing at the U.S. District Court, 101 West Lombard Street, Baltimore. The date can change; the website will post updates.

Class counsel, Raina Borrelli of Strauss Borrelli PLLC and James Pizzirusso of Hausfeld LLP, will ask for attorneys’ fees of up to one-third of the fund ($1,666,666) plus expenses and a $2,500 service award for each of the eight class representatives. Benefits are distributed only after final approval and the end of any appeals.

What happened: Kelly Benefits learned of suspicious activity on or about December 12, 2024. Its investigation found unauthorized access from December 12 to December 17, 2024, during which files were copied and taken; the review of the affected files was completed on March 3, 2025. Kelly Benefits denies all allegations and any wrongdoing. For a rough estimate of what a documented-loss claim is worth, see our data breach settlement calculator.

The Data Behind This Story

Case
In re: Kelly Benefits Data Breach Litigation, No. 1:25-cv-01304-SAG, U.S. District Court, District of Maryland
Judge
Stephanie A. Gallagher
Defendant
Kelly & Associates Insurance Group, Inc. d/b/a Kelly Benefits
Breach
Unauthorized access Dec. 12–17, 2024; files copied and taken
People reported
553,660 (Maine Attorney General; earlier counts 32,234, 263,893 and 413,032)
Settlement fund
$5,000,000, non-reversionary
Cash, no proof
Pro rata, estimated $50 — paid last
Documented losses
Up to $5,000 per person
Credit monitoring
3 years, single bureau, $1M insurance
California payment
Estimated $100 (California address on Dec. 12, 2024)
Opt-out / objection deadline
November 27, 2026 (postmarked)
Claim deadline
December 28, 2026 (home page names Dec. 31 for mailed forms; FAQ and form say Dec. 28)
Final fairness hearing
January 12, 2027, 10:00 a.m. ET, Baltimore
Fees requested
Up to $1,666,666 plus expenses; $2,500 × 8 class representatives
Administrator
Kroll Settlement Administration — KellyBenefitsSettlement.com · (833) 453-3640
  • Source: KellyBenefitsSettlement.com (official settlement website, Kroll Settlement Administration) — home page and FAQ (25 questions), read October 4, 2026 in a browser: class, benefits, payout order (Question 12), fees, deadlines November 27 and December 28, 2026 (home page: mailed forms postmarked December 31, 2026), hearing January 12, 2027
  • Source: Order granting preliminary approval, ECF No. 56, filed August 28, 2026 (Judge Stephanie A. Gallagher), and Settlement Agreement, ECF No. 55-2, filed August 26, 2026 — both from the documents page of the official website: $5,000,000 fund, fees up to $1,666,666.66
  • Source: Long Notice (version of September 22, 2026) and Claim Form (version of September 15, 2026), official website: postmark December 28, 2026, objections mailed to the administrator, Class Member ID “if known,” documentation rules, electronic payment only online
  • Source: HIPAA Journal, “Kelly Benefits Data Breach Update: More Than 553,000 Individuals Affected”: Maine Attorney General figure 553,660 and earlier counts 32,234 (April 9, 2025), 263,893 (April 21, 2025) and 413,032; Sparks, Maryland employee benefits administrator; list of 45 affected clients and carriers

Journalists: these figures are free to cite with attribution to Settlement Insight. Custom data pulls: press@settlementinsight.com.

Go Deeper

Data breach settlement calculator — estimate a documented-loss claim

Finastra data breach settlement: $3.125 million, claims close November 27

Telmate data breach settlement: $4.225 million, claims close December 21

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