Affirm Class Action Lawsuit & December 2025 Settlement Update, Can You Claim Money?

Affirm Holdings Inc. faces multiple class action lawsuits, with a $3.78 million data breach settlement receiving final court approval on December 15, 2025. While the claim deadline has passed (October 30, 2025), affected Affirm customers can contact the settlement administrator about potential late claims. Consumer protection and securities fraud cases remain active, with potential future settlements on the horizon.

URGENT: Evolve Bank Data Breach Settlement Approved December 2025

The biggest news for Affirm users: The Evolve Bank & Trust data breach settlement received final approval on December 15, 2025, affecting millions of Affirm customers whose personal information was compromised in the May 2024 cyberattack.

Settlement Details

Total Settlement Fund: $3.78 million

Who Qualifies: Affirm customers whose private information was included in files affected by the February and May 2024 data breach through Evolve Bank & Trust.

What Was Exposed: Names, dates of birth, Social Security numbers, driver’s license numbers, bank account numbers, and contact information.

Settlement Benefits (If You Filed by October 30, 2025)

Credit Monitoring: One year of credit monitoring valued at $110, including:

Real-time credit alerts
Identity theft insurance up to $1,000,000

Cash Payment Options:

Option A – Documented Losses: Up to $3,000 per person with proof of identity theft or financial losses related to the breach
Option B – Flat Payment: Estimated $20 cash payment without documentation

IMPORTANT: The claim deadline was October 30, 2025. However, affected individuals can still contact the settlement administrator at (833) 421-7300 to inquire about late claims or appeals.

What You Should Do Now

Even if you missed the deadline:

Contact the Settlement Administrator: Call (833) 421-7300 Monday-Friday, 8 AM-8 PM ET
Visit the Official Website: www.evolvesettlement.com for updates on appeals
Document Any Identity Theft: Keep records of unauthorized charges, credit inquiries, or fraud attempts
Monitor Your Credit: Watch for suspicious activity even if you can’t claim settlement funds

Affirm Class Action Lawsuit & December 2025 Settlement Update, Can You Claim Money?

What Is the Affirm Class Action Lawsuit About?

Beyond the data breach settlement, Affirm confronts two other major legal battles:

Consumer Protection Lawsuit (Shepard v. Affirm Holdings)

Filed: June 14, 2021
Court: U.S. District Court for the Southern District of New York (Case No. 7:21-cv-05241)
Status: Active and ongoing

Lead plaintiff Judith Shepard alleges Affirm deceives consumers through misleading buy now, pay later (BNPL) marketing that encourages excessive spending and hides fees.

Securities Fraud Lawsuit (Kusnier v. Affirm Holdings)

Filed: December 8, 2022
Court: U.S. District Court for the Northern District of California
Status: Active after August 2024 dismissal; second amended complaint filed January 2024

Investors claim Affirm made false statements about regulatory risks, artificially inflating stock prices.

Key Legal Claims Against Affirm

Consumer Deception Allegations

The Shepard lawsuit asserts violations of New York consumer protection laws:

Hidden fee structures: Affirm fails to clearly disclose all costs in payment plans
No dispute rights: Consumers can’t challenge charges like credit card users can
Forced payments on returns: Users must keep paying even after returning defective merchandise
Spending manipulation: The BNPL model encourages purchases consumers can’t afford

Securities Fraud Claims

Investors allege Affirm concealed that its BNPL service:

Facilitated excessive consumer debt
Engaged in regulatory arbitrage
Harvested customer data inappropriately
Faced heightened regulatory scrutiny from the Consumer Financial Protection Bureau (CFPB)

Specific allegations include material misstatements about company performance and deleted social media posts that suggested regulatory concerns.

What Does the August 2024 Court Ruling Mean?

Judge Araceli Martínez-Olguín dismissed the securities fraud lawsuit in August 2024, stating shareholders didn’t adequately prove intent to deceive. However, plaintiffs filed a second amended complaint in January 2024, and the case remains “ONGOING” as of December 2025.

Key Takeaway: Dismissal doesn’t end the case. Courts often give plaintiffs chances to amend complaints, and this lawsuit continues with stronger allegations.

Who Is Named as Defendant?

Primary Defendants

Affirm Holdings, Inc. (The company)
Max Levchin (CEO and founder)
Michael Linford (CFO)

Evolve Bank Settlement Defendant

Evolve Bank & Trust (Affirm’s banking partner responsible for the data breach)

What Federal Agencies Are Involved?

Consumer Financial Protection Bureau (CFPB)

December 2021: CFPB ordered Affirm and four competitors to investigate concerns about debt accumulation, regulatory arbitrage, and data harvesting in BNPL services.

This announcement triggered a 10.6% stock drop (from $110.98 to $99.24) on December 16, 2021.

May 2024: CFPB issued an interpretive rule requiring BNPL lenders to provide the same protections as credit card companies, including:

Dispute resolution rights
Refund obligations for returned merchandise
Protection from continued billing during disputes

Securities and Exchange Commission (SEC)

Affirm files regular disclosures detailing ongoing litigation risks in 10-Q reports.

What Laws Are Allegedly Violated?

Consumer Protection Laws

New York General Business Law: Prohibits deceptive business practices
Truth in Lending Act (TILA): Requires clear credit term disclosures
Fair Credit Reporting Act: Governs consumer credit information reporting
Electronic Fund Transfer Act: Protects consumers in electronic transactions

Securities Laws

Securities Exchange Act of 1934: Prohibits false or misleading investor statements
Section 10(b) and Rule 10b-5: Address securities fraud and material misstatements

Data Security Laws

Federal Trade Commission Act: Requires reasonable data security measures
State Data Breach Notification Laws: Mandate timely breach notifications

How Many Consumers Are Affected?

Affirm serves approximately 11 million consumers through partnerships with 168,000 merchants.

Potential Class Membership

Consumer lawsuit: New York residents who used Affirm BNPL services
Securities lawsuit: Investors who purchased AFRM stock between February 12, 2021, and December 15, 2021
Data breach settlement: Affirm customers whose data was stored by Evolve Bank during the February-May 2024 breach (estimated millions of users)

What Compensation May Class Members Receive?

Data Breach Settlement (Approved December 15, 2025)

Already Distributed To Those Who Filed Claims:

Up to $3,000 for documented identity theft losses
$20 flat payment without documentation
One year of credit monitoring ($110 value)
Identity theft insurance up to $1,000,000

Claim Deadline Passed: October 30, 2025 (contact administrator about late claims)

Consumer Lawsuit Potential Recovery (Case Pending)

If successful, class members could receive:

Refunds for excessive fees paid through Affirm payment plans
Compensation for credit score damage from Affirm’s reporting practices
Restitution for financial harm from misleading marketing
Statutory damages under New York consumer protection laws ($50-$1,000 per violation)

Securities Lawsuit Potential Recovery (Case Pending)

Eligible investors may recover:

Stock purchase losses during the class period (Feb 12, 2021 – Dec 15, 2021)
Damages from inflated share prices due to alleged misstatements
Recovery based on price correction when truth was revealed

No Upfront Costs: Class action participants don’t pay attorney fees unless the case succeeds. Legal teams work on contingency, taking a percentage of any settlement or judgment (typically 25-33%).

What Is the Current Status of All Affirm Lawsuits?

Data Breach Settlement (Evolve Bank)

Filed: 2024
Court: U.S. District Court for the Western District of Tennessee
Settlement Amount: $3.78 million
Final Approval: December 15, 2025
Status: APPROVED – Settlement payments being processed
Claim Deadline: Passed (October 30, 2025)

Consumer Protection Case (Shepard v. Affirm)

Filed: June 14, 2021
Court: U.S. District Court for the Southern District of New York
Case Number: 7:21-cv-05241
Status: ACTIVE – Ongoing discovery and motion practice
Key Development: Affirm filed motions to compel arbitration
What This Means: No settlement yet; case could take 1-3 more years

Securities Fraud Case (Kusnier v. Affirm)

Filed: December 8, 2022
Court: U.S. District Court for the Northern District of California
Presiding Judge: Hon. Araceli Martinez-Olguin
Status: ACTIVE after August 2024 dismissal
Second Amended Complaint: Filed January 2024
Last Update: Listed as “ONGOING” in April 2025 by Stanford Securities Class Action Clearinghouse
What This Means: Despite dismissal, case continues with revised claims

How Can Affected Consumers Join the Class Actions?

For Data Breach Claims (Settlement Approved)

Even though the deadline passed:

Call Settlement Administrator: (833) 421-7300
Explain Your Situation: Ask about late claims or appeals process
Provide Documentation: Be ready with proof of Affirm account and identity theft losses
Visit Official Website: www.evolvesettlement.com
Write to Settlement Administrator:
- In re Evolve Bank & Trust Customer Data Security Breach Litigation
- c/o Kroll Settlement Administration LLC
- P.O. Box 225391
- New York, NY 10150-5391

For Consumer Protection Claims (Case Pending)

Contact class action law firms investigating Affirm’s BNPL practices:

Submit Information: Complete intake forms with law firms handling the Shepard case
Automatic Inclusion: If you’re a class member, you’re automatically included unless you opt out
Document Your Experience: Keep records of:
- Affirm payment agreements
- Fee disclosures (or lack thereof)
- Correspondence about returns or disputes
- Credit report impacts

Top Firms Investigating:

Girard Sharp LLP
Hagens Berman Sobol Shapiro LLP
Lieff Cabraser Heimann & Bernstein

For Securities Claims (Case Pending)

If you purchased AFRM stock between February 12, 2021 and December 15, 2021:

Contact Securities Litigation Firms:
- Levi & Korsinsky LLP: (212) 363-7500
- Robbins Geller Rudman & Dowd LLP
- Pomerantz LLP
Provide Purchase Information: Document when and how much stock you bought
Calculate Losses: Determine financial harm from alleged misstatements
Monitor Court Dockets: Check PACER for case updates

What Legal Precedents Exist for BNPL Litigation?

The BNPL industry faces mounting legal scrutiny:

Similar Active Lawsuits

Afterpay: Consumer claims for excessive fees and deceptive practices
Klarna: Allegations of misleading “free” service representations
Zip (formerly Quadpay): Consumer protection investigations

Regulatory Precedents

CFPB’s May 2024 Interpretive Rule: Establishes that BNPL lenders must comply with the same regulations as credit card companies under the Truth in Lending Act.

Key Requirements:

Must provide billing statements
Must allow charge disputes
Must stop billing during dispute investigations
Must issue refunds for returned merchandise

This creates enforceable legal standards for consumer protection enforcement across the entire BNPL industry.

What Are Affirm’s Business Practices Being Challenged?

Marketing and Disclosure Issues

Plaintiffs allege Affirm markets BNPL as “interest-free” while obscuring:

Late payment fees (often $25 or more)
Failed payment charges when ACH transfers fail
Merchant-specific pricing that varies without clear disclosure
Credit score impacts from payment plan inquiries and defaults

Refund and Dispute Process Problems

Unlike credit cards, Affirm’s structure allegedly prevents consumers from:

Disputing charges for defective or undelivered merchandise
Obtaining immediate refunds when returning products
Stopping payments pending dispute resolution
Exercising chargeback rights available to credit card users

Real-World Impact: Consumers must continue making payments to Affirm even after returning defective items, with no legal mechanism to pause payments during disputes.

Data Collection Practices Under Scrutiny

The CFPB investigation examined whether Affirm:

Harvests excessive consumer data beyond what’s needed for credit decisions
Uses purchasing information for targeted marketing without adequate disclosure
Shares personal data with merchants and third parties inappropriately
Tracks spending patterns to encourage additional purchases

What the December 2025 Settlement Means for Affirm Users

Immediate Implications

Validates Consumer Concerns: Court approval of the $3.78 million settlement confirms serious security failures occurred
Sets Compensation Precedent: Future Affirm settlements may follow similar payment structures
Increases Regulatory Pressure: Approved settlements often trigger additional regulatory investigations
Strengthens Other Claims: Data breach resolution may bolster consumer protection and securities lawsuits

Long-Term Industry Impact

The December 15, 2025 settlement approval signals:

BNPL companies face real legal consequences for security failures
Courts take data protection seriously in fintech partnerships
Banking partner relationships create shared liability exposure
Consumer class actions can achieve meaningful settlements

Your Consumer Rights Under CFPB Rules

As of May 2024, BNPL users have enforceable rights to:

Investigate disputed charges with mandatory company response
Obtain refunds for returned merchandise within billing cycle
Receive billing statements similar to credit card users
Dispute charges with legal protections and investigation requirements
Stop payments during active dispute investigations

Frequently Asked Questions

Q: I missed the October 30, 2025 deadline for the data breach settlement. Can I still get money?

A: Contact the settlement administrator immediately at (833) 421-7300. While the official deadline passed, you may be able to file a late claim or appeal. Courts sometimes allow late claims with good cause, especially if you weren’t properly notified of the settlement.

Q: How do I know if my data was included in the Evolve Bank breach?

A: If Affirm was your BNPL provider and your information was stored by Evolve Bank between February and May 2024, you’re likely affected. Contact Affirm customer service or the settlement administrator to verify your status. The breach exposed names, Social Security numbers, bank accounts, and transaction histories.

Q: Will joining the class action lawsuit cost me money?

A: No. Class action attorneys work on contingency, meaning they only get paid if the case succeeds. Legal fees come from any settlement or judgment (typically 25-33%), not from individual class members’ pockets. You pay nothing upfront.

Q: What if I signed an arbitration agreement with Affirm?

A: Affirm has moved to compel arbitration in the consumer lawsuit. However, courts often deny these motions in class actions when arbitration clauses are unconscionable, hidden in fine print, or contrary to public policy. The judge hasn’t ruled on this motion yet, so the class action remains viable.

Q: Can I still file an individual lawsuit against Affirm?

A: Yes, but you must opt out of any class action settlements. Opting out preserves your right to sue independently but means you won’t benefit from class settlements unless you win your individual case. Individual lawsuits are expensive and risky compared to class actions.

Q: How long will these lawsuits take to resolve?

A: Class actions typically take 2-5 years from filing to resolution. The consumer case (filed June 2021) is now in year 4. The securities case (filed December 2022) is in year 3. Expect potential settlements or trials in 2026-2027 based on typical timelines.

Q: What compensation can I realistically expect from the consumer or securities lawsuits?

A: It’s too early to predict. However, similar consumer protection settlements range from $50-$500 per person, while securities settlements depend on stock losses (often recovering 10-30% of documented losses). The Evolve Bank settlement averaged $20-$3,000 per person, providing a baseline.

Q: Will Affirm change its business practices because of these lawsuits?

A: Affirm must comply with the CFPB’s May 2024 interpretive rule requiring BNPL lenders to provide credit card-level consumer protections. Any settlement will likely include additional practice changes, fee disclosure requirements, and monitoring provisions. Expect clearer fee structures and better dispute processes.

Q: I’m still using Affirm. Should I stop?

A: That’s a personal decision. The lawsuits don’t prevent you from using Affirm’s services. However, you should:

Carefully read all fee disclosures
Screenshot payment terms before accepting
Keep records of all transactions
Monitor your credit report
Understand you have dispute rights under CFPB rules

Q: Can I get compensation for both the data breach and consumer protection lawsuit?

A: Potentially yes, if you qualify for both class definitions. The data breach settlement is separate from the consumer protection case. However, you typically cannot recover duplicate damages for the same harm in multiple lawsuits.

Protecting Your Rights: Action Steps

If You Were Affected by the Data Breach

Call settlement administrator: (833) 421-7300 about late claims
Monitor credit reports: Check for unauthorized activity at AnnualCreditReport.com
Place fraud alerts: Contact credit bureaus to add security alerts
Document identity theft: Keep records of unauthorized charges or credit inquiries
File complaints: Report to FTC (IdentityTheft.gov) and CFPB (855-411-2372)

If You’ve Used Affirm BNPL Services

Preserve evidence: Save all Affirm emails, payment agreements, and fee disclosures
Document disputes: Keep records of returned merchandise and payment demands
Track credit impact: Monitor credit reports for Affirm inquiries or negative marks
Contact class action attorneys: Submit information to firms investigating consumer claims
File CFPB complaints: Report unfair practices at consumerfinance.gov

If You’re an Affirm Investor

Calculate losses: Document AFRM stock purchases during February 12, 2021 – December 15, 2021
Preserve trading records: Keep brokerage statements showing purchase dates and prices
Contact securities firms: Reach out to Levi & Korsinsky, Robbins Geller, or Pomerantz LLP
Monitor case dockets: Check PACER for Northern District of California case updates
Review SEC filings: Watch for Affirm’s risk disclosures in quarterly reports

Stay Informed

Monitor court dockets: Check PACER for Southern District of New York (7:21-cv-05241) and Northern District of California cases
Follow CFPB announcements: Visit consumerfinance.gov for regulatory updates on BNPL services
Check settlement website: Visit www.evolvesettlement.com for data breach updates
Read legal news: Follow Bloomberg Law, Law360, and ClassAction.org for case developments
Set Google Alerts: Create alerts for “Affirm class action settlement” to catch breaking news

The Bigger Picture: BNPL Industry Under Fire

The ongoing litigation against Affirm highlights systemic concerns about the rapidly growing BNPL industry:

Regulatory Gaps

No unified federal oversight specifically for BNPL services
State-by-state variations in consumer protection enforcement
Outdated credit laws struggling to cover modern fintech innovations
Data privacy concerns in partnerships between BNPL providers and banks

Consumer Protection Failures

Lack of transparency in fee structures and total costs
No dispute mechanisms comparable to credit cards
Credit reporting inconsistencies affecting consumer scores
Aggressive marketing targeting financially vulnerable populations

What’s Coming Next

Expect increased scrutiny as:

More states file investigations into BNPL practices
Additional class actions target other BNPL providers
Congress considers legislation to regulate the industry
CFPB expands enforcement under its May 2024 interpretive rule

The December 15, 2025 settlement approval represents a watershed moment, proving that BNPL companies and their partners face real legal accountability for failing to protect consumers.

BOTTOM LINE: The $3.78 million Evolve Bank data breach settlement (approved December 15, 2025) provides compensation for affected Affirm customers, though the claim deadline has passed. Contact the settlement administrator immediately at (833) 421-7300 to inquire about late claims. The consumer protection and securities fraud lawsuits remain active, with potential future settlements that could benefit millions of Affirm users and investors.

This article provides general legal information about Affirm class action lawsuits and the December 2025 settlement approval. It is not legal advice. Consult an attorney for guidance specific to your situation.

Official Sources:

Evolve Bank Settlement Website: www.evolvesettlement.com
Settlement Administrator: (833) 421-7300
U.S. District Court Southern District of New York, Case No. 7:21-cv-05241
U.S. District Court Northern District of California (Kusnier v. Affirm Holdings)
U.S. District Court Western District of Tennessee, MDL No. 2:24-md-03127-SHL-cgc
Consumer Financial Protection Bureau: www.consumerfinance.gov
Stanford Securities Class Action Clearinghouse
Bloomberg Law Securities Analysis

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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