Computer Merchant $610K Data Breach Settlement, Were Your SSN and Personal Data Exposed? File a Claim Before June 24, 2026

In July 2024, hackers broke into the computer network of The Computer Merchant, Ltd. (TCM), a Massachusetts-based IT staffing firm, and accessed files containing employees’ and job applicants’ names and Social Security numbers. A class action lawsuit followed, and TCM has agreed to a $610,000 settlement to resolve the claims. The case is called Flores v. The Computer Merchant, Ltd., Case No. 3:25-cv-00038, filed in the U.S. District Court for the Southern District of California. The deadline to file a claim is June 24, 2026.

Field	Detail
Settlement Amount	$610,000
Claim Deadline	June 24, 2026
Who Qualifies	Current/former TCM employees and job applicants notified of the July 2024 breach
Cash Payment (No Proof)	~$40 (estimated)
Lost Time Compensation	Up to $100 (up to 5 hours at $20/hr)
Out-of-Pocket Reimbursement	Up to $500
Identity Theft/Fraud Losses	Up to $3,000
California Residents (Extra)	~$75 additional CCPA payment
Credit Monitoring	1 year CyEx Financial Shield (all class members)
Proof Required	Only for out-of-pocket and fraud loss claims
Settlement Status	Preliminarily Approved
Administrator	Simpluris
Official Website	computermerchantclasssettlement.com

Where things stand:

• Judge Anthony J. Battaglia of the Southern District of California granted preliminary approval of the settlement on February 18, 2026, and scheduled the final approval hearing for July 9, 2026.
• The opt-out deadline is June 9, 2026 — if you want to exclude yourself and preserve the right to sue separately, you must act before that date.
• Payments will not go out until after final approval clears and all claims are processed.

How a Ransomware Group Got Into TCM’s Systems and What They Took

In July 2024, The Computer Merchant discovered a cyberattack on its network. In January 2025, the company learned that the hackers had made the stolen data publicly available. By May 2025, TCM confirmed that personal information had in fact been compromised, and it began mailing breach notices to affected individuals on August 19, 2025.

The exposed information included names and Social Security numbers, and possibly additional personal data. Of the 34,127 individuals affected, over 4,000 reside in Massachusetts, nearly 3,000 are in Texas, and hundreds more are in California, Maine, and other states.

The lawsuit alleges that the July 2024 cyberattack was a targeted intrusion on TCM’s network, during which files containing private information related to the company’s job applicants, former employees, and current employees were accessed. The plaintiffs, Erika Flores and Sarah Garner, filed the case in January 2025 arguing that TCM failed to adequately secure the sensitive data it collected from workers and candidates.

Who Can File a Claim

The settlement class covers all people in the United States whose private information was potentially compromised in the data breach and who were sent a notice of the incident.

You may qualify if:

• You are a current or former TCM employee or job applicant
• You received a breach notification letter from The Computer Merchant in or after August 2025
• Your name, Social Security number, or other personal information was stored in TCM’s systems at the time of the July 2024 attack
• You reside anywhere in the United States (California residents receive an additional payment)

Excluded from the class are TCM’s governing board members, governmental entities, and the presiding judge and the judge’s family and staff. If you are unsure whether you qualify, contact the settlement administrator at (866) 602-5907 or [email protected].

What You Can Receive

Every settlement class member automatically receives an enrollment code for one year of CyEx Financial Shield Complete, which includes $1 million of financial fraud insurance and monitoring for unauthorized and high-risk financial transactions.

Beyond that, you can choose from the following cash options:

No proof needed — Alternative Cash Payment: Instead of submitting receipts, you can claim a one-time cash payment estimated at $40, though the final amount may be higher or lower depending on total claims filed.

Out-of-Pocket Expenses (up to $500): If you paid for credit monitoring, credit freezes, ID replacement, or other expenses directly tied to the breach between July 1, 2024, and June 24, 2026, you can claim reimbursement up to $500 with supporting documentation. You cannot claim this and the Alternative Cash Payment — it’s one or the other.

Lost Time (up to $100): If you spent time dealing with the aftermath of the breach — changing passwords, monitoring accounts, researching the incident — you can claim up to five hours at $20 per hour, for a maximum of $100. You must briefly describe how you spent that time.

Identity Theft or Fraud Losses (up to $3,000): If you suffered actual documented financial losses from identity theft or fraud that were more likely than not caused by this breach, you can claim up to $3,000 with supporting documentation such as receipts or account statements showing the loss.

Related article: Mejuri $950K Washington Settlement, Mejuri Didn’t Post Salary Ranges on Washington Job Listings

California Residents — Extra CCPA Payment: Settlement class members who were California residents at the relevant time can claim an additional one-time payment estimated at $75, though the final amount depends on how many California residents file.

How to File Your Claim

Step 1 — Visit computermerchantclasssettlement.com/form/claim to file online.

Step 2 — Enter your name, address, and contact information.

Step 3 — Choose your payment option: Alternative Cash Payment (no proof needed), or out-of-pocket reimbursement, lost time, and/or fraud losses (proof required).

Step 4 — If claiming out-of-pocket or fraud losses, upload receipts or documents showing expenses incurred between July 1, 2024, and June 24, 2026.

Step 5 — If claiming California residency for the CCPA payment, confirm your California address during the relevant period.

Step 6 — Submit online by June 24, 2026, or mail a completed and signed claim form postmarked by June 24, 2026, to: TCM Data Incident Settlement, c/o Settlement Administrator, P.O. Box 25226, Santa Ana, CA 92799.

Estimated time to complete: 5–15 minutes, depending on whether you have documentation to gather.

Key Dates at a Glance

Milestone	Date
Breach Discovered	July 2024
Breach Notices Mailed	August 19, 2025
Preliminary Approval Granted	February 18, 2026
Opt-Out Deadline	June 9, 2026
Claim Filing Deadline	June 24, 2026
Objection Deadline	June 29, 2026
Final Approval Hearing	July 9, 2026
Expected Payment Date	TBD (after final approval and claims processing)

Frequently Asked Questions

Do I need to have proof of identity theft to file a claim?

 No. You can file for the estimated $40 Alternative Cash Payment without submitting any proof at all. Proof — such as receipts or account statements — is only required if you want to claim the higher out-of-pocket reimbursement (up to $500) or fraud loss payment (up to $3,000).

Do I need a lawyer to file?

 No. The claim form is free to complete at computermerchantclasssettlement.com. The Court has already appointed attorneys Joshua Swigart of Swigart Law Group and Ben Travis of Ben Travis Law, APC, to represent all class members at no cost to you.

Is this settlement real and legitimate?

 Yes. Judge Anthony J. Battaglia of the U.S. District Court for the Southern District of California granted preliminary approval on February 18, 2026. The settlement is administered by Simpluris, a court-appointed claims administrator.

When will I get paid?

 There is no confirmed payment date. Payments will be distributed after the court grants final approval at the July 9, 2026 hearing and after any appeals are resolved. Realistically, eligible claimants should expect payment several months after that date.

What if I miss the June 24, 2026 deadline?

 You will lose your right to receive any cash payment from this settlement. The credit monitoring benefit through CyEx Financial Shield is the only benefit available if you do nothing, but you will still give up your right to sue TCM separately over this breach. Do not wait — file as early as possible.

I received a breach notice but threw it away. Can I still file? 

Receiving a notice is the qualifying criterion, not keeping it. If you know you received one — or believe you were a TCM employee or applicant during 2024 — contact the settlement administrator at (866) 602-5907 to confirm your class membership before filing.

Will a settlement payment count as taxable income? 

Possibly, depending on the type of payment and your personal tax situation. Cash payments from data breach settlements may or may not be taxable under IRS rules. Consult a tax professional to understand how any payment affects your return.

What if I live in California — do I get more money? 

Yes. California residents are eligible for an additional CCPA cash payment estimated at $75, on top of any other benefits they claim. Make sure to indicate your California residency when filling out the claim form.

Sources

• Official settlement website: computermerchantclasssettlement.com
• Court docket: Flores v. The Computer Merchant, Ltd., Case No. 3:25-cv-00038, U.S. District Court, Southern District of California

Last Updated: March 26, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.