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Prosper Marketplace

If you were a Prosper customer in California, your data may have been compromised in the September 2025 breach and you could be eligible to take legal action.
What happened?

In September 2025, Prosper Marketplace disclosed a data breach that may have exposed the personal information of millions of customers, including names, email addresses, and potentially Social Security numbers. Some customers allege that Prosper failed to maintain adequate security measures to protect their sensitive data.

How We May Help

Class Action U is here to help you understand your rights and get you in touch with a skilled attorney who can guide you through the legal process.

What You Can Do

If you were a Prosper customer in California and your data may have been compromised in the September 2025 breach, take action now by filling out the form linked below to determine whether you may qualify to pursue a legal claim.

Some customers allege that Prosper failed to implement and maintain reasonable security safeguards for their personal information. When you provided your account information to Prosper, the company allegedly had an obligation to protect that data from unauthorized access. Some customers claim that Prosper’s failure to maintain adequate cybersecurity systems and practices directly led to the exposure of their sensitive personal information. The claims allege that Prosper’s conduct violated California consumer protection laws, including the California Consumer Privacy Act, and that customers may be entitled to compensation for the unauthorized disclosure of their personal data.

If you meet the following criteria, you may be eligible to participate in the arbitration process and may be eligible to pursue a legal claim:

  • State Residency: You are a current resident of California.
  • Prosper Customer: You are a current or former customer or accountholder of Prosper Marketplace.
  • Data Breach Exposure: Your personal information may have been exposed in the September 2025 Prosper data breach, and you received notice from Prosper about the breach (or you believed your information was at risk).
  • Age Requirement: You are 18 years or older.

If you believe you have been impacted:

  • Review Your Account Information: Check any accounts associated with Prosper for unusual activity or unauthorized transactions.
  • Monitor Your Credit: Keep an eye on your credit reports for any signs of fraudulent activity, such as new accounts opened in your name or changes to your credit score.
  • Complete the Form: If you believe you qualify, complete the form and submit your documentation to learn if you may be eligible to pursue compensation.
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Frequently Asked Questions

You may qualify if you used the company’s product or service during the time period when the issue affecting other consumers occurred, agreed to the company’s terms of service (which include a mandatory arbitration clause), and experienced the same problem affecting the larger group.

To confirm your eligibility, gather proof of use, such as receipts, account statements, or confirmation emails and complete the intake form to work with our attorneys.

Compensation varies based on your individual damages; there’s no flat payout amount. Settlement amounts are awarded based on each person’s specific circumstances, which often leads to higher individual payouts compared to class action lawsuits where a single settlement fund is divided equally among many participants. Once settled, arbitration decisions are legally binding, meaning the company must pay your full settlement amount.

The mass arbitration process starts with intake and evidence gathering, followed by sending a Notice of Dispute to the company. Once the filing deadline passes, claims are officially filed and a Process Arbitrator is appointed to manage administrative matters. The parties then enter a global mediation phase to negotiate settlement within 120 days. If claims don’t settle, select cases move to a bellwether phase where an arbitrator rules on representative test cases. Finally, after settlement or individual awards are made, claimants receive their compensation payouts.

Nothing. In most cases handled by our partner firms, consumers pay $0 out of pocket to start their claim. Your attorneys will cover any filing fees as part of their contingency arrangement, and the company is required to pay the arbitrator’s fees and most administrative costs. For people with legitimate claims, there is virtually no financial risk in joining a mass arbitration.

A mass arbitration typically takes about 8 to 18 months to resolve, which is significantly shorter than a federal court lawsuit that averages 31 months. The timeline includes intake and evidence gathering (30-90 days), notice of dispute (30-60 days), a mandatory global mediation period within 120 days, and potentially a bellwether phase (6-12 months) if the case doesn’t settle earlier.

Mass arbitration involves filing many individual claims against the same company that are coordinated together, with each claim remaining separate and potentially resulting in individual settlements.

Class actions consolidate all claims into a single lawsuit resolved by a court.

Key differences include:

  1. Speed: arbitration is typically faster
  2. Control: Arbitration gives individuals more control over their claim
  3. Privacy: mass arbitration is confidential while class actions are public record.

No, mass arbitration takes place outside of court through a private arbitration process. Most hearings can be held virtually via telephone or videoconference, depending on the claim amount and circumstances.

Once the company settles, individual payments are distributed to claimants based on their specific damages. Rather than dividing one settlement fund equally like a class action, each person receives compensation calculated according to their unique circumstances and the extent of their harm. The settlement is legally binding, meaning the company must pay all awarded amounts. This individualized approach often results in higher payouts per person compared to class action settlements.