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Financial advisory firm EFS Advisors, LLC and employee benefit administrator Educators Benefit Consultants, LLC (operating as Aviben) have agreed to pay up to $850,000 to resolve a class action lawsuit over a February 2024 data breach.
Minnesota-based wealth management firm EFS Advisors, LLC and employee benefit administrator Educators Benefit Consultants, LLC (Aviben) have agreed to an $850,000 class action settlement following a major early 2024 cyberattack. The security incident exposed the sensitive personal, financial, and identification data of tens of thousands of investment clients and employee benefit plan participants.
If you received an official data breach notification letter indicating that your private information was impacted during the February 2024 cyberattack, you may be eligible to receive direct cash compensation and free credit protection services before the upcoming autumn filing deadline.
The class action lawsuit stems from a data security incident detected on or around February 22, 2024. According to court filings, an unauthorized third party exploited a zero-day software vulnerability in a system maintained by an external IT service provider, allowing hackers to penetrate internal computer networks housing confidential records.
Subsequent investigations and state regulatory disclosures revealed that the intrusion compromised private records belonging to approximately 31,042 EFS Advisors clients and 39,640 Aviben plan participants. The types of compromised data varied by individual but included full names, Social Security numbers, driver’s license numbers, non-driver state identification numbers, financial account details, military IDs, passport numbers, and dates of birth.
Impacted consumers filed a class action lawsuit alleging that EFS Advisors and Aviben failed to maintain reasonable cybersecurity standards, verify vendor software protocols, and adequately safeguard client data. EFS Advisors and Aviben deny all allegations of negligence, legal liability, and statutory violations. Both companies agreed to negotiate the $850,000 settlement to avoid the expense, administrative distraction, and uncertainty of taking the complex cybersecurity case to trial.
When financial advisors and benefit plan administrators suffer data breaches involving Social Security numbers and bank account details, affected individuals face immediate, multi-layered privacy risks. Unlike stolen credit cards that can be canceled and reissued in minutes, permanent identifiers like Social Security numbers remain permanent vulnerabilities for victims.
Identity thieves frequently trade stolen personal profiles on dark web forums to execute fraudulent tax returns, open unauthorized lines of credit, or launch targeted phishing scams. Beyond direct financial theft, victims often spend dozens of hours contacting credit bureaus, filing identity theft affidavits, and securing their online financial accounts.
Pursuing legal recovery through class action lawsuits ensures that large institutions and third-party administrators take responsibility for keeping sensitive client records secure while providing everyday people with the essential financial resources to protect their identities.
The settlement establishes a cash fund of up to $850,000 to cover class member compensation, court-approved administrative fees, attorneys’ fees, and class representative service awards.
Eligible consumers who submit a valid claim form can choose from the following forms of recovery:
Documented Out-of-Pocket Loss Reimbursement: You can claim reimbursement for verified, unreimbursed financial losses directly linked to the February 2024 breach. Eligible expenses include fraudulent bank charges, credit freeze fees, credit monitoring costs, professional fees for identity restoration services, and postage or notary costs.
Compensation for Lost Time: Class members can claim reimbursement for documented time spent addressing the fallout of the security incident (such as monitoring bank statements, contacting credit bureaus, or resolving identity fraud) at an hourly rate, subject to settlement caps.
Alternative Cash Payment: Class members who did not experience out-of-pocket expenses or do not wish to submit third-party receipts can opt for a simplified, direct cash payment. The final amount per person will be calculated on a pro rata basis depending on the total number of approved claims submitted.
Complimentary Credit Monitoring: All qualifying class members are eligible to enroll in free credit monitoring and identity protection services, which include continuous credit file tracking and identity theft insurance coverage.
Cash payments will be disbursed electronically or via traditional check once the court grants final approval to the settlement agreement.
You may be eligible to submit a claim for cash benefits and credit monitoring if you meet the following criteria:
You reside in the United States.
You are an individual whose personal, financial, or identification information was compromised in the data security incident discovered by EFS Advisors or Aviben on or about February 22, 2024.
You received a formal data breach notice letter mailed or emailed by EFS Advisors or Aviben regarding the incident.
Because eligibility is based on official notification records, class members can locate their unique Notice ID or Class Member ID printed on their physical letter to verify their participation on the official claims portal.
If you choose to file a claim for documented financial losses or identity theft expenses, you must attach supporting third-party documentation to your claim form.
Acceptable forms of proof include:
Bank or credit card statements showing unreimbursed fraudulent charges, bank fees, or overdraft charges.
Invoices, receipts, or credit card records for credit monitoring services or identity theft protection purchased after February 2024.
Official police reports or Federal Trade Commission (FTC) identity theft reports documenting unauthorized activity.
Receipts for government fees paid to replace compromised driver’s licenses or state identification cards.
If you are only applying for the alternative direct cash payment or enrolling in the free credit monitoring service, no third-party financial receipts or bank statements are required.
If you are an affected client or benefit participant, take note of these critical deadlines to ensure your legal rights are preserved:
Opt-Out or Exclusion Deadline: Class members who wish to exclude themselves from the settlement to preserve their right to file an independent lawsuit must submit a written request postmarked by the court-ordered deadline.
Objection Deadline: Class members who wish to object to the fairness, adequacy, or terms of the settlement while remaining in the class must submit their filings by the court-ordered deadline.
Claim Form Submission Deadline: All claim forms must be completed online or postmarked no later than October 22, 2026.
Final Approval Hearing: The presiding judge will conduct a final fairness hearing to decide whether to grant final court approval to the $850,000 settlement.
Payment Distribution: Cash checks, digital payments, and credit monitoring activation codes will be distributed to approved claimants after the court issues final approval and any legal appeals are fully resolved.
When financial advisory firms and benefit administrators fail to protect sensitive personal and financial data, you should not have to carry the risk or expense on your own. Participating in active class action settlements empowers everyday people to claim financial reimbursement and gain valuable credit protection tools.
If you received a data breach notice from EFS Advisors or Aviben, review your records, gather any necessary receipts, and submit your claim form before the October 22, 2026 deadline.
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