Peco Foods Agrees to $950,000 Data Breach Settlement: How You Could Receive Up to $6,550

If you received a letter notifying you that your personal information was exposed in a December 2023 cybersecurity incident at Peco Foods Inc., you may be eligible to claim up to $6,550 plus free credit monitoring services from a $950,000 class action settlement.

What Happened During the December 2023 Peco Foods Security Incident?

Peco Foods Inc., one of the nation’s major poultry producers, discovered that an unauthorized third party gained access to its internal computer network on or around Dec. 4, 2023. During this security breach, intruding actors were able to access sensitive personally identifiable information belonging to thousands of current and former employees, as well as other individuals connected to the company.

Data breaches of this nature expose sensitive personal records to significant security risks. When private data falls into the wrong hands, affected consumers often face elevated threats of identity theft, unauthorized financial transactions, fraudulent loan applications, and persistent phishing attempts. Plaintiffs filed a class action lawsuit titled Ryan, et al. v. Peco Foods Inc. (Case No. 63-CV-2025-900067), alleging that the company failed to implement reasonable cybersecurity safeguards to protect private personal records. Peco Foods denies all allegations of wrongdoing but agreed to a $950,000 resolution to avoid the cost, delay, and uncertainty of ongoing courtroom litigation.

Who Is Eligible to File a Claim for Cash Benefits?

You may be eligible to participate in this settlement if you reside in the United States and received a written notice from Peco Foods informing you that your personally identifiable information was potentially compromised during the December 2023 cybersecurity event.

The security incident impacted approximately 46,442 people nationwide. To qualify for financial recovery or credit protection, you must have been officially notified by Peco Foods. If you received a notice letter in the mail containing a unique Claim ID, you fall within the designated settlement class and can proceed with submitting your claim before the upcoming court deadlines.

How Much Money Can You Receive From the Peco Foods Settlement?

Settlement class members have access to several benefit tiers depending on how the data incident impacted them directly. Total potential monetary compensation can reach up to $6,550 per person, alongside free identity protection services.

Ordinary Out-of-Pocket Expense Reimbursement (Up to $1,000)

Class members can request up to $1,000 for documented out-of-pocket expenses directly tied to addressing the data breach. Eligible expenses include:

• Fees paid for credit reports, credit monitoring, or credit freezes

• Overdraft charges, late fees, or card replacement fees

• Unreimbursed bank or credit card charges resulting from fraud

• Postage, copying, and travel expenses incurred to resolve breach issues

Extraordinary Losses and Lost Time Compensation (Up to $5,000)

If you suffered monetary losses due to actual identity theft or fraud traceable to the Peco Foods breach, you can submit a claim for up to $5,000 in reimbursement. This category covers documented, unrecovered financial losses caused by unauthorized accounts opened in your name or stolen funds.

Additionally, you can claim compensation for time spent remedying issues related to the incident at a rate of $40 per hour for up to 10 hours (maximum $400). Time spent filing reports, freezing accounts, or monitoring credit counts toward this tier, though the total payout under extraordinary losses and lost time combined cannot exceed $5,000.

Free Credit Monitoring and Residual Cash Payment Options

Beyond direct reimbursement for out-of-pocket losses and fraud, all verified class members are entitled to apply for complementary identity protection and residual cash payouts from the remaining fund balance.

Free Three-Bureau Credit Monitoring Services

Every eligible class member can elect to receive three years of comprehensive three-bureau credit monitoring at no cost. This service provides real-time credit alerts, dark web scanning, public records monitoring, and direct access to dedicated fraud resolution agents to safeguard your credit profile.

Residual Cash Payments (Up to $550)

After all documented out-of-pocket claims, administrative costs, service awards, and legal fees are paid from the $950,000 fund, remaining settlement funds will be distributed to class members who request a residual cash payment. Depending on the total number of valid claims filed, eligible claimants can receive an estimated additional cash payment of up to $550.

Understanding Your Rights Under Consumer Protection Laws

Class action lawsuits like this one rely on core legal principles designed to hold companies accountable for keeping consumer and employee data safe. When businesses collect private records—including Social Security numbers, financial details, and personal contact information—they assume a legal duty of care to protect that data against foreseeable cyber threats.

Under state consumer protection statutes and common law negligence principles, organizations that fail to maintain adequate data security protocols can be held liable for damages suffered by affected individuals. Settlements like the $950,000 fund created by Peco Foods ensure that everyday people receive tangible compensation for the stress, lost time, and potential financial exposure caused by unauthorized network intrusions.

Important Dates and Upcoming Court Deadlines

To protect your legal rights and claim your financial benefits, you must act within the strict timeline set by the court overseeing the case.

• Exclusion Deadline: October 12, 2026. If you want to keep your right to sue Peco Foods individually regarding these claims, you must opt out in writing by this date.

• Claim Filing Deadline: November 9, 2026. All claim forms must be submitted online or postmarked by this date to receive compensation or credit monitoring.

• Final Approval Hearing: December 14, 2026. The court will hold a hearing to decide whether to give final approval to the settlement terms.

Payments will be distributed electronically or via paper check approximately 90 days after the court grants final approval, following the complete processing of all submitted claims.

Step-by-Step Instructions to File Your Peco Foods Claim

Filing your claim is straightforward and requires no upfront cost or legal representation.