Atlanta, GA – Customers of TMX Finance, a title loan and payday lending company, have formally requested a Georgia federal judge to grant final approval of a $42 million settlement resolving claims stemming from a significant data breach that impacted approximately 4.8 million individuals.
The proposed settlement addresses allegations first filed in March 2023 and was reached following extensive “arm’s-length negotiations and hard bargaining,” including a full-day in-person mediation, according to court documents filed Tuesday. Class counsel plans to seek $5.75 million in fees, representing roughly 14% of the settlement amount, which is characterized as a modest request relative to similar cases.
The parties informed the court of the settlement agreement in November 2023, with preliminary approval granted earlier this March. The final approval would conclude a series of consolidated lawsuits accusing TMX Finance of failing to prevent a cyberattack that compromised sensitive consumer information including passport numbers, driver’s license numbers, tax IDs, Social Security numbers, phone numbers, addresses, and email addresses.
The breach was first detected by TMX Finance on February 13, 2023, with investigations tracing the earliest unauthorized access back to early December 2022. TMX Finance operates consumer loan brands such as TitleMax, TitleBucks, and InstaLoan. The company has notified the FBI and implemented additional security measures while the investigation continues.
Prior to litigation, TMX Finance offered affected customers 12 months of identity monitoring services, which plaintiffs described as inadequate in their complaints.
A final approval hearing for the settlement is scheduled for August 12, 2025.
Representing the customers are attorneys MaryBeth V. Gibson of Gibson Consumer Law Group LLC, Kelly Iverson of Lynch Carpenter LLP, and Amy Keller of DiCello Levitt LLP. TMX Finance Corporate Services Inc. and TMX Finance LLC are represented by Kristine M. Brown, Donald M. Houser, Gavin Reinke, and M. Ashley Miller of Alston & Bird LLP.
The case is Kolstedt et al. v. TMX Finance Corporate Services Inc., case number 4:23-cv-00076, pending in the U.S. District Court for the Southern District of Georgia.
