The Byzfunder data breach lawsuit is a consolidated federal class action pending in the U.S. District Court for the Southern District of New York over a September 2025 intrusion that exposed the names and Social Security numbers of roughly 15,164 people. The case, captioned In re Byzfunder NY LLC Data Breach Litigation, was stayed on March 10, 2026 while the parties negotiate, with a joint status report due July 20, 2026.1PacerMonitor. In re Byzfunder NY LLC Data Breach Litigation
What Happened in the Breach
Byzfunder NY LLC, a New York merchant cash advance company, detected suspicious activity in one of its cloud software environments on September 19, 2025. A forensic investigation found that an unauthorized party had accessed company files between September 1 and September 20, 2025. The exposed files contained individuals’ first and last names along with their Social Security numbers.2New Hampshire Department of Justice. Byzfunder NY LLC Data Breach Notification
Byzfunder described the intrusion as an “isolated event” and said it had seen no evidence that the stolen data had been misused. The company reviewed its email environment and said it had taken steps to strengthen network security. Its public notifications do not identify the compromised cloud platform or name any third-party vendor. A cybersecurity industry analysis characterized the incident as a direct breach of Byzfunder’s internal systems rather than a compromise through an outside vendor.2New Hampshire Department of Justice. Byzfunder NY LLC Data Breach Notification3ThreatLocker. Ransomware Lawsuits and Financial Services Vendor Breaches
Who Was Notified
Byzfunder mailed written notices to affected individuals on or about November 19, 2025. A filing with the New Hampshire Department of Justice disclosed about 66 state residents were affected, and a separate filing referenced approximately 15,164 affected individuals in total.2New Hampshire Department of Justice. Byzfunder NY LLC Data Breach Notification4EKSM. Byzfunder NY LLC Announces Data Breach
The company offered 12 months of credit monitoring and CyberScan services through IDX, a $1 million identity theft insurance reimbursement policy, and fully managed identity theft recovery services. Notices also included guidance on placing fraud alerts and security freezes with the major credit bureaus. The enrollment deadline for the free services was February 19, 2026.2New Hampshire Department of Justice. Byzfunder NY LLC Data Breach Notification
The Consolidated Class Action
Three lawsuits were filed in rapid succession in the Southern District of New York in December 2025:
- Maggio v. Byzfunder NY LLC, No. 1:25-cv-10040, filed December 3, 2025.
- Rifai v. Byzfunder NY LLC, No. 1:25-cv-10119, filed December 5, 2025.
- Veloz v. Byzfunder NY LLC, No. 1:25-cv-10198, filed December 10, 2025.
On January 15, 2026, Judge Edgardo Ramos consolidated the three cases into In re Byzfunder NY LLC Data Breach Litigation, vacated all prior deadlines, and ordered plaintiffs to file a consolidated complaint within 30 days.5PacerMonitor. Maggio v Byzfunder NY LLC, Consolidation Order An amended complaint followed on February 16, 2026.6CourtListener. Maggio v Byzfunder NY LLC
The court granted a joint motion to stay all proceedings on March 10, 2026. Under the stay, the parties must file a joint status report by July 20, 2026. The case is active but paused.1PacerMonitor. In re Byzfunder NY LLC Data Breach Litigation
What the Plaintiffs Allege
The lawsuit filings allege that Byzfunder failed to encrypt sensitive customer information and that its monitoring of the compromised environment was inadequate.3ThreatLocker. Ransomware Lawsuits and Financial Services Vendor Breaches Byzfunder has stated it has no evidence any exposed data has been misused.2New Hampshire Department of Justice. Byzfunder NY LLC Data Breach Notification
What You Can Do If You Got a Notice
If you received a notice from Byzfunder, the free IDX credit monitoring, CyberScan, insurance coverage, and managed identity recovery were available with an enrollment deadline of February 19, 2026. Anyone whose Social Security number was exposed can also place a fraud alert or a security freeze directly with Equifax, Experian, and TransUnion at no cost, and that option is not tied to the Byzfunder enrollment window.2New Hampshire Department of Justice. Byzfunder NY LLC Data Breach Notification
Because the consolidated case is stayed, no settlement, claim form, or payout has been announced. Class members typically do not need to take action during a stay; if a settlement is reached, the court will approve a notice plan explaining how to file a claim or opt out.1PacerMonitor. In re Byzfunder NY LLC Data Breach Litigation