In a significant development, Fidelity Investments has consented to a $2.5 million settlement to resolve a class-action lawsuit linked to a data breach that occurred in 2024.
The lawsuit alleges that an unauthorized party infiltrated Fidelity’s computer network between August 17 and 19, 2024. During this breach, sensitive personal details, including names, Social Security numbers, financial account data, and driver’s license information, were reportedly accessed.
While Fidelity has agreed to compensation payouts reaching up to $5,000, the firm maintains that it has not committed any wrongdoing. The breach is said to have impacted more than 77,000 of its customers.
According to the settlement notice, both parties opted for a resolution “to avoid the costs and risks, disruptions, and uncertainties of continuing the Litigation.”
Priority for the largest compensation amounts will be given to individuals who can demonstrate “out-of-pocket losses” directly resulting from the data breach.
Others can claim a $100 payment – the amount may fluctuate depending on the total number of claims filed. “You do not have to provide any proof or explanation to claim this payment,” according to settlement administrators.
There is also a $50 payment residents of California can claim, thank’s to the state’s Consumer Privacy Act.
All members are eligible for two years of identity theft protection and credit monitoring.
Claims can be submitted on the settlement website.
A final approval hearing for the settlement agreement is set for July 9.