In a recent development, Fidelity Investments has consented to a $2.5 million settlement in a class-action lawsuit related to a 2024 data breach incident, as reported on Wednesday.
The legal action brought against the company alleges that unauthorized access was gained to Fidelity’s computer network from August 17 to 19, 2024. During this breach, sensitive personal data, including names, Social Security numbers, financial account details, and driver’s license numbers, were potentially compromised.
While Fidelity has agreed to compensate affected individuals with payouts reaching up to $5,000, the firm has not acknowledged any liability in the matter. The breach reportedly impacted over 77,000 of their customers.
According to a statement from the company, the decision to settle was made to circumvent the expenses, risks, disruptions, and uncertainties associated with prolonged litigation.
Those who can substantiate “out-of-pocket losses” directly linked to the breach will be eligible for the highest compensation amounts.
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.