This week Fidelity Investments agreed to a $2.5 million class action payout to settle a lawsuit over a 2024 data breach, and customers could be entitled to a payout of up to $5,000. The largest payouts will go to customers who can document "out-of-pocket" losses tied to the breach.
The lawsuit, filed in federal court in Massachusetts, claims a third-party gained unauthorized access to Fidelity's network between Aug. 17, 2024, and Aug. 19, 2024. The hack reportedly exposed sensitive personal information for over 155,000 customers, including names, Social Security numbers, driver’s license details, and bank account and routing numbers. Plaintiffs argued Fidelity failed to implement reasonable cybersecurity safeguards. Fidelity denies wrongdoing but agreed to the settlement to avoid trial.
"The parties have agreed to settle the lawsuit … to avoid the costs and risks, disruptions, and uncertainties of continuing the Litigation," according to the Fidelity settlement notice.
Fidelity said it notified over 77,000 customers of the breach, but court filings reveal an additional 86,000 customers with compromised bank account and routing numbers may also qualify for the settlement, USA Today reports.
Who's eligible for the $2.5 million Fidelity settlement?
Before payments can go out, the agreement must first be approved by the court. A hearing is scheduled for July 9. If approved, everyone who Fidelity notified about the incident will be eligible for a payout. As will any U.S. customers whose account numbers and routing numbers were exposed.
If you're not sure whether you are eligible for a payout, you can contact Fidelity via email at info@FidelityDataSettlement.com or call (833) 386-6470. For more information, check out the settlement website.
Do I have to file a claim in the Fidelity settlement?
Yes, to receive compensation, eligible customers will need to file an online claim on the settlement website by July 27.
Payments will range from $50 to up to $5,000, with the largest payouts reserved for those who can provide documented evidence that they suffered out-of-pocket losses as a result of the breach.
The bulk of eligible customers will receive a pro rata cash payment to the tune of about $100. It's a common method of distributing settlement funds when there are thousands of claimants involved, and you won't need to provide any proof or explanation to claim payment.
California residents could also be entitled to another proportional payment under the California Consumer Privacy Act, which is expected to be about $50. Just make sure to file by July 27 to receive your funds.
