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.
