Those affected by fraud might be in for some relief.
Fidelity Investments has agreed to a $2.5 million settlement in a class-action lawsuit related to a data breach from 2024, which exposed sensitive consumer information.
This settlement follows claims that Fidelity, based in Boston, failed to implement proper data security measures, resulting in the breach. Allegedly, personal information of around 77,000 customers was compromised.
Plaintiffs maintain that this data breach could have been avoided if reasonable cybersecurity practices had been followed, according to various reports.
While Fidelity hasn’t admitted any wrongdoing, they plan to offer up to $5,000 to those who can provide documentation, such as receipts or invoices, that demonstrate financial losses due to the breach.
Eligible expenses covered by the settlement include losses from fraud and identity theft, professional fees, and credit-related costs.
Individuals who were impacted received notifications informing them that their financial account numbers and routing numbers were compromised between August 17 and 19, 2024.
Those who submit a formal complaint could expect a cash payment of about $100, depending on how many claims are filed. Additionally, participants from California will get an extra $50 under the Consumer Privacy Act.
Claimants will also be eligible for two years of identity theft protection and credit monitoring services, including coverage against fraud and identity theft up to $1 million.
To claim their portion of the settlement, class members need to submit a valid claim form by July 27, 2026.
Interestingly, Fidelity isn’t the only major company facing sizable payouts. Comcast recently settled a lawsuit for $117.5 million related to a significant data breach that exposed customer information.
This comes shortly after Apple announced a $250 million settlement concerning issues with Siri AI delays, and Capital One agreed to pay a hefty $425 million due to accusations of misleading customers about high-interest accounts.
