Fidelity to Disburse $2.5 Million in Class Action Settlement: Are You Eligible for Up to $5,000?

Fidelity's Class Action Settlement

Fidelity Investments has announced a $2.5 million class action settlement in response to a significant data breach that impacted over 155,000 customers in 2024. This settlement allows eligible individuals to claim compensation of up to $5,000, particularly for those who can document any financial losses incurred due to the breach.

Details of the Data Breach

The lawsuit, lodged in federal court in Massachusetts, detailed how a third party gained unauthorized access to Fidelity's network from August 17 to August 19, 2024. The hack reportedly compromised a wealth of sensitive personal information, including names, Social Security numbers, driver's license details, as well as bank account and routing numbers.

Plaintiffs in the case contended that Fidelity did not implement sufficient cybersecurity measures to protect its data, leading to the breach. Although Fidelity denies any misconduct, the company chose to settle the case to avoid the expenses and uncertainties associated with a lengthy trial. "The parties have agreed to settle the lawsuit … to avoid the costs and risks, disruptions, and uncertainties of continuing the Litigation," stated the Fidelity settlement notice.

Claim Eligibility and Process

In compliance with the settlement agreement, Fidelity has notified over 77,000 customers about the breach. However, court documents reveal that an additional 86,000 customers with exposed bank account and routing numbers might also qualify for the settlement. To ensure eligibility, customers must verify their status by the claims deadline.

Eligible participants include:

• Customers who were notified by Fidelity regarding the data breach,
• Any U.S. customer whose bank account and routing numbers were compromised.

A court hearing for settlement approval is set to take place on July 9. Upon approval, customers will need to file online claims by July 27 to receive compensation. Payments will range from $50 to a maximum of $5,000, with higher amounts earmarked for those who can provide solid proof of out-of-pocket losses.

What to Expect from the Settlement

Most claimants are likely to receive a pro rata payment averaging around $100, a common approach in settlements involving numerous individuals, with no need for extensive proof required. Additionally, California residents could be entitled to another payment under the California Consumer Privacy Act, estimated to be around $50.

To facilitate the claiming process, affected individuals can contact Fidelity via email at info@FidelityDataSettlement.com or reach out by phone at (833) 386-6470. More information is also available on the settlement website, where customers can verify their eligibility and submit their claims.

As the July 27 deadline approaches, it is crucial for eligible participants to act promptly to secure their compensation following this significant data breach.