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Fidelity has agreed to pay $2.5 million to settle a class action lawsuit over a 2024 data breach.
A U.S. district judge in Massachusetts last week preliminarily approved the settlement, in which Fidelity agreed to establish a fund and to set up or keep enhanced business practices.
Class members with valid claims may receive up to $5,000 for documented monetary losses, an estimated $100 in cash pro rata, $50 in consumer privacy law payments for California class members, two years of credit monitoring and identity theft protection services and $1 million in fraud and identity theft insurance, according to the judge's order.
The class includes about 155,000 individuals or joint account holders. A final approval hearing is scheduled for July 9.
The Boston-based asset manager reported in October 2024 that a hacker had set up two accounts and used them to obtain personal information for nearly 77,100 clients.
The lawsuit, filed within days, contended that thanks to Fidelity's "failure to protect the breach victims' personal information, cyber criminals were able to steal everything they could possibly need to commit nearly every conceivable form of identity theft and wreak havoc on the financial and personal lives of potentially millions of individuals."
Fidelity didn't immediately respond to an email seeking comment Monday.
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