Key insights
- Fidelity will pay $2.5M to settle a class action lawsuit related to a 2024 cyberattack impacting 77,000 customers. Payouts could reach $5,000 for those demonstrating financial losses. While negative for Fidelity's reputation, the financial impact is immaterial to the broader US equity market.
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Some clients of Fidelity Investments could be eligible to receive a payout from the brokerage soon.
Fidelity has agreed to settle a class action lawsuit stemming from an August 2024 cyberattack that exposed the personal data of some 77,000 customers.
The class action filed last year alleged that Fidelity was negligent of the importance of the data it was protecting, and that it waited too long to disclose that it was the victim of a cyberattack. The financial services firm has agreed to pay $2.5 million to settle the suit, without admitting fault.
Some Fidelity customers could be eligible for a payment soon as part of the settlement.
Fidelity said it has notified eligible class members whose information was at risk during the hack, and that average payouts are expected to be around $100, depending on the number of claims. Payouts could reach as high as $5,000 if a claimant can show that they suffered financial losses from the data breach like as a result of identity theft, costs to get a credit report, or freeze their credit.
The $2.5 million settlement faces a final approval hearing on July 9, with the deadline to file a claim on July 27, according to the settlement's website. Once the settlement is approved, the court will work to resolve any appeals to the process before claims can start to be paid out.
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