Fidelity Investments clients may be eligible for a payout from the company’s $2.5 million settlement of a class-action lawsuit related to the 2024 data breach.
Fidelity Investments and Fidelity Brokerage Services agreed to the settlement on May 13. The lawsuit, filed in federal court in Massachusetts, claims that Fidelity failed to protect its computer networks from a “data security incident” that occurred between August 17, 2024, and August 19, 2024.
According to the settlement website, during that period, a third party gained unauthorized access to the network and obtained some information. As part of the settlement, Fidelity denied any wrongdoing.
According to Fidelity, “the parties have agreed to settle the lawsuit to avoid the cost and risk, disruption, and uncertainties of continuing the litigation.”
Attorneys representing customers in the lawsuit “have determined that the settlement set forth in this settlement agreement is fair, reasonable and adequate, and the settlement is in the best interests of the class,” according to court documents.
Who is eligible for payment in Fidelity Settlement?
Fidelity and the suing consumers have agreed to settle the case for $2.5 million. Before payments can be made to class members, the settlement must be approved by the court; The hearing is scheduled for July 9. You can file a claim online on the settlement website and have to do so by July 27.
Fidelity said it had notified more than 77,000 people about the breach. An additional 86,000 customers whose financial accounts and routing numbers were compromised may be eligible, according to court documents.
If you are unsure whether you are eligible for a payment, you can contact Fidelity via email at (email protected) or call (833) 386-6470.
If approved by the Court, groups eligible for payments include:
- All individuals in the United States who were notified by Fidelity about the incident.
- Other US individuals whose account numbers and routing numbers were exposed in the incident.
How much money can you get from Fidelity Settlement?
Payouts can range from about $50 to $5,000. Here are the types of payments that can be issued:
- Reimbursement of documented monetary losses: You could receive up to $5,000 in actual, documented losses out of pocket due to a breach that occurred between August 17, 2024, and July 27, 2026.
- Prorated Cash Payment: Class members could get a payout of around $100, potentially larger or smaller (“pro-rata” means in proportion). Affected people do not need to provide any proof or explanation to claim this payment.
- California Consumer Privacy Act Payments (California residents only): Another prorated payment due to the CCPA is expected to be approximately $50.
Do you have to file a claim with Fidelity Settlement?
No, however, if you do nothing, you will not receive any benefit from the settlement. If you want to opt yourself out of the settlement — perhaps to file your own lawsuit — you have until June 26 to do so. Those who remain in the settlement class for potential payments cannot be part of any other lawsuit against Fidelity regarding the breach.
Reporting by Mike Snyder, USA TODAY