Fidelity Investments customers may be eligible for a payout from the company’s $2.5 million settlement of a class-action lawsuit involving a 2024 data breach.
Fidelity Investments and Fidelity Brokerage Services agreed on May 13 to the settlement. The lawsuit, filed in federal court in Massachusetts, claimed Fidelity failed to protect its computer network from a “data security incident” that occurred between Aug. 17, 2024, and Aug. 19, 2024.
During that period, a third party gained unauthorized access to the network and obtained certain information, according to the settlement website. As part of the settlement, Fidelity denied any wrongdoing.
“The parties have agreed to settle the lawsuit … to avoid the costs and risks, disruptions, and uncertainties of continuing the Litigation,” according to Fidelity.
The attorneys representing the customers in the lawsuit “have determined that the Settlement set forth in this Settlement Agreement is fair, reasonable, and adequate, and in the best interests of the Settlement Class,” according to court documents.
Here’s who’s eligible for part of the $2.5 million Fidelity settlement.
Fidelity and the suing consumers have agreed to settle the case for $2.5 million. Before being paid out to class members, the agreement must be approved by the court; a hearing is scheduled for July 9. You can file an online claim on the settlement website and must do so by July 27.
Fidelity said it had notified more than 77,000 persons 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 uncertain whether you are eligible for a payout, you can contact Fidelity via email at info@FidelityDataSettlement.com or call (833) 386-6470. For more information, go to the settlement website.
If approved by the court, the group eligible for payment includes:
Payouts could range from about $50 to up to $5,000. Here’s the type of payments that may be issued:
No. However, if you do nothing, you will not receive a benefit from the settlement. If you want to exclude yourself from the settlement – perhaps to file your own lawsuit – you must do so by June 26.Those who remain in the settlement class for a potential payout cannot be part of any other lawsuit against Fidelity about the breach.
Mike Snider is a national trending news reporter for USA TODAY. You can follow him on Threads, Bluesky, X and email him atmikegsnider & @mikegsnider.bsky.social & @mikesnider & msnider@usatoday.com.