By Arlenys Tabare
After a lawsuit in 2024 for data leaks, on Wednesday, May 13 Fidelity Investments and Fidelity Brokerage Companies and products reached an out-of-court settlement in Massachusetts federal court to pay $2.5 million in compensation to all affected clients.
During August 17 and 19, 2024, A third party entered Fidelity’s data pool without authorization and obtained confidential information about its clients. Although the financial institution denied the incident, claiming that no irregularities occurred, it gave in to the agreement.
In a statement, The company specialized in asset management, mutual funds, retirement plans and investment services, among others, indicated: “The parties have agreed to reach an out-of-court settlement to avoid the costs, risks, interruptions and uncertainties that come with continuing the litigation,” it said.
For their part, the plaintiffs’ defense attorneys pointed out that the agreement “is a fair, reasonable and adequate agreement, and that it is in the best interest of the plaintiff class.”
Who are the clients who could claim compensation?
According to the company, more than 77,000 customers were notified about the data breach, but court data suggests that the number could reach 86,000 affected users, so both the people Fidelity notified and other customers who suspect they have been exposed would be within the agreement.
In this case, The claim can be submitted before July 27 through the agreement website, since the scheduled date for the hearing is next July 9. Those affected may also contact Fidelity by email at [email protected] or call (833) 386-6470 for more information.
As for compensation amounts, these can vary between $50 and up to $5,000, depending on the losses and leaked documents.
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