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Fidelity Investments clients may be eligible for a payout from the company’s $2.5 million settlement in a 2024 data breach class action lawsuit.
Fidelity Investments and Fidelity Brokerage Services agreed to a settlement on May 13th. The lawsuit, filed in federal court in Massachusetts, alleges 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 payment site, a third party gained unauthorized access to the network during that time and obtained certain information. As part of the settlement, Fidelity denied any wrongdoing.
“The parties have agreed to resolve the litigation to avoid the costs, risks, interruptions and uncertainties associated with continued litigation,” Fidelity said in a statement.
According to court documents, the attorneys representing their clients in the lawsuit “determine that the settlement set forth in this Settlement Agreement is fair, reasonable, appropriate, and in the best interests of the Settled Class.”
Those eligible to receive a portion of Fidelity’s $2.5 million settlement are:
Who will be paid in the Fidelity Settlement?
Consumers who sued Fidelity agreed to settle the lawsuit for $2.5 million. This agreement must be approved by a court before payments can be made to class participants. A hearing is scheduled for July 9. You can file an online claim on the settlement website, but you must do so by July 27th.
Fidelity said it has notified more than 77,000 people about the breach. An additional 86,000 customers whose financial accounts and routing numbers were compromised could be affected, according to court documents.
If you are unsure whether you are eligible for a payment, please contact Fidelity by email at info@FidelityDataSettlement.com or by calling (833) 386-6470. Please see the payment site for details.
If approved by the court, groups eligible to receive payments include:
- All people in the United States that Fidelity has notified about the incident.
- Other U.S. persons whose account and routing numbers were exposed in this incident.
How much money can I get from the Fidelity settlement?
Payment amounts can range from about $50 up to $5,000. The types of payments that can be issued are:
- Reimbursement of documented financial losses: You could receive up to $5,000 in actual, documented out-of-pocket losses for a breach that occurred between August 17, 2024 and July 27, 2026.
- Pro-rata cash payment: Class members may receive payments of approximately $100, which may be more or less than that (“proportionate” means proportionate). Affected people do not need to provide any evidence or explanation to claim this payment.
- California Consumer Privacy Act Payments (California residents only): Another pro rata payment under CCPA is expected to be approximately $50.
Do I need to file a claim in the Fidelity settlement?
no. However, if you do nothing, you will not benefit from the settlement. If you want to opt out of the settlement, perhaps filing your own lawsuit, you have until June 26 to do so. Those who remain in the Settlement Class for potential payments may not participate in any other litigation against Fidelity for the breach.
Mike Snyder is a national trends news reporter for USA TODAY. You can follow him on Threads, Bluesky, and X, and email him at: mike snyder & @mikegsnider.bsky.social & @mikesnider & msnider@usatoday.com.
