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Certegy Victims Offered Less Than a Buck
Proposed settlement includes free credit monitoring services and $4M in reimbursements following massive data breachMar 13, 2008 | 09:05 AM
By Tim WilsonDarkReading
Certegy Check Services is proposing to settle a class action lawsuit of last year's security breach on behalf of 8.4 million victims for about $4 million.
According to a report in the St. Petersburg (Fla.) Times, Certegy will also offer free credit monitoring services to some victims and reimbursement of credit monitoring expenses totaling $1 million on a first-come-first-served basis.
The breach was first revealed last fall, when Certegy disclosed that an employee had been caught stealing and selling customer information. Upon investigation, the company found that the theft had been occurring methodically over a five-year period. (See Admin Accused of Stealing 2.3M Names.)
While plaintiffs' lawyers hailed the offer as a victory, critics said the relatively small settlement will not help the cause of identity protection. The massive TJX breach also resulted in a relatively small settlement for the victims, netting about $6.5 million for customers. (See TJX Proposes to Settle Customer Lawsuit for $6.5M.)
— Tim Wilson, Site Editor, Dark Reading
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