Fidelity Investments Life Insurance Company: Fidelity to settle data breach class action lawsuit for $2.5 million

Fidelity Investments to Settle $2.5M Class Action Over 2023 Data Breach

Fidelity Investments Life Insurance Company has secured preliminary approval to settle a class action lawsuit stemming from a 2023 data breach that exposed the personal information of approximately 155,000 individuals. The proposed $2.5 million settlement aims to resolve claims arising from the incident, which compromised sensitive customer data.

The breach, disclosed in late 2023, involved unauthorized access to systems containing policyholder information, including names, Social Security numbers, and financial details. While Fidelity has not publicly detailed the cause of the breach, the settlement underscores the financial and reputational consequences of large-scale cyber incidents in the financial sector.

The case highlights the growing legal and regulatory scrutiny faced by corporations following data breaches, as well as the increasing costs of remediation and litigation. Final approval of the settlement is pending court review.

Source: https://www.teiss.co.uk/news/fidelity-to-settle-data-breach-class-action-lawsuit-for-25-million-17273

Fidelity Investments cybersecurity rating report: https://www.rankiteo.com/company/fidelity-investments

"id": "FID1774571065",
"linkid": "fidelity-investments",
"type": "Breach",
"date": "3/2026",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"

{'affected_entities': [{'customers_affected': '155,000',
                        'industry': 'Insurance/Investment',
                        'name': 'Fidelity Investments Life Insurance Company',
                        'type': 'Financial Services'}],
 'data_breach': {'number_of_records_exposed': '155,000',
                 'personally_identifiable_information': 'Yes',
                 'sensitivity_of_data': 'High',
                 'type_of_data_compromised': ['Names',
                                              'Social Security numbers',
                                              'Financial details']},
 'date_publicly_disclosed': '2023',
 'description': 'Fidelity Investments Life Insurance Company experienced a '
                'data breach in 2023 that exposed the personal information of '
                'approximately 155,000 individuals, including names, Social '
                'Security numbers, and financial details. The company has '
                'secured preliminary approval to settle a class action lawsuit '
                'for $2.5 million arising from the incident.',
 'impact': {'brand_reputation_impact': 'Reputational consequences',
            'data_compromised': 'Personal information, including names, Social '
                                'Security numbers, and financial details',
            'financial_loss': '$2.5 million (settlement)',
            'identity_theft_risk': 'High',
            'legal_liabilities': 'Class action lawsuit',
            'payment_information_risk': 'High'},
 'references': [{'source': 'Class action lawsuit settlement announcement'}],
 'regulatory_compliance': {'legal_actions': 'Class action lawsuit'},
 'title': 'Fidelity Investments 2023 Data Breach',
 'type': 'Data Breach'}