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Case Details for "TD Ameritrade "
TD Ameritrade Settles Lawsuit Regarding Theft of Customer Contact Information
On line brokerage TD Ameritrade plans to offer up to $2,500 to each of the more than 6 million current and former customers affected by the theft of their contact information more than three years ago, if a federal judge approves the deal.
The proposed settlement will cost Ameritrade between $2.5 million and $6.5 million. Last year, U.S. District Judge Vaughn Walker in San Francisco rejected an earlier class-action settlement because it didn't do enough to benefit the Ameritrade customers affected. A hearing on the new settlement is scheduled for Dec. 23.
The Omaha-based company disclosed the breach in September 2007. Anyone who held an Ameritrade account or provided an e-mail address to the company before then could have been affected by the data theft.
Anyone who held an Ameritrade account or provided an e-mail address to the company before Sept. 14, 2007, will be able to benefit from the settlement. The breached database included information on 6.2 million current and former customers.
The plaintiffs said in the lawsuit that they received unwanted stock e-mail ads. The ads appeared to be designed to manipulate the value of thinly traded stocks.
The initial settlement that was rejected offered customers only anti-spam software and a promise of tighter security at TD Ameritrade. The new settlement will provide cash payments between $50 and $2,500 to affected Ameritrade customers who suffered identity theft and submit a claim. The amount people will receive would be determined by the extent of the identity theft they experienced.
Posted on:2010-11-17
Company: TD Ameritrade
Class: Anyone who held an Ameritrade account or provided an e-mail address to the company before Sept. 14, 2007
Scope: Nationwide
Type of Case: Consumer
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