PHILADELPHIA - A $525,000 class action privacy settlement with The Philadelphia Inquirer is one step closer to being finalized, as a federal judge has given it preliminary approval.
Judge Karen Marston on Oct. 25 gave that green-light and scheduled a final fairness hearing for March 18. Until then, the court will entertain any objections.
"The parties' proposed settlement was negotiated by experienced counsel with the help of an experienced mediator," she wrote.
"It provides significant benefits to the class members. The Court is satisfied that preliminary approval is appropriate."
Several class actions followed a data breach at the Philadelphia-based newspaper and media company. The plaintiffs alleged that the company failed to adequately secure and safeguard personally identifiable information (PII) collected as part of its regular business practices.
The compromised data included names and Social Security numbers of just more than 25,000 individuals. Suits alleged that the company did not encrypt or redact this sensitive information.
The lawsuit accused the defendant of negligence, recklessness and violation of federal and state statutes for failing to properly safeguard employees’ PII, provide timely notice of the data breach, implement adequate security measures, prevent unauthorized disclosure of data and follow appropriate protocols for data encryption.
Plaintiffs claimed they have suffered invasion of privacy, theft of their PII, lost or diminished value of PII, lost time and opportunity costs associated with mitigating the consequences of the data breach, among other injuries.
The $525,000 settlement includes $1 million worth of identity theft insurance for class members and includes changes to the Inquirer's security measures.
Plaintiffs were represented by several firms, including Milberg Coleman in Chicago and Shub & Johns in West Conshohocken. They plan to ask for $175,000 in fees, plus costs.
If money remains in the fund after 120 days, class members who selected a pro rata cash payment will get an even amount of what's left. A nonprofit could get some of the money, if what remains is less than $3 per person.