Customers accused Morgan Stanley of having in 2016 failed to decommission two wealth management data centers before the unencrypted equipment, which still contained customer data, was resold to unauthorised third parties.
A preliminary settlement of the proposed class action on behalf of about 15 million customers was filed in Manhattan federal court and requires approval by US District Judge Analisa Torres.
Customers would receive at least two years of fraud insurance coverage, and each can apply for reimbursement of up to USD 10,000 in out-of-pocket losses.
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