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Morgan Stanley settles data security lawsuit for USD 60 mln

Monday 3 January 2022 12:36 CET | News

Morgan Stanley has agreed to pay USD 60 million to settle a lawsuit by customers who said the bank exposed their personal data when it twice failed to retire some of its older information technology.

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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Keywords: regulation, data breaches, banks, wealth management, cybersecurity
Categories: Banking & Fintech
Companies: Morgan Stanley
Countries: United States
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Banking & Fintech

Morgan Stanley

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