Business
Email
Print
Certegy Settles Consumer Data Theft Lawsuits
ADVERTISEMENT
Published: September 3, 2008
TAMPA - A federal judge has approved a settlement in two class-action lawsuits filed against a St. Petersburg check authorizing company that had more than 8.4 million consumer records stolen and sold to direct marketers.
The settlement provides for a range of credit monitoring services and reimbursement of expenses for those whose identity was stolen. The company, Certegy Check Services, is also reimbursing more than $2 million in legal expenses to the law firms involved in the cases.
William G. Sullivan, a former analyst for Certegy, was sentenced in July to four years and nine months in federal prison for stealing the records.
A federal prosecutor said at the sentencing hearing that Certegy had to spend $3.2 million to notify the 5.9 million customers whose private financial information was stolen. The victims were in all 50 states, the District of Columbia, the Virgin Islands, Puerto Rico and overseas. Some customers had data stolen that was not deemed to be private financial information.
The class covered by the settlement includes anyone in the United States and Puerto Rico whose credit card, debit card, checking or demand deposit account numbers or information was included in multiple databases. It excludes anyone who decided to opt out of the settlement after being notified it was pending.
Under the settlement, Certegy is required to pay $2.35 million in attorneys' fees, costs and expenses. Two representative plaintiffs, Linda Beringer and Dana M. Lockwood, were awarded $500 each. Other named plaintiffs were awarded $250 each.
According to a Web site set up to notify consumers about the settlement, www.datasettlement,com, it provides that all class members who had their personal or financial information stolen can get compensated up to $20,000 for certain unreimbursed identity theft losses caused by the data theft. The losses covered could occur from Aug. 24, 1998, to Dec. 31, 2010.
Consumers notified by Certegy are also eligible for credit monitoring or bank monitoring performed by Certegy, identity theft insurance, and reimbursement for certain out-of-pocket expenses.
The benefits depend on the type of information that was stolen. If credit or debit card account information was stolen, the consumer is eligible to receive one year of credit monitoring and $10,000 in identity theft insurance and reimbursements for identity theft and certain out-of-pocket expenses.
A judge ordered Sullivan to pay $3.2 million in restitution to Certegy, but the judge said he was fairly certain Sullivan would be unable to pay the full amount. After he is released from prison, he is to pay $250 a month until his finances change to allow an adjustment.
The thefts resulted in seven class-action lawsuits, two of which were settled by Wednesday's order.
Reporter Elaine Silvestrini can be reached at (813) 259-7837 or esilvestrini@tampatrib.com.
Email
Print
TBO.com - Tampa Bay Online Member Agreement | Privacy Statement | Work With Us
