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Certegy Settles Consumer Data Theft Lawsuits

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By ELAINE SILVESTRINI

The Tampa Tribune

Published: September 4, 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, also is 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 judge also ordered Sullivan to pay $3.2 million in restitution to Certegy.

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 other 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 attorney 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 whose personal or financial information was stolen can get compensated up to $20,000 for certain unreimbursed identity theft losses caused by the data theft. The losses covered could have occurred from Aug. 24, 1998, to Dec. 31, 2010.

Consumers notified by Certegy also are eligible for credit monitoring or bank monitoring performed by Certegy, identity theft insurance, and reimbursement for certain out-of-pocket expenses.

Reporter Elaine Silvestrini can be reached at (813) 259-7837 or esilvestrini@tampatrib.com.

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