Morgan Stanley data breaches $60M class action settlement

Update:

• Final approval was granted for this class action settlement on Aug. 5, 2022; however, the settlement is currently under appeal. Payments will not be issued until the appeals are resolved.

Qualifying consumers who file a claim form may be eligible to benefit from a $60 million data breach class action lawsuit settlement resolving accusations stemming from data security incidents at Morgan Stanley in 2016 and 2019. 

The settlement benefits consumers with existing or closed Morgan Stanley accounts who received notices in July 2020 and/or June 2021 about the 2016 and/or 2019 data breaches.

Morgan Stanley is an investment advisory company that provides wealth management services. The company also provides market insights and analysis to the financial world.

In 2016 and 2019, two separate data breaches compromised 15 million Morgan Stanley customers. The breaches included sensitive personal information such as social security numbers. According to a 2021 class action lawsuit, these data breaches were a direct result of Morgan Stanley’s negligence.

Both data breaches were allegedly caused by a failure to properly dispose of IT assets containing sensitive data. Even today, there are thousands of pieces of unsecured IT equipment containing unencrypted information on Morgan Stanley customers, the class action lawsuit contends. When an unauthorized third party gained access to some of these assets, they allegedly gained access to consumer data.

To make matters worse, Morgan Stanley failed to manage the data breaches once they were discovered, the plaintiff contends. In fact, affected consumers were not informed about the 2016 and 2019 data breaches until 2020 and 2021, respectively, despite allegedly having knowledge of the issues for years. 

Morgan Stanley has not admitted any legal wrongdoing but agreed to pay $60 million to resolve the class action lawsuit. This civil settlement is separate from the $60 million in penalties the company paid in 2020 to the Office of the Comptroller of Currency.

The settlement provides several benefits including fraud insurance coverage, cash reimbursement for losses, and injunctive relief.

Under the settlement terms, Class Members in the Morgan Stanley data breach settlement who submit a claim form are eligible for two years of complimentary access to Aura’s Financial Shield insurance coverage. Class Members can redeem this benefit using the code provided on their mailed notice and by registering at the provided website. 

The settlement also allows Class Members to collect up to $10,000 in reimbursement for out-of-pocket expenses related to the data breaches. Eligible expenses include unreimbursed fraudulent charges, fees for professional services (attorneys, accountants, credit repairs, etc.), miscellaneous costs, and lost time (up to four hours at a rate of $25 per hour). 

Morgan Stanley also agreed to injunctive relief in the data security class action lawsuit settlement.

For one year, the company will hire a third party to investigate and retrieve any devices fraudulently sold to third parties. This aims to prevent further data incidents in connection with these devices.

The deadline for exclusion and objection is July 12, 2022.

The settlement’s final approval hearing is scheduled for Aug. 5, 2022.

In order to receive a payment from the Morgan Stanley data breach settlement, Class Members must submit a valid claim form by Aug. 11, 2022.

Who’s Eligible

The settlement benefits consumers with existing or closed Morgan Stanley accounts who received notices in July 2020 and/or June 2021 about the 2016 and/or 2019 data breaches.

Potential Award

Varies

Proof of Purchase

Any available documentation of the potential fraud and/or identity theft that made your expenditure of time necessary (i.e. letter from IRS or bank; police report). If you took unpaid time off from work, please provide documentation of the number of hours that you took off from work, and your hourly wage.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

08/11/2022

Case Name

In re: Morgan Stanley Data Security Litigation, Case No. 1:20-cv-05914-AT in the U.S. District Court Southern District of New York

Final Hearing

08/05/2022

Settlement Website

MorganStanleyDataSecuritySettlement.com

Claims Administrator

Morgan Stanley Data Security Settlement
Settlement Administrator
P.O. Box 6758
Portland, OR 97228-6758
info@MorganStanleyDataSecuritySettlement.com
855-604-1744

Class Counsel

Jean S. Martin
MORGAN & MORGAN

Linda P. Nussbaum
NUSSBAUM LAW GROUP PC

Defense Counsel

Jane B. O’Brien
Brad S. Karp
Susanna M. Buergel
PAUL WEISS RIFKIND WHARTON & GARRISON LLP