A federal court has approved a $380.5 million Equifax settlement to resolve a class-action lawsuit stemming from the credit-reporting firm’s 2017 massive data breach that put almost half the U.S population’s personal information at risk.
In the approved agreement, Equifax officials are placing $380.5 million into a fund for consumers affected by the data breach. In the breach, hackers were able to access consumers’ Social Security numbers, dates of birth, addresses and some drivers’ license numbers. More than 140 million people in the Untied States had personal information exposed in the data breach.
Also as part of the agreement, Equifax is paying up to $1 billion for security upgrades along with $175 million to 48 states and $100 million to the Consumer Financial Protection Bureau. Equifax officials have agreed to pay $1.4 billion in litigation expenses as well.
The company might be liable for an additional $125 million for consumers claiming out-of-pocket loses.
The court’s approval finalizes a settlement agreement between Equifax, the Federal Trade Commission, Consumer Financial Protection Bureau, numerous state attorney general offices and consumers in the class-action lawsuit over the data breach.
The deadline for victims of the breach to file for reimbursement is Jan. 22.