Prudential Financial to Pay $4.75 Million for 2024 Data Breach

A global financial services company, Prudential Financial, has agreed to compensate individuals affected by a significant data breach that occurred in February 2024. The breach exposed sensitive personal information, including names, dates of birth, account numbers, Social Security numbers, driver’s license numbers, addresses, phone numbers, and email addresses. The settlement, which includes a $4.75 million fund, aims to cover various expenses incurred by the victims due to the breach.

The settlement fund will first be used to pay court-approved attorneys’ fees, service awards for the plaintiffs, and administrative costs. The remaining funds will be distributed to eligible claimants in the form of documented out-of-pocket losses, Social Security number/tax identification number impact payments, CCPA payments (available to California residents only), and pro rata cash payments. Claimants can receive up to $5,000 for out-of-pocket losses, which must have occurred between February 4, 2024, and October 3, 2025. These losses could include fees for credit reports, credit monitoring, freezing and unfreezing credit, costs to replace IDs, and charges incurred from actual identity theft, fraud, or other misuse of personal information. Claims must be filed by October 3, 2025.

Class action attorneys are seeking $1.59 million in fees from the Settlement Fund and a $2,000 service award for each of the class representatives. Prudential Financial, with $1.5 trillion in assets under management, provides insurance, retirement planning, and investment management services. The company has subsidiaries that offer a range of financial products and services to customers worldwide. The data breach highlights the ongoing threat of cybersecurity attacks and the importance of robust security measures to protect sensitive information. The settlement serves as a reminder to financial institutions and other organizations to prioritize data protection and respond promptly to security incidents to minimize the impact on affected individuals.