Anthem agrees to record-setting class action settlement for 2015 breach
Anthem, Inc., an Indianapolis-based insurer, agreed to pay a record-setting $115 million to settle a class action lawsuit filed over a 2015 breach that affected 78.8 million individuals, Bloomberg reported June 23. The settlement is allegedly the largest ever reached in connection with a data breach, and does not entail an admission of wrongdoing on Anthem’s part.
Portions of the settlement are already earmarked for specific purposes. An undisclosed amount will be used to fund information security measures and implement or maintain a number of improvements to Anthem’s data security to deter future breaches, according to a statement released by the plaintiff’s attorneys. The settlement also requires Anthem to use $15 million to cover affected individuals’ out-of-pocket expenses resulting from the breach. Anthem must purchase at least two years of credit monitoring services for affected individuals in addition to the two years of credit monitoring it offered after the breach was discovered. Individuals who do not choose to enroll in the credit monitoring service offered by Anthem could receive up to $50 as alternative compensation.
The settlement is still pending approval from a federal judge. That hearing is scheduled for August 17. If approved, additional information will be posted to the class action suit’s website.