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Sony Cyber Attack Settlement Includes ID Theft Protection, $4.5 Mil Reimbursement Funds

The settlement reached by Sony Pictures Entertainment and ex-employees who sued over last year’s massive cyber attack includes additional years of identity protection services, a $2 million fund to compensate for unreimbursed expenses and up to $2.5 million for losses from ID theft.

The terms of the settlement were disclosed in a filing with U.S. District Court in Los Angeles on Monday.

Ten former Sony employees filed class action lawsuits in December and January, in cases that were eventually consolidated. In September, the studio and the ex-employees informed the court that they had reached an agreement.

The settlement identifies the class as all current and former SPE corporate and production employees, as well as those whose data was disclosed as a result of the cyber attack.

The settlement benefits include:

ID Theft Protection. SPE will extend identity protection services through AllClearID for an additional two years, through Dec. 31, 2017. The service provides identity theft monitoring, fraud detection and other services, as well as insurance coverage of $1 million. Those who already enrolled last year, when Sony first offered the protection, will be automatically extended another two years. Attorneys for the ex-employees say that the additional years of service represent “millions of dollars in value.”

Cash Payments. SPE will establish a $2 million fund to reimburse members of the class for expenses they incurred protecting themselves from identity theft. This includes purchasing their own credit monitoring protection, insurance and obtaining credit reports. Members of the settlement class will be able to recover up to $1,000 for claims without documentation and for lost time exclusively.

Loss Reimbursement. SPE will pay up to $10,000 to each individual, and up to $2.5 million, for losses from identity theft as a result of the cyber attack. This would supplement the $1 million in insurance from AllClear Pro to cover losses not covered by that insurance protection.

The settlement also provides for the class counsel to receive $3.5 million in attorneys fees, costs and expenses. The counsel also can apply for “service awards” of up to $3,000 for each plaintiff.

The terms of the settlement are subject to approval by the court. A hearing in the case is scheduled for Nov. 16.

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