Facts

Everett Castillo and others sued Seagate Technology LLC.

PLAINTIFFS' CONTENTIONS: Plaintiffs alleged that a Seagate employee sent more than 10,000 W-2 forms to a third party after falling for a phishing scam. As a result, personal information was used to create fraudulent tax returns.

DEFENDANT'S CONTENTIONS: Among other things, Seagate argued that it adhered to its contractual obligations.

Result

Seagate agreed to provide affected employees and their similarly affected family members with two years of identity theft protection services, and up to $3,500 for any costs incurred by the breach. Additionally, Seagate agreed to train its employees to recognize and avoid hacking schemes.

Other Information

The identity theft protection services offered in the settlement are valued at $5.75 million. Additionally, plaintiffs’ counsel estimated that the reimbursement component of the settlement consideration is valued at $42 million.