Santa Clara, CA: A proposed $16 million settlement has been reached potentially ending a data breach class action lawsuit pending against ADT LLC.
Filed by named plaintiffs Michael Edenborough and Patricia Wilson, the complaint alleged ADT failed to take the necessary precautions to prevent a data breach of its systems, and in fact was fully aware that wireless systems such as its own were vulnerable to disruption because they lacked encryption.
The complaint stated that ADT disclosed as much in a U.S. Securities and Exchange Commission 2016 filing which stated that some of its devices may be subject to hacking. Further, ADT was also facing claims from consumers in Illinois, Arizona, Florida and California that it fraudulently hid material information from consumers about the susceptibility of its devices to hacking.
According to the terms of the deal, if approved, ADT would pay a total of $16 million, out of which each class member that makes a claim would receive a planned $15 or $45, depending on when each class member signed their ADT contract.
Further, the plaintiffs stated that their suit has also resulted in ADT improving its practices, making better disclosures to customers about the risks of hacking.
The case is Edenborough v. ADT LLC, case number 3:16-cv-02233, in the U.S. District Court for the Northern District of California.
