BigClassActions.com

$1.25 Preliminary Settlement Reached in LinkedIn Data Breach Class Action Lawsuit

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New York, NY: Plaintiffs in a federal class action lawsuit are seeking approval of a $1.25 million settlement, which would potentially end a lawsuit stemming from a 2012 data breach of LinkedIn Corp. The lawsuit claims the social media site misled customers about its data protection policies in connection with the data breach.

In the lawsuit, lead plaintiff Khalilah Gilmore-Wright claimed she and other class members purchased premium LinkedIn accounts believing that the company provided industry-standard security. However, LinkedIn' security was in fac outdated and insufficient, resulting in a massive data breach in June 2012 in which a hacker posted 6.5 million user passwords onto the Internet.

According to the terms of the settlement, if approved, LinkedIn would set up a $1.25 million fund from which class members could receive as much as $50. The class would include everyone who paid a fee to LinkedIn for a premium subscription between March 2006 and June 2012. Gilmore-Wright would receive $7,500. Approximately 800,000 premium subscribers.

The case is In re: LinkedIn User Privacy Litigation, case number 5:12-cv-03088, in the U.S. District Court for the Northern District of California.

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