TD Ameritrade settlement rejected
Josh Funk of Associated Press reports that Judge Vaughn Walker has rejected the settlement offer by TD Ameritrade. The settlement was in response to a hack in 2006 nd 2007 which exposed customer contact information on 6.3 million clients. According to the AP, the judge found that the deal, which would give the affected customers anti-spam software for a year and a promise of tighter security in the future, did not provide sufficient benefit to customers while providing $1.9 million in legal fees.
Back in May, I had commented that:
The settlement will not result in any money for class members but the lawyers get almost $2 million. Indeed, it’s not clear to me that the class members get anything at all out of this settlement. I guess we’ll have to wait and see the actual terms when the deal is approved.
Judge Walker had tentatively approved the deal in May and then held a hearing in September, and will be interesting to read his decision when it becomes available. What changed his mind between May and now?