Morgan Stanley has agreed to resolve a class-action lawsuit filed by nearly 15 million customers with a $60 million settlement, reports Reuters.
The lawsuit alleged the Wall Street bank's negligence in personal data exposures stemming from its failure to appropriately retire some of its legacy IT systems. Two of Morgan Stanley's wealth management data centers, which contained unencrypted customer data, have not been decommissioned before being resold to unauthorized third parties, according to the lawsuit.
The lawsuit also noted the disappearance of some older Morgan Stanley servers after they were transferred to an outside vendor three years ago. However, the servers have been recovered, based on court papers.
Settlement papers showed that Morgan Stanley has denied being in the wrong and emphasized the adoption of ""substantial"" data security practice upgrades. Meanwhile, individuals who filed the suit will be receiving two or more years of fraud insurance coverage, as well as up to $10,000 in out-of-pocket loss reimbursements.
