VA to settle for $20M for data theft

VA to settle for $20M for data theft
By Hope Yen - The Associated Press
Posted : Tuesday Jan 27, 2009 21:14:41 EST

WASHINGTON — The Veterans Affairs Department agreed Tuesday to pay $20 million to veterans for exposing them to possible identity theft in 2006 by losing their sensitive personal information.

In court filings, lawyers for the VA and the veterans said they had reached agreement to settle a class-action lawsuit originally filed by five veterans groups alleging invasion of privacy. The money, which will come from the U.S. Treasury, will be used to pay veterans who can show they suffered actual harm, such as physical symptoms of emotional distress or expenses incurred for credit monitoring.

U.S. District Judge James Robertson in Washington must approve the terms of the settlement before it becomes final.

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The lawsuit came after a VA data analyst in 2006 admitted that he had lost a laptop and external drive containing the names, birth dates and Social Security numbers of up to 26.5 million veterans and active-duty troops.

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According to the proposed settlement, veterans who show harm from the data theft will be able to receive payments ranging from $75 to $1,500. If any of the $20 million is left over after making payments, the remainder would be donated to veterans’ charities agreed to by the parties, such as the Fisher House Foundation Inc. and The Intrepid Fallen Heroes Fund.


Rest of article at: http://armytimes.com/news/2009/01/ap_va_data_theft_012709/%2e