Adobe’s Data Breach Class Action Settled in California

Parties to the proposed class action in California over Adobe Systems Inc.’s alleged failure to safeguard clients’ data from a breach that compromised more than 3 million credit card records reached an agreement to settle. The settlement has not yet been approved by a Court, but if it is approved, it will result in the dismissal of all claims asserted against Adobe relative to the 2013 data breach. The terms of the settlement have not yet been made public. The agreement should be finalized by the end of May, 2015. Interestingly, the parties reached the agreement to settle through a mediation process conducted by a retired judge.

In the fall of 2013, class actions were commenced against Adobe accusing it of failing to protect clients’ and users' private information. In October 2013, Adobe disclosed that hackers stole encrypted credit card information of over 3 million clients and users, as well as source codes for some of its most popular software products.

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