Verizon has filed a federal class action lawsuit against three of its customers, alleging they were victimized by a security breach involving data stored on their credit card accounts.
The Verizon lawsuit alleges the company was hacked in April 2015 and that the data was used to access their personal information and other information of others.
The company says it was able to prevent the unauthorized access by providing users with a one-time password, a method it said is standard for most credit card transactions.
The lawsuit also alleges Verizon failed to adequately notify customers of the breach and failed to fix the breach within 24 hours of the unauthorized activity.
Verizon said it is seeking an undisclosed amount in damages.
The company’s lawsuit also accuses the company of failing to make changes to its software and services.
Verizon is seeking a preliminary injunction barring Verizon from using its security features to access data stored in its customers’ accounts, which Verizon says it has in place since January 2015.
The settlement also requires Verizon to provide a $500,000 prize for the person who discovers and reports the security breach to the company.
The companies’ settlement comes after Verizon filed a similar class action in June 2015 against Wells Fargo and other retailers.
That case was also settled.