Ontario Superior Court approves settlement in class action against Norton software

The lawsuit alleged design defects in the software's 'decomposer' component

Ontario Superior Court approves settlement in class action against Norton software

The Ontario Superior Court has approved a proposed settlement of approximately $21.7 million in a class action lawsuit against the manufacturer of NortonTM-branded security software.

The lawsuit alleged design defects in the software's "decomposer" component, which scans file attachments for malicious code. The defects affected software sold between July 24, 2010, and June 27, 2016.

The parties reached an agreement after seven years of litigation, including certification, discovery, and two mediations. The settlement, subject to court approval, resolved claims for approximately 640,000 Ontario class members and a related action in Quebec.

Under the settlement agreement, class members have two options for compensation. Option 1 includes a $5 cash payment, a 90-day free license for Norton AntiVirus Plus, or a discount code for Norton products valued at $7.50. Option 2 offers a longer free license or a higher-value discount code, depending on the duration of the original license during the class period. Those with licenses for less than three years can choose a 180-day free license or a $15 discount code, while those with licenses for three or more years can opt for a 365-day free license or a $30 discount code.

Gen Digital, the successor to Symantec, will establish a $6 million settlement fund to cover the $5 payments for those choosing Option 1. Class members who do not submit a claim and are current customers will automatically receive a discount code under Option 2. Any remaining funds will be distributed as additional cash payments to eligible class members. Additionally, Gen Digital will cover legal fees totalling $5.04 million and disbursements of $364,393.92, including settlement administration costs estimated at $250,000.

The Superior Court emphasized the settlement's benefits, noting that it provides timely recovery and substantial benefits while avoiding the risks and uncertainties of continued litigation. The settlement has the support of representative plaintiffs and class counsel, with minimal objections from class members. The court found the settlement fair, reasonable, and in the best interests of the class.

Class counsel fees, set at 15 percent of the estimated settlement value for the Ontario class, were also approved. This fee is consistent with the retainer agreements and within the acceptable range for class action settlements. The court recognized the significant time, effort, and risk class counsel undertook over the seven-and-a-half-year litigation period.

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