Judge rejects TD Ameritrade data theft settlement

By JOSH FUNK AP Business Writer

OMAHA, Neb. (AP) - A federal judge has refused to approve a settlement over contact information stolen from online brokerage TD Ameritrade Holding Corp.

U.S. District Judge Vaughn Walker in San Francisco says the deal offers little significant benefit to the more than 6 million current and former customers affected.

Walker rejected the deal despite giving it preliminary approval earlier this year.

The proposed deal offered customers anti-spam software and a promise of tighter security at TD Ameritrade.

Walker says this deal offered no discernible benefit to the victims while helping the company improve its practices and providing nearly $1.9 million in legal fees.

Ameritrade spokeswoman Kim Hillyer said Monday that the company was disappointed in the ruling.