If this is compensation for an actual financial loss (such as the cost of identity theft restoration services) then it would probably not be taxable unless the settlement exceeded the loss. However, since this is probably a settlement for loss of privacy and possible future loss, it's taxable.
Also note that settlements for losses on the value of stocks you own (such as due to company mismanagement or malfeasance) might be eligible to be treated as capital gains income rather that ordinary income, and taxed at a lower rate. We can discuss that in more detail if you like.
