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Financial Services Law Insights and Observations

District Court grants preliminary approval of class action settlement against national convenience store chain

Courts Data Breach Privacy/Cyber Risk & Data Security Class Action


On July 30, the U.S. District Court for the Eastern District of Pennsylvania granted preliminary approval of a settlement in a class action against a national convenience store chain (defendant) for a 2019 data security incident that allegedly compromised consumers’ credit and debit card information. As previously covered by InfoBytes, class members—comprised of a nationwide group of consumers whose information was allegedly compromised in the data security incident—claimed that “despite the foreseeability of a data breach” the defendant, among other things, “failed to implement adequate measures to protect the sensitive, non-public payment card information entrusted to it by its customers.” In May, the court ruled that the defendant must face certain claims filed by a group of financial institutions (covered by InfoBytes here). Under the terms of the preliminarily approved settlement, the defendant must provide monetary relief to class members totaling approximately $9 million, plus $3.2 million for attorneys’ fees and expenses and class representative service awards, in addition to requiring the defendant to take additional measures for a period of two years to prevent future unauthorized intrusions. The settlement includes three tiers of customers, who will receive gift cards for either $5 or $15, or $500 in cash, depending on the level of their injury caused by the data breach.

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