Wendy’s Offers Staggering $50 Million Settlement After Security Breach
The well-known fast food chain reached an offered settlement amount after their point-of-sale systems were breached, leaving many entities and consumers left canceling cards and handling fraudulent activity.
The initial class action lawsuit was filed in February of 2016, Torres v. Wendy’s International, and later settled for $3.4 million. However, in April of 2016, “Pennsylvania-based First Choice Federal Credit Union filed a lawsuit, seeking class-action status on behalf of all affected financial institutions. The lawsuit seeks to have Wendy’s compensate affected card issuers for breach-related losses and expenses, such as the cost of reissuing cards and compensating cardholders for fraud losses,” Data Breach Today writes. Additionally, the fast food mogul is formally expected to update their security measure to ensure this issue is one of the past.
It is estimated that a staggering 18 million cards, issued by 7,500 various financial institutions, were compromised during the breach. Fortunately, it seems this current lawsuit may be nearing resolution as Wendy’s has offered a $50 million dollar settlement, fronting only $27.5 million while insurance disperses the remaining figure.
“By way of example, if valid claims are submitted for all eligible cards, it is estimated that settlement class members could receive approximately $2.00 per eligible payment card,” the proposed settlement reads. “If, for example, 40 percent of eligible payment cards are submitted, then settlement class members could receive approximately $4.80 per eligible payment card.”
Breaches as uninvited guests every online business performing company must adopt healthy IT Security practices.