Wendy’s Agrees to Settle Data Breach Class Action Lawsuit

June 5, 2018 at 08:35AM
via Top Class Actions

Fast food chain Wendy’s has agreed to settle a class action lawsuit alleging that a 2016 data breach exposed customer information to hackers and other unauthorized parties.

The Wendy’s class action lawsuit claims that customers’ financial information was exposed in the data breach. One of the plaintiffs Jonathan Torres says he was hit with $600 in unauthorized charges due to the breach.

The Wendy’s class action lawsuit also alleges that the malware used in the data breach was similar to previous attacks on major retailers and Wendy’s should have been prepared to combat the intrusion.

“Wendy’s approach at maintaining the privacy of Plaintiff’s and Class members’ [personally identifiable information (PII)] was lackadaisical, cavalier, reckless, or at the very least, negligent,” alleged the Wendy’s data breach class action lawsuit.

In a single page order, U.S. District Court Judge Paul G. Bryon noted that Wendy’s and the plaintiffs had settled the Wendy’s class action lawsuit. The judge ordered the case closed contingent upon a timely filed final order or judgment or for good cause shown to reopen the case.

The Wendy’s data breach class action settlement notes that the chain denies any liability in the matter, but seeks to avoid the time and expense of additional litigation.

According to the Wendy’s data breach class action lawsuit, the fast food chain neglected security measures, leaving customers’ personal and financial information exposed.

Further, alleged the data breach class action lawsuit, Wendy’s failed to notify affected customers in a timely manner and also underestimated the extent of the data breach. Initially, the company reported that only 300 of its locations had been hit with the data breach, but then revised its estimate to more than 1,000 sites.

Wendy’s also agreed in an action separate to this class action lawsuit to curtail a lawsuit brought by shareholders in Ohio. The shareholders made similar allegations that Wendy’s executives failed to improve data security at the company even after reports of malware attacks at other retailers.

The Wendy’s data breach class action lawsuit faced two dismissal actions. In one dismissal, several lead plaintiffs lost standing to sue based on Wendy’s arguments that their claims were not suitable for the Class.

The chain also argued that the Wendy’s data breach class action lawsuit should be dismissed because all of the potential Class Members’ claims were too individual to be appropriate for a class action. Wendy’s said that thousands or even millions of lawsuits would be necessary to cover all of the potential allegations, including claims for hacked financial accounts to lost credit card points.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The Wendy’s customers are represented by John A. Yanchunis Sr. of Morgan & Morgan Complex Litigation Group and Jean Sutton Martin of the Law Office of Jean Sutton Martin PLLC.

The Wendy’s Data Breach Class Action Lawsuit is Jackson, et al. v. Wendy’s International LLC, Case No. 6:16-cv-00210, in the U.S. District Court for the Middle District of Florida, Orlando Division.

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