Court grants preliminary approval of Wendy’s lawsuit settlement
On Feb. 26 the U.S. District Court for the Western District of Pennsylvania granted preliminary approval of a proposed settlement in First Choice Federal Credit Union v. The Wendy's Company, a data breach lawsuit brought by CUNA, leagues and credit unions affected by a data breach. The parties submitted their proposed settlement to the court Feb. 13, which would conclude the lawsuit stemming from a 2016 data breach at certain Wendy’s franchise locations.
Notice will be mailed to eligible class members by March 28. Under the settlement, financial institutions have until Sept. 30 to file claims. Valid claims will be paid based on the total number of alerted on cards for this breach.
CUNA will keep members informed of the latest developments.
Under the terms of the proposed settlement:
- Wendy’s will pay $50 million into a fund to compensate financial institutions that issued payment cards that were alerted on cards in connection with the data breach;
- Wendy’s will adopt and/or maintain certain data security measures; and
- Financial institutions will be able to file claims for reimbursement without requiring supporting documentation.