Court Grants Preliminary Approval Of $50 Million Settlement In Wendy’s Breach Case

WASHINGTON–The U.S. District Court for the Western District of Pennsylvania granted preliminary approval of a proposed settlement in the Wendy’s data breach case,

Wendys

which will pay $50 million to financial institutions.

The case, First Choice Federal Credit Union v. The Wendy’s Company was first brought by CUNA, leagues and credit unions that were affected by the data breach in 2016.  More than 1,000 Wendy’s locations were hit by a malware-driven credit card breach that began in the fall of 2015. Credit unions and other FIs alleged Wendy’s waited nearly five years to alert them to the breach.

Under the settlement, financial institutions have until September 30, 2019 to file claims. Valid claims will be paid based on the total number of alerted on cards related to this breach, CUNA said.

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
  • Financial institutions will be able to file claims for reimbursement without requiring supporting documentation. 
Section: Standard
Word Count: 276
Copyright Holder: CUToday.info
Copyright Year: 2019
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URL: http://www.cutoday.info/THE-news/Court-Grants-Preliminary-Approval-Of-50-Million-Settlement-In-Wendy-s-Breach-Case