Five Guys Enterprises LLC has agreed to pay $700,000 to settle a proposed class-action lawsuit brought against the fast-casual hamburger chain after a September 2022 data breach. The breach led to the exposure of the personal information of almost 38,000 employees and others.
Judge Claude M. Hilton of the US District Court for the Eastern District of Virginia granted preliminary approval for the settlement. The fund provided by the settlement will cover benefits to class members, attorneys’ fees and costs up to $251,000. Furthermore, it will also accommodate service awards of $2,500 to four class representatives and the expenses for administering the settlement.
Those included in the class-action could receive up to $400 in compensation for ordinary out-of-pocket losses and lost time due to this data breach. Class members who suffered extraordinary losses could be eligible for up to $6,500 in additional payments. Details of these costs were outlined in the plaintiffs’
motion for preliminary settlement approval.
In an alternative to this, the settlement also offers a cash payment of $150 in lieu of other claims and a payment of $100 for class members from California. Additionally, the members of the class-action lawsuit will receive two years of identity-theft protection and credit-monitoring services. The court has scheduled a final approval hearing for July 12.
The plaintiffs in this suit are represented by multiple firms including, but not limited to, Webster Book LLP, Morgan & Morgan PA, Maxey Law Firm PA, and Turke & Strauss LLP. Five Guys is represented by Baker & Hostetler LLP. The case reference is,
May v. Five Guys Enter. LLC, E.D. Va., No. 1:23-cv-00029, 1/4/24.