Five Guys Enterprises LLC will pay $700,000 to settle a proposed class action alleging it failed to protect the personal information of nearly 38,000 employees and others that was exposed in a September 2022 data breach.
Judge Claude M. Hilton of the US District Court for the Eastern District of Virginia granted preliminary approval Thursday of the settlement involving the fast-casual hamburger chain.
The settlement fund would cover benefits to class members, up to $251,000 in attorneys’ fees and costs, service awards of $2,500 to four class representatives, and the cost of administering the settlement, according to the plaintiffs’ motion for preliminary settlement approval.
Class members could receive up to $400 for ordinary out-of-pocket losses and lost time related to the breach. Those with extraordinary losses would be eligible for up to $6,500 in additional payments.
The deal also provides for an alternative cash payment of $150 in lieu of other claims, a payment of $100 for California class members, and two years of identity-theft protection and credit-monitoring services.
A final approval hearing has been set for July 12.
Webster Book LLP, Morgan & Morgan PA, Maxey Law Firm PA, Turke & Strauss LLP, Milberg Coleman Bryson Phillips Grossman PLLC, Arnold Law Firm, Wolf Haldenstein Adler Freeman & Herz LLP, and Cole & Van Note represent the plaintiffs.
Baker & Hostetler LLP represents Five Guys.
The case is May v. Five Guys Enter. LLC, E.D. Va., No. 1:23-cv-00029, 1/4/24.
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