Kroger Agrees to $5 Million Settlement Over Software Data Breach

The Kroger Co. agreed to a $5 million class action settlement with consumers who sued over a breach of software vendor Accellion Inc.'s file-transfer system.

The grocery and pharmacy chain also must boost its third-party vendor risk management under the settlement proposed Wednesday in the U.S. District Court for the Northern District of California.

Consumers sued Kroger and Accellion after a data security incident hit the vendor and allowed hackers to steal data from some of its software clients. The incident compromised personal information on about 3.82 million Kroger employees and pharmacy customers, according to the lawsuit.

The proposed settlement ...