The U.S. District Court for the Western District of Pennsylvania granted preliminary approval of a proposed settlement in the First Choice Federal Credit Union v. The Wendy’s Company, a data breach lawsuit brought by Credit Union National Association (CUNA), Leagues, and credit unions affected by the data breach, on Feb. 26.
The lawsuit stems from a 2016 data breach at select Wendy’s franchise location and a proposed settlement was submitted to the court Feb. 13. 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 related to this breach.
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.