Five Guys Enterprises LLC has agreed to pay $700,000 in a settlement to resolve a class action lawsuit that accused the fast-casual hamburger chain of neglecting to safeguard the personal data of approximately 38,000 employees and others exposed in a September 2022 data breach.
On Thursday, Judge Claude M. Hilton of the US District Court for the Eastern District of Virginia granted preliminary approval to the settlement, which encompasses benefits for class members, up to $251,000 for attorneys’ fees and costs, $2,500 service awards for four class representatives, and the expenses associated with administering the settlement, as stated in the plaintiffs’ motion for preliminary settlement approval.
Under the terms, class members may be compensated up to $400 for ordinary out-of-pocket losses and time lost due to the breach. Individuals with extraordinary losses could be eligible for additional payments of up to $6,500.
The agreement also allows for an alternative cash payment of $150 in lieu of other claims, a $100 payment for California class members, and two years of identity theft protection and credit monitoring services. A final approval hearing is scheduled for July 12.
Plaintiffs are represented by 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, while 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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