spot_imgspot_img

Utah attorney general claims victory in Wawa data breach settlement case

(The Center Square) – The United States Court of Appeals for the Third Circuit recently sided with a coalition of attorneys general led by Utah Attorney General Sean D. Reyes.

It happened after Reyes led an amicus brief in Wawa v. Frank.

The decision gave, “the Utah Attorney General’s Office a legal victory in an important case involving a question of reasonable settlement awards to consumer class members and class counsel,” according to Reyes’ office.

This challenge came about after Wawa’s settlement of a nationwide data breach case gave more money to class counsel ($3.2 million in fees) than it did to the victims in question; the victims received $80,000 cash and a potential for $2.8 million in low-value gift cards.

The class counsel got that amount based on $9 million in gift cards initially being made available to class members by Wawa. However, that figure was scaled down, and the attorneys general argue that the actual relief delivered is far lower and that fewer than 5% of these gift cards are likely to be redeemed.

The attorneys general argued that the attorneys should receive fees based on what settlement relief class members receive. In this instance, class counsel would likely receive over 93% of the settlement value due to the low redemption rates of the low-value gift cards, the attorneys general contended.

“For example, if recipients of the delivered gift cards redeemed on the high end of the studies (5%), that would represent an award of $140,000 (in addition to the $80,000 in cash) to consumer class members compared to the $3.2 million designation to class counsel,” a release said.

In the appeals court opinion, a panel of three judges sided with the attorneys general; their ruling axed the previous determination of awarded fees and remanded the case to the district court for reconsideration.

Judge Paul Matey wrote the decision. In it, he directed the lower court “to consider whether ‘the funds made available to class members rather than the amount actually claimed during the claims process’ is the best measure of reasonableness; and whether the fee award is reasonable in light of any side agreements between class counsel and Wawa.”

Reyes praised the Court for its decision.

“Throughout my time in office, I have worked to safeguard the economic interests of hard-working Americans,” Reyes said. “In this case, our team in Utah led a national coalition of states determined to fight for our citizens. I applaud the decision of the Court to stand with consumers and create sensible precedent for future class actions. Thank you to all of my AG colleagues who joined in our successful amicus brief.”

Other states that joined Utah on the amicus brief include: Alabama, Arkansas, Indiana, Kentucky, Montana, South Carolina, Tennessee, Texas, and Virginia.

Read the amicus brief here.

DON’T MISS OUT

Be the first to know about the latest news, giveaways, events, and updates from The Black Chronicle!

We don’t spam! Read our privacy policy for more info.

spot_imgspot_img
spot_img

Hot this week

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Illinois ports continue to grow and attract investment

(The Center Square) – When most think of ports,...

Harris, Trump setting rally sites for final 72 hours

(The Center Square) – Presidential hopefuls Kamala Harris and...

2.5 million from 4 Central America countries illegally entered US since 2021

Under the Biden-Harris administration, more than 2.5 million illegal...

Proposed legislation would restore $1.6M in funding for the Seattle Channel

(The Center Square) – The Seattle City Council’s proposed...

Major overhaul expected for Grand Avenue

(The Center Square) – Arizona's West Valley drivers could...

Full sexual harassment report released against Maricopa County sheriff candidate

(The Center Square) – Reports of sexual harassment and...

Survey: Fox News, CNN lead ‘traditional’ sources for election news

As the country gets unlimited access to information on...

More like this
Related

Illinois ports continue to grow and attract investment

(The Center Square) – When most think of ports,...

Harris, Trump setting rally sites for final 72 hours

(The Center Square) – Presidential hopefuls Kamala Harris and...

2.5 million from 4 Central America countries illegally entered US since 2021

Under the Biden-Harris administration, more than 2.5 million illegal...

Proposed legislation would restore $1.6M in funding for the Seattle Channel

(The Center Square) – The Seattle City Council’s proposed...