Aside from this, they are also entitled to receive a $1.99 account credit.Īccording to the settlement terms, the amount each class member will receive will vary on the number of claims that will be accepted. The proposed settlement states that class members are eligible to receive $14 each, at a minimum, as compensation for the damages caused by the data breach. On March 30, 2020, lawyers of the consolidated class action lawsuit requested the judge to approve the proposed settlement. They were able to reach an initially approved settlement in January 2021. It aims to represent around 2.5 million users who were affected by the data breach.Īfter it was filed, Drizly requested an arbitration process where both the company and plaintiffs will discuss, negotiate and agree on a proposed settlement. The consolidated class action lawsuit was filed in a Massachusetts federal court. In October 2020, all the related lawsuits were amended and combined into one class action lawsuit. The plaintiffs contend that the company failed to protect its users’ information from the data breach. Soon after James filed the class action lawsuit, multiple cases were filed against the company with similar allegations. The lead plaintiff argues that Drizly’s lack of prompt action to solve the issue and inform customers has impacted the security and privacy of millions of users whose data were exposed. However, TechCrunch reported that vital customer data had been revealed, including contact information, geolocation, payment history, and credit card information. The company states that no payment information was exposed in the breach and that only 2% of the records stolen contained delivery address information. Millions of personal information have been revealed to hackers, including birthdays, names, email addresses, and delivery addresses. While the issue happened in February, Drizly has only notified customers about the incident around July, five months after the problem occurred. The lead complainants attest that more than 2.5 million user data have been exposed due to the data breach. He asserts that the company has been negligent in fixing and informing customers about the data breach they encountered in February 2020. James Barr, the lead plaintiff, filed the class action lawsuit against Drizly in August 2020. Class Action Settlements Drizly Data Breach Settlement For $7.1 Million…īy Consider The Consumer on The Drizly Data Breach Class Action Lawsuit Settlementĭrizly, an alcohol eCommerce platform, will possibly pay out a $7.1 million settlement to resolve allegations regarding its data breach.
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