The Drizly Data Breach Class Action Lawsuit Settlement
Drizly, an alcohol eCommerce platform, will possibly pay out a $7.1 million settlement to resolve allegations regarding its data breach.
James Barr, the lead plaintiff, filed the class action lawsuit against Drizly in August 2020.
He asserts that the company has been negligent in fixing and informing customers about the data breach they encountered in February 2020.
The lead complainants attest that more than 2.5 million user data have been exposed due to the data breach.
While the issue happened in February, Drizly has only notified customers about the incident around July, five months after the problem occurred.
Millions of personal information have been revealed to hackers, including birthdays, names, email addresses, and delivery addresses.
The company states that no payment information was exposed in the breach and that only 2% of the records stolen contained delivery address information.
However, TechCrunch reported that vital customer data had been revealed, including contact information, geolocation, payment history, and credit card information.
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.
Class Action Lawsuit Updates
Soon after James filed the class action lawsuit, multiple cases were filed against the company with similar allegations.
The plaintiffs contend that the company failed to protect its users’ information from the data breach.
In October 2020, all the related lawsuits were amended and combined into one class action lawsuit.
The consolidated class action lawsuit was filed in a Massachusetts federal court. It aims to represent around 2.5 million users who were affected by the data breach.
After it was filed, Drizly requested an arbitration process where both the company and plaintiffs will discuss, negotiate and agree on a proposed settlement. They were able to reach an initially approved settlement in January 2021.
On March 30, 2020, lawyers of the consolidated class action lawsuit requested the judge to approve the proposed settlement.
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. Aside from this, they are also entitled to receive a $1.99 account credit.
According to the settlement terms, the amount each class member will receive will vary on the number of claims that will be accepted.
U.S. District Court Judge Leo T. Sorokin has provided initial approval of the proposed settlement amounting to $7.1 million.
Drizly has acknowledged to pay out the following:
- $1.05 million to $3.15 million compensation that will be divided to the class members
- $447,050 for account credits
- $1.2 million for admin fees to lawyers
The proposed settlement terms declare that class members are not required to submit proof of damages.
The company has agreed to notify affected class members via email.
Editor’s Note on Drizly Data Breach Settlement For $7.1 Million:
This article is published to inform you of the latest settlement Drizly will possibly payout to resolve data breach allegations.
Case Name & No.: Barr v Drizly LLC fka Drizly Inc. et al., 1:20-cv-11492, U.S. District Court for Massachusetts
Products/Services: Data Breach
Allegations: Drizly failed to protect customers’ private information during a data breach
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Similar Settlement: Yahoo Massive Data Breach Settlement.