Financial institutions

Sonic Corp. Financial Institutions Data Breach $5.73 Million Class Action Settlement

Sonic Restaurant owners have agreed to pay up to $5.73 million in a class action lawsuit resolving claims by financial institutions that a 2017 data breach forced financial institutions to issue new cards payment to their customers.

Class members include customers of American Airlines Federal Credit Union, Redstone Federal Credit Union and Arkansas Federal Credit Union who received a new payment card in light of the Sonic Corp data breach. which occurred between April 7 and October 28, 2017.

American Airlines Federal Credit Union, Redstone Federal Credit Union, and Arkansas Federal Credit Union consumers whose cards were affected by the data breach are eligible to receive one of the following:

  • Reissue payment: $1 for each payment card reissued in light of the Sonic data breach
  • Fraudulent Payment: $1.50 for each payment card that experienced fraud during the four-week window after the cards were alerted due to the data breach

For any card that has been reissued and suffered fraud, consumers must choose between receiving a reissue payment or a fraudulent payment. Consumers cannot receive both payments for the same card.

Sonic is a chain of fast food restaurants with more than 3,500 locations across the United States, according to the company’s website.

Of the $5.73 million settlement, $2.2 million has been allocated to pay attorneys’ fees and expenses, $500,000 will be used to cover settlement administration costs and up to 30 $000 will be used to pay the service premiums of the group representatives.

Class members who submit valid claim forms will be eligible to receive payments from the remaining $3 million.

The deadline for a financial institution to be excluded from the settlement is September 7, 2022.

If a consumer’s financial institution opts out of the settlement, it will not be eligible to receive any money from the Sonic Corp Consumer Data Breach Class Action Settlement.

Class Members and Affected Consumers are eligible to attend a Fairness Hearing scheduled for October 6, 2022.

The deadline to submit a claim for benefits under the Sonic Corp. Consumer Data Breach Class Action Settlement. is September 7, 2022.