California Wendy’s Gift Card Redemption Class Action Settlement

A settlement has been preliminarily approved between Wendy’s California restaurants and a group of gift card holders claiming Wendy’s violated California law by refusing to redeem Wendy’s gift cards for their cash value upon customer request when the remaining value on the card was less than $10.

In August 2015, plaintiff Sherryle Barker filed a putative class action lawsuit against Wendy’s alleged that she received a gift card purchased in California redeemable at participating Wendy’s retail locations.

Barker claims that when she sought to redeem her gift card for cash at a Wendy’s location in June 2015, she was unable to do so, although the gift card had a cash value of less than $10 – a violation of California’s Gift Card Redemption Policy.

Under the terms of the proposed settlement deal, Wendy’s will redeem physical cards with balances of less than $10 presented by customers for redemption in-store in cash. California customers seeking redemption for digital accounts with balances of less than $10 can have their request processed via check by Wendy’s customer service.

Additionally, Wendy’s will post a notice to employees for a period of 90 days in an employee-only area, describing their obligations to redeem gift cards with balances less than $10 upon customer request.

Within 60 days of the effective settlement date, Wendy’s International will provide permanent notice of California law by adding California’s Redemption Policy language to their web page.

Pending Court approval, Barker will also receive an incentive award of $2,500 for her role as Class Representative and Class Counsel will receive attorneys’ fees and costs of $62,500. These payments will not reduce the Class benefits.

Wendy’s denies any wrongdoing and contends that they have a policy in place consistent with California law, but concluded that it’s in their best interests to settle this lawsuit to avoid expense and interference with ongoing business operations.

There is no Claim Form or deadline to redeem Wendy’s gift cards with a balance less than $10 for cash. However, Class Members who wish to exclude themselves from the settlement must do so by Feb. 15, 2017.

Class Members who wish to object to the terms of the settlement must do so no later than Feb. 10, 2017.

Who’s Eligible

Eligible Class Members include “all persons as of October 28, 2016 who possess or have possessed a Wendy’s gift card purchased pursuant to a transaction in the State of California.”

Potential Award

Varies.

The California Wendy’s gift card settlement provides the following benefits for Class Members:

“Wendy’s California Restaurants will redeem physical gift cards with balances of less than $10.00 presented by customers for redemption in-store in cash, and will provide California customers seeking redemption for Digital Accounts with balances of less than $10.00 with a contact number for Customer Service, which will give instructions on how to redeem the digital account balance.”

In addition, for 90 days, in an employee only area, Wendy’s California Restaurants will post a notice of California gift card redemption law, stating that all Wendy’s Gift Cards with a balance of less than $10 are redeemable for cash.

Wendy’s will provide permanent notice of California Gift Card Redemption Law on its webpage.

The settlement also requires new educational training for all customer-facing employees of Wendy’s California restaurants as to the proper procedure to redeem Wendy’s gift cards for cash.

Proof of Purchase

N/A

Exclusion Deadline

2/15/2017

Claim Form

Class Members do not need to submit a Claim Form in order to recover benefits from this settlement.

Under the terms of the settlement, Wendy’s California restaurants will redeem physical gift cards with balances of less than $10 presented by customers for redemption in-store in cash.

California customers seeking redemption for digital accounts with balances of less than $10 can call Wendy’s customer service at 1-888-624-8140 for instructions on how to redeem their digital account balance.

Case Name

Sherryle Barker, et al. v. Wendy’s International LLC, et al., Case No. 37-2015-00028834-CU-BT-CTL, in San Diego County Superior Court

Final Hearing

2/24/2017

Settlement Website

www.WendysCardClassAction.com

Claims Administrator

Sherryle Barker, et al. v. Wendy’s International LLC, et al.
c/o Heffler Claims Group
PO Box 5844
Philadelphia, PA 19102-8443
619-795-6580 or 415-310-1940

Class Counsel

Robert B. Hancock
PACIFIC JUSTICE CENTER

Gary D. Garcia
LAW OFFICE OF GARY D. GARCIA

Defense Counsel

Andrew E. Paris
ALSTON & BIRD LLP