Kimpton Hotels Agrees to Settle Data Breach Class Action Lawsuit

A settlement has been reached in a class action between Kimpton Hotels and a group of consumers who sought compensation for damages sustained after a 2016 data breach.

Lead plaintiff Andrew Parsons and Kimpton Hotel & Restaurant Group LLC have reached a proposed a settlement which would resolve a class action filed in 2016.

The proposed Kimpton settlement would award the Class Members $250 each for expenses related to the data breach, including bank fees and cellphone charges.

The Kimpton Hotel class action settlement would also award up to $10,000 for Class Members with “extraordinary loss.” However, every Class Member is not expected to have extraordinary losses and the settlement is capped at $600,000.

“Through both the opportunity to receive direct monetary payments from Kimpton in amounts up to $250, and up to $10,000 for the extraordinary loss, and from continuing enhancements to Kimpton’s information security posture, settlement Class Members benefit by the proposed settlement agreement in a meaningful way,” the proposed Kimpton data breach class action settlement states.

Aside from the monetary awards outlined for each Class Member, the settlement also contains additional terms for class counsel, lead plaintiff, and defendant expectations. The settlement allows class counsel to seek an award of court costs and attorneys’ fees, not exceeding $800,000. As the lead plaintiff, Parsons would be awarded a $5,000 service award.

Additionally, Kimpton agreed to implement new security measures to safeguard consumer data and prevent further data breaches.

Should the court approve the proposed Kimpton Hotel data breach class action settlement, notice will be sent to some 150,000 Class Members via their physical address or email address, if available. Other Class Members are expected to be notified via publications and online banners.

After being informed, Class Members will have the opportunity to object to the proposed settlement and opt-out if needed.

The Kimpton class action was originally filed in 2016, following Kimpton’s announcement that it was subject to a data breach.

An investigation launched by the company revealed that consumer payment information had been compromised by malware installed onto Kimpton servers by hackers. The breach resulted in unauthorized charges on credit and debit cards that had been used at a Kimpton hotel restaurant.

Although Parsons is the current lead plaintiff, he was not the original lead plaintiff in the case. Consumer Lee Walters originally filed the proposed class action, alleging violations of California state business laws. Walters claimed that Kimpton had failed to secure consumer payment information.

In April 2017, U.S. District Judge Vince Chhabria kept the majority of Walters’ claims and denied Kimpton’s argument that Walters had not shown that he faced an increased risk of identity theft following the breach.

Walters’ claims were voluntarily dismissed in January 2018, although the claims made by Parsons and the proposed Class still stayed. No reason was given for Walters’ dismissal, and Parsons then became the lead plaintiff for the Kimpton data breach class action.

Parsons was added as a plaintiff in August 2017, alleging that his payment information was compromised after he stayed in a Kimpton hotel during the “at-risk window.”

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

Parsons is represented by Michael F. Ram and Susan S. Brown of Robins Kaplan LLP; Matt Malone of Rock Law LLP; and John A. Yanchunis and Marisa Glassman of Morgan & Morgan Complex Litigation Group.

The Kimpton Hotel & Restaurant Group Data Breach Class Action Lawsuit is Parsons v. Kimpton Hotel & Restaurant Group LLC, Case No. 3:16-cv-05387-VC, in the U.S. District Court for the Northern District of California.

UPDATE: On Aug. 9, 2018, a plaintiff urged a California federal judge to preliminarily approve a revised class action settlement with Kimpton Hotel & Restaurant Group LLC over a 2016 data breach.

UPDATE 2: On Sept. 13, 2018, for the second time, the federal judge overseeing a Kimpton data breach class action lawsuit has denied a proposed settlement.

UPDATE 3: March 2019, the Kimpton Hotels data breach class action settlement is now open. Click here to file a claim.