Chipotle Data Breach Settlement Checks Mailed

Top Class Actions viewers have reported that they are receiving settlement checks from a Chipotle data brach class action settlement worth as much as $250. 

Class Members eligible to receive settlement checks include those customers who used a credit or debit card to make an in-store point-of-sale purchase at any affected Chipotle or Pizzeria Locale restaurant in the United States, while card data at the store was at risk of hacking.

These customers must have incurred expenses or spent time dealing with the repercussions of the alleged Chipotle data breach. The breach occurred between March 24, 2017 and April 18, 2017, though various stores were affected on different dates during this time period.

Expenses and injuries eligible for reimbursement included out-of-pocket expenses, fraudulent charges made on cards used, time spent recovering from the breach, and extraordinary monetary losses that occurred because of the alleged Chipotle security breach. 

Those customers who made purchases from the restaurants online were not eligible for compensation from the Chipotle, Pizzeria Locale data breach class action settlement.

Customers filed a class action lawsuit arguing that the company that owns both Chipotle Mexican Grill and Pizzeria Locale should be held liable for a data breach that occurred at the restaurants. Allegedly, the company did not have sufficient security measures in place to prevent the data breach.

Specifically, customers argued that Chipotle did not upgrade its cash registers when more secure devices became available in 2015. According to customers, the company made this decision to not upgrade because the company worried that the new machines would slow down lines. However, this choice reportedly exposed customers to the data breach that occurred in 2017. 

The customers said that Chipotle could have taken better steps to prevent the data breach. Allegedly, the company was aware or should have been aware of other data breaches that affected other companies, and should have used their example to improve its own processes and prevent a data breach.

According to the Chipotle class action lawsuit, the company’s failure to do so led to customers being needlessly affected.

The company does not admit any liability in the Chipotle data breach class action lawsuit, but agreed to reach a settlement with customers nonetheless. Customers and the company agreed that reaching a settlement would be preferable compared to continuing to incur the costs of litigation, and would be more preferable than the risk of facing an unfavorable verdict. 

Chipotle agreed to pay a settlement that would help compensate customers for costs that they incurred when dealing with the alleged data breach. Experiencing a data breach can be costly, and it may take years for a victim to fully recover. 

Those who have their information stolen may face fraudulent charges on their cards, accounts taken out in their name, and may have their credit score impacted. These occurrences can take time to rectify, and repairing a credit score can be a long endeavor. 

In addition to providing cash benefits to affected customers, Chipotle has agreed to improve processes as part of the settlement agreement. Chipotle has agreed to implement a system that encrypts credit card data from customers, and has said it will do this within 12 months of the effective date of the settlement agreement. 

Additionally, the company has agreed to undergo testing of its card data security, and has agreed to provide credit card security training to its employees. These steps will reportedly help Chipotle from having similar data breaches occur in the future.

The deadline to file a claim for settlement money was Nov. 16, 2019.

Congratulations to our Top Class Actions readers who submitted a valid claim and got PAID! If you missed out, sign up for our free newsletter to receive updates on new class action lawsuits and settlements. You can also check out which class action settlements are still accepting claims in our Open Class Action Settlements section.

Customers were represented by Benjamin F. Johns and Andrew W. Ferich of Chimicles Schwartz Kriner & Donaldson-Smith LLP, Tina Wolfson and Theodore Maya of Ahdoot & Wolfson PC and Jean Sutton Martin of Morgan & Morgan. 

The Chipotle Data Breach Class Action Lawsuit is Gordon, et al. v. Chipotle Mexican Grill Inc., Case No. 1:17-cv-01415-CMA-SKC, in the U.S. District Court for the District of Colorado.

Did you receive a settlement check in the mail? Let us know in the comments section below.

Read More Lawsuit & Settlement News:

Delta Class Action Says Passengers Owed COVID-19 Refunds

Students File College Tuition Refund Lawsuits After Pandemic Forces Classes Online

Baby Powder Cancer Class Action Lawsuit Investigation

Bank of America Call Recording Lawsuit Reaches $1.9M Settlement