Johnny Rockets FACTA Class Action Lawsuit Ends With $37 Million Deal

A Johnny Rockets FACTA class action lawsuit has concluded with a $37 million judgment that includes statutory and punitive damages, despite the restaurant filing a Chapter 7 bankruptcy.

Plaintiff Angela Potikyan initiated the Johnny Rockets FACTA class action lawsuit in August 2013, stating the restaurant unlawfully printed the last four digits of her card, the expiration date, along with her name and brand of card, on her receipt – a violation of the Fair and Accurate Credit Transactions Act.

The Johnny Rockets FACTA class action lawsuit was certified in December 2014.

A year later, the Calabasas Johnny Rockets chain, owned by JS Dreams Inc. and Cristcat Calabasas Inc., filed for Chapter 7 bankruptcy but six months later reached a settlement deal with the Class for $37.3 million.

Judgment Ordered in Johnny Rockets FACTA Class Action Lawsuit

U.S. Magistrate Judge John E. McDermott granted the motion for final approval of the Johnny Rockets FACTA class action lawsuit settlement and judgment at a fairness hearing in November.

“In making these findings, the court considered, among other factors, the potential statutory damages claimed in the lawsuit on behalf of plaintiff and members of the class, defendant’s bankruptcy and funds available therein, defendant’s potential liability, the risks of continued litigation including trial outcome, delay and potential appeals, the substantial benefits available to the class as a result of the settlement, and the fact that the settlement represents a compromise of the parties’ respective positions rather than the result of a finding of liability at trial,” the order says.

For her role in representing the class, Potikyan will received an incentive award for $5,000. The $27 million judgment also provides for attorneys’ fees in the amount of $24,313 and court costs totaling $10, 468.

Members of the Johnny Rockets FACTA class action lawsuit include “all consumers who, at any time during the period of January 18, 2012 to March 15, 2013 made a purchase or other transaction at the Johnny Rockets Calabasas Restaurant using their credit card or debit card.”

It is estimated that 33,735 issued debit and credit card receipts were not in compliance with FACTA rules during this time.

According to court documents, there were no objectors to the terms of the settlement and no class members requested exclusion. The class is represented by Chant Yedalian of Chant & Co. APC.

About FACTA Law

The Fair and Accurate Credit Transactions Act (FACTA) was established in order to protect consumers from identity theft by increasing accuracy, privacy and information sharing.

FACTA was passed by the U.S. Congress as an amendment to the Fair Credit Reporting Act (FCRA) on November 22, 2003, requiring businesses to truncate credit and debit card numbers and suppress printing of card expiration dates on electronically printed receipts issued to consumers.

However, many merchants have failed to meet FACTA compliant requirements and consumers have filed hundreds of lawsuits similar to the Johnny Rockets FACTA class action lawsuit against merchants who allegedly printed a truncated account number and the expiration dates on receipts, arguing that those merchants “willfully” violated FACTA.

FACTA law provides for statutory damages of $100 to $1,000 per willful FACTA violation. There is no cap on damages awarded under FACTA.

If you were provided an electronically printed debit or credit card receipt at the point of sale or transaction on which the expiration date or number of your credit or debit card was printed, you may be eligible to file a FACTA class action lawsuit.

The Settled Johnny Rockets FACTA Class Action Lawsuit is Angela Potikyan v. JS Dreams Inc. et al., Case No. 2:13-cv-06237, in the U.S. District Court for the Central District of California.

Free FACTA Class Action Lawsuit Investigation

If you made one or more purchases and the retailer provided you with a receipt that contained more than the last five digits of your credit or debit card number or the expiration date, you may be eligible for a free class action lawsuit investigation and to pursue compensation for these FACTA violations.

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