Pepsi Kronos data breach $12.75M class action settlement

Pepsi agreed to a $12.75 million settlement to resolve claims it failed to pay workers their full wages during a Kronos data breach. 

The settlement benefits a nationwide class of current and former Pepsi employees who were impacted by the Kronos outage between Dec. 5, 2021, and April 8, 2022.

The settlement also benefits two state subclasses of class members from New York or California.

According to plaintiffs in a class action lawsuit, Pepsi failed to accurately pay its workers following the Kronos data breach. The data breach reportedly affected Kronos hour tracking, causing Pepsi to underpay certain workers.

PepsiCo is a global brand that sells products such as sodas, chips, snacks and other drinks.

Pepsi hasn’t admitted any wrongdoing but agreed to a $12.75 million class action settlement to resolve these allegations. The company made payments of around $23.9 million to affected consumers in May 2022.

Under the terms of the Kronos data breach settlement, class members can receive a cash payment based on the amount they were underpaid due to the Kronos outage. 

Class members who were underpaid by at least $1 and who received a payment on May 6, 2022, will be considered Group 1. Group 1 class members can receive a pro rata portion of the net settlement fund. Exact payments will vary depending on the number of participating class members and the amount each class member was underpaid. Group 1 payments will comprise 65.3% of the net settlement fund.

Class members who were overpaid or paid net neutral are considered Group 2. Group 2 class members can receive a flat rate payment of $25. Group 2 payments will make up 9% of the net settlement fund.

Members of the California and New York subclasses can receive a payment of $25 each in addition to their Group 1 or 2 payments.

The deadline for exclusion and objection is Feb. 6, 2023.

The final approval hearing for the settlement is scheduled for April 4, 2023.

No claim form is required to benefit from the settlement. Class members who do not exclude themselves will automatically receive a settlement payment.

Who’s Eligible

Current and former Pepsi employees who were impacted by the Kronos outage between Dec. 5, 2021, and April 8, 2022.

The settlement benefits two state subclasses of class members from New York or California.

Potential Award

Varies

Proof of Purchase

N/A

Exclusion Deadline

02/06/2023

Case Name

Stevens, et al. v. PepsiCo. Inc., et al., Case No. 7-22-cv-00802-NSR, in the U.S. District Court for the Southern District of New York

Final Hearing

04/04/2023

Settlement Website

stevensvpepsicosettlement.com

Claims Administrator

PepsiCo Kronos Class/Collective Action Settlement
c/o Settlement Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
Info@StevensvPepsicoSettlement.com
833-400-1404

Class Counsel

Matthew S. Parmet
PARMET PC

Seth R Lesser
Jeffery A Klafter 
KLAFTER LESSER LLP

Joseph F Scott
Ryan A Winters
Kevin M McDermott II
SCOTT & WINTERS LAW FIRM LLC

Ryan Morgan
Andrew R Frisch
MORGAN & MORGAN PA

Michael D Lore
MICHAEL D LORE PC

Defense Counsel

Alison R Ashmore
DYKEMA GOSSETT LLP

Linda H Joseph
Ginger D Schroder
SCHRODER JOSEPH & ASSOCIATES LLP

Alexander M Chemers
OGLETREE DEAKINS