Sonic Corp. data breach financial institutions $5.73M class action settlement

Update:

• Final approval for this class action settlement was granted Oct. 17, 2022.

• Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.

The owners of Sonic restaurants have agreed to pay up to $5.73 million as part of a class action lawsuit settlement resolving claims from financial institutions that a 2017 data breach forced financial institutions to issue new payment cards to their customers.

Class members include clients of American Airlines Federal Credit Union, Redstone Federal Credit Union and Arkansas Federal Credit Union who were issued a new payment card in light of the Sonic Corp. data breach that occurred between April 7 and Oct. 28, 2017.

Consumers from American Airlines Federal Credit Union, Redstone Federal Credit Union and Arkansas Federal Credit Union whose cards were affected by the data breach are eligible to receive one of the following:

• Reissuance payment: $1 for each payment card reissued in light of the Sonic data breach
• Fraud payment: $1.50 for each payment card that experienced fraud during the four-week window after the cards were placed on alert in light of the data breach

For any card that was reissued and experienced fraud, consumers must choose between receiving a reissuance payment or a fraud payment. Consumers may not receive both payments for the same card.

Sonic is a chain of drive-in fast-food restaurants with more than 3,500 locations throughout the United States, according to the company’s website.

Of the $5.73 million settlement, $2.2 million has been allocated to pay for attorney fees and costs, $500,000 will be used to cover the costs of settlement administration, and up to $30,000 will be used to pay service awards for class representatives.

Class members who submit valid claim forms will be eligible to receive payments from the remaining $3 million.

The deadline for a financial institution to be excluded from the settlement is Sept. 7, 2022.

If a consumer’s financial institution excludes itself from the settlement, they will not be eligible to receive money from the Sonic Corp. consumer data breach class action lawsuit settlement.

Class members and affected consumers are eligible to attend a fairness hearing scheduled for Oct. 6, 2022.

The deadline to submit a claim for benefits from the Sonic Corp. consumer data breach class action lawsuit settlement is Sept. 7, 2022.

Who’s Eligible

Class members include clients of American Airlines Federal Credit Union, Redstone Federal Credit Union, and Arkansas Federal Credit Union who were issued a new payment card in light of the Sonic Corp. data breach that occurred between April 7 and Oct. 28, 2017.

Potential Award

TBD

Proof of Purchase

Provide information about the payment account numbers 

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

09/07/2022

Case Name

In re: Sonic Corp. Customer Data Breach Litigation – Financial Institutions Track, MDL Case No. 1:17-md-02807-JSG, in the Northern District of Ohio, Eastern Division at Cleveland

Final Hearing

10/06/2022

Settlement Website

SonicDataBreachFinancialInstitutionSettlement.com

Claims Administrator

Sonic Corp. Customer Data Breach Litigation
P.O. Box 43434
Providence, RI 02940-3434
888-320-0971

Class Counsel

Brian C Gudmundson
ZIMMERMAN REED LLP

Defense Counsel

David M Poell
SHEPPARD MULLIN RICHTER & HAMPTON LLP