$12M Wawa Data Breach Settlement Moves Forward

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Wawa Data Breach Settlement Overview:

• Who: A judge gave preliminary approval to a settlement with Wawa in a class action lawsuit brought by customers and employees over a data breach, despite objections from some of the employees.
• Why: Employees disputed the settlement because they say they were not included in mediation, and because they wanted cash instead of gift cards, but the judge in the case ruled the employees would have a chance to voice their concerns later and the vouchers have a higher value than cash.
• Where: The initial lawsuit against Wawa over the data breach was filed in a Pennsylvania federal court.

A $12.2 million settlement that would put gift cards or cash in the pockets of Wawa customers affected by a 2019 data breach has taken another step forward.

On Friday, a Pennsylvania federal judge gave preliminary approval to the settlement, despite objections from Wawa employees who also sued the company, Law360 reported.

The proposed settlement is made up of $8 million worth of Wawa gift cards for those who used their payment cards at Wawa between March 4 and Dec. 12, 2019, and up to $1 million in cash payments to those who experienced out-of-pocket losses. 

The Class of employees who sued the company had argued they wanted cash, saying the gift cards amounted to “coupons” and that the workers weren’t invited to participate in mediation. However, U.S. District Judge Gene E.K. Pratter said the Class would have a chance to voice their concerns in future, and that the vouchers had a higher value than cash.

Wawa has also agreed to pay a separate $3.2 million lump sum to cover attorney fees and other costs associated with settlement administration. Again, the Class of employees questioned why the attorneys should get cash when they are getting vouchers, Law360 reported. The judge reportedly responded that the issue can be dealt with at a future date.

Wawa discovered malware on its payment processing servers in December 2019 that had been potentially exposing customer payment card information at most of its locations since March 4 that year, the convenience chain said. Wawa has almost 900 locations, including fuel dispensers.

In the proposed settlement, customers will fall into one of three class groups. The first group includes those who bought something at Wawa using their credit or debit card during the incident period and spent time monitoring their account because of the breach. Those Class members will get a $5 gift card. 

The second is for customers who made a purchase and can submit proof of a fraudulent charge or attempted charge, in exchange for a $15 gift card.

The third is for customers who can show any losses suffered as a result of using their card at Wawa during the security breach. Those members can get up to $500.

Those who don’t qualify for the group they apply to will automatically be eligible for compensation under the next closest group they appear eligible for, according to a motion.

Wawa also agreed to an injunction where it will strengthen its data security processes by, among other things, carrying out yearly simulated cyber attacks to hedge against vulnerabilities and operating a system that encrypts payment card information. 

The cost of this injunction to Wawa was estimated at $35 million, the motion states.

A series of suits sprung up in the wake of the Wawa data breach, which were consolidated in 2020. Wawa is also facing a class action lawsuit from a former employee who claims the convenience store chain fired him in the wake of the cybersecurity attack. 

Are you worried your financial information was compromised in the Wawa data breach? Leave a message in the comments section below.

The consumers are represented by Sherrie R. Savett of Berger & Montague PC; Roberta D. Liebenberg of Fine Kaplan & Black; Linda P. Nussbaum of Nussbaum Law Group PC and Benjamin F. Johns of Chimicles Schwartz Kriner & Donaldson-Smith LLP.

The Wawa Data Breach Class Action Settlement is In Re: Wawa Inc. Data Security Litigation, Case No. 2:19-cv-06019, in the U.S. District Court for the Eastern District of Pennsylvania.

Read About More Class Action Lawsuits & Class Action Settlements:

• Wawa Agrees to $13M Settlement in Data Breach Class Action
• Apple and Google Gambling Apps Class Action Lawsuit
• Wawa Class Action Says Workers Fired After Breach
• Wawa Class Action Filed Over Major Data Breach