Eddie Bauer Agrees to $10M Data Breach Class Action Settlement

Eddie Bauer and Veridian Credit Union have reached a $9.8 million settlement, ending claims that Eddie Bauer’s lack of adequate security led to more than 1 million Veridian customer accounts being exposed to a data breach that occurred in January 2016.

The proposed settlement deal was filed on Friday in Washington federal court, and awaits preliminary approval.

The Eddie Bauer class action settlement was reached followed two years of litigation between the two companies, which reportedly included a day-long, in-person mediation meeting held in February.

The parties say this proposed settlement deal is the best way to give relief to Class Members — those whose personal information was compromised in the data breach.

Veridian stated that the settlement deal was also advantageous, choosing to pursue the deal to avoid the possible continued costs and risks of continued litigation with Eddie Bauer.

The proposed Eddie Bauer data breach class action settlement deal is valued between $1 million and $2.8 million to help affected consumers recover from the impact of the data breach. Reportedly, the Eddie Bauer class action settlement will offer $2 to each consumer that had a card affected by the data breach.

If the number of claims filed results in claims under $1 million, individual payouts will be increased until the total amount given to Class Members reaches $1 million, meaning each Class Member receives more.

The settlement also requires Eddie Bauer to increase its security efforts. Reportedly, this endeavor will cost more than $5 million. In addition, $2 million will be given to cover attorneys fees and fund the administration of the settlement.

The Class representative will receive $10,000 for their role in the Eddie Bauer data breach class action lawsuit.

The Eddie Bauer data breach class action lawsuit was filed by Viridian Credit Union on behalf of Veridian customers in March 2017, after a data breach in January 2016 compromised consumer information at around 350 Eddie Bauer stores in the United States and Canada.

Veridian claims that its customers, and Veridian itself, were injured by Edie Bauer’s failure to implement adequate security to protect consumer information from the data breach. Allegedly, consumer information was left vulnerable to use by hackers and thieves, exposing them to identify theft.

Before the settlement deal was struck, Eddie Bauer attempted to have the data breach class action lawsuit dismissed, a move which was mostly denied in November 2017.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

Veridian Credit Union is represented by Kim D. Stephens and Chase C. Alvord of Tousley Brain Stephens PLLC, Joseph R. Guglielmo and Erin G. Comite of Scott & Scott Attorneys at Law LLP, Gary F. Lynch and Kevin W. Tucker of Carlson Lynch Sweet Kilpela & Carpenter LLP, and Karen H. Rebel and Kate Baxter-Kauf of Lockridge Grindal Nauen PLLP.

The Eddie Bauer Data Breach Class Action Lawsuit is Veridian Credit Union v. Eddie Bauer LLC, Case No. 2:17-cv-00356, in the U.S. District Court for the Western District of Washington.
UPDATE: July 2019, the Eddie Bauer data breach class action settlement is now open.Click here to file a claim.

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