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Users of alcohol delivery app Drizly have been granted tentative approval by a judge for a $7.1 million class action settlement over allegations that the company gave hackers access to users’ personal information.
Attorneys on Tuesday, March 30, filed a motion asking a Massachusetts federal court judge to approve the settlement, which would allow Drizly users whose personal data was stolen to claim at least $14, plus a $1.99 account credit.
Those amounts could change depending on how many claims are ultimately approved in the settlement. US District Court Judge Leo T. Sorokin granted initial approval of the settlement on the same day, Law360 reported.
Drizly agreed to pay at least $1.05 million, but no more than $3.15 million, out to claimants in total, and no more than $447,750 in account credits. The settlement agreement also calls for up to $1.2 million in attorney fees to be paid out to the plaintiffs’ lawyers.
Drizly’s platform delivers beer, wine, and liquor to customers in 30 states and a portion of Canada. In August 2020, multiple users filed lawsuits against Drizly alleging their “personally identifiable information” had been taken in a data security breach that the company made public on July 28, 2020.
After lawsuits were filed in district courts in Massachusetts – where Drizly is based – and Arizona, app users consolidated and filed their first amended class action lawsuit in October 2020 in the District of Massachusetts on behalf of approximately 2.5 million proposed eligible Class Members.
The lawsuit initially filed by James Barr, one of four plaintiffs, in August 2020 called Drizly “oblivious” and negligent in its reaction to the data breach. Barr argued that the company should have better protected customers’ information and that Drizly took its time in disclosing the data breach – personal data was first stolen in February 2020, five months before Drizly let customers know about the breach.
While Drizly claimed at the time that no payment information was stolen in the breach, Tech Crunch reported that the company found phone numbers, IP addresses and geolocation data had been taken, and that dark web listings had included credit card information and order history.
A month after the four cases were consolidated, Drizly filed a motion to compel users to go through an arbitration process, which it argued was required under its terms of service. The company and users began discussing a settlement, and were able to reach the agreement that was later given initial approval after weeks of negotiations and a week of mediation in January.
Proof of actual losses is not required to receive the cash payment or service credit, according to the motion for settlement agreement.
Per the agreement, Drizly plans to notify Class Members of the settlement via email and by directing them to a class notice on Drizly’s website and mobile app. A separate settlement website will also be created.
If you were affected by a data breach, you might be eligible to join or file a class action lawsuit. Lawyers are currently investigating recent data breaches nationwide and the impact that they’ve had on Americans.
Are you worried your financial information was compromised in the Drizly data breach? Leave a message in the comments section below.
The Drizly consumers are represented by Jason M. Leviton and Jacob Walker of Block & Leviton LLP; Warren Postman and Jason Ethridge of Keller Lenkner LLC; Christina Levis, Amanda Fiorilla and Anthony M. Christina of Lowey Dannenberg PC, Gary Lynch; and Jamisen A. Etzel of Carlson Lynch LLP, Russell S. Thompson IV of Thompson Consumer Law Group PC.
The Drizly Data Breach Class Action Settlement is Barr v. Drizly LLC fka Drizly Inc. et al., Case No. 1:20-cv-11492, in the U.S. District Court for the District of Massachusetts.
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19 thoughts onDrizly Data Breach Deal Gets Initial $7.1 million Settlement Approval
I got the email, but never got the e card they said they were reimbursing for. How do we get the settlement. I’m very pissed my information was compromised and the LEAST they can do is compensate the small amount they said they would. It feels like I’ve been scammed again.
Please add me!
Please add me to lawsuite
Please add me.
Add me, please. I DID receive an email asking me to click a link but I was too afraid I would be hacked again.
add me
please add
I got an alert from my credit protection app. And two weird companies tried to use my credit card.
Please add me too.