Those amounts could change depending on how many claims are ultimately approved in the settlement. Sorokin granted initial approval of the settlement on the same day, Law360 reported.ĭrizly 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.ĭrizly’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.Īfter 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.Ī 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.
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