Kroger Agrees to $5 Million Settlement for 2020 Data Breach

Kroger Data Breach Settlement

Kroger Data Breach Settlement

Earlier this year, Kroger revealed that in December 2020, an unauthorized user had accessed information relating to certain Kroger pharmacy and money services customers and current and former employees, including names, email addresses, phone numbers, home addresses, dates of birth, Social Security numbers, information to process insurance claims, prescription information (such as prescription number, prescribing doctor, medication names, and dates), medical history, certain clinical services, and/or salary-related information in a data breach involving Kroger’s file transfer software vendor, Accellion.

Specifically, the breach exploited vulnerabilities in Accellion’s file transfer product called the FTA, which allowed third parties to then access information about Kroger’s customers and current and former employees. The Plaintiffs claim that Kroger failed to adequately protect their personal information and that they were injured as a result. Kroger denies any wrongdoing. But both sides agree that a settlement is best for all Class Members because of the risks and uncertainty associated with continued litigation.

Who’s Eligible?

If you received Notice of this Settlement, you have been identified by the Settlement Administrator as a Class Member. More specifically, you are a Class Member, and you are affected by this Settlement, if: you received a notice from Kroger that your personal information was compromised as a result of the FTA Data Breach.

If you are still not sure whether you are a Class Member, you may review the materials on this website, or call the Settlement Administrator’s toll-free number at 1-866-790-4318.

Related: See All Settlement Rebates Here

Settlement Payout

The Settlement will provide Class Members with the opportunity to select and make a claim for one of the following benefits:

  • Cash Fund Payments in amounts to be determined in accordance with the terms of the Settlement; or
  • Two years of Credit Monitoring and Insurance Services; or
  • Cash Payments of up to $5,000 per Class Member for reimbursement of certain Documented Losses (“Documented Loss Payment”).

In addition, Kroger has agreed to take certain remedial measures and enhanced security measures as a result of this Action.

Before determining which Benefit option from the Settlement is best for you (selecting a Cash Fund Payment, Credit Monitoring and Insurance Services, or Documented Loss Payment), it is important for you to understand how Settlement payments will be made. Court awarded attorneys’ fees, up to a maximum of 25% of the $5 million Settlement Fund (i.e., $1,250,000), reasonable costs and expenses incurred by attorneys for the Class, and service awards of $1,500 to each of the three Class Representatives will be deducted from the Settlement Fund before making payments to Class Members. The Court may award less than these amounts. The remainder of the Settlement Fund will be distributed in the following order:

  • Credit Monitoring and Insurance Services claims will be paid first.
  • If money remains in the Settlement Funds after paying for the Credit Monitoring and Insurance Services, Documented Loss Payment claims will be paid second.
  • If money remains in the Settlement Funds after paying Credit Monitoring and Insurance Services claims and Documents Loss Payment claims, the amount of the Settlement Fund remaining will be used to create a “Post DC Net Settlement Fund,” which will be used to pay all Cash Funds Payment claims. As stated in paragraph 11 above, those are an estimated range of $36-$182 for California Class Members who submit valid Claims, and $18-$91 for all other Class Members who submit valid claims. This is just an estimate, not a guarantee, based on Class counsel’s experience and belief.

All Claim Forms must be submitted online or postmarked no later than March 5, 2022.

Related: Read all news about lawsuits and settlements

Kroger Data Breach Settlement Details

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.