Schnucks Markets Inc. has agreed to a proposed settlement in a lawsuit filed on behalf of customers over the data breach that occurred at some of its stores earlier this year, affecting up to 2.4 million payment cards.
The preliminary settlement is in the hands of St. Louis Circuit Judge David Dowd, who is expected to rule on it within the next month.
"We certainly believe the agreement we reached is fair and appropriate," Schnucks spokesperson Paul Simon states in an e-mail.
Under the terms of the settlement agreement pending in court, certain eligible customers who used their credit or debit cards at Schnucks at one of the affected stores between December 2012 and March 29, 2013, will be entitled to submit claims seeking certain compensation, Simon says.
Once approved by the court, St. Louis-based Schnucks will share notice of the settlement and its terms publicly through the area media, along with information on who is entitled to file a claim and how to seek compensation, Simon says.
The judge will also consider a motion to intervene in the case by a lawyer pursuing one of the related pending federal lawsuits, The Quad Cities Business Journal reports.
The settlement will call for Schnucks to pay up to $10 to customers for each credit or debit card that was compromised and had fraudulent charges posted on it that were later credited or reversed, the Journal reports. The grocery chain would also pay for certain unreimbursed out-of-pocket expenses, with a cap of $175 per class member.
Last week, Schnucks had its legal burden lessened when the district court terminated a lawsuit from the grocery chain's insurance company. Liberty Mutual Insurance Co. claimed its policy with the chain covered only physical damage to stores, not data breaches.
Schnucks spokesperson Lori Willis stated that Schnucks and Liberty Mutual had agreed to discuss alternatives to litigation to resolve their dispute.