Back Yard Burgers of Nebraska, Inc. has agreed to settle claims that it violated the Fair and Accurate Credit Transactions Act (FACTA) by allegedly using the last five digits of customer credit-card numbers on its older receipts, instead of the last four digits. Keith v. Back Yard Burgers of Neb., Inc., No. 11-0135 (D. Neb., order preliminarily approving class settlement entered September 15, 2014). The company will pay $2,792,400 into a settlement fund, will provide coupons for a free soft drink with the purchase of an entrée to class members who submit valid claims, will not contest class counsel fees of up to 40 percent of the consent judgment—or $1,116,960—will quitclaim assign to the plaintiff any claim it may have against Data Cash Register (DCR) related to the class action and cooperate in pursuing collection of a consent judgment against DCR, and will comply with FACTA going forward. The class period began November 3, 2010, and ended April 15, 2011. A final fairness hearing has been scheduled for February 19, 2015.


Issue 538

About The Author

For decades, manufacturers, distributors and retailers at every link in the food chain have come to Shook, Hardy & Bacon to partner with a legal team that understands the issues they face in today's evolving food production industry. Shook attorneys work with some of the world's largest food, beverage and agribusiness companies to establish preventative measures, conduct internal audits, develop public relations strategies, and advance tort reform initiatives.

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