Burger Chain Settles FACTA Class Action for $2.7 Million
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.