#Drizly data breach pro#
Additionally, as Plaintiffs outlined to the court, Class Members will also receive a pro rata portion of a pool of up to $447,750 in the form of a credit against the cost of service fees for future orders from Drizly. Under the terms of the settlement, each eligible Class Member that files a timely and valid Proof of Claim and Release (“Claim Form”) will receive an individual cash payment of $14.00, that may be adjusted upward if the total amount due to all Authorized Claimants does not exceed $1,050,000, and adjusted downward in the event that the aggregate cash payments to all Authorized Claimants exceeds $3,150,000. This agreement defines a Settlement Class, consisting of “All Persons in the United States whose customer data was compromised in the data intrusion security incident that Drizly made public on July 28, 2020, in which an unauthorized party accessed certain personally identifiable information of Drizly’s customers.” However, before the court ruled on Drizly’s motion, the parties reached a preliminary settlement (subject to court approval). Based on the Federal Arbitration Act, which reflects a liberal federal policy favoring arbitration, Drizly argued the arbitration provision precluded Plaintiffs’ lawsuit. Those Terms disclose, in all capital letters at the top of the page, that users agree to resolve any disputes through individual arbitration. This was on the basis that before using Drizly to order alcohol, users must register for an account and agree to Drizly’s Terms. After Plaintiffs amended their Complaint in October 2020, Drizly moved to compel arbitration. Plaintiffs sought to certify a putative class and asserted claims against Drizly for negligence, negligence per se, breach of implied contract, unjust enrichment, and various consumer protection claims under the laws of Massachusetts, New York, Arizona, and California. The data event was allegedly the result of a targeted attack that occurred around February 2020, but was not identified by Drizly until the end of July 2020. Mass.), concerned a data event which Plaintiffs allege resulted in consumers’ information, including at least email addresses, dates of birth, hashed passwords, delivery addresses, phone numbers, and IP addresses, to be improperly exposed to third parties on the dark web. Drizly is a company which operates an online e-commerce platform that facilitates the delivery of alcoholic beverages from local retailers. A recent class action settlement involving the largest online alcohol marketplace in North America, with retail partners in more than 1,400 cities, underscores how all companies across industries are impacted by this trend.įirst, let’s look at the (alleged) facts. Data breaches are on the rise, and with a rise in breaches comes an accompanying increase in data breach litigation.
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