Greater Chautauqua Federal Credit Union, et al., v. Kmart Corp. et al.
Case No: 1:15-cv-02228
Welcome to the Information Website for the Kmart Financial Institutions Data Breach Settlement.
UPDATE: The Court approved the Order and Final Judgment on June 16, 2017. Settlement payments for all eligible claims began disbursing in July 2017.
Banks, credit unions, and other financial institutions that issued payment cards that were compromised in the October 2014 Kmart data breach, could get a payment from this Class Action Settlement.
Please review the Notice for further details about this matter.
The purpose of this website is to inform you that a settlement of a class action lawsuit against Kmart Corporation (“Kmart”) and Sears Holdings Corporation (“Sears”) (collectively, “Kmart”) has been proposed in which Kmart has agreed to pay money to qualifying financial institutions (such as credit unions, banks, and others) to resolve claims relating to the payment card data breach that Kmart announced in October 2014 (the “Data Breach”).
The lawsuit, called Greater Chautauqua Federal Credit Union, et al., v. Kmart Corp. et al., Case No. 1:15-cv-02228, alleges violations of state consumer fraud statutes based on Kmart’s allegedly inadequate payment card security protocols.
The Settlement includes a $5,200,000.00 settlement fund that will be used to pay the claims of eligible Settlement Class Members, all costs of class notice and settlement administration, and Service Payments to the Settlement Class Representatives. In addition, Kmart agreed to waive its challenges and appeal rights and to pay the final Visa payment card assessment of $7,574,497 and the MasterCard payment card assessment of $5,798,909 (for a total of $13,373,406). Finally, Kmart has agreed to implement payment card data security measures for a minimum of three years.
Your entity’s legal rights are affected whether you act or don’t act. Read the Notice carefully.
|SUMMARY OF LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT:|
|Submit a Claim Form||The only way to get a payment from the Settlement Fund. The Visa or MasterCard assessments have been distributed subject to Visa’s and MasterCard’s procedures.|
|Request Exclusion||Get no payment from the Settlement Fund. This is the only option that may allow a Class Member to sue Kmart over the claims being resolved by this Settlement.|
|Object||Write to the Court with concerns about the Settlement.|
|Go To A Hearing||Ask to speak in Court about the fairness of the Settlement.|
|Do Nothing||Get no payment from the Settlement Fund and give up rights to ever be part of any other lawsuit against Kmart about the claims being resolved in this settlement.|
These rights and options—and the deadlines to exercise them—are explained in the Notice.
The Court in charge of this case still has to decide whether to approve the Settlement. Payments will be made if the Court approves the Settlement and after any appeals are resolved. Please be patient.