Jeff Eckhoff and James Heggen report:
The failure of a Des Moines restaurant chain to fully comply with a federal anti-identity theft law will soon lead to free soft drinks for some of its former patrons, assuming a federal judge approves.
Lawyers in a complicated class-action lawsuit have submitted a proposed settlement that will, if it is approved by U.S. District Judge James Gritzner, eventually lead to $170,000 for the plaintiffs’ attorneys and coupons for people who can prove they used a credit card or debit card during a three-year period at Palmer’s Deli & Market.
The lawsuit, filed initially on June 1, 2011, accused Palmer’s of willfully violating a 2003 federal law that requires the truncation of credit card numbers and expiration dates on printed store receipts.
Read more in the Des Moines Register.
This is not the first time we’ve seen a settlement like this. Olive Garden had a similar one in May 2009, but the members of that class got coupons for $9.00 worth of appetizers. And members of a class action lawsuit against Primanti Brothers got coupons for free sandwiches in October 2010. Although it doesn’t seem like members of this class benefit significantly in the usual sense of “significantly,” the settlement may say save Palmer’s from being bankrupt should they have to pay statutory damages. The firm’s insurance company is also suing them, claiming they should not be liable for any costs or expenses from this incident.