Some data breach class actions settle quickly, with one of two settlement structures: (1) a “claims made” structure, in which the total amount paid to class members who submit valid claims is not capped, and attorneys’ fees are awarded by the court and paid separately by the defendant; or (2) a “common fund” structure, in which the defendant pays a lump sum that is used to pay class member claims, administration costs and attorneys’ fees awarded by the court. A recent Ninth Circuit decision affirmed the district court’s approval of a “claims made” settlement but reversed and remanded the attorney’s fee award. The decision highlights how the approval of the settlement terms should be independent of the attorney’s fees although some courts seem to merge them.
In re California Pizza Kitchen Data Breach Litigation, – F.4th –, 2025 WL 583419 (9th Cir. Feb. 24, 2025) involved a ransomware attack that compromised data, including Social Security numbers, of the…
