Drizly Settlement reached up to $7.1 million after a Class Action Litigation

It sounded unusual in the past when someone was convicted with data breach charges. Nowadays data breaches and identity theft crimes are on the rise. Along with the rise in data breaches, the litigations against these violations are also taking a lot of hype.

This takes us up to the latest class action settlement of an alcohol marketplace in North America, Drizly settlement.

Drizly is an online marketplace that operates an e-commerce business of alcoholic beverages deliveries from local retailers. In the Drizly settlement claim, plaintiffs claim that the Drizly website failed to secure the data of its consumers who visit the website and make accounts and enter their personal and financial information.

Drizly Class Action Settlement

The litigation concerned an event of a data breach that resulted in leaking consumer’s personal information including date of birth, email addresses, hashed passwords, phone numbers, delivery, and IP addresses which were exposed to a third party improperly at the Dark Web.

Plaintiff further claimed that the data breaching event was the result of a cyberattack that Drizly had around February 2020, but Drizly did not identify the theft until July 2020.

“As a result of Drizly’s failure to maintain reasonable security measures and protocols, Plaintiff and Class members were not provided adequate notice that their sensitive customer information was compromised for at least five months and were unable to take steps to proactively mitigate the harm caused by the Data Breach,”

The Class Action Lawsuit against Drizly States

 The plaintiff in the drizly class-action lawsuit sought to have a putative case against Drizly, therefore, asserted claims for negligence per se, breach of contract, breach of consumer protection rights, unjust enrichment, and a couple of other claims under the laws of North American states including Massachusetts, Arizona, California, and New York. 

According to the claimants, Drizly should have acted responsibly and informed its customers after identifying the breach. Because Drizly failed to inform and protect against the breaches, the plaintiffs are claiming that the valuable information could have been saved if the company took important measures timely.

Now Drizly customers are allegedly worried about the breach of their financial information that will persist with fraud and threats for years. This will ultimately lead to keeping the users vigilantly checking and monitoring their finances and Drizly connected accounts.

Drizly was compelled to move to arbitration when the plaintiffs made amendments to their complaint. The amendment was based on the fact that on Drizly, a user must register to the website prior to placing an order and agree to the terms and conditions at Drizly.

Plaintiff further states that these terms are written at the top of Drizly’s website and that on agreeing on the terms, users are agreeing to resolve any dispute or complaint through individual arbitration.

Drizly argued that the Federal Arbitration Act favors the federal liberal policy which precluded this claim of the plaintiffs.

The parties then reached a preliminary settlement that was before the jury ruled against any party. This agreement stated;

“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.”

Under the preliminary settlement agreement, each class member or the plaintiff that submitted a valid complaint with the proof of breach timely is eligible to receive $14.00 as a cash payment from the upwards adjusted settlement, if the authorized plaintiff’s amount does not exceed $1,050,000 and adjusted downwards of the total amount of the plaintiffs exceeds $3,150,000. Additionally, if the class members make future orders from Drizly, they will also get a rata portion of the pool which is up to $447,750 as a credit amount.

Drizly is one of the largest online alcohol delivery services in North America, having more than 1400 cities as retail partners. As part of the Drizly settlement agreement with the plaintiff, the company consents to adopt specific security measures to prevent certain data breaches from the website for at least two years.

Eligibility to receive your Portion

In the preliminary settlement agreement, the court has approved that every person in the United States who thinks that his data was compromised in the cyberattack faced by Drizly in Feb 2020, can claim their reward.

If you made an account at Drizly to order alcohol and you think that you should claim your portion of the settlement, then there’s no need to provide any additional information or document. But a claimant code would be needed to file your claim.

This code can be drawn from the list of codes on notice that the class members received when the settlement amount arrived.

Payments will be distributed to the claimants after a fairness hearing of the complaints and appeals are disseminated.

Drizly Data Breach Class Action Lawsuit Settlement

Eligible Claimants

The class makes anyone in the US eligible whose financial and personal information was compromised in the intrusion incident faced by Drizly in Feb 2020 and was made public in July 2020 when the unauthorized third party breached the customer security and accessed Drizly’s customers’ identifiable information. 

Estimated Amount

• Through the settlement, a $14 cash payout with a $1.99 credit is granted if a claimant makes future orders with Drizly as a service fee.
• The amount can be adjusted depending upon the number of claimants filing valid complaints.

Proof for Eligibility

• No document or proof is required but the claimant has to show a claimant code to file a claim.

Case Name & Number

• Case no. 1:20-CV-11492 in the US District Code, case name- Barr, et al. v. Drizly LLC.

If you file the complaint but have not received a claimant code, then you must look at an email you may have received as the case has been dismissed after the final hearing performed on October 26th, 2021. If you did not receive an email, nor the code but you think that you are eligible to be compensated, then contact the Settlement Administrator at [email protected]. You can also make a toll-free call at 1-877-935-5357 and provide your email address and full name associated with your Drizly account to know the further process.