The case, Keim v. Trader Joe’s Co., alleges that the grocery chain violated the Fair and Accurate Credit Transactions Act by printing receipts that showed both the first six and last four digits of payment card numbers during some 2019 transactions, according to the court-authorized settlement website.
The settlement applies to customers who used a credit or debit card at a Trader Joe’s store between March 5 and July 19, 2019, and received a receipt in that format. Eligible individuals can submit a claim form to receive a payment, which will be distributed on a pro rata basis depending on the number of valid claims.
Trader Joe’s denies wrongdoing in the case. In the settlement notice, the company says it “vigorously denies any and all liability or wrongdoing” and notes that not all stores or transactions were affected.
“In those stores that did, only a small minority of transactions involved such receipts,” states the settlement website. The company also said that there are no reports of identity theft tied to the alleged conduct.
“However, identity theft is not required to prove a FACTA claim, and therefore you do not need to have suffered identity theft to submit a claim for payment from this settlement,” it states.
The $7.4 million settlement fund will pay class members, cover attorneys’ fees and administrative expenses, and provide a proposed incentive award to the named plaintiff.
According to the settlement terms, class counsel intends to seek about $2.47 million in attorneys’ fees, along with reimbursement for expenses, and a $10,000 service award for the lead plaintiff.
Customers who want to receive compensation must submit a valid claim form by June 9. A federal court must still grant final approval before payments are distributed. If the settlement is approved, funds will be issued after any appeals are resolved, according to the settlement notice.
The legal dispute has stretched over five years. The settlement website states that Trader Joe’s insurer concluded that continuing the litigation would likely be time-consuming and expensive. Ultimately, the insurer determined that resolving the case under the settlement terms was in the best interest of all parties.
Instructions on filing a claim are available on the official settlement website.