What claims were asserted in the Cotter Complaint against Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
rict of Florida, Southern Division.
On June 6, 2019, a civil complaint was filed against us on behalf of plaintiff Breandan Cotter and similarly situated customers (the "Cotter Complaint"). The Cotter Compliant asserted claims of breach of confidence, breach of implied contract, negligence, negligence per se, unjust enrichment and violations of the Florida Unfair and Deceptive Trade Practices Act, stemming from our alleged failure to secure and safeguard our customers' credit and debit card numbers and other payment card data and personally identifiable information, and our alleged failure to timely and adequately provide notice to our affected customers. On July 2, 2019, a civil complaint was filed against us on behalf of plaintiff Jack Dinh and similarly situated customers (the "Dinh Complaint" and together with the Cotter Complaint, the "Complaints"). The Dinh Complaint asserted claims of negligence and violations of California Civil Code §§ 1798.80, et seq., and California's Unfair Competition Law, Bus. & Prof. Code §§ 17200 et. seq., stemming from our alleged failure to maintain reasonable security practices to protect the unauthorized access to our customers personal information. The Complaints sought certification of a putative nationwide class of consumers impacted by the alleged breaches and also sought monetary damages, injunctive and equitable relief, attorneys' fees and other costs. We held a joint mediation concerning both Complaints, and subsequently entered into a settlement agreement to dismiss both Complaints with prejudice. On August 25, 2021 the Court entered an Order approving the settlement, which requires us to (i) reimburse each class member up to $5,000 for documented out-of-pocket expenses, or (ii) provide $20 in restaurant vouchers to each class member without documented out-of-pocket expenses. In accordance with that Order, notice of the settlement was subsequent
Source: Item 3 — LITIGATION (FDD pages 15–17)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the Cotter Complaint, filed on June 6, 2019, contained several claims against Checkers. These claims included breach of confidence, breach of implied contract, negligence, negligence per se, unjust enrichment, and violations of the Florida Unfair and Deceptive Trade Practices Act. These claims stemmed from Checkers' alleged failure to adequately secure and safeguard customers' credit and debit card numbers, other payment card data, and personally identifiable information, as well as the alleged failure to provide timely and adequate notice to affected customers.
The Cotter Complaint, along with the Dinh Complaint, sought certification of a nationwide class of consumers impacted by the alleged breaches. The plaintiffs sought monetary damages, injunctive and equitable relief, attorneys' fees, and other costs. Checkers held a joint mediation concerning both complaints and subsequently entered into a settlement agreement to dismiss both complaints with prejudice.
The settlement, approved by the Court on August 25, 2021, required Checkers to either (i) reimburse each class member up to $5,000 for documented out-of-pocket expenses, or (ii) provide $20 in restaurant vouchers to each class member without documented out-of-pocket expenses. Notice of the settlement was subsequently provided to the settlement class. This type of litigation, stemming from data breaches, is not uncommon in the franchise industry, highlighting the importance of data security and customer notification protocols.