What were the primary allegations against Checkersrallys in the Breandan Cotter complaint?
Checkersrallys 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 Checkersrallys's 2025 Franchise Disclosure Document, the Breandan Cotter complaint, filed on June 6, 2019, contained several allegations against Checkersrallys. The complaint 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. These claims stemmed from Checkersrallys's alleged failure to adequately secure and safeguard customers' credit and debit card numbers, other payment card data, and personally identifiable information. The complaint also alleged that Checkersrallys failed to provide timely and adequate notice to affected customers regarding the data breach.
The Cotter Complaint, along with a similar complaint filed by Jack Dinh, sought certification of a nationwide class of consumers impacted by the alleged breaches. The plaintiffs in both complaints sought monetary damages, injunctive and equitable relief, attorneys' fees, and other costs from Checkersrallys.
Checkersrallys chose to settle both the Cotter and Dinh complaints through mediation. The settlement agreement required Checkersrallys to either reimburse each class member up to $5,000 for documented out-of-pocket expenses or provide $20 in restaurant vouchers to each class member without documented out-of-pocket expenses. This resolution indicates that Checkersrallys opted to avoid further litigation and potential larger financial repercussions by addressing the claims through a settlement.