Booze delivery app Drizly settles class action over 2020 data breach
2021 DPDBRF 0064
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By John Fitzgerald
WESTLAW Data Privacy Daily Briefing
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April 1, 2021
(April 1, 2021) - A Boston federal judge has preliminarily approved a proposed settlement from a class action against online liquor delivery company Drizly LLC over a 2020 data breach that allegedly exposed the personally identifiable information of millions of customers.
Barr et al. v. Drizly LLC et al., No. 20-cv-11492, preliminary approval granted (D. Mass. Mar. 30, 2021).
The proposed settlement, approved March 30 by U.S. District Judge Leo T. Sorokin of the District of Massachusetts, will offer cash payments to class members as well as credit for future liquor orders using Drizly's service.
Uber Technologies Inc. purchased Drizly for $1.1 billion in February.
As many as 2.5 million customers affected
Drizly announced in July that an unidentified third party had gained access to its customers' PII, including their email addresses, delivery addresses, birthdates and passwords, according to the suit.
The publication TechCrunch reported in July that the breach may have involved PII from as many as 2.5 million Drizly customers and also included phone numbers, IP addresses and geolocation data.
The data may have been available or the dark web for months prior to the announcement, according to TechCrunch.
Lead plaintiff James Barr of New York filed a proposed class action against Drizly in Boston federal court in August. Barr is represented by attorneys from multiple law firms, including Lowey Dannenberg PC, Carlson Lynch LLP and Keller Lenkner LLC.
The suit accuses Drizly of negligence, negligence per se, breach of implied contract and unjust enrichment, and asks the court to certify a nationwide class of customers whose personal data was exposed in the breach.
Drizly, represented by attorneys from Lewis Brisbois Bisgaard & Smith LLP and ZwillGen PLLC, filed a motion to compel arbitration in November, and the two sides began mediation in January. The parties executed a settlement agreement in March.
The settlement requires Drizly to pay each class member $14, adjusted upward if the total cash payment does not exceed $1.05 million and adjusted downward if the aggregate cash payments exceed $3.15 million, according to the settlement memo.
The class members will also receive a pro rata portion of a pool of nearly $448,000 in "credit against the cost of service fees for future orders on Drizly's platform," the memo says.
Drizly will also pay attorney fees and costs, as well as maintain certain data security measures for two years, according to the memo.
By John Fitzgerald
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