The convenience retailer will pay affected customers $9 million and spend $35 million to upgrade its cybersecurity.
WAWA, Pa. — Wawa Inc. is settling a class action litigation stemming from a data security incident in December 2019.
The agreement, which is subject to court approval, resolves all customer claims related to the data security incident, which resulted from malware being discovered on Wawa payment processing servers.
The proposed settlement, filed with federal court on Feb. 19, 2021, provides relief in the form of Wawa gift cards capped at $8 million in aggregate, cash reimbursements of out-of-pocket costs capped at $1 million in aggregate, as well as significant data security enhancements to Wawa's systems, as Convenience Store Newspreviously reported.
"We feel this settlement is an excellent result for the class, providing a range of benefits to consumers," counsel for the consumer class stated. "The settlement compensates three types of customers via different monetary awards — those who used their cards at Wawa and did not experience fraudulent charges on their cards and who spent time monitoring their payment card or other accounts, those who did experience fraudulent charges on their cards, and those who incurred out-of-pocket costs as a result of the data breach. The settlement also provides valuable remedial relief aimed at preventing similar breaches in the future."
The malware affected customer payment card information used at most Wawa locations beginning at different points in time after March 4, 2019, and until it was contained on Dec. 12, 2019. The malware was present on most store systems by approximately April 22, 2019. The retailer's information security team identified the malware on Dec. 10, and by Dec. 12, it had blocked and contained the malware.
"We are focused on a timely resolution for Wawa customers who may have been affected by this incident, and this settlement allows us to just do that,” the convenience retailer said in response to the agreement. “At Wawa, the people who come through our doors every day are not just customers, you are our friends and neighbors, and nothing is more important than honoring and protecting your trust. We can assure you that we have continued to and will work diligently to protect your information and enhance our cybersecurity resiliency."
For more information, to submit a claim, or for contact information for Class Counsel, click here.
Pennsylvania-based Wawa operates 940-plus convenience stores across Pennsylvania, New Jersey, Delaware, Maryland, Virginia, Florida and Washington, D.C.