Wendy’s Co. a fast-food giant agrees that it will pay $50 million to settle the claim of a data breach by a group of financial institutions which affected hundreds of its chain of franchises between 2015 and 2016.
Wendy’s Co. Dublin based company on Wednesday 13th Feb announced the agreement with a group of financial institutions is settled, which claimed that Wendy’s unable to protect the personal data of consumers, i.e. credit card information and also didn’t send the notices to affectees that their data is compromised.
They said firstly we will pay $27.5 million for the settlement cost, and the rest would be paid by insurance later on.
The settlement would release Wendy’s from all claims, as well as its franchisees. But it is pending due to court approval.
In 2016, there was an attack on different systems at several hundred franchises where malware is installed using “compromised third-party vendor credentials.”
Wendy’s CEO Todd Penegor said in a statement that the settlement “is in the best interests of Wendy’s and its shareholders.”
“With this settlement, we have now reached agreements in principle to resolve all of the outstanding legal matters related to these criminal cyberattacks. We look forward to putting this behind us so that we can continue to focus on growing Wendy’s brand and protecting on the data breach.”