On March 23, the United States District Court for the Southern
District of Florida granted preliminary approval of a nearly $31
million Fair and Accurate Credit Transactions Act
("FACTA") class action settlement against Doctor's
Associates, Inc., doing business as Subway – the largest
settlement to date in the history of FACTA.
According to the complaint, named plaintiff Shane Flaum
purchased items from one of Subway's restaurants in Florida.
Flaum paid with a Visa debit card and was presented with a receipt
bearing the full expiration date and the last four digits of his
card. FACTA provides that "no person that accepts credit cards
or debit cards for the transaction of business shall print more
than the last 5 digits of the card number or the expiration date
upon any receipt provided to the cardholder at the point of sale or
transaction." Flaum filed this putative class action alleging
that certain Subway franchise retail stores printed transaction
receipts that revealed the full expiration date of purchasers'
debit and credit card numbers, in willful violation of FACTA.
As we previously
reported, Subway originally filed a motion to dismiss pursuant
to the Supreme Court's decision in Spokeo. The Court
denied Subway's motion, and the parties subsequently engaged in
discovery and mediation.
The parties ultimately reached a settlement and have agreed to
certify for settlement purposes a class of all Subway patrons who
received receipts upon purchase, between January 1, 2016 and the
date of preliminary approval, that showed their credit and debit
cards' full expiration dates. Settlement class members who
submit a timely claim will split the $30,900,000 settlement
A final fairness hearing is scheduled for October 11, 2017.
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