Too Big A Slice? What's Next For Attorneys' Fees In Claims-Made Settlements?

The Ninth Circuit's recent decision in In re: California Pizza Kitchen Data Breach Litigation sheds new light on the viability of a claims-made settlement in that Circuit. While the 2-1 decision affirmed the lower court's decision that the class action settlement was fair, reasonable, and adequate, the court took issue with the attorneys' fee award and remanded for additional scrutiny and likely "downward adjustment." Below is a brief overview of the case and its key takeaways.

Case Overview

The case stemmed from a 2021 data breach in which over 100,000 CPK employees' personal information was compromised. One group of plaintiffs quickly negotiated a claims-made settlement with CPK, which would provide valid claimants with: up to $1,000 for ordinary expenses; up to $5,000 for identity theft losses; 24 months' worth of credit monitoring services; and $100 (as part of the $1,000) in statutory damages for California residents. The settlement was uncapped, meaning