Source: Shutterstock.
After nearly three years of highly-contested court battles and arduous marathon negotiations, Sonic has agreed to pay $5.73 million to settle a class-action lawsuit for one of the largest payment card data breaches in 2017 that affected at least 4,000 credit unions and banks and more than five million customers.
In March 2019, the class-action claim against Sonic Corp. was brought by the $9.3 billion American Airlines Federal Credit Union in Fort Worth, Texas, the $1.8 billion Arkansas Federal Credit Union in Little Rock and the $7.9 billion Redstone Federal Credit Union in Huntsville, Ala. The credit unions alleged that Sonic's security deficiencies enabled hackers to breach and install card-scaping malware on point-of-sale systems at more than 700 Sonic franchised drive-ins across the nation. The hackers stole payment card data and posted five million payment cards for sale on the dark web, according to court documents.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
