FOLLOW US

Wed

August 25, 2026

America June 4, 2024 5 mins read

9th Circuit Hears Objections to California Pizza Kitchen Data Breach Settlement

America ı By Rochdi Rais

0 Comments

9th Circuit Hears Objections to California Pizza Kitchen Data Breach Settlement

An attorney for objectors to a settlement between a class of current and former California Pizza Kitchen employees and the restaurant chain over a data breach told a Ninth Circuit panel on Monday that the district court did not properly scrutinize the deal or allegations of collusion between the parties.

The objectors' attorney, Theodore Walter Maya of Ahdoot & Wolfson PC, told the panel that the deal is worth far less than the $3.7 million valuation assigned by California Pizza Kitchen and the settling plaintiffs.

Problems with the settlement include exorbitant attorney fees for the class counsel, and that U.S. District Judge David O. Carter's orders approving the deal did not address the collusion allegations raised by the objectors even though the judge said on the record that he was troubled by them, Maya argued.

Judge Carter "never explained in the final order and judgment or in any of the transcripts why we shouldn't be concerned by these signs of collusion," Maya said.

Maya appeared to find at least one judge receptive to some of his arguments, as U.S. Circuit Judge Daniel P. Collins said several times that Judge Carter's approval of the settlement looked like a "rubber stamp," and that despite raising concerns during the proceedings about collusion, he never explained away those concerns in the written record.

"It's a complete rubber stamp," Judge Collins told counsel for the class. "He just took out the general formula, slapped it in the order, and we have no idea what he did with all that stuff that he developed over two days, he just didn't tell us."

"He made a great record, and the ruling is a cipher," Judge Collins added.

California Pizza Kitchen, or CPK, notified those affected by the breach in November 2022, after determining a month earlier that Social Security numbers and other information may have been stolen, the company said in a disclosure to the Maine attorney general's office. The company first discovered "suspicious activity" on its network on Sept. 15, prompting an investigation into the scope of the incident, it told Maine authorities.

Four lawsuits connected to the attack, which affected about 100,000 of CPK's current and former employees, were consolidated and included allegations that CPK was negligent in allowing the breach to happen and broke an implied contract with current and former employees to adequately protect their personal data.

The plaintiffs and CPK asked the court in May 2022 to approve a deal that they said had "a conservative value" of more than $3.7 million if even 2% of the class were to seek reimbursement for "ordinary" expenses of up to $1,000, and up to $5,000 for "extraordinary expenses." The group of objectors argued to Judge Carter that it was a "rotten deal" that appeared to be reached through collusion and ignored the potential of the claims under California's Consumer Privacy Act, which they valued at $77 million.

Judge Carter ultimately approved the deal. On appeal, the objectors argued the settlement "at most" could come to $497,974.50, with $800,000 in attorney fees. Although Judge Carter expressed concerns over the attorney fees and the collusion allegations during in-person hearings, the preliminary and final orders did not address those concerns, according to the objectors.

On Monday, Judge Collins repeatedly raised the issue of the order not addressing the concerns the judge expressed orally. Judge Kenneth K. Lee did not go as far as Judge Collins, but did say it looked as if Judge Carter didn't address his previous concerns about the attorney fees, while Judge Richard Clifton focused his questions on the merits of the case.

When Judge Collins asked Maya if the judge's order had an "articulation" issue of not explaining the court's reasoning, Maya agreed, but added that there is also a real "fairness" problem with the settlement as a whole "beyond any just matter of articulating what scrutiny was applied and the outcome of that," and that the settlement approval should be reversed and sent back to the lower court because it's overall a bad deal.

David Lietz of Milberg Coleman Bryson Phillips Grossman PLLC, who represents the settlement class, when confronted with Judge Collins' "rubber stamp" assessment, told him he agreed that Judge Carter's order "doesn't articulate with specificity what exactly he relied upon," but said if the panel looked "holistically" at the transcripts and full record of the proceedings it is obvious the judge developed an "extensive record through the court hearings and talks about why it is that he rejects the allegations of collusion."

Judge Collins disagreed, and said Judge Carter expressed various concerns and "then in the order, nothing. I don't know what he did with it."

Jon Peter Kardassakis of Lewis Brisbois Bisgaard & Smith, LLP, who represents CPK, told the panel that it's clear from the record as a whole Judge Carter "did take quite seriously these allegations of collusion."

"But I don't know why," Judge Collins said. "He said he was troubled by it, and then the next day he wasn't, and I don't know why."

Kardassakis responded that it was because of the "lack of substance" in the collusion allegations. He also noted that Judge Carter brought the mediator in to give live testimony, something Kardassakis said he'd never experienced before, and that the judge said he was "satisfied" with the mediator's testimony.

The objectors are represented by Theodore Maya of Ahdoot & Wolfson PC.

The proposed class is represented by David K. Lietz of Milberg Coleman Bryson Phillips Grossman PLLC.

California Pizza Kitchen is represented by Jon Peter Kardassakis of Lewis Brisbois Bisgaard and Smith LLP.

The case is Aviva Kirsten et al. v. California Pizza Kitchen Inc., case number 23-55288, in the U.S. Court of Appeals for the Ninth Circuit.

Previous Article

Cali Appeals Court Upholds Decision Against Hooters in Server Harassment Suit

Read More
2770 Posts

Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America August 23, 2026
Poolside Deal With Nvidia Strengthens US…

SAN FRANCISCO — Poolside is at the center of a…

By – Jackie Allen
America August 22, 2026
Tariff War Escalates as Canada Announces…

OTTAWA — The Tariff War between Canada and the United…

By – Jackie Allen
Arizona August 22, 2026
The End of the Colorado River…

The river that has created the modern South West is…

By – Ramzi Salem
America August 22, 2026
AI Funding by American Banks: Mega-Bubble…

Behind the breathtaking numbers is a financial paradox: the institutions…

By – Ramzi Salem
America August 21, 2026
Alisa Goods Case Ends in Heartbreak…

A search that began with a simple bus trip to…

By – Rihem Akkouche
America August 21, 2026
JLL Developer’s $12M Fraud Suit Alleges…

Sometimes a lawsuit boils down to a single question: did…

By – Rihem Akkouche
America August 21, 2026
JLL Developer’s $12M Fraud Suit Alleges…

Sometimes a lawsuit boils down to a single question: did…

By – Rihem Akkouche
America August 21, 2026
Steadfast $5.5B Buyout Deal Sends Australian…

Australia’s insurance brokerage landscape just shifted beneath its own feet.…

By – Rihem Akkouche
America August 21, 2026
Travis Kelce Chiefs Training Camp Grind…

Most 36-year-olds in the NFL are counting down the days…

By – Rihem Akkouche
America August 21, 2026
Alaska Plane Crash Near Remote Radar…

A routine flight to one of Alaska’s loneliest outposts turned…

By – Rihem Akkouche
America August 21, 2026
Cook Medical Data Breach Suit Alleges…

Some data breaches happen quietly, discovered only in retrospect. This…

By – Rihem Akkouche
America August 21, 2026
Boy Left on Mount Fuji Alone…

Picture a school essay titled “How I Spent My Summer…

By – Rihem Akkouche
America August 21, 2026
World Cup Brawl Leads to Major…

EAST RUTHERFORD, N.J. — The World Cup final between Spain…

By – Jackie Allen
America August 21, 2026
Eric Swalwell Faces FBI Search as…

WASHINGTON — Former congressman Eric Swalwell is facing an escalation…

By – Jackie Allen
America August 20, 2026
Slayer’s Law Blocks Nick Reiner From…

The Slayer’s Law more commonly called a “slayer statute,” has…

By – Jackie Allen
America August 20, 2026
Bitcoin Twins See Bitcoin’s $65,000 Level…

The Bitcoin Twins, Cameron and Tyler Winklevoss, are once again…

By – Jackie Allen
America August 19, 2026
Hayden Panettiere Death Investigation Heats Up…

 Police Seek Answers in Panettiere’s Final Hours A Death Investigation…

By – Jackie Allen
America August 18, 2026
Hayden Panettiere Remembered for her Acting…

Hayden Panettiere, the former child star who became internationally known…

By – Jackie Allen
America August 20, 2026
California AB 2624 Reaches Newsom as…

INSIDE THIS REPORT AB 2624 would protect threatened immigration-service workers.…

By – Samuel Lopez
America August 20, 2026
Robin Williams’ Children Reactivate His Instagram…

Inside This Report Zak, Zelda, and Cody Williams have relaunched…

By – Samuel Lopez
America August 19, 2026
Christian Metal Band Demon Hunter Declares…

INSIDE THIS REPORT Christian metal band Demon Hunter has sued…

By – Samuel Lopez
America August 19, 2026
Judge Removed After Saying Jury “Got…

INSIDE THIS REPORT A visiting judge removed Judge John Roach…

By – Samuel Lopez
America August 19, 2026
Did the Government Just Admit It…

INSIDE THIS REPORT Avi Loeb says government sources asked him…

By – Samuel Lopez
America August 19, 2026
Eight Years After Elon Musk Shot…

Key Takeaways Elon Musk’s Tesla Roadster has been traveling through…

By – Samuel Lopez
America August 16, 2026
Perez Hilton’s Mother Seeks Temporary Custody…

By Samuel López | USA Herald Perez Hilton’s family has…

By – Samuel Lopez
America August 13, 2026
Taylor Farms Jalapeño Recall Salmonella Scare…

A single shipment of peppers has set off a chain…

By – Rihem Akkouche
America August 12, 2026
Heat Dome Brings Dangerous Temperatures Across…

A powerful Heat dome is expanding across the United States,…

By – Jackie Allen
America August 8, 2026
Joe Biden: Hunter Says the Prostate…

Former President Joe Biden is experiencing a worsening battle with…

By – Jackie Allen
America August 1, 2026
Stormed the Border: Spain Says 25,000…

CEUTA, Spain (AP) — Spanish authorities say thousands of migrants…

By – Jackie Allen
Breaking News July 29, 2026
Trump Ends Medicare Part D Subsidy,…

The Trump administration is ending a Medicare Part D subsidy…

By – Michallie Harrison
America August 17, 2026
Von Miller Cowboys Contract Brings Future…

Some homecomings happen quietly. This one came with a social…

By – Rihem Akkouche
America August 14, 2026
White House Denies Role in Josh…

LOS ANGELES — The White House is denying any role…

By – Michallie Harrison
America August 13, 2026
Prichard Colon Death: Once-Unbeaten Boxer Dies…

Prichard Colon never threw another punch after that October night…

By – Rihem Akkouche
America August 13, 2026
Tiger Woods and Nike: 27-Year Partnership…

Tiger Woods built one of the most lucrative athlete-brand partnerships…

By – Jackie Allen
America August 12, 2026
209 Triple-Doubles, Two Offers Declined: Russell…

There were two NBA teams ready to hand Russell Westbrook…

By – Rihem Akkouche
America August 11, 2026
Part 2. Archbald Faces Big Expansion…

In Archbald, Pennsylvania, a community of roughly 7,000 residents, the…

By – Jackie Allen

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter