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America June 4, 2024 5 mins read

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

America ı By Rochdi Rais

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

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.

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Rochdi Rais
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Rochdi Rais

Rochdi Rais is the Fractional 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.

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