A class-action settlement involving ParkMobile, a popular parking app, will see $32.8 million disbursed to roughly 21 million people following a 2021 data breach that exposed users’ personal information. The final day to submit a claim for a cash payment is March 5.
“ParkMobile has reached a settlement of a class action lawsuit concerning a data breach that occurred in March 2021,” ParkMobile told Newsweek. “Our decision to settle the case enables us to focus on the ongoing protection of our customers’ information and to continue enhancing our services.”
Why It Matters
This settlement highlights the ongoing issues of data security within the app industry. The case serves as a reminder of the legal responsibilities companies bear in safeguarding consumer data and the potential repercussions of allegedly failing to fulfill these duties.
“This is a significant settlement in the world of data breach class actions… yet another wake up call to businesses that they ensure the safeguarding of consumer data,” Christopher E. Roberts, class action attorney at Butsch Roberts & Associates LLC, told Newsweek.
Stock photo of ParkMobile sign in Washington, D.C. Stock photo of ParkMobile sign in Washington, D.C. Davslens Photography/Getty Images
What To Know
ParkMobile has agreed to the settlement to resolve allegations that it failed to prevent unauthorized access to its users’ personal information during a March 2021 data breach. Affected information allegedly included email addresses, phone numbers, license plate numbers and hashed passwords.
The company has also committed to $2.5 million in business remedial measures to enhance security practices, though it has not admitted any wrongdoing as part of the settlement agreement.
Who’s Eligible for the ParkMobile Data Breach Settlement?
Eligible claimants are those who received a notification from ParkMobile about the data breach. Eligible settlement class members may have also received an email or mail correspondence regarding the settlement.
Members can opt for a cash payment of up to $25 per person from a $9 million fund. Individual payments will vary based on the number of claims officially submitted. Class members have until March 5, to submit their claim forms.
Those who do not claim the cash payment will automatically receive a $1 credit for use within the ParkMobile app.
How To Submit a Claim
Claim forms are available on the settlement website under the “Important Documents” tab. Alternatively, claimants can request a form to be sent to them via mail by calling 1-866-944-4062 or sending an email to [email protected].
Completed forms can be submitted either online through the settlement website or by mail. If submitting by mail, ensure it is postmarked by no later than March 5, 2025, to the following address:
ParkMobile Data Security Incident
Attn: Claim Forms
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
What People Are Saying
ParkMobile told Newsweek: “We prioritize the protection of our customers and their data, continuously enhancing our security posture and monitoring based on industry best practices.”
Christopher E. Roberts, a class action attorney at Butsch Roberts & Associates LLC, told Newsweek: “There is a common myth about class action cases. That myth is that you need to organize a large of group of people to file the case. In reality, you only need one person who has been harmed to file the case. When people hear about large groups of people in class action cases, those people are typically identified in the discovery process, where the business will produce information and documents identifying people who have been similarly harmed.”
What Happens Next
The final approval hearing for the settlement is scheduled for March 13, 2025. The outcome of this hearing will determine the final disbursements of the settlement payments and any further actions required by ParkMobile in response to the breach.
