Airport Retailer Paradies Shops Reaches $6.9 Million Data Breach Settlement

Paradies Shops, a prominent airport retail and hospitality company, has agreed to a $6.9 million settlement to resolve a class-action lawsuit over a 2020 ransomware attack that led to a major data breach. The agreement, recently granted preliminary approval by a federal judge in Georgia, follows claims that the personal details of over 76,000 current and former employees were compromised.

 

The cybercriminals gained access to the company’s systems over a five-day period in October 2020, stealing sensitive employee data including names and Social Security numbers. The REvil ransomware group is believed to be behind the incident.

 

Paradies Shops, which operates more than 1,000 outlets in airports across the United States and Canada, notified affected individuals and regulatory authorities several months after the breach occurred.

 

The lawsuit accused the company of failing to adequately protect employee data and of delaying its breach notification, which allegedly caused additional harm to victims. Plaintiffs also criticised the company for withholding details about the system vulnerabilities that enabled the breach.

 

While Paradies rejected the allegations, it agreed to the settlement in order to avoid prolonged legal proceedings and mounting costs.

 

Legal experts note that such lawsuits have become increasingly common following large-scale cyber incidents. Just days ago, the Retina Group of Washington settled a data breach lawsuit for $3.6 million, while last year, Lehigh Valley Health Network agreed to a $65 million payout after a cyberattack exposed sensitive patient data.

 

The final approval hearing for the Paradies Shops settlement is expected later this year.