Facts

Zoya Sosinov filed a putative class action against RadioShack Corp., alleging violation of California's Song-Beverly Credit Card Act. The Act prohibited retailers from recording certain personal identification information from customers in credit card transactions.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that defendant violated the Act by asking customers for personal identification information during credit card transaction and recording it. Plaintiff also contended that when she went to defendant's store in March 2010, and purchased an item using a credit card, and that the employee asked for her e-mail address. Plaintiff believed she was required to provide her personal identification information in order to complete the transaction.

Result

RadioShack denied any wrongdoing, but agreed to settle the matter by providing $11.00 "good as cash" credit certificate to approximately 400,000 customers in its database. RadioShack also agreed to comply with the requirements of the Act, which permits collection of personal identification information in certain circumstances, as part of the settlement. The potential benefit to the class was approximately $4.4 million. RadioShack also agreed to pay for plaintiff's reasonable fees and costs not to exceed an agreed amount.

Other Information

FILING DATE: Nov. 19, 2010.