Paradies Shops $6.88M Data Breach Class Action Settlement

U.S. residents who received a notice from The Paradies Shops LLC about a 2020 data breach may qualify to claim up to $25,000 from a class action settlement.

The Paradies Shops LLC agreed to pay $6.88 million to resolve a class action lawsuit alleging negligence and other claims related to a ransomware attack that exposed sensitive employee information, including names and Social Security numbers.

Who can file a Paradies Shops claim?

Class members must meet the following criteria:

• They are a U.S. resident who received a notice from Paradies about the 2020 data breach.
• Their name and address appear on the official class list Paradies maintains.
• They received a mailed notice regarding the class action settlement.

How much is the data breach payout?

• Ordinary out-of-pocket losses and attested time: Up to $1,000 per person. These are documented, unreimbursed expenses incurred in response to the ransomware attack, such as fees for credit reports, freezing or unfreezing credit, notary or postage costs and credit monitoring purchased before the settlement. As part of the $1,000 cap, class members can claim up to five hours of time spent responding to the breach compensated at $30 per hour (maximum $150).
• Extraordinary losses and attested time: Up to $25,000 per person. These are documented, unreimbursed losses traceable to the ransomware attack and not covered by ordinary losses, such as those from identity theft, fraud or falsified tax returns. Class members may claim up to 10 hours of time spent remedying these losses at $30 per hour (maximum $300). Class members can claim extraordinary attested time separately from extraordinary losses.
• Credit monitoring services: Three years of identity theft protection and credit monitoring at no cost and regardless of whether the class member claims other losses.

If the total amount of approved claims exceeds the net settlement fund after deducting administration costs, attorneys’ fees and service awards, the settlement administrator will reduce payments proportionally.

If funds remain after all claims and costs are paid, class members who did not exclude themselves may receive a residual cash payment calculated on a pro rata basis.

How to claim a class action rebate

Class members can submit an online claim form or download, print and complete the PDF claim form to mail to the settlement administrator. Claims must be submitted online or postmarked by Aug. 4, 2025.

Settlement administrator's mailing address: Ramirez Class Action Settlement, c/o Claims Administrator, 1650 Arch St., Suite 2210, Philadelphia, PA 19103

What information and documentation is necessary to submit a claim?

• To file an online claim, class members must provide the notice ID and confirmation code from the personalized notice they received via mail or email.
• For ordinary or extraordinary losses, class members must submit receipts, statements or other non-self-prepared documents showing the loss or expense.
• For attested time, class members must submit a written description of the actions taken and time spent.
• For credit monitoring, class members need only check the box on the claim form.

Payout options

• PayPal
• Venmo
• Zelle
• Virtual prepaid card
• Physical check

$6.88 million ransomware attack settlement fund breakdown

The $6,880,000 settlement fund covers:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $2,268,988
• Attorneys' expenses: Up to $15,000
• Service award to class representative: $10,000
• Credit monitoring costs: To be determined
• Payments to class members: Remainder of the fund

Important dates

• Deadline for exclusion: July 7, 2025
• Final fairness hearing: July 24, 2025
• Deadline to file a claim: Aug. 4, 2025

When is the Paradies Shops ransomware settlement payout date?

Payments will be issued approximately 60 days after the court grants final approval and any appeals are resolved.

Why did this class action settlement happen?

The class action lawsuit alleged a ransomware attack on The Paradies Shops LLC's internal systems Oct. 8-13, 2020, potentially exposed employee records, including names and Social Security numbers. The plaintiffs alleged negligence and other claims, seeking compensation for costs and losses related to the incident.

Paradies denied wrongdoing but agreed to settle to avoid the risks and costs of further litigation.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ