On June 12, 2019 United States District Court Judge James L. Robart preliminarily approved a $9.8 million Settlement Agreement that will compensate impacted credit union account holders, improve Eddie Bauer’s security, and cover legal fees and administration costs.

Each Settlement Class Member will be individually notified through the U.S. Mail and the Settlement Administrator will establish a toll-free number and Settlement Website to provide information about the Settlement. The deadline to file a claim will be October 25, 2019. The hearing for final approval is scheduled for October 25, 2019. 

In 2016, hackers accessed Eddie Bauer’s Point of Sale systems and installed malicious software that infected all 350 American and Canadian Eddie Bauer stores. The security breach compromised the names, credit and debit card numbers, card expiration dates, card verification values, and other credit and debit card information of Eddie Bauer customers. As a result of the breach, financial institutions, including Veridian Credit Union, incurred costs related to cancellation and re-issue of their account-holder’s payment cards, as well as the need to provide additional customer support. 


The case is Veridian Credit Union v. Eddie Bauer LLC, case number 2:17-cv-00356, in the U.S. District Court for the Western District of Washington. 

Plaintiff Veridian Credit Union is represented by Tousley Brain Stephens attorneys Kim D. Stephens and Chase C. Alvord, in conjunction with Joseph P. Guglielmo, Erin G. Comite, and Stephen J. Teti of Scott + Scott Attorneys at Law LLP, Gary F. Lynch and Kevin W. Tucker of Carlson Lynch Sweet Kilpela & Carpenter LLP, and Karen H. Riebel and Kate Baxter-Kauf of Lockridge Grindal Nauen PLLP.