Executive Summary

Panera Bread has agreed to a $2.5 million settlement to resolve a class-action lawsuit stemming from a data breach on March 23, 2024. The breach compromised the personally identifiable information (PII), including names and Social Security numbers, of approximately 147,321 individuals. The affected population consists mainly of current and former employees, along with a small number of customers and contractors. The settlement, which received preliminary approval in July 2025, allows affected individuals to claim reimbursement for financial losses and time spent mitigating the effects of the breach, though Panera Bread does not admit any wrongdoing.

Regulatory Details

The case is a class-action lawsuit filed against Panera Bread alleging that the company failed to implement and maintain reasonable security procedures to protect sensitive personal information, leading to the breach. The settlement provides a framework for compensating victims for damages incurred as a result of the data exposure.

Settlement Terms:

• Total Fund: $2.5 million
• Eligible Class Members: Individuals who received a data breach notification from Panera Bread regarding the March 2024 incident.
• Ordinary Expense Reimbursement: Class members can claim up to $500 for documented out-of-pocket expenses, such as credit monitoring fees, communication costs, and bank fees.
• Extraordinary Loss Reimbursement: Individuals who experienced documented identity theft or fraud can claim up to $6,500 for actual losses.
• Lost Time Compensation: Claims can include compensation for up to 10 hours of time spent resolving breach-related issues, at a rate of $25 per hour.
• California Statutory Payment: California residents are eligible for an additional $100 payment.

Affected Organizations

• Primary Organization: Panera Bread
• Affected Population: Approximately 147,321 current and former employees, customers, and contractors.

Compliance Requirements

The lawsuit and subsequent settlement underscore the legal and financial obligations organizations have under various state data breach notification laws and data privacy regulations, such as the California Consumer Privacy Act (CCPA). These laws require companies to implement reasonable security measures to protect PII and to notify affected individuals in a timely manner following a breach. Failure to do so can result in significant legal liability, regulatory fines, and class-action lawsuits.

Implementation Timeline

• Data Breach Date: March 23, 2024
• Preliminary Settlement Approval: July 14, 2025
• Claim Filing Deadline: November 11, 2025

Impact Assessment

For Panera Bread, the direct financial impact includes the $2.5 million settlement fund plus legal fees, which can be substantial. The company also faces reputational damage, which can affect customer trust and employee morale. For the 147,321 individuals affected, the primary impact is the increased risk of identity theft and fraud due to the exposure of their Social Security numbers. They must now invest time and potentially money in monitoring their credit and protecting their identities, which is what the settlement aims to compensate.

Enforcement & Penalties

The primary penalty in this case is the $2.5 million class-action settlement. This amount is intended to cover the costs incurred by the victims and serve as a financial consequence for the alleged security failures. Regulatory bodies could potentially levy additional fines, but the class-action settlement is the most visible enforcement action in this instance.

Compliance Guidance

This incident serves as a reminder for all organizations that handle PII, especially sensitive data like Social Security numbers.

1. Data Governance: Organizations must know what data they collect, where it is stored, and who has access to it. Implement data minimization principles to avoid collecting or retaining unnecessary PII.
2. Access Controls: Enforce strict access controls and the principle of least privilege to ensure that only authorized personnel can access sensitive data.
3. Data Protection: Sensitive data like SSNs should be encrypted both at rest and in transit. Robust endpoint security and network monitoring should be in place to detect and prevent unauthorized access.
4. Incident Response: Have a well-documented and practiced incident response plan to ensure a swift and effective response to any security breach, including timely notification to affected parties as required by law.