Panera Bread has reached a $2.5 million tentative settlement in a class-action lawsuit brought by workers after a February 2024 cyber incident that disrupted the chain’s digital services for roughly three days. Employees filed multiple suits in June 2024 alleging the company waited weeks or months to notify them that personal information—reported to include full names and Social Security numbers—may have been exposed. Those suits were consolidated into a single class action in October.
Panera said it conducted a full investigation after the disruption and offered affected workers credit monitoring, identity theft insurance and other protections at the time. The company did not admit liability in agreeing to the settlement, which still requires court approval. Panera officials did not immediately respond to requests for comment about the deal or about the specific security upgrades the company agreed to implement.
The proposed settlement covers roughly 147,321 people who received notice from Panera and may include current and former employees, plus a small group of contractors and others connected to the incident. Notices began going to potential class members after the plaintiffs consolidated their claims.
Settlement Terms, Claim Options, Eligibility and Deadlines
Under the settlement terms filed with the court, class members will be able to submit claims under several different paths depending on the losses they document:
- Up to $500 for documented out-of-pocket expenses tied to the breach.
- Up to $6,500 for extraordinary losses such as identity-theft remediation or fraud-related costs, with supporting documentation required.
- A residual cash payment of $250 for general class members, with an extra $100 available for residents of California.
Those seeking the maximum combined recovery must meet strict documentation rules. The settlement permits a claimant to pursue documented-loss payments for extraordinary harm, but administrators will require proof tying those expenses directly to identity theft or fraud resulting from the incident.
To participate in the settlement, claim forms must be submitted or postmarked by November 11, 2025. Class members who wish to opt out of the settlement or file objections to its terms must do so by October 13, 2025. The final fairness hearing is scheduled for January 29, 2026, at which a judge will decide whether to approve the deal.
Panera agreed to strengthen protections described in the settlement paperwork, but the company did not disclose the specific technical or policy changes it will make. The settlement does require court oversight of administrative costs and distributions before any payments are finalized.
Workers who received incident notices should review the official claim materials carefully and follow the submission instructions. The settlement documentation sets out how claimants can substantiate documented losses and explains the residual payment distribution method, which depends on the total number of valid claims and remaining funds after administrative fees.
The litigation followed the temporary shutdown of online ordering and internal systems in February 2024, which also delayed employee pay cycles and pushed back parts of the company’s seasonal operations. Plaintiffs argued the delay in notification compounded the harm by limiting workers’ ability to move quickly to protect their identities.
Panera has previously faced other consumer- and product-related lawsuits in recent years, but the company emphasized after the 2024 incident that it had taken immediate steps to investigate and to offer remediation services to affected workers.
If the court approves the settlement, eligible claimants will be notified of the exact payment process and schedule. Those who do nothing by the claims deadline will forfeit any potential recovery, while those who opt out retain the right to pursue separate legal action.
