The Paradies Shops LLC has agreed to pay $6.88 million to settle a class action lawsuit involving a 2020 ransomware attack that allegedly exposed sensitive employee information, including names and Social Security numbers. Eligible individuals may qualify for compensation of up to $25,000.
Who Is Eligible?
To qualify for a payment, individuals must meet the following criteria:
- They are U.S. residents.
- They received a mailed notice from Paradies regarding the 2020 data breach.
- Their name and address appear on the official class list maintained by Paradies.
Compensation Overview
Ordinary Losses and Time Spent:
- Up to $1,000 per person
- Covers out-of-pocket expenses such as credit report fees, postage, notary costs, credit monitoring, and credit freeze-related expenses.
- Includes up to five hours of time spent addressing the breach, paid at $30 per hour (maximum $150).
Extraordinary Losses and Time Spent:
- Up to $25,000 per person
- Covers documented losses not already reimbursed, such as identity theft, fraudulent accounts, or falsified tax returns directly linked to the breach.
- Includes up to ten hours of time spent dealing with these losses, also compensated at $30 per hour (maximum $300). Time may be claimed in addition to extraordinary loss compensation.
Credit Monitoring Services:
- All class members are eligible to receive three years of free identity theft protection and credit monitoring, even if they do not submit a claim for reimbursement.
If total claims exceed the available funds after deductions, individual payments will be reduced proportionally. If money remains after all payments are made, a residual cash distribution may be issued to eligible class members on a pro rata basis.
How to File a Claim
Eligible class members may file a claim in either of the following ways:
- Online: Submit the form using the notice ID and confirmation code from your mailed or emailed settlement notice.
- By mail: Download and complete the claim form and mail it to the address below.
Claim submission deadline: August 4, 2025
Mailing address:
Ramirez Class Action Settlement
c/o Claims Administrator
1650 Arch St., Suite 2210
Philadelphia, PA 19103
Required Documentation
- Online claims: Must include the notice ID and confirmation code.
- Ordinary or extraordinary losses: Must be supported by third-party documentation such as receipts, invoices, or financial statements.
- Attested time: Must include a written explanation describing the tasks performed and the amount of time spent.
- Credit monitoring: Simply check the appropriate box on the claim form—no documents required.
Payment Methods
Class members may choose to receive payment through:
- PayPal
- Venmo
- Zelle
- Virtual prepaid card
- Physical check
Settlement Fund Breakdown
The $6.88 million settlement fund will be allocated as follows:
- Attorneys’ fees: Up to $2,268,988
- Attorneys’ expenses: Up to $15,000
- Settlement administration costs: To be determined
- Class representative service award: $10,000
- Credit monitoring costs: To be determined
- Remaining balance: Distributed to class members
Key Dates
- Exclusion deadline: July 7, 2025
- Final approval hearing: July 24, 2025
- Claim deadline: August 4, 2025
When Will Payments Be Issued?
Payments are expected to be distributed approximately 60 days after final court approval of the settlement and resolution of any appeals.
Why Did This Settlement Occur?
The lawsuit claimed The Paradies Shops failed to adequately protect employee data, resulting in a ransomware attack between October 8 and October 13, 2020. Plaintiffs alleged negligence and other legal violations tied to the exposure of personal information.
Paradies has denied any wrongdoing but chose to settle to avoid further litigation costs and risks.
Sources:
Status: Open for claims
Deadline to file a claim: August 4, 2025
Estimated Award: Varies based on losses and number of valid claims
Please be aware that your claim form will be rejected if it contains fraudulent information. By submitting your information and your sworn statement of its accuracy, you are agreeing to do so under penalty of perjury. Submitting false information not only jeopardizes your claim but also affects others who are genuinely eligible for the settlement. If you are uncertain about your eligibility for this class action settlement, please visit the class action administrator’s website for more information. Note that NoProofClassActions.org participates in the Amazon affiliate advertising program, and this post may include affiliate links, which could result in us earning a commission if you make a purchase through those links.
