Consumers v Rewards Network Inc.,
Rewards Network to Settle Class Action
Rewards Network Inc., a company that provides marketing services and loyalty programs to the restaurant industry, reached a preliminary agreement to settle a class action lawsuit brought against the company in California for up to $28 million.
The company said it plans to record an expense of $18 million to $21 million in the fourth quarter to provide for the settlement.
The settlement would resolve a class action claim brought by a number of California-based restaurants that participated in Reward Network's dining credits purchase plan between May 2000 and December 2004.
The agreement entitles participants in the class action to receive a combination of cash and airline miles valued at up to $26 million to $28 million. Rewards Network also agreed not to collect any money from class action participants related to its dining credits purchase plan and will pay all administrative and legal costs of the settlement.
The agreement still faces approval by the court.
