PepsiCo Security Incident

Judge Gives Green Light to Pepsi and Kronos Settlement December 21, 2022, 8:45AM . By Jane Mundy A federal judge has given the green light for approval of an Ultimate Kronos Group cybersecurity lawsuit settlement New York, NY A New York federal judge in early December has granted preliminary approval of a $12.75 million settlement. The PepsiCo class action lawsuit alleges that Pepsi workers were not paid overtime and wages weren't timely or fully compensated for all hours worked during an outage with their Kronos timekeeping system. Along with Pepsi, the workforce management companys timekeeping and payroll systems are used by many major businesses across various industries, including defendant companies New Tiger LLC and subsidiaries including The Quaker Oats Company and Frito-Lay Inc. Kronos Lawsuit Kronos, which merged in April 2020 with Ultimate Software and now called UKG (Ultimate Kronos Group), was hacked in 2021. The ransomware attack caused an outage and disruption to its timekeeping software that affected almost 24,000 workers during 17 pay periods between December 2021 and April. Employers did not have access to employees work hours. Investigating the incident, PepsiCo and its co-defendants determined they had underpaid 23,801 workers by $23,896,550, which represents the underpaid compensation figure owed to the members of the settlement class and the Fair Labor Standards Act collective, and that 41,481 employees were overpaid by $59,776,602, reported Law360 . ThePepsiCo Kronos class action settlementis Emanuele Stevens et al. v. PepsiCo Inc. et al .Case No. 7:22-cv-00802, in the U.S. District Court for the Southern District of New York. The settlement stems from lawsuits following the Kronos data breach in 2021. Drobsch v. PepsiCo. In April 2022 Devin Drobsch filed a class action lawsuit in Pennsylvania federal court against PepsiCo, Inc., claiming that the company is in violation of the Pennsylvania Minimum Wage Act and the Pennsylvania Wage Payment...

... (truncated for display)