Panera Bread has agreed to pay up to $12 to some of its customers as part of a settlement over delivery fees. This agreement impacts customers who ordered food through Panera's website or app from October 2020 to August 2021.
Panera Settles Delivery Fee Lawsuit for $2 Million
Top Class Actions reports that Panera Bread has agreed to a $2 million settlement to end a class action lawsuit that accused the company of misleading customers about fees and prices on delivery orders.
The lawsuit covered customers who used the Panera app or website to place delivery orders from October 1, 2020, to August 31, 2021.
According to the plaintiffs in three class action lawsuits, Panera did not communicate the actual costs of delivery orders, including fees and menu prices. These customers claim they ended up paying more than they had anticipated based on the information provided by Panera.
Although Panera has not admitted any wrongdoing, it settled the lawsuit to resolve these claims. Under the settlement terms, affected consumers can choose between vouchers or a cash payment.
Customers involved in a Panera Bread settlement could receive up to $12 each, although the final amount may be lower if too many claims are filed. The payouts are intended to resolve a dispute over delivery fees and will be transferred electronically, possibly via PayPal or Venom.
In addition to cash, Panera Bread enthusiasts can choose vouchers instead. Each voucher is valued at $9.50 and can be used to purchase items from the chain's famous Soup and Mac menu.
Those wishing to claim must act quickly, as the deadline to submit a claim is June 10. Claimants are required to provide the phone number used when placing their orders.
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A fairness hearing is scheduled for May 31 to determine the approval of the settlement. There is, however, a chance that the hearing date might be changed. If the settlement is approved without delay, recipients should expect their compensation within 60 days following the hearing.
It's important to note that those wishing to opt out of the settlement have already missed the March 11 deadline. Any appeals submitted after the fairness hearing could further delay the payment process.
Lawsuits Surround Panera Charges and Products
Panera Bread is facing legal challenges, with one lawsuit claiming that a "secret menu price markup" was explicitly used to cover delivery costs and generate profit. This charge was described as solely for using Panera's delivery service, constituting a delivery fee.
Multiple lawsuits concerning its Charged Lemonade drinks, which contain high levels of caffeine, are adding to Panera Bread's legal troubles, per USA Today.
Two lawsuits, initiated in October and December of last year, claim that the caffeine content in these drinks led to cardiac arrests that resulted in two deaths. Another lawsuit filed this year alleges that the same beverage caused permanent heart issues.
Despite these serious claims, the Charged Lemonade drinks remain available for sale on Panera's menu, now with additional product warnings. Recently, a judge declined to dismiss one of these cases, indicating that the resolution might be protracted.
Class action lawsuits allow groups, or "classes," to sue for grievances like pollution or false advertising collectively. Often initiated by a few, these suits can include all affected. Companies typically settle to avoid higher litigation costs, compensating members who usually waive further claims despite denying wrongdoing.
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