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DoorDash discloses data breach and $18M Chicago settlement
Yahoo Finance· 2025-11-17 22:46
Core Insights - DoorDash is facing challenges due to a recent cybersecurity incident and a legal settlement with the City of Chicago over deceptive business practices [1][5] Cybersecurity Incident - On October 25, DoorDash experienced a data breach caused by a social engineering attack, allowing unauthorized access to personal information of users, including names, email addresses, phone numbers, and physical addresses [2] - DoorDash confirmed that no sensitive data such as payment information or Social Security numbers were exposed, and there is no indication of misuse for fraud or identity theft [3] - The company is enhancing employee training and authentication protocols to prevent future incidents [4] Stock Performance - DoorDash's stock is down 20% this month, despite a year-to-date increase of 23.8% [4] - The stock has also decreased by 16% over the quarter, reflecting investor uncertainty following its Q3 earnings report [4] Legal Settlement - On November 14, DoorDash agreed to pay $18 million to settle a lawsuit from the City of Chicago regarding hidden fees and deceptive practices during the pandemic [5] - The settlement includes $4 million in credits to eligible Chicago users starting January 28, 2026, and $3.25 million to restaurants listed without consent [6] - Additional payments include $5.8 million in delivery commission and market credits to eligible restaurants, $500,000 for drivers delivering food orders in Chicago since September 2019, and $4.5 million to cover the lawsuit costs [7]
Amazon to Pay $2.5 Billion in Prime Membership Settlement
Nytimes· 2025-09-25 15:28
Group 1 - The settlement is one of the largest in the history of the Federal Trade Commission [1] - The Federal Trade Commission sued Amazon two years ago [1]