What Happened to Trader Joe's FACTA Class Action Settlement (Keim v. Trader Joe's Company)?

The class action lawsuit, formally known as Keim v. Trader Joe's Company, originated from allegations that the popular grocery chain violated the Fair and Accurate Credit Transactions Act (FACTA). FACTA, an amendment to the Fair Credit Reporting Act, mandates that businesses truncate credit and debit card numbers on electronically printed receipts, displaying no more than the last five digits to protect consumer privacy and prevent identity theft. The lawsuit, initially filed by plaintiff Brian Keim in Florida in 2019, claimed that Trader Joe's receipts, specifically between March 5, 2019, and July 19, 2019, displayed the first six and last four digits of customers' card numbers, exceeding the legal limit.

Trader Joe's, while denying any wrongdoing and stating it was unaware of any identity theft incidents resulting from the receipt formatting, ultimately agreed to a settlement to avoid further litigation. The company attributed the issue to its payment processing software at select locations during the specified 18-week period. This decision to settle is a common strategy for companies facing class action lawsuits, allowing them to resolve claims without admitting liability.

A significant turning point occurred in February 2026 when the company and the plaintiff reached a tentative $7.4 million settlement, which subsequently received preliminary court approval on February 5, 2026. This settlement fund is intended to cover payments to eligible class members, the plaintiff's award, and attorneys' fees. The estimated individual payout for eligible claimants is approximately $102.45, though this amount could fluctuate based on the total number of valid claims submitted and the deduction of legal and administrative costs.

The consequences of this lawsuit are directly impacting hundreds of thousands of consumers across the United States. Eligible individuals who made purchases at Trader Joe's stores using a credit or debit card during the affected period (March 5, 2019, to July 19, 2019) and received a non-compliant receipt are entitled to file a claim. The deadline for class members to submit a valid claim form, or to opt out or object to the settlement, is June 9, 2026.

As of June 9, 2026, the settlement is in its final stages of approval. A final approval hearing is scheduled for August 10, 2026, where a judge will make the ultimate determination on whether to officially approve the agreement. If approved and no appeals arise, payments are expected to be distributed approximately 45 days after the final approval. Any remaining funds after the initial distribution may be used for a second distribution or donated to the Identity Theft Resource Center. This case highlights the ongoing importance of consumer protection laws like FACTA in safeguarding personal financial information.