Insurers, McD's Franchisees Settle BIPA Coverage Dispute

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By Josh Liberatore (April 27, 2022, 4:59 PM EDT) — Two insurers and 26 Illinois-based McDonald’s franchisees reached a settlement in their dispute over whether coverage exists for a class action accusing the restaurant owners of violating Illinois’ data privacy law by improperly collecting and sharing employee fingerprint scans.

In a joint stipulation of dismissal with prejudice filed Tuesday, American Family Mutual Insurance Co. and Austin Mutual Insurance Co. told an Illinois federal court they’ve entered into a settlement agreement with the franchisees, ending the litigation that began more than two years ago.

The settlement agreement comes after a deal was reached in October and finalized in February in the underlying…

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