Judge approves $64M settlement of class-action suit against Rewards Network

LOS ANGELES A U.S. District Court judge here earlier this month gave final approval to an approximately $64 million settlement of a class-action lawsuit that charged loyalty program provider Rewards Network with violations of California usury laws.

Restaurant operators who received cash advances under certain contracts with Chicago-based Rewards Network between May 25, 2000, and Dec. 31, 2004, may be entitled to participate in the settlement. Claim forms must be filed by Aug. 9. Eligible participants in the settlement will be paid in a combination of cash and airline miles.

Information about filing claim forms is available at www.rnclassaction.com [2].

The settlement brings to a close litigation that began in 2004 and was initially filed by three Los Angeles-area restaurant operators. The plaintiffs charged that Rewards Network loaned money at illegally high interest rates. Rewards Network officials have denied any wrongdoing.