Reported / Citable
Background
Six plaintiffs filed putative class actions alleging that Catalyst Brands LLC and Penney OpCo, doing business as JCPenney, failed to use reasonable security practices to protect employment-related personal information. The complaints arose from the same alleged June 12, 2026 data breach, which allegedly exposed names, W-2 tax records, Social Security numbers, and other sensitive information belonging to hundreds of thousands of people. The Feldman action also named Authentic Brands Group, LLC.
The plaintiffs jointly moved to consolidate the six actions under Federal Rule of Civil Procedure 42(a), appoint Gerald D. Wells III and Raina C. Borrelli as interim class counsel, stay pleading and other deadlines, and permit a consolidated complaint within 45 days. Defendants consented to consolidation, the requested stay, and the proposed pleading schedule, but took no position on interim class counsel.
The Court’s Holding
The court granted the motion in part, consolidating the six actions for all purposes, including pretrial proceedings and trial. It found that the cases arose from the same alleged data breach, asserted overlapping claims for similarly defined putative classes, sought similar relief, and were at the same early procedural stage. Consolidation would conserve resources and reduce the risk of inconsistent rulings, while creating little prejudice. Feldman was designated the lead case, and future filings must be made under Master File No. 4:26-CV-00649 using the caption In re Catalyst Brands LLC et al. Data Breach Litigation.
The court appointed Wells and Borrelli as interim class counsel under Rule 23(g), giving them primary authority over plaintiffs’ pretrial strategy, discovery, settlement negotiations, communications, delegation of work, and fee allocation. It denied the requested stay and stated that it would schedule a Rule 16 case-management conference. Plaintiffs must file a consolidated class-action complaint within 45 days of the order, and defendants must answer or otherwise respond within 45 days after that complaint is filed.
Key Takeaways
- Six putative class actions arising from the same alleged JCPenney-related data breach were consolidated for pretrial proceedings and trial.
- The court appointed Gerald D. Wells III and Raina C. Borrelli as interim class counsel with sole coordinating authority over plaintiffs’ pretrial work.
- The court denied a stay but established sequential 45-day deadlines for the consolidated complaint and defendants’ response.
Why It Matters
The order centralizes related data-breach claims in one proceeding, reducing duplicative discovery, motion practice, and the possibility of inconsistent rulings. It also establishes a unified leadership structure for plaintiffs before any class has been certified.
The decision does not resolve the merits of the data-security allegations or certify a class. Its immediate effect is procedural: one master case, one operative complaint, coordinated counsel, and a common schedule for the litigation.