If approved, the settlement would provide $7.5 million in compensation for customers who were potentially shortchanged when using the machines in Penny Arcade machines from April 11, 2010, until they became unavailable in using the machines.
An investigative report in 2016, on NBC’s Today Show, revealed incorrect results when $300 in coins was placed in five randomly selected machines. That report was part of the disclosure used in the lawsuit.
TD stopped using the machines in the wake of the NBC report and pulled them from its branches in May 2016.
Under the proposed terms of the settlement, people who were TD Bank customers at the time of Penny Arcade transactions “need not take any action to receive their distributions.” Penny Arcade users who remain TD customers will receive automatic payments into their accounts. Former customers and people who make written claims would receive checks in the mail.
Reportedly, TD Bank would calculate the amount each TD Bank customer would receive by using its records to determine the amount of Penny Arcade usage by those consumers. TD would multiply that sum by 0.26 percent to determine a customer's distribution, or payment.
If approved, plaintiffs who used coin-machine but who did not have TD accounts, could submit written claims, subject to the approval of a settlement administrator. Claims unsupported by documentation would be limited to reimbursement of $500.
There are 13 named as plaintiffs in the consolidated class action lawsuit who would share a $50,000 payment. Any funds remaining after the payment of all claims and expenses would be shared among class members.
The proposed deal awaits court approval.