Chick-fil-A has reportedly agreed to settle a class action lawsuit over food delivery costs, which some customers claim were quietly raised by as much as 30% without any notification.
The $4.4 million settlement will result in members of the class receiving either a $29.25 cash payment or a gift card in the same amount, according to Top Class Actions, which cited the settlement agreement. Chick-fil-A plans to send emails to those who are eligible for the refund.
The Atlanta-based company, which did not admit guilt in the settlement, reduced its delivery charges from $4.99 to Free, $2.99, or $3.99 when COVID resulted in people being barricaded inside their homes. The suit claimed, however, that the company “secretly raised its menu prices on delivery orders only in order to cover the costs of delivery and profit—without once disclosing the manipulation to customers.”
That resulted in delivery food prices that were as much as 30% higher than people would pay in the store.
Chick-fil-A did not respond to Fortune’s request for comment about the suit or reported settlement.
The plaintiffs in the case are citizens of Virginia, Texas, Arkansas, Maryland, and South Carolina.
Delivery has been increasingly important to fast food restaurants since the pandemic. In 2020, it was a lifeline for stores, which could not serve customers in dining rooms, but since then customers have fallen back on the habit, avoiding waiting in lines and having the food brought to them.
Chick-fil-A initially began its delivery services in 2018, through a partnership with DoorDash. The company has been on an expansion kick this year, announcing plans to open its first store outside the U.S. in 2025 and debuting the first major addition to its national menu in nine years.
