Red Roof Inns Inc. agreed to pay $550,000 to settle a proposed class action alleging the hotel chain negligently failed to protect the personal information of more than 25,000 people that was exposed in a 2023 data breach.

Class members would be eligible for reimbursement of up to $10,000 in documented losses related to the breach as well as a pro rata share of the net settlement fund, according to the plaintiffs’ motion for final approval of the deal, filed Wednesday in the US District Court for the Southern District of Ohio.

Three former Red Roof Inn employees alleged in …