Financial Institution Sues Retailer Over Data Breach

An Illinois Credit Union has sued Kamart/Sears over a 2014 data breach because the retailers reaction to a data breach harmed financial institutions. Here’s why, note same thing can happen in Texas:

• The financial institutions were required:
  • to refund fraudulent charges
  • respond to a higher volume of customer complaints, and
  • increase fraud monitoring efforts
• The financial institutions lost revenue
• The retailers failed to maintain adequate data security under applicable payment card industry standards
• The retailer delayed notification to consumers by at least 5 weeks. 
• The causes of actions rooted in :
  • Illinois Personal Information Protection Act,
  • Consumer Fraud and Deceptive Business Act,
  • New York General Business Law,
  • negligence, and negligent misrepresentation and/or omission.​

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