Schnucks trying to get lawsuits dismissed in credit card security breach

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by KMOV.com staff

KMOV.com

Posted on July 8, 2013 at 1:38 PM

Updated Monday, Jul 8 at 1:41 PM

(KMOV.com) – St. Louis-area-based Schnucks is working to dismiss a handful of lawsuits filed by customers alleging that a recent credit card security breach cost them money, according to the St. Louis Post-Dispatch.

In the lawsuits, the plaintiffs allege Schnucks failed to “secure customers’ private financial information” and are also upset it took so long for the company to address the problems.

In its motion to dismiss, Schnucks says customers did not suffer economic loss because they were compensated for the fraudulent activity by their banks or credit card companies.

Schnucks filed the motions in late June.

The company says an estimated 2.4 million credit and debit cards were compromised at their stores over a four-month period beginning late last year.

Under state law, a company in Missouri is required to inform anyone whose personal information is breached of the information that was released. But Schnucks says in this particular case, only financial data – including expiration dates and payment card numbers - was stolen. The company said because personal information was not compromised, the rules of notification would not apply.

According to a timeline Schnucks sent to News 4, the company first learned on March 15 of questionable activity and began an investigation on March 19. Schnucks said it pinpointed the problem on March 28 and executed a plan to contain it within 36 hours.

The company said from December 2012 to March 29, 79 of their 100 stores were affected by credit and debit card thieves. Out of the 79 stores, 58 of them were in the St. Louis Metropolitan area.

Officials said 54 stores in Missouri and 23 stores in Illinois were affected total. Stores were also affected in Iowa, Indiana and Wisconsin.

 

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