Online Merchant Sues Bank Over Breach
PRIVACY LAW—U.S.December 8, 2010
An Arizona online merchant is seeking class-action status in U.S. District Court for its lawsuit claiming U.S. Bank failed to protect it and others from thieves who had breached the bank's credit card database, reports the Star Tribune. The lawsuit alleges Minneapolis-based U.S. Bank knew of and covered up a breach of its security systems, failed to notify customers about the breach and recouped the money from fraudulent charges by pulling it from merchants' accounts. According to the report, U.S. Bank said potential damages could exceed the $5 million threshold required under the Class Action Fairness Act of 2005. A lawyer for U.S. Bank said the case is "wholly without merit."