Damages claimed against companies implicated in mass credit card fraud

[JURIST] Class representatives amended a complaint against CardSystems Solutions, MasterCard, Visa, and Merrick Bank [corporate websites] Thursday, demanding monetary compensation for negligence. The lawsuit stems from a security breach at CardSystems that resulted in the exposure of some 40 million credit cards to potential fraud [JURIST report]. Three representatives filed the suit on behalf of hundreds of cardholders in California Superior Court in San Francisco. The complaint [PDF], originally filed June 27, had at that time demanded only declaratory relief that would require the credit card companies to notify customers who were exposed to the security breach, and provide those customers with credit monitoring and fraud protection free of charge. The amendment comes after new evidence suggests that Visa, MasterCard, and Merrick Bank knew that CardSystems had failed multiple industry-standard security audits, and nonetheless continued to allow CardSystems to process transactions. CNET has more.

 

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.