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Banks Ask 5th Circ. To Revive Heartland Data Breach Claims
From: Erica Absetz <eabsetz () opensecurityfoundation org>
Date: Tue, 12 Feb 2013 11:29:44 -0500
http://www.databreaches.net/?p=26846 Megan Stride of Law360 writes that a lawsuit against Heartland Payment Systems over their 2008 breach may not be totally dead: A group of banks on Friday asked the Fifth Circuit to revive their negligence claims against Heartland Payment Systems Inc. in multidistrict litigation over a 2008 data breach, saying Heartland’s claim that it shared a contractual relationship with the banks shouldn’t defeat their appeal. In their reply brief, nine credit-card-issuing banks. including Amalgamated Bank and Lone Star National Bank NA, argue that a New Jersey economic loss rule doesn’t bar their negligence claim against Heartland because it only bars claims for foreseeable economic losses when the parties are in a contractual relationship. The payment card processor argued in its own Jan. 22 brief that it had a contract-based relationship with the banks because all the parties had agreed to be bound by a set of operating regulations that allowed issuers to recover losses resulting from another participant’s security failures. But the financial institutions say they never negotiated or entered into a contract with Heartland. [...] The banks are appealing a Texas federal court’s dismissal of their New Jersey law negligence claims against Heartland, which were part of an MDL that also included a litigation track for consumer claims.The case is Lone Star National Bank NA et al. v. Heartland Payment Systems Inc., case number 12-20648, in the U.S. Court of Appeals for the Fifth Circuit. Read more on Law360 (subscription required). _______________________________________________ Dataloss-discuss Mailing List (dataloss-discuss () datalossdb org) Archived at http://seclists.org/dataloss/ Unsubscribe at http://datalossdb.org/mailing_list Supporters: Risk Based Security (http://www.riskbasedsecurity.com/) Risk Based Security equips organizations with security intelligence, risk management services and on-demand security solutions to establish customized risk-based programs to address information security and compliance challenges. Tenable Network Security (http://www.tenable.com/) Tenable Network Security provides a suite of solutions which unify real-time vulnerability, event and compliance monitoring into a single, role-based, interface for administrators, auditors and risk managers to evaluate, communicate and report needed information for effective decision making and systems management.
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- Banks Ask 5th Circ. To Revive Heartland Data Breach Claims Erica Absetz (Feb 12)