Sunday, December 18, 2011

Data Breaches Involving Payment Card Skimming at Michaels Stores results in Lawsuits


In May 2011, Michaels Stores reported that “skimmers” using modified PIN pad devices in eighty Michaels stores across twenty states had gained unauthorized access to customers’ debit and credit card information.  Lawsuits alleging claims under the Stored Communications Act (“SCA”), the Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”), and for negligence, negligence per se, and breach of implied contract.
Late last month, U.S. District Court Judge Charles Kocoras ruled on Michaels’s motion to dismiss. Some claims were dismissed, but others survived. The opinion presents a broad-brush survey of potential data security breach claims, with some fine detail and local color particular to this variety of criminal data security breach.



http://privacylaw.proskauer.com/2011/12/articles/data-breaches/michaels-stores-still-pinned-beneath-payment-card-skimming-lawsuit/#more

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