Wendy’s Must Face Credit Card Breach Bank Class Suit

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By Jimmy H. Koo

The Wendy’s Co. must face class claims filed by 26 financial institutions over a data breach that compromised customers’ payment card data, the U.S. District Court for the Western District of Pennsylvania held March 31 ( First Choice Fed. Credit Union v. Wendy’s Co. , W.D. Pa., No. 16-506, 3/31/17 ).

Adopting Chief Magistrate Judge Maureen P. Kelly’s Feb. 13 recommendations, Judge Nora Barry Fischer denied Wendy’s bid to dismiss the class action.

According to the financial institutions’ class complaint, between Oct. 22, 2015 and March 10, 2016, credit card data, including account holder’s name, account number and expiration date was exposed due to the vulnerabilities in Wendy’s data security systems. Using malware, hackers were able to steal Wendy’s customers’ credit and debit card data, the complaint said. The banks are seeking to recover the costs of canceling and reissuing the compromised cards and reimbursing customers for fraudulent charges.

Named plaintiff First Choice Federal Credit Union is represented by Murray Law Firm; Berman Fink Van Horn PC; Carlson Lynch Sweet & Kilpela LLP; Zimmerman Reed LLP; Pittman, Dutton & Hellums PC; Roberts Law Firm PA; and Lockridge Grindal Nauen PLLP. Wendy’s is represented by Alston & Bird LLP.

To contact the reporter on this story: Jimmy H. Koo in Washington at jkoo@bna.com

To contact the editor responsible for this story: Donald Aplin at daplin@bna.com

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