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Genesco takes VISA to court over data breach (updated)

Posted on March 8, 2013 by Dissent

Back in January, there were reports that Genesco might sue card issuers over their response to the firm’s  malware breach in 2010. Now dmarsteller reports that Genesco has, indeed, sued VISA. The lawsuit was filed Thursday in Nashville.  dmarsteller explains:

VISA later fined Fifth Third Bank and Wells Fargo $5,000 each and levied another $13.3 million in assessments, saying they were liable for the breach because they did not comply with industry-wide security standards. The banks paid, taking the money from Genesco’s accounts and assigning any recovery efforts to Genesco.

Genesco contends VISA overreacted because there was no evidence that the hackers stole any cardholder information. The retailer said regular rebooting of its computer servers erased any data before hackers could retrieve it.

Genesco also contends VISA violated its contracts with the banks by not following the required procedure before issuing the fines and assessments. The card company’s actions also are unfair business practices under California law, the suit contends.

Read more on The Tennessean.

Update:  Threat Level uploaded the complaint (h/t, Joe Cadillic)

Category: Breach IncidentsBusiness SectorHackMalwareU.S.

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