Banks' Heartland Data Breach Claims Revived In 5th Circ.

Law360, New York (September 03, 2013, 6:22 PM ET) -- The Fifth Circuit on Monday resurrected negligence claims against payment processor Heartland Payment Systems Inc. over a notorious 2008 data breach, saying a district court had wrongly left seven credit card issuers with no remedy for losses from its allegedly lax cybersecurity.

A unanimous panel restored negligence claims from nine credit-card issuing banks and credit unions tied to a hacking incident that left 130 million credit card numbers exposed to cyberthieves, holding that New Jersey’s economic loss doctrine should not bar tort claims arising from the...
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