Noodles & Co. Dodges Credit Unions’ Data Breach Suit

Law360, New York (July 21, 2017, 5:57 PM EDT) -- A Colorado federal judge tossed a proposed class action brought by financial institutions over a Noodles & Co. data breach, ruling Friday that the credit unions’ negligence claims failed as they had not shown that the fast-casual chain had contractual obligations toward them.

U.S. District Judge R. Brooke Jackson said that given that Noodles & Co. had no obligation toward SELCO Community Credit Union and the other unions in the consolidated suit, the unions' negligence claims were barred under the economic loss rule, which only allows for recovery of damages on a breach of contract claim.

The court said that Noodles &...

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