Wednesday, August 03, 2005

Court orders CardSystems to retain breach information

Robert McMillan writes in NetworkWorld:

A California state court has ordered CardSystems Solutions and three other defendants in a class-action lawsuit to preserve evidence relating to a major breach of the Atlanta, Ga., credit-card processor's computer systems.

The court also has set a date for CardSystems, along with MasterCard International, Visa USA and Merrick Bank, to argue over who bears ultimate responsibility for informing customers of the breach.

The court order, issued on Tuesday by the Superior Court of the State of California in San Francisco, is the latest development in what may prove to be a long-running class-action lawsuit over the highly publicized theft of credit-card information at CardSystems' Tucson, Ariz., operations center, which was first disclosed in June.

The suit, filed shortly after the theft was revealed, claims that CardSystems was negligent in the way it maintained consumer credit data. In addition to monetary damages, the suit seeks to force CardSystems and the credit-card companies to notify California consumers whose data has been compromised.

Tuesday's order will make it more likely that the defendants are able to inform consumers, should the court side with the plaintiffs, according to Ira Rothken, managing partner of San Rafael, Calif.-based The Rothken Law Firm, which filed the suit.


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