Lawsuits filed on the heels of security breach (Printed March 28, 2008)

By Renee Worthing

Staff Writer

The fallout continues in the wake of a security breach involving 4.2 million credit and debit cards used at Hannaford during a three-month period.

At least two potential class action lawsuits have been filed in response to the March 17 announcement that credit and debit card information was breached.

Michael Fantini, a partner at Berger & Montague PC based in Philadelphia, Pa., said his firm filed a class action lawsuit in U.S. District Court for the District of Maine on behalf of Massachusetts resident Greg Doherty who used a debit card to purchase $88.15 worth of merchandise at a Hannaford in Quincy, Mass., Jan 25.

The two-part suit alleges negligence and breach of implied contracts on the part of Hannaford.

According to the suit, Hannaford “failed to maintain adequate computer data security.”

The suit also alleges Hannaford breached the implied contract that Hannaford would safeguard information and notify customers promptly of “any and all theft” of (credit and debit card) information.

According to the lawsuit, “the three month delay in detecting the breach casts doubt on Hannaford’s intrusion detection procedures and system monitoring controls.”

The suit alleges Hannaford first became aware of unusual credit card activity on Feb. 27 but did not publicly announce the breach until March 17, nearly three weeks later.

Fantini said he received between 20 and 40 phone calls from people who are part of the class action lawsuit.

“It’s going to become more widespread,” he said.

Fantini said Berger & Montague has handled these types of cases before, including being co-counsel in the TJX security breach in 2007 that affected “tens of millions” of credit and debit card holders.

Another potential class action was filed by Lanham and Blackwell based in Bangor.

Samuel Lanham said the suit was filed on behalf of Melinda Ryan.

“As of right now, there is no class,” Lanham said.

He said the court must certify the suit as a class action lawsuit.

“There is an awful lot to be done,” he said.

Lanham said there were multiple cases to be filed in multiple states.

“I fully expect everything will be assigned to one judge who will cover the whole kit and caboodle,” Lanham said.

He said Hannaford had an obligation to ensure a third party could not gain access to customer’s personal and private information.

Lanham said his office has not handled these types of cases before and said this was a “new (type of) litigation.”

“We’re finding a new wave of theft (with computers) and the legal system will put a stop to it,” he said.

Lanham said Hannaford is owned by DelHaize, a Belgian-based company.

According to the DelHaize Web site, DelHaize America operates under the names Hannaford, which became a subsidiary of DelHaize America in July 2000, as well as Food Lion, Bloom, Bottom Dollar, Harveys, Bros., Kash n’ Karry and Sweetbay.

Contact Renee Worthing by calling 282-4337 ext. 240 or email news@inthecourier.com

 

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