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CU System
Court upholds sending part of breach suit to Fla.
BOSTON (5/8/09)--The lst U.S. Circuit Court of Appeals has upheld a Maine federal court's decision to remand one of the class action lawsuits it received involving the Hannaford Bros. data breach back to a Florida court for litigation. The case was remanded under the Class Action Fairness Act (CAFA) home state exception to federal jurisdiction (Law.com May 7) in an opinion Friday by a three-judge panel. More than 20 lawsuits were filed against the supermarket chain and its affiliates after a data breach exposed more than four million credit and debit card numbers to hackers last year. The Maine U.S. District Court had consolidated a number of cases from New England, New York and Florida, where the hacked supermarket accounts were located. The plaintiff in the remanded case had sued Kash 'N Karry Food Stores Inc., which does business as Sweetbay Supermarket and Sweetbay Liquors, in a Florida court,. Kash 'N Karry had the case removed to a Florida federal court under the CAFA provision. That case eventually was combined with the multidistrict litigation because corporate entities related to the grocery faced similar claims. Credit unions in New England, New York and Florida were among the financial institutions that reissued cards for members whose accounts were compromised in the Hannaford Bros. breach. Between Dec. 7, 2007, and March 10, 2008, cyber criminals hacked into Hannaford's system and accessed card numbers used at 165 Hannaford supermarkets in the Northeast and 106 Sweetbay stores in Florida. Of the four million cards compromised, at least 1,800 numbers were stolen and used for unauthorized purposes. The breach was discovered Feb. 27, 2008, and made public by Hannaford on March 17, 2008.
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