In , hackers infiltrated the computer networks at Schnuck Markets, a large Midwestern grocery store chain based in Missouri, and stole the data of about 2. By the time the intrusion was detected and the data breach was announced in , the financial losses from unauthorized purchases and cash withdrawals had reached the millions. Financial institutions filed a class action, having issued new cards and reimbursed customers for losses as required by 15 U.
The Seventh Circuit affirmed the dismissal of the suit. The financial institutions sought reimbursement for their losses above and beyond the remedies provided under the credit-debit card network contracts; neither Illinois or Missouri would recognize a tort claim in this case, where the claimed conduct and losses are subject to these networks of contracts.
Claims of unjust enrichment, implied contract, and third-party beneficiary also failed because of contract law principles. Seventh Circuit rejects claims by issuers of credit and debit cards against a retailer, based on losses suffered by the issuers when the retailer suffered a data breach. Disclaimer: Justia Annotations is a forum for attorneys to summarize, comment on, and analyze case law published on our site.
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Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes. Schnuck Markets, Inc. Community Bank of Trenton v. Justia Opinion Summary In , hackers infiltrated the computer networks at Schnuck Markets, a large Midwestern grocery store chain based in Missouri, and stole the data of about 2.
