Genesco may sue credit card companies over fines for 2010 data breach
In December 2010, Genesco, the parent company of United States Journeys, Journeys Kidz, Shi by Journeys, Johnston & Murphy, and Underground Station, disclosed its network had been compromised by malware and that it had first learned of the compromise from payment processors.
Fast forward two years, and Genesco may be suing American Express, MasterCard and Visa for $15.6 million, according to a report in The Tennessean by Duane Marsteller:
The $15.6 million is the amount that the card companies are seeking in damages from Genesco, contending the retailer was partly liable in the breach. Genesco (NYSE: GCO) disputes that and says the card companies are threatening to withhold card payments to make up for the loss.
“The company intends to contest any such action vigorously, including through litigation to recover the withheld payment card receivables if necessary,” Genesco said in a filing this week with the Securities and Exchange Commission. The item was mentioned during the company’s quarterly sales update.[…]
The breach already has cost Genesco $2.1 million in legal and consulting fees, according to SEC filings.
Read more on The Tennessean.