Heartland gets most of banks’ claims dismissed over its massive data breach

Bonnie Barron reports that Heartland Payment Systems succeeded in getting a federal court judge to agree to dismiss most of the claims in a consolidated lawsuit filed by nine banks following a massive breach that affected millions of customers.

Rosenthal granted the banks leave to amend the dismissed claims for breach of contract, breach of implied contract, express misrepresentation, negligent misrepresentation based on nondisclosure, and violations of the California Unfair Competition Law, the Colorado Consumer Protection Act, the Illinois Consumer Fraud and Deceptive Business Practices Act and the Texas Deceptive Trade Practices-Consumer Protection Act.

Heartland failed only in its bid to dismiss the claim that it violated the Florida Deceptive and Unfair Trade Practices Act. The processor had argued that the act applies only to consumers, not banks, but the Florida Legislature substituted “person” for “consumer” when it amended the act in 2001.

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