CUMIS Pleased With Ruling, Moving Aheadin BJs Suit
MADISON, Wis. - (12/15/05) CUMIS Insurance Societys lawsuitagainst BJs Wholesale Club and Fifth Third Bancorp relatedto a massive credit card data breach at the wholesalers is movingforward now that a Massachusetts Superior Court judge has ruledagainst most of the defendants motion to dismiss. CUMISbrought the lawsuit on behalf of 192 of its credit union clientsthat were affected by the security breach. The breach has blamed onthe fact that BJs retained and stored Visa and MasterCardmagnetic stripe information after authorized transactions, apractice that violates the credit card companies agreementswith merchants, allowing for the opportunity for that data to behacked. The judge ruled in favor of CUMIS on most of the countsBJs and Fifth Third had sought dismissal, including claimsfor fraud, negligent misrepresentation, equitable indemnification,subrogation and unfair and deceptive practices. But in his rulingthe judge did allow the claims for breach of contract andnegligence to be dismissed from the case. The suit now moves intothe discovery phase, and CUMIS said it will be contacting itspolicyholders that joined in the suit next month regarding theirindividual claims and damages. Were satisfied withthe courts decision and look forward to proceeding with thiscase, said CUMIS spokesperson Phil Tschudy.