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Two more CUs file suit against Target for data breach

Employees CU, based in Dallas with $63 million in assets, and KC Police CU based in Kansas City, Mo. with $107 million in assets, were joined by American Bank of Commerce, Wolfforth, TX, in filing suit in the U.S. District Court in Dallas, saying they "have incurred (and will continue to incur) damages to their businesses and/or property in the form of...expenses to cancel and reissue compromised payment cards, absorption of fraudulent charges made on the compromised payment cards, business destruction, lost profits and/or lost business opportunities."

"CUNA has been working to bring together credit unions looking for legal representation and law firms looking for cases in the data security field, but so far it looks like credit unions are doing a pretty good job of making their own plans," CUNA General Counsel Eric Richard told News Now.

The suit is the first to name a third-party vendor--Fazio Mechanical Services, Pittsburgh--as the point of entry for the breach that compromised the debit, credit and personal information of about 110 million people between Black Friday and mid-December ( Dallas News Feb. 13).

It also cites the Racketeer Influenced and Corrupt Organizations (RICO) Act, alleging the retail giant has known since 2007 that its point-of-sale network was vulnerable, thus engaging in what the suit calls "unlawful and intentional schemes to defraud and cheat plaintiffs" by means of false or fraudulent pretenses and/or fraudulent and intentional misrepresentation of its compliance with Payment Card Industry Data Security Standards.

For the complete story visit CUNA News Now.