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Why class-action suits against Schnucks – how much was taken?

Class-action lawsuits have been filed against Schnucks because of a massive credit card breach that may have compromised 2.4 million credit and debit cards from December 2012 to March 2013. No idea how much was actually stolen to justify the class-action filings?

The lawsuits basically accuse Schnucks of violating best practices and industry security standards and failure to notify customers in a timely manner. Six former Hilander stores in the Rockford area may have been compromised and all are currently under the Schnucks banner.

For full disclosure, my credit was also compromised. A notice was sent by my bank, which had been notified by Schnucks in a timely manner, since my credit statement showed no compromised charges were ever made on the card, or it would have been noticed, since the statement is reconciled monthly.

A new card was obtained, numerous companies received my updated information, the compromised card was cancelled, etc. It was an inconvenience, but had never contemplated suing Schnucks because nothing was lost except time. The hacker thieves are the ones who should share our contempt, not Schnucks.

So, what did Schnucks do to deserve class-actions against it? Most of the breach occurred in the St. Louis area where the company is based. They discovered the breach on March 15 and sent out a news release on March 30 of this year and acknowledged a more widespread investigation two weeks later on April 15.

Card numbers and expiration dates – not cardholder names were accessed during the breach. Consumers should always check their statements each month and if the receipts and charges do not match, then it’s up to the consumer to reconcile the charge. It’s part of the process one must accommodate for the privilege of owning such a credit or debit card.

Excerpt:

Schnucks gave the card numbers that may have been compromised to card companies that then provided them to banks and financial institutions to communicate with customers.

But the company also is airing commercials locally featuring Chairman and CEO Scott Schnuck talking about the security breach and advising customers that the best way to prevent future fraud is to get new cards.

The company notified the banks, the CEO of the company is apologizing to their customers and if customers had responsibly checked their monthly statements, they should have had no problem. So, why were the lawsuits forthcoming?

If the lawsuits are successful, neither the company nor the CEO will ultimately pay the damages – no, the customers will, including those who filed the class action suits. The only ones who will come out ahead, as usual, will be the attorneys who filed the lawsuits.

How much money was actually lost in the breach, if the names were not connected to the stolen card information? Are these frivolous lawsuits if no money was lost? Is this someone just trying to make a quick buck from deeper pockets than theirs?

Customers, who were actually out their own money, not covered by the credit card company or reimbursed by Schnucks, should be able to receive damages for that, but with the liability limits on current credit cards, that should have not amounted to much for Schnucks’ customers.

Please exclude me from your class-action lawsuits. I think the company did what they could and did it in a timely manner. Responsible vigilance by the credit card customers should have resulted in little, if anything lost!

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