News

Jimmy John's customers file class action suit over data breach

Plaintiffs are seeking unspecified damages and free credit fraud monitoring for three years.

November 19, 2014

Jimmy John's is facing a class action lawsuit stemming from data breaches earlier this year, according to Bank Info Security.

Lead plaintiff Barbara Irwin alleges a credit card she used at a Jimmy John's location in Arizona was compromised as a result of the breach. As a result, five fraudulent charges were made on the card.

The suit alleges that Jimmy John's inadequate information systems and security are to blame for the breach.

But the lawsuit may not amount to much, according to the story:

Historically, class action lawsuits arising from data breaches have not gotten a lot of traction because they have lacked tangible proof of damages, says Scott Vernick, a partner at the law firm Fox Rothschild whose practice includes privacy and data security law.

"Just because someone alleges they had fraudulent charges doesn't mean they're going to be able to surpass the hurdle," he says. That's because consumers rarely pay any expenses related to payment card fraud, with the card brands or issuers picking up the expense, he notes.

Jimmy John's customers involved in the suite are seeking unspecified damages, including that the sandwich chain pay for three years of credit card fraud monitoring services.