(CN) – The 1st Circuit revived a negligent misrepresentation claim accusing TJX of failing to stop hackers from stealing the credit and debit card numbers of millions of shoppers at TJ Maxx and other discount stores. Judge Boudin said the claim “survives, but on life support.”
In January 2007, parent company TJX revealed that its computer systems had been hacked and the card data for millions of customers stolen.
Several banks that had issued the cards filed suit in federal court in Massachusetts, claiming TJX and Fifth Third Bancorp negligently misrepresented their intention to follow Visa and MasterCard’s security protocols for safeguarding financial data. The banks sought to recover the money they spent reimbursing customers for fraudulent charges.
Although the Boston-based federal appeals refused to certify a class action, it allowed the banks to sue for negligent misrepresentation. The court nixed claims for breach of contract and negligence.
The three-judge panel also vacated an order requiring transfer from federal court and vacated a claim based on the unfairness theory. The case was remanded for further proceedings.