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ARTICLE · 30 MAY 2017

Class Action Filed Against Chipotle For Data Security Breach Involving Payment Processing System

Troutman Pepper Locke LLP
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On May 4, Bellwether Community Credit Union filed a class action suit on behalf of a proposed class of financial institutions in Colorado federal court against Chipotle Mexican Grill, Inc...

United StatesLitigation, Mediation & Arbitration
Ronald Raether Jr.
Ronald Raether Jr.
Reade Jacob
Reade Jacob
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On May 4, Bellwether Community Credit Union filed a class action suit on behalf of a proposed class of financial institutions in Colorado federal court against Chipotle Mexican Grill, Inc., claiming that the chain's recently announced data breach caused significant financial harm to the credit union.  Bellwether's complaint alleges that Chipotle's purportedly lax security standards violated Section 5 of the Federal Trade Commission Act.  Bellwether claims that it and other similarly situated financial institutions incurred substantial costs related to canceling and reissuing compromised cards as well as investigating and refunding fraudulent charges as a result of Chipotle's alleged negligence. 

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