Credit union sues Chipotle after alleged breach

Bellwether Community Credit Union has filed a class-action lawsuit against Chipotle and is seeking damages related to the fast-casual restaurant company’s recent data security breach, according to documents filed in a Colorado District Court on May 4. The suit is the latest in a chain of class-action complaints filed against retailers and restaurant companies, such as Arby’s, Wendy’s, Home Depot and Target.

The complaint alleges the breach compromised names, credit and debit card numbers, card expiration dates, card verification values and other information of Chipotle customers nationwide. It also said the breach forced credit union and other financial institutions to cancel or reissue cards, close accounts, stop payments, block transactions, issue refunds, increase fraud monitoring efforts and deal with cardholder complaints and confusion. Credit unions and financial institutions also lost interest and transaction fees due to reduced card usage, and the cards and their corresponding account numbers became worthless, it added.

“Though an investigation is still ongoing, it appears that hundreds of thousands of defendant’s customers at locations nationwide have had their credit and debit numbers compromised, have had their privacy rights violated, have been exposed to the risk of fraud and identify theft, and have otherwise suffered damages,” the complaint alleged.


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