Chipotle Data Breach Spurs Class-Action Suit

The possible data breach announced last month by Denver-based Chipotle has led to a class-action suit filed in federal court in Denver. The suit, filed by New Hampshire-based Bellwether Community Credit Union, charges the breach resulted from the company's "elementary" security measures.

"Despite having knowledge that such data breaches were occurring throughout the restaurant and retail industry, Defendant failed to properly protect sensitive payment card information," the suit charges. "The Chipotle Data Breach was the inevitable result of Chipotle’s inadequate data security measures and approach to data security.

"Despite the well-publicized and ever-growing threat of cyber breaches involving payment card networks and systems, Chipotle systematically failed to ensure that it maintained adequate data security measures, failed to implement best practices, failed to upgrade security systems, and failed to comply with industry standards."

The credit union says it is acting on behalf of banks and other credit unions that have lost money as a result of the breach. They charge the breach forced them to reissue cards to customers and make good on fraudulent transactions.

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Chipotle has not yet responded.

A hearing is scheduled for next month.

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