Michaels Stores Hit With Class Action Lawsuit Over Data Security Breach

By on January 31, 2014

A class action lawsuit has been filed against Michaels Stores after the arts and crafts retail store announced a possible data security breach that compromised sensitive customer information.   The action claims Michaels Stores should have implemented safety measures to prevent a security breach, especially since a similar infringement occurred nearly three years ago.

Michaels Stores announced on January 24, that it may be the victim of a massive cyber attack and is investigating credit-card and debit-card transactions made at store locations.

“We are concerned there may have been a data-security attack on Michaels that may have affected our customers’ payment-card information, and we are taking aggressive action to determine the nature and scope of the issue,” Michaels Stores CEO Chuck Rubin said in a statement.

The class action claims Michaels Stores violated the Illinois Consumer Fraud Act by not implementing appropriate security measures, not alerting customers that their information was at risk and not notifying customers of the extent of the breach.

This revelation comes at a time when other retail stores, Target and Neiman Marcus, announced their own massive security breaches.  The U.S. Federal Bureau of Investigation (FBI) has warned retailers that more attacks may occur.  The regulator has identified 20 similar incidents at other companies during the last year.

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