Bank Sues IHG to Recover Alleged Costs Associated with 2016 Data Breach

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A Louisiana bank has filed suit against InterContinental Hotels Group, PLC; Inter-Continental Hotels Corporation; and Intercontinental Hotels Group Resources, Inc. to recover damages allegedly caused by a data breach in the defendants’ point-of-sale systems. The complaint claims the defendants – which operate various hotel chains such as the Holiday Inn, Candlewood Suites, and Staybridge Suites – failed to update their security systems and allowed their customers’ personal payment card information to be exposed to hackers for months. In fact, the defendants apparently didn’t discover the breach, which supposedly occurred around August 1, 2016, until the end of December 2016, the suit says. The plaintiff argues that the data breach and the defendants’ alleged failure to detect it caused the bank to suffer significant damages. From the complaint:

“The costs and financial harm caused by Defendants’ negligent conduct is borne primarily by financial institutions, like Plaintiff, that issued the payment cards compromised and rendered useless in this data breach. These costs include, but are not limited to, expenses associated with cancelling and reissuing compromised cards, creating new uniquely-identifiable information, and reimbursing their customers and/or members for fraudulent charges.”