Checkers Facing Class Action Over Years-Long Data Breach of Point-of-Sale Systems

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Checkers Drive-In Restaurants has been hit with a proposed class action lawsuit in Florida stemming from a data breach that reportedly began back in September 2016 and went undetected by the fast food company until May 29, 2019.

According to the 44-page complaint, a malware attack of point-of-sale systems at 102 Checkers locations continued from September 2016 through April 2019. The following month, the case says, Checkers confirmed the data breach, indicating it was “designed to collect information stored on the magnetic stripe of payment cards, including cardholder name, payment card number, card verification code and expiration date.”

The lawsuit alleges that Checkers’ security protocols were so deficient that the data breach remained unnoticed despite similar hacks perpetrated against high-profile companies like Target, Home Depot, Arby’s, Sonic, Pizza Hut and Wendy’s.

“[Checkers] disregarded plaintiff’s and class members’ rights by intentionally, willfully, recklessly, or negligently failing to take adequate and reasonable measures to ensure its data systems were protected, failing to take available steps to prevent and stop the breach from ever happening, and failing to disclose to its customers the material facts that it did not have adequate computer systems and security practices to safeguard customers’ private information,” the lawsuit alleges.