Wawa’s $10.7M Data Breach Lawsuit Against Mastercard Thrown Out
Published on October 15, 2022
In a recent court ruling, the lawsuit filed by Wawa, the popular convenience store and gas station chain, against credit card company Mastercard, has been dismissed. Wawa claimed that Mastercard had failed to uphold its responsibilities in protecting user data following a massive data breach that occurred in 2019.
The data breach affected millions of customers, making it one of the largest breaches in the retail industry. The hackers were able to access sensitive information such as credit card numbers, names, and personal identification numbers (PINs). Wawa alleged that Mastercard’s security measures were inadequate, and as a result, customers suffered financial losses and faced the risk of potential identity theft.
However, Judge Richard Fisher of the Eastern District of Pennsylvania ruled in favor of Mastercard, stating that it was not responsible for the data breach. Fisher argued that Wawa could not prove that the breach occurred due to any negligence or security failure on Mastercard’s part. He further added that placing the blame solely on Mastercard would be an improper allocation of responsibility.
The dismissal of the lawsuit comes as a blow to Wawa, as it sought compensation for the significant costs incurred in investigating and remediating the breach, as well as for reputational damages. Wawa had argued that Mastercard should have been more proactive in detecting and preventing the breach from occurring in the first place.
Mastercard, on the other hand, welcomed the court’s decision, emphasizing its ongoing commitment to consumer protection and privacy. The credit card giant stated that it constantly enhances and evolves its security protocols to mitigate risks and protect cardholders’ information.
“While we sympathize with the victims of data breaches, we are pleased that the court recognized that Mastercard took adequate measures to safeguard user data,” said Jennifer Henderson, spokesperson for Mastercard.
It is worth noting that the dismissal of the lawsuit does not absolve Wawa of its responsibilities to its customers. The convenience store chain has faced significant scrutiny since the data breach, leading to improvements in its security infrastructure and a heightened focus on safeguarding consumer data. Wawa has also taken steps to assist affected customers by offering identity theft protection services and credit monitoring.
In conclusion, the dismissal of Wawa’s $10.7 million data breach lawsuit against Mastercard highlights the challenges faced by companies in pursuing legal action against third-party service providers following data breaches. While Wawa’s concerns regarding data security are valid, the court ultimately held that Mastercard was not at fault for the breach. This verdict serves as a reminder to businesses to strengthen their own security measures and actively assess their partnerships with external vendors to provide better protection for customer information.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.