Judge Keeps CU Case Against BJ's Alive

MADISON, Wis. – A judge in Massachusetts has left the bulk of the case CUNA Mutual and 192 credit unions have brought against BJ’s Wholesale Club and its processor, Fifth Third bank, seeking to recover damages in the card data breach in place. The card breach took place in March 2004 and the credit unions filed suit in 2005. BJ’s and Fifth Third filed a motion to dismiss the case in October, but the judge largely disagreed with the retailer. The court left claims for fraud, negligent misrepresentation, equitable indemnification, subrogation, as well as unfair and deceptive practices in place. The only claims the court dismissed were for breach of contract and negligence. CUMIS said the case will now move forward with discovery, and the insurer will contact its credit union policyholders that joined it in the suit next month regarding their individual claims and damages. “We’re satisfied with the court’s decision and look forward to proceeding with this case,” said CUMIS spokesman Phil Tschudy.