Judge Sides with U.S. Bank in Data Breach Suit

U.S. District Judge David Doty said that E-Shops Corporation's lawsuit was missing key information to back up its claims that it lost money as a result of U.S. Bank concealing a breach of its data.

A federal judge on Thursday ruled in favor of Minneapolis-based U.S. Bank in a data breach lawsuit filed last year by E-Shops Corporation, which does business as Paintball Punks.

Lake Havasu City, Arizona-based Paintball Punks-which sells paintball equipment online and bills itself as a “small, family-owned” operation-claimed that U.S. Bank was aware of a data breach but allowed “compromised” credit-card accounts to remain active.

From August to December 2009, Paintball Punks allegedly received nine fraudulent orders from customers using U.S. Bank credit cards-orders that cost the company roughly $11,260. The company claims that U.S. Bank was aware of a breach of its data but concealed the matter.

But U.S. District Judge David Doty dismissed the lawsuit on Thursday, saying that Paintball Punks failed to include important information in its suit to support its allegations against the bank.

For example, the company accuses U.S. Bank of aiding and abetting fraud, but it failed to specify details about these claims, including the “who, what, when, where, and how” of the alleged fraud, according to Doty.

“The complaint provides no specific factual assertions about the nature of the data breach, how it occurred, when it occurred, or where it occurred,” Doty wrote in his order.

The suit was originally filed in November in Hennepin County District Court and was moved in December to U.S. District Court in Minneapolis.