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May 29, 2018

Americas: Hotels, Consumers, and Courts Take Data Breaches Seriously

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Last week, a deal was reached in Andrew Parsons v. Kimpton Hotel & Restaurant Group LLC, in the U.S. District Court for the Northern District of California. The suit was filed by former guests whose credit card information was stolen when Kimpton was the victim of a point-of-sale malware attack at more than 60 hotels and restaurants. The malware was on Kimpton’s servers from February 2016 until it was discovered in July of the same year when Kimpton immediately notified all guests who had used credit cards at the front desk at one of its properties. However, despite Kimpton’s attempts to protect its customers, a court found in favor of plaintiffs in the class-action suit seeking compensation for “time and effort” to replace hacked credit cards and monitor their credit, even though the card issuers had covered any losses due to the data breach. A Kimpton spokesperson gave this statement to MeetingsNet:

“In an effort to expedite resolution, we have reached an initial proposed agreement on terms and look forward to the court’s approval on the matter.”

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