Oct. 16--The federal lawsuit brought against Schnuck Markets Inc. by its insurer related to the hacking of thousands of customers' payment cards has been dropped.
"Liberty Mutual and Schnucks have agreed to discuss alternatives to litigation," Lori Willis, a spokeswoman for the Maryland Heights-based grocery chain, wrote in an email.
Liberty Mutual had sued the grocer in August in U.S. District Court in St. Louis, saying it wouldn't pay the potential tab for eight lawsuits that accused Schnucks of either failing to safeguard the payment card data of customers or for not notifying customers soon enough about the breach.
The insurance company claimed it was responsible for covering only physical damage -- not data -- and only up to a certain amount. That amount was redacted from public copies of the lawsuit.
An attorney representing Liberty Mutual did not respond to a request for comment.
Liberty Mutual notified the court at the end of August that it was dismissing the suit. A judge signed off on the dismissal at the end of last month, which was entered into the court file on Oct. 1.
When the lawsuit was first filed, Schnucks said in a statement that it was disappointed by the lawsuit and that Liberty Mutual was attempting to walk away from its obligations. It added that Schnucks expected the insurer to honor its commitment.
The data breach affected an estimated 2.4 million cards used at Schnucks between December and March of this year.
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