Cumis Insurance Society, Inc. v. BJ's Wholesale Club, Inc.

This dispute arose after unauthorized parties obtained access to magnetic stripe data from approximately 9.2 million credit cards4 used by cardholders to purchase merchandise at stores of the defendant BJ’s Wholesale Club, Inc. (BJ’s). Using the stolen data, the thieves were able to engage in fraudulent credit card transactions worth millions of dollars. The plaintiff credit unions, which had issued the compromised Visa U.S.A., Inc. (Visa), and MasterCard International (MasterCard) credit cards to the cardholders, were reimbursed for some of the fraudulent charges by their insurer, plaintiff…