Fidelity National faces suit for negligence

LOSSES & LAWSUITS

The complaint, filed at the central district of California on behalf of 8.5 million customers, does not seek damages but accuses the defendants of negligence, invasion of privacy and breach of implied contract.

Both companies are charged with the failure to implement and maintain adequate security measures for protecting confidential financial information belonging to consumers.

They are also accused of failing to properly monitor and supervise the activities of employees entrusted with consumer data.

The breach in question, disclosed by FIS in July, involved a Certegy senior database administrator who illegally accessed and downloaded millions of consumer records and sold them to data brokers. Los Angeles-based resident Theodore Borreson first brought the case when he noticed an influx of direct marketing and promotional offers. The defendants are accused of failing to notify customers immediately of the breach.

Proving a direct link between data theft and identity theft or fraud is difficult and in the past has usually deterred victims from taking legal action against the firm in question.