HARRISBURG, Pa. — The $3.1 billion Pennsylvania State Employees Credit Union has won a chance to argue its case that it deserves to be repaid for losses it suffered during a major card breach.
The case stems from the card security breach suffered by the BJ's Wholesale Club retail chain that saw eight million card accounts potentially compromised. PSECU reissued 20,000 cards and sued BJs and its processing bank, Fifth Third, alleging that they had been damaged by BJ's and Fifth Third's failure to meet its contractual obligations with Visa.
The credit union lost the first round in the case in 2005 when a U.S. district judge ruled that the credit union did not have a right to damages as a third party to the Visa contract. But the CU appealed and the Third District Court of Appeals agreed that the CU should have had the chance to argue the breach of contract claim.
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