Schnucks sued by their insurance company for data breach

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MARYLAND HEIGHTS, MO (KTVI) – Schnucks is facing more problems from the massive cyber breach case where millions of its customers credit and debit cards were hacked. The supermarket chain is now being sued by its own insurance company.

Schnucks says between December of last year and the end of March of this year 2.4 million credit and debit cards used at its stores could have compromised.  The massive data breach affected 79 stores.

Eight lawsuits have since been filed against Schnucks seeking damages for customers whose cards were hacked. In a 23 page lawsuit  Liberty Mutual says it`s not responsible for paying damages in the multiple suits filed against Schnucks in the case. Liberty Mutual says it`s not going to pick up the tab for those suits because its coverage only applies to property damage and bodily injury; not electronic data like the credit and debit card numbers that were compromised in the breach. Specifically, the suit says the electronic data does not constitute any ‘tangible property.’

Schnucks issued statement Tuesday calling the suit disappointing and surprising. The chain went on to says it expects Liberty Mutual to honor its commitment in the insurance policy. The suit was filed earlier this month in federal court in St. Louis.

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