Wednesday, November 25, 2009

Secret Service Investigation, Class Action Lawsuit, Cast Shadow Over Radiant Systems and Distributor

Atlanta Company and Distributor Accused of Negligence in Widespread Identity Theft at Restaurants

Forensic audit investigations conducted by credit company-approved experts concluded that the Louisiana-based distributor for Radiant Systems, Inc. ( products violated data protocols that directly contributed to security breaches at restaurants in Louisiana and Mississippi. This finding of alleged negligence is at the heart of a collective action lawsuit filed by seven restaurants claiming that hundreds of customers had their identities stolen as a result of poor business practices and faulty software from Radiant and Computer World (the distributor).

The restaurants are seeking millions of dollars in damages from Radiant and Computer World.

“Our clients are restaurants. They are food experts, not technologists. When major players in the hospitality industry such as Radiant Systems and its distributors say their software and business practices are PCI-DSS compliant, our clients trust them,” said Charles Hoff of the Law Offices of Charles Y. Hoff, PC, general counsel for the Georgia Restaurant Association and one of the attorneys acting as a legal advisor to the restaurants in the lawsuit.

Hoff continued: “When those claims of compliance and proper security practices turn out to be false, the restaurants are left to suffer huge financial losses due to financial penalties imposed by the credit card companies. Their reputations are tarnished. We’re determined not to let Radiant and Computer World simply walk away from their responsibilities.”

PCI-DSS is a comprehensive set of technological requirements and consumer protections created by the major credit card companies to safeguard point of sale (POS) systems from hackers and protect consumers from identify theft. POS system vendors must follow these standards, and any business accepting credit cards for payments (such as restaurants) are contractually obligated to use equipment and software from PCI-DSS compliant vendors. The penalties for retailers that have their systems breached can be massive, even if the problems are the fault of the hardware and software vendors. PRLog

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