On August 4, a New Jersey federal judge denied a motion to dismiss a putative class action against J. Crew Group involving allegations of Fair and Accurate Credit Transactions Act violations for printing more than the last five digits of consumers’ credit card numbers on sales receipts.  The named plaintiff alleged that J. Crew violated FACTA willfully because it had actual knowledge of the Act’s requirements through an industry consortium and its negotiated insurance policy, which excluded FACTA coverage.

According to the New Jersey federal judge, “The facts alleged indicate that, at the very least, defendants ignored an obvious and unjustifiably high risk of violating FACTA.”  The Court, in its ruling, found that a sophisticated organization such as J. Crew should have been aware of FACTA and its requirements.

The named plaintiff referred to J. Crew’s motion as “premature at best” because it had arguably presented little facts in support of its claim that its subsidiary entities were improper parties.

The case is Kamal v. J. Crew Group, Inc., et al., Civil Action No. 2:15cv190 in the United States District Court for the District of New Jersey.

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Photo of H. Scott Kelly H. Scott Kelly

Scott is a consumer data and privacy specialist. He regularly defends against data breach lawsuits and class action claims asserted under federal and state consumer-protection statutes (FCRA, FDCPA, TCPA, UCC, UDAAP, RICO). Scott represents companies on an array of data privacy issues, including

Scott is a consumer data and privacy specialist. He regularly defends against data breach lawsuits and class action claims asserted under federal and state consumer-protection statutes (FCRA, FDCPA, TCPA, UCC, UDAAP, RICO). Scott represents companies on an array of data privacy issues, including background screening, consumer reporting, data breaches, ransomware attacks, and related regulatory investigations by the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), and state attorneys general.

Photo of Michael E. Lacy Michael E. Lacy

Michael heads the firm’s Consumer Financial Services practice, and handles class actions and high-stakes consumer litigation on a nationwide basis. He represents banks, mortgage servicers, debt buyers and collectors, and lenders against claims under consumer protection statutes, including the FCRA, TCPA, RESPA, RICO,

Michael heads the firm’s Consumer Financial Services practice, and handles class actions and high-stakes consumer litigation on a nationwide basis. He represents banks, mortgage servicers, debt buyers and collectors, and lenders against claims under consumer protection statutes, including the FCRA, TCPA, RESPA, RICO, and state UDAP laws. He has significant experience litigating and trying corporate governance disputes, including shareholder derivative claims, corporate dissolution cases, and corporate divorce matters. Michael also represents public utility companies in litigation and regulatory matters, including condemnation and land use cases.