Former Winn-Dixie employee sues over security...
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Former Winn-Dixie employee sues over security breach BY CHRISTIAN CONTE STAfE WRITER JACKSONVILLE - After filing his 2011 tax return, former Winn- Dixie Stores Inc. employee Pat- rick Burrows was informed via letter from Winn-Dixie that there had been a security breach affect- ing employees' personal data. Shortly thereafter, Burrows was informed by the Internal Revenue Service that he was not eligible for a tax refund because someone else had already filed for one using his identity. On July 31, Burrows' attorney filed a class-action lawsuit against Winn-Dixie and a third-party vendor called Purchasing Power LLC. The suit, which claims dam- ages of more than $5 million, states that the personal informa- tion that was breached included Winn-Dixie employee names, addresses, birth dates, salaries and Social Security numbers. "Information of this type is ex- tremely confidential," said Bur- rows' attorney, John Yanchunis. BREACH: Lawsuit seeks S5 million in damages from identity theft FROM PAGE 1 through a payroll deduction program. Employees had the option to enroll in the program, but Burrows was not en- rolled. The suit states that in the fall of 2011, a Purchasing Power employee inappropriately accessed the personal data of Winn-Dixie employees. A representative of Purchasing Power did not return an emailed request for comment. Delay in notification The suit, filed in the U.S. District Court for the Southern District of Flor- ida, states that Winn-Dixie employees should have been notified of the breach sooner. The breach occurred in October, tobeso careful. There seems to be failures on multiple levels here. It's a huge problem for Winn-Dixie and forPurchasingPower." Robert White Shareholder Gunster, YoakleV & Stewart PA ® but Winn-Di'xie did not send out letters to employees notifying them of the breach until January. Purchasing Power has still not informed the employees about the breach, said Yanchunis, a Tampa- based attorney at Morgan & Morgan PA. Yanchunis said the IRS is now investi- gating Burrows' tax return fraud case. The money from the return, which Yan- chunis said is in the thousands, is the largest amount of money Burrows has lost since the breach, but there have been other, smaller cases of identity theft. Winn-Dixie, based in Jacksonville, operates grocery stores in five states throughout the Southeast. Since the breach occurred, the company merged into Jacksonville-based Bi-Lo Holdings LLC, which is now the ninth-largest grocery store chain in the United States with 687 grocery stores in eight South- eastern states. Although he has not yet heard of any other identity theft cases from Winn- Dixie employees, Yanchunis expects to certify the case as a class-action suit within 90 days. Burrows has since left the company, but at the time of the breach, he worked at a Winn-Dixie store in Miami. Yanchunis said the breach potentially impacted all of the employ- ees in the state. He is not yet sure if em- ployees in other states were impacted. A representative of Winn-Dixie declined to comment on the case. Robert White, a shareholder at Gun- ster, Yoakley & Stewart _RX who specializes in corporate law and tech- nology and entrepre- neurial companies, said security breach cases are becoming more common as companies store more personal data and crimi- ^^ nals become more adept White at stealing it. Companies should do their due dili- gence before signing an agreement with a third-party provider, and should con- tinue to monitor third-party providers during the term of the agreement to help prevent security breaches, White said. "Winn-Dixie was trying to do some- thing nice," said White, who has no per- sonal knowledge of the case. "You've just got to be so careful. There seems to be failures on multiple levels here. It's a huge problem for Winn-Dixie and for Purchasing Power." [email protected] I @CConteJBJ 1265-2227 "It has tremendous value and can cause tremendous harm if it is breached." Purchasing Power, based in Atlanta, provides an employee benefit program in which em- ployees have the option to pay for new electronics and appliances SEE BREACH, PAGE 27
Transcript of Former Winn-Dixie employee sues over security...
Former Winn-Dixie employee sues over security breachBY CHRISTIAN CONTESTAfE WRITER
JACKSONVILLE - After filinghis 2011 tax return, former Winn-Dixie Stores Inc. employee Pat-rick Burrows was informed vialetter from Winn-Dixie that therehad been a security breach affect-ing employees' personal data.
Shortly thereafter, Burrowswas informed by the InternalRevenue Service that he was noteligible for a tax refund becausesomeone else had already filed forone using his identity.
On July 31, Burrows' attorneyfiled a class-action lawsuit againstWinn-Dixie and a third-partyvendor called Purchasing Power
LLC. The suit, which claims dam-ages of more than $5 million,states that the personal informa-tion that was breached includedWinn-Dixie employee names,addresses, birth dates, salariesand Social Security numbers.
"Information of this type is ex-tremely confidential," said Bur-rows' attorney, John Yanchunis.
BREACH: Lawsuit seeks S5 millionin damages from identity theftFROM PAGE 1
through a payroll deduction program.Employees had the option to enroll inthe program, but Burrows was not en-rolled. The suit states that in the fallof 2011, a Purchasing Power employeeinappropriately accessed the personaldata of Winn-Dixie employees.
A representative of Purchasing Powerdid not return an emailed request forcomment.
Delay in notificationThe suit, filed in the U.S. District
Court for the Southern District of Flor-ida, states that Winn-Dixie employeesshould have been notified of the breachsooner. The breach occurred in October,
tobeso
careful. There seems to be failures
on multiple levels here. It's a
huge problem for Winn-Dixie
and forPurchasingPower."
Robert WhiteShareholderGunster, YoakleV & Stewart PA®
but Winn-Di'xie did not send out letters toemployees notifying them of the breachuntil January. Purchasing Power hasstill not informed the employees aboutthe breach, said Yanchunis, a Tampa-based attorney at Morgan & Morgan PA.
Yanchunis said the IRS is now investi-gating Burrows' tax return fraud case.The money from the return, which Yan-chunis said is in the thousands, is thelargest amount of money Burrows haslost since the breach, but there havebeen other, smaller cases of identitytheft.
Winn-Dixie, based in Jacksonville,operates grocery stores in five statesthroughout the Southeast. Since thebreach occurred, the company mergedinto Jacksonville-based Bi-Lo HoldingsLLC, which is now the ninth-largestgrocery store chain in the United Stateswith 687 grocery stores in eight South-eastern states.
Although he has not yet heard of anyother identity theft cases from Winn-Dixie employees, Yanchunis expectsto certify the case as a class-actionsuit within 90 days. Burrows has sinceleft the company, but at the time of thebreach, he worked at a Winn-Dixie storein Miami. Yanchunis said the breachpotentially impacted all of the employ-ees in the state. He is not yet sure if em-ployees in other states were impacted.
A representative of Winn-Dixiedeclined to comment on the case.
Robert White, a shareholder at Gun-ster, Yoakley & Stewart_RX who specializes incorporate law and tech-nology and entrepre-neurial companies, saidsecurity breach cases arebecoming more commonas companies store morepersonal data and crimi- ^^nals become more adept Whiteat stealing it.
Companies should do their due dili-gence before signing an agreement witha third-party provider, and should con-tinue to monitor third-party providersduring the term of the agreement tohelp prevent security breaches, Whitesaid.
"Winn-Dixie was trying to do some-thing nice," said White, who has no per-sonal knowledge of the case. "You'vejust got to be so careful. There seems tobe failures on multiple levels here. It'sa huge problem for Winn-Dixie and forPurchasing Power."
[email protected] I @CConteJBJ 1265-2227
"It has tremendous value and cancause tremendous harm if it isbreached."
Purchasing Power, based inAtlanta, provides an employeebenefit program in which em-ployees have the option to pay fornew electronics and appliances
SEE BREACH, PAGE 27
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