Genesco Sports Sues Visa for $13 Million

Mar 12, 2013 3:29 PM  By

Genesco, a sporting apparel retailer, has filed a $13 million lawsuit against Visa alleging the credit card company engaged in unfair business practices, among other actions, according Wired.com.

The lawsuit stems from a 2010 breach of Genesco’s computer system where a still unidentified hacker used malicious software to obtain important credit card information.

According the article, the lawsuit stems after an incident when $13 million was seized from Genesco’s bank account by Wells Fargo and Fifth Third Financial after it was already fined by Visa for “noncompliance.”

The lawsuit, according to Wired, accuses Visa of “levying legally unenforceable penalties that masquerade as fines” and accuses Visa taking money from Genesco when there was no proof that a security breach even occurred.

Besides the $13 million in fines, Genesco has incurred $2.1 million in legal and consulting fees for this case, according to Wired.

The case, Wired said, is still ongoing.