Cybersecurity Lawsuit Poses Vendor Liability Question

In October 2013, Affinity Gaming, a casino operator based in Nevada, heard from customers that their credit cards had been hacked. Before too long, the company’s IT department concluded it likely suffered a data breach.

Within days, professional forensic data security investigators from Chicago-based Trustwave Holdings Inc. were analyzing the company’s system, and suggesting remedial measures.

That account is taken from a federal lawsuit that Affinity filed in Las Vegas. It accuses the IT security company Trustwave it hired to conduct a forensic investigation of failing to proscribe appropriate remedial measures and not removing the malicious malware. The suit states that within three months, a second data ...