Seven Louisiana-based restaurant companies are suing Radiant Systems Inc., a point-of-sale system maker, and Computer World Inc., a POS-equipment distributor, alleging the vendors failed to secure the Radiant POS systems the restaurants used that subsequently were breached. According to the lawsuit, filed in March in the 15th Judicial District Court, Lafayette Parish, in Louisiana, plaintiffs Crawfish Town USA Inc., Don's Seafood & Steak House Inc., Mansy Enterprises LLC, Mel's Diner Part II Inc., Sammy's LLC, Sammy's of Zachary LLC and B.S. & J. Enterprises Inc. each purchased Alpharetta, Ga.-based Radiant's Aloha POS system from Scott, La.-based Computer World and contracts for software updates. The merchants assumed their POS systems were secure until local law enforcement told them of "a potential compromise" of customer credit card information in spring 2008. The plaintiffs later determined that keylogging software, which catalogs computer keystrokes, had been planted on their POS systems, enabling fraudsters to capture payment information, the suit says. The plaintiffs contacted Computer World, which was unable to secure the POS systems, the suit claims. Computer World did not return CardLine's call by deadline. The merchants ultimately paid unspecified fines to the card brands, the suit says. The plaintiffs' attorney, Charles Y. Hoff, did not return messages seeking more details by CardLine's deadline. A Radiant spokesperson would only say the company believe the allegations against Radiant are without merit, "and we intend to vigorously defend ourselves." The plaintiffs are asking for more than $50,000 in damages.

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry