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MrPlow writes:

Submitted via IRC for Fnord666

Two insurance companies are suing a cyber-security firm to recover insurance fees paid to a customer after the security firm failed to detect malware on the client's network for months, an issue that led to one of the biggest security breaches of the 2000s. The security firms says the lawsuit is meritless.

The two insurance firms are Lexington Insurance Company and Beazley Insurance Company, and both insured Heartland Payment Systems, a leading payment processing company.

In January 2009, Heartland announced a major security breach of its network, following which an attacker stole details for over 100 million payment cards stored on its systems by over 650 of Heartland's customers.

Following this devastating hack and one of the biggest of the 2000s, Heartland paid over $148 million in settlement fees for various lawsuits, and other remediation costs and expenses Heartland owed its customers.

As part of their insurance agreements, the two firms paid $30 million to Heartland in the hack's aftermath, with the Lexington Insurance Company footing a $20 million bill, and the Beazley Insurance Company paying another $10 million.

But now, according to a civil lawsuit filed on June 28 in Illinois, and first reported by the Cook County Record, the two companies are trying to recover those costs, and are claiming that the security firm with which Heartland had a service contract had failed to honor its agreement.

Source: https://www.bleepingcomputer.com/news/security/security-firm-sued-for-failing-to-detect-malware-that-caused-a-2009-breach/

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