LabCorp Credit Card Receipt Lawsuit Settles for $11M

A Florida man’s LabCorp credit card receipt lawsuit was recently settled, but LabCorp is requesting that insurance companies foot the bill for the large FACTA settlement.

Plaintiff Christopher L. claims that he visited the Hollywood, Fla. location of LabCorp. LabCorp is a medical laboratory headquartered in Burlington, North Carolina and operates one of the largest clinical laboratory networks in the world.

According to his LabCorp credit card receipt lawsuit, Christopher paid for routine lab work with his VISA credit card. When he received the electronically printed receipt, he noticed his expiration date was printed on it.

Printing an expiration date is in direct violation of federal law, Christopher claims. Under the Fair and Accurate Credit Transactions Act, or FACTA, a retailer cannot print the expiration date nor may it print more than the last five digits of a credit or debit card number.

Retailers have had years to comply with this federal law and usually do so by truncating the information on receipts. In essence, a merchant may only print the last five digits of a customers card number (or less) and then replace the rest of the numbers with asterisks or dashes. No part of the expiration date may appear on the receipt.

If a merchant or retailer does not do this, federal law has been violated. Also, if a point of sale printer prints hundreds or thousands of receipts the same way, each time it does this it is in violation of FACTA.

Christopher alleges that this “mistake” by LabCorp was not really a mistake at all. For a point of sale receipt printer to print an expiration date, it must be programmed to do so. In this LabCorp credit card receipt lawsuit, he claims that this exposes his and other individuals’ sensitive banking information in ways that violate FACTA.

Because of this, Christopher sought class certification in this LabCorp credit card receipt lawsuit. In 2015, this LabCorp credit card receipt lawsuit was settled for $11 million. His attorneys said that it was the largest cash settlement ever recovered in a FACTA case.

LabCorp, however, had to pay more than $11 million. It also paid $2.5 million in attorneys’ fees and other costs to fight the lawsuit. LabCorp is now seeking coverage for its $13.5 million in costs from its two insurance companies, AIG Specialty Insurance and Liberty Mutual Insurance Co. LabCorp is now suing the two insurance companies after trying to come to an agreement in mediation, claiming that footing the bill for the original lawsuit is part of what the insurance policies are for.

LabCorp told Law360, “As a direct and proximate result of AIG [and Liberty’s] breach of [their policies,] LabCorp has been deprived of the benefit of insurance coverage for which it paid significant premiums.”

However, both Liberty and AIG claim that LabCorp actually breached contract in that it did not provide them with important information during the LabCorp credit card receipt lawsuit.

Free FACTA Class Action Lawsuit Investigation

If you made one or more purchases and the retailer provided you with a receipt that contained more than the last five digits of your credit or debit card number or the expiration date, you may be eligible for a free class action lawsuit investigation and to pursue compensation for these FACTA violations.

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