Amazon Hit With Class Action Over Zappos Data Breach

http://www.flickr.com/photos/cle0patra/2394835895/

Shoe retailer Zappos is facing a national class action suit one day after it warned customers that its servers had been hacked.

On Monday, the Amazon-owned shoe company sent a mass email stating that 24 million customer accounts had been breached. The incident resulted in hackers obtaining names, phone numbers, emails, encrypted passwords and the last four numbers of customer credit cards.

The lawsuit claims Amazon (NSDQ: AMZN) violated a part of the Fair Credit Reporting Act by failing to properly encrypt and secure customer information, and seeks unspecified damages for 24 million customers. The lead plaintiff in the case is a Texas woman but the suit was filed in federal court in Louisville, Kentucky on the grounds that Amazon has servers located in that state.