6040 Laurel Street, New Orleans, Louisiana March 24, 2009
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1 6040LaurelStreet,NewOrleans,Louisiana VIAFAX LafayetteParishClerkofCourt 15 th JudicialDistrictCourt 800S.BuchananStreet Lafayette,Louisiana70501 March24,2009 Re: FaxFilingofNewSuit DearHonorableClerk: AttachedisPlaintiffs PetitionforDamages,whichiseightpagesinlength.Please filethispleadingviafaxandadviseofthechargesdue.mytoll freefaxnumberis Sincerely, AlJ.Robert,Jr.
2 15thJUDICIALDISTRICTCOURT LAFAYETTEPARISH STATEOFLOUISIANA NO. SECTION: CRAWFISHTOWN,USA,INC.,DON SSEAFOOD&STEAKHOUSE,INC., MANSYENTERPRISES,LLC,MEL SDINERPARTII,INC.,AND SAMMY S,LLC,andSAMMY SOFZACHARY,LLC VERSUS COMPUTERWORLD,INC.ANDRADIANTSYSTEMS,INC. JURYDEMAND PETITIONFORDAMAGES NOWINTOCOURT,throughundersignedcounsel,comespetitioners,CrawfishTown USA,Inc.,etal.,whofilethisPetitionforDamagesandrepresentthefollowing: Madeplaintiffshereinare: PLAINTIFFS Crawfish Town USA, Inc., a Louisiana corporation. Don s Seafood & Steak House, Inc., a Louisiana corporation. 1. Mansy Enterprises, LLC, d/b/a Picante s Mexican Restaurant, a Louisiana corporation. Mel s Diner Part II, Inc., a Louisiana corporation. Sammy s, LLC, d/b/a Sammy s Grill, a Louisiana limited liability company. Sammy s of Zachary, LLC, d/b/a Sammy s Grill, a Louisiana limited liability company. DEFENDANTS 2. Madedefendantshereinare: RadiantSystems,Inc.,aNewJerseycorporationwithitsprincipalplaceof businesslocatedat3925brooksideparkway,alpharetta,georgia30022; and, ComputerWorld,Inc.,aLouisianacorporationwhosedomicileaddressis 504Highway93North,Scott,Louisiana, Page1of8
3 VENUE VenueisproperinthismatterpursuanttoArticle42(2)oftheLouisianaCodeof 3. CivilProcedurebecauseComputerWorldisadomesticcorporationwhoseprincipalplace ofbusinessislocatedinscott,louisiana. 4. VenueisalsoproperinthismatterpursuanttoArticle42(5)oftheLouisianaCode ofcivilprocedurebecauseradiantsystemsisaforeigncorporationwhoisnotlicensedto dobusinessinthestateoflouisianaanditcanbeservedpursuanttolouisiana slong arm statutefromlafayetteparish. BACKGROUND RadiantSystemsisapublically tradedcompanyonthenasdaqstockexchange (RADS) Thecompanymanufacturesandsellspoint of sale(pos)systemstothehospitality, retail,andentertainmentindustries. TheAlohaPOSsoftware,whichisdesignedandsoldtorestaurants,isa RadiantSystemsproduct TheAlohaPOSsystemissoldwithcomputerhardware(includingcomputers andtouch screenmonitors)andcanonlybepurchasedthroughauthorizedresellers oftheproduct. ComputerWorldistheexclusiveprovideroftheAlohaPOSsoftwareandits associatedhardwaresystemsinsouthcentrallouisiana. IfPlaintiffswantedtousetheAlohaPOSsystem,theycouldonlypurchasethe hardwareandsoftwarefromcomputerworld. Page2of8
4 11. In2005orso,creditcardcompaniesdevelopednewdata securitystandards,known asthepaymentcardindustry(pci)datasecuritystandardsinresponsetothenumerous threatsposedbyorganizedcrimeringsandburgeoningidentitytheftproblems. 12. Specifically,inApril2007,Visa,U.S.A.identifiedapplicationsfromsixvendorswho storedsensitivecardholderdatainviolationofthepcidatasecuritystandards. 13. Theunnecessarystorageofcardholderdatamadethissoftwareanditsusershighrisktargetsfordatabreaches. 14. Notably,VisaidentifiedRadiantSystem salohapossoftwareasapayment applicationthatstoredprohibiteddata,suchasfullmagneticstripedata(includingcard verificationandpindata),afteratransactionauthorizationwascompleted. 15. Aroundthesametime,RadiantSystemswasadvertisingthattheAlohaPOSsystem wasenhancedtocomplywiththepcidatasecuritystandards. 16. PlaintiffsallpurchasedtheAlohaPOSsystemsfromComputerWorld. 17. Plaintiffsalsoallpurchasedsoftwareupdatesinordertoensurethattheirsystems weremaintainedandproperlyupdatedtocomplywithallpcidatasecuritystandardsand stateandfederallaws. 18. ThePCIDataSecuritystandardsmandateanumberofprotectionstoensurethat POSsystemsarenotcorruptedorhacked,therebypotentiallyexposingcardholderdatato theft. 19. ThesePCIDataSecurityStandardsinclude12requirements:(a)installandmaintain afirewallconfigurationtoprotectcardholderdata;(b)donotusevendor supplieddefaults forsystempasswordsandothersecurityparameters;(c)protectstoredcardholderdata; Page3of8
5 (d)encrypttransmissionofcardholderdataacrossopen,publicnetworks;(e)useand regularlyupdateantivirussoftware;(f)developandmaintainsecuresystemsand applications;(g)restrictaccesstocardholderdatabybusinessneed to know;(h)assigna uniqueidtoeachpersonwithcomputeraccess;(i)restrictphysicalaccesstocardholder data;(j)trackandmonitorallaccesstonetworkresourcesandcardholderdata;(k) regularlytestsecuritysystemsandprocesses;and,(l)maintainapolicythataddress informationsecurity. 20. InSpring2008,Plaintiffswerenotifiedbylocallawenforcementofficialsofa potentialcompromiseofcustomercreditcardinformation. 21. Thereafter,Plaintiffsundertooktheirownresearchtodeterminewhethertheir systemshadbeencompromised. 22. PlaintiffsultimatelylearnedthatkeyloggershadbeeninstalledontheirPOS stations. 23. Plaintiffsfiledthisactionwithinayearofhavingactualorconstructiveknowledge ofthebreachesdescribedherein. 24. Pursuanttoitsmaintenancecontracts,ComputerWorldwasrequiredtomaintain Plaintiffs Alohasystems. 25. Accordingly,PlaintiffssoughtassistancefromComputerWorldtoremovethe keyloggerslocatedontheirsystemsandtosecuretheirnetworks. 26. Despitemultipleattemptstoremedytheintrusions,ComputerWorldwasunableto secureplaintiffs POSsystems. 27. Asaresult,Plaintiffswererequiredtohireadditionalconsultantsandtechinicansto securetheirsystems. Page4of8
6 28. TheseconsultantsdiscoveredthatComptuerWorld sstandardpracticesviolated numerousprovisionsofthepcidatasecuritystandards. 29. Inadditiontoincurringsubstantialcostsforadditionaltechinicians,consultants, software,andnetworkconnections,newsofthecreditcardnumbertheftswerereported bylocalmedia,whichresuledinlossofbusinesstoplaintiffs. 30. Aftertheproblemswereidentifiedandcorrected,Plaintiffswerefinedbycredit cardcompaniesforfailingtocomplywiththepcidatasecuritystandardsand/ortheir PaymentApplicationBestPractices(PABP). NEGLIGENCECLAIMS 31. Plaintiffsre allegeandincorporatebyreferenceallpreviousallegationsasifcopied herein. 32. Defendantshadanobligationtodesignandinstallsoftwareinamannerthatwould notexposeplaintiffstothetheftoftheircustomers creditcardinformation. 33. DefendantswereexplicitlywarnedbyVISAinApril2007thattheirprogramsfailed tocomplywithpcidatasecuritystandards. 34. DefendantsbreachedtheirobligationstoPlaintiffstodesignandinstallsecurePOS software. 35. Defendants breacheshavecausedplaintiffstosufferdamagesthattheywouldnot otherwisehavesuffered. 36. PursuanttoArticle2315oftheLouisanaCivilCode,Defendantsareliableforall damagesthattheirnegligentbehaviorhascausedplaintiffstosuffer. Page5of8
7 WARRANTYCLAIMS 37. Plaintiffsre allegeandincorporatebyreferenceallpreviousallegationsasifcopied herein. 38. Article2524oftheLouisianaCivilCodeprovidesthatathingsoldmustbefitforits ordinaryuse. 39. Defendantsfailedtoprovidesoftwareandhardwarethatwasfitforitsordinaryuse. 40. Accordingly,DefendantsareliabletoPlaintiffsforalldamagesavailableunderthe generalrulesofconventionalobligationsforitsfailuretoprovidesoftwarethatwasfitfor itsordinaryuse. REDHIBITIONCLAIMS 41. Plaintiffsre allegeandincorporatebyreferenceallpreviousallegationsasifcopied herein. 42. Article2520oftheLouisianaCivilCoderequiresasellertowarranthisproduct againstredhibitorydefects. 43. ThesecurityproblemsassociatedwiththeAlohaPOSsoftwarerenderedthe hardwareandsoftwareuseless. 44. TheproblemsassociatedwiththePOSsoftwareexistedatthetimeofallrelevant sales. 45. PlaintiffswouldnothavepurchasedtheAlohaPOSsystemshadtheyknownofthe securitydefectscontainedinthesoftware. Page6of8
8 46. GivenVisa swarningsofthesoftware sproblems,defendantswereinbadfaith whentheysoldtheprogramanditsupdatestoplaintiffs. 47. Accordingly,PlaintiffsareentitledtoalldamagesincurredasaresultofDefendants bad faithactions,includingtheawardofattorneysfees. BREACHOFCONTRACTCLAIMS 48. Plaintiffsre allegeandincorporatebyreferenceallpreviousallegationsasifcopied herein. 49. PlaintiffshadcontractswithComputerWorldtoinstallandmaintaintheirAloha POSsystems. 50. ComputerWorldfailedtosatisfyitsobligationsunderthesecontracts. 51. Accordingly,Plaintiffsareentitledtorescindthecontractsandseekdamages sufficienttoplacetheminapositiontheywouldhavebeenhadtheyneverenteredinto contractswithcomputerworld. BREACHOFLOUISIANADATABASESECURITYBREACHLAW 52. Plaintiffsre allegeandincorporatebyreferenceallpreviousallegationsasifcopied herein. 53. La.R.S.51:3075providesthat [a]civilactionmaybeinstitutedtorecoveractual damagesresultingfromthefailuretodiscloseinatimelymannertoapersonthattherehas beenabreachofthesecuritysystemresultinginthedisclosureofaperson spersonal information. 54. PlaintiffsareentitledtotheprotectionsofthisstatutepursuanttoLa.R.S. 51:3073(3). Page7of8
9 55. DefendantsfailedtonotifyPlaintiffsthattheAlohasystemwasbreached. 56. Accordingly,Plaintiffsareentitledtoactualdamagesincurredasaresultof Defendants breachofthelouisianadatabasesecuritybreachlaw. GENERALAVERMENTS 57. PlaintiffsrepresentthattheyarenotassertingFederalclaimsinthispetition. 58. Plaintiffsarerequestingdamagesinexcessof$50,000,andthereforerequestajury trialpursuanttolouisianacodeofcivilprocedureart WHEREFORE,PlaintiffsprayforjudgmentintheirfavorandagainstDefendantsina sumtocompensatethemfortheirdamages,lossofincome,fines,attorneysfees,plus interestfromthejudicialdateofdemanduntilpaid,andallgeneralandequitablereliefthat maybedeemedjustandproper. Respectfullysubmitted, ErnestE.Svenson,No SVENSONLAWFIRM,LLC 123WalnutStreet,Suite1001 NewOrleans,Louisiana70118 Tel: Fax: AlJ.Robert,Jr.,No LAWOFFICEOFALJ.ROBERT,JR.,LLC 6040LaurelStreet NewOrleans,Louisiana70118 Tel: Fax: ATTORNEYSFORPLAINTIFFS PLEASEHOLDSERVICE Page8of8
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