1st Apr 2020 10:33
(Alliance News) - WM Morrison Supermarkets PLC on Wednesday hailed a decision by the UK's highest court which ruled the grocer should not be liable for a data breach which leaked the payroll data of around 100,000 employees
Legal action was launched after a security breach in 2014 when Andrew Skelton, a senior internal auditor at the retailer's Bradford headquarters, leaked the payroll data of around 100,000 employees.
Information included their names, addresses, bank account details and salaries.
A group of former and current employees said this exposed them to the risk of identity theft and potential financial loss and that Morrisons was responsible for breaches of privacy, confidence and data protection laws.
Morrisons said on Wednesday: "The theft of data happened because a single employee with legitimate authority to hold the data, also held a secret and wholly unreasonable grudge against Morrisons and wanted to hurt the company and our colleagues.
"We are pleased that the Supreme Court has agreed that Morrisons should not be held vicariously liable for his actions when he was acting alone, to his own criminal plan and he's been found guilty of this crime and spent time in jail. A court has already found that Morrisons was not responsible for any direct wrongdoing in respect of this data theft. We also know that many colleagues appreciated the way we got the data taken down quickly, provided protection for their bank accounts and reassured them that they would not, in any circumstances, be financially disadvantaged. In fact, we've seen absolutely no evidence of anyone suffering any direct financial loss."
The UK Supreme Court appeal was the latest round of the litigation and a followed a blow for Morrisons at the Court of Appeal in October 2018 when three leading judges upheld an earlier High Court finding on the issue of liability.
The appeal judges who heard the case were told by a QC representing the company that it would be exposed to "compensation claims on a potentially vast scale" if the High Court decision was allowed to stand.
Lawyers for more than 9,000 claimants had described the action as a "classic David and Goliath case".
The verdict on Wednesday was delivered via a live stream due to Covid-19 lockdown measures in the UK.
Morrisons shares were 1.3% lower at 175.65 pence each in London on Wednesday.
By Eric Cunha; [email protected]
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