Business

Charlotte corporations grapple with data breaches, facing 5 lawsuits

Stories by Charlotte Observer journalists, with AI summarization

Charlotte businesses are dealing with recent data breaches, which led to multiple lawsuits and significant financial consequences. Each article covers how companies based in Charlotte responded to cyberattacks, notified affected individuals, and faced legal action.

Food Lion’s parent company, Ahold Delhaize, reported a breach that affected 2.2 million people and employees’ personal and financial information. Krispy Kreme announced a breach last November, notified more than 160,000 people, and now faces over a dozen federal lawsuits with costs estimated around $3 million. Belk suffered a computer system shutdown, later confirmed as a ransomware attack that stole sensitive employee and customer data, and is now defending against several lawsuits for how it handled the incident and communications. These stories show a pattern of operational disruption, lawsuits, and claims of delayed or insufficient notice to victims after data theft events.

Belk CEO Nir Patel departed abruptly in May, 10 months after being promoted to the iconic Charlotte department store’s top spot following the company bankruptcy. By Alex Slitz

NO. 1: BELK CUSTOMERS UPSET OVER ONLINE ORDER DISRUPTIONS FROM COMPUTER SYSTEM ‘SHUTDOWN’

Problems for the Charlotte-based chain began last Friday as customers took to social media to vent. | Published May 15, 2025 | Read Full Story by Catherine Muccigrosso

Belk Outlet store in Greeneville, Tennessee, sells clearance items from larger Belk stores.

NO. 2: BELK HIT WITH THREE LAWSUITS OVER DATA BREACH AND NOTIFICATION FAILURE

Last month, The Observer confirmed all Belk stores had a computer “system shutdown.” Belk has not publicly shared info about the problems. | Published June 19, 2025 | Read Full Story by Catherine Muccigrosso

Krispy Kreme customers who dress up in costume on Halloween can receive a free doughnut of their choice. No purchase required.

NO. 3: KRISPY KREME SEES LAWSUITS MOUNT AFTER DATA BREACH IMPACTING OVER 160,000 PEOPLE

The doughnut company already is dealing with lawsuits stemming from the abrupt end to a deal with McDonald’s. | Published June 27, 2025 | Read Full Story by Catherine Muccigrosso

A Pineville police sergeant fatally shot a person suspected of shoplifting at a Food Lion on Tuesday afternoon. By Screenshot from Google Maps

NO. 4: FOOD LION WORKERS, FAMILIES AMONG 2.2M VICTIMS OF LATEST CORPORATE DATA BREACH

The Salisbury grocery chain is included in a cyberattack that happened last fall. Nearly 400,000 people from NC were impacted. | Published July 1, 2025 | Read Full Story by Catherine Muccigrosso

Customers outside a Belk store at SouthPark mall in Charlotte, NC. By Robert Lahser

NO. 5: RANSOMWARE GANG CLAIMS CREDIT FOR BELK DATA BREACH. ‘WE HOPE THIS SERVES AS A LESSON.’

The iconic Charlotte-based retailer’s systems shut down in May, and led to lawsuits. | Published July 16, 2025 | Read Full Story by Catherine Muccigrosso

The summary above was drafted with the help of AI tools and edited by journalists in our News division. All stories listed were reported, written and edited by McClatchy journalists.