Sonic Can’t Dodge Banks’ Suit Over Consumer Payment Card Hack

Sonic Corp. can’t dodge a lawsuit from banks over a 2017 hack of consumers’ payment cards from more than 300 of the burger chain’s drive-ins.

The company can’t beat a negligence claim under Oklahoma law, where it’s headquartered, for failing to protect against the hack, the U.S. District Court for the Northern District of Ohio ruled July 1.

Sonic’s lawyers argued that, although the company might have failed to act, it didn’t create the security vulnerabilities that hackers exploited. But the court sided with the banks suing Sonic, citing the chain’s control over technology franchisees used for payments.

The banks ...