BOOKS
09/02/2011 10:55 am ET Updated Nov 02, 2011

Borders Books Lawsuit: Bankrupt Chain Sues Next Jump Inc. Over Use Of Personal Customer Data

Recently bankrupt Borders Books recently sued the company Next Jump Inc., claiming that they have used confidential information about Borders Rewards customers in order to gain new business.

The former book retailer states in their lawsuit that they had a contract with Next Jump in order to operate the website for the Borders Rewards customer loyalty program, Bordersrewardsperks.com. They allege that Next Jump used the Borders client list information to get more customers for one of their own properties, by telling customers that the Borders Rewards Perks site had been changed to OO.com.

Borders asserted that they always valued their customers' privacy. An additional issue involved in this matter is that the chain is currently in the process of trying to sell its trademarks, customer lists and other intellectual property. Next Jump's infringement could cause a devaluation in those assets. According to Reuters, Borders said, "Next Jump is causing irreparable harm to estates and creditors" and its actions "are tantamount to theft."

Next Jump has yet to comment on the case.

This is the latest twist in a disastrous year for Borders. The bookstore chain filed for bankruptcy protection in February. After multiple failed attempts to secure a buyer, it was forced to close all its remaining stores, eliminating thousands of jobs.

A hearing will take place today in New York City. Borders hopes to temporarily prevent Next Jump from using their former customers' information until a follow-up hearing on September 15.