EDINBURG – A local gym chain has agreed to pay the state $28,000 to settle a lawsuit alleging it improperly disposed of customers’ sensitive financial information.
In an agreement approved Friday, Edinburg-based Cornerstone Fitness will also implement a more stringent records disposal policy, the Texas Attorney General’s Office said.
Company officials did not return calls for comment on the settlement, which requires it appoint a compliance officer to ensure all old customer records are shredded, erased or sent to a designated document disposal company.
State prosecutors filed suit against the company in February — more than a year after 28 contracts signed by gym members were found by a Dumpster outside of the defunct Cornerstone Fitness Center for Women on McColl Road in Edinburg.
The documents contained the names of members, their home addresses and Social Security numbers. Some also had bank account and credit card numbers that the clients’ had provided to pay their membership fees.
It remains unclear whether any personal information was obtained or misused by identity thieves before authorities collected the filing cabinet they were found in.
Cornerstone Fitness operates gyms in McAllen, Edinburg, Harlingen and Mission.
Jeremy Roebuck covers courts and general assignments for The Monitor. You can reach him at (956) 683-4437.