With all deference, maybe they were authorized to have it. That's an unknown. But most certainly the "improper handling" charge seems inarguable. Unless Denny's now has a SCIF (SCI Facility).
In any case the breach is very very serious.
I’m pretty sure Denny’s is a SCIF. Do you really think they’d leave the secrets of Moons Over My Hammy in the hands of just anyone?