Settlement administrator accused of failing to protect sensitive data leading to major breach


Judge Carol Bagley Amon | wikipedia.org

A recent class action lawsuit has been filed against a company accused of failing to protect sensitive personal information, leading to a significant data breach. The complaint was filed by Yaridia Gomez in the United States District Court for the Eastern District of New York on September 24, 2024, targeting Arden Claims Service, LLC.

The case centers around allegations that Arden Claims Service, LLC, which provides administrative services for class action settlements, failed to adequately secure and safeguard the personally identifiable information (PII) and protected health information (PHI) of settlement class members. According to the complaint, this negligence resulted in a data breach where cybercriminals accessed and exfiltrated sensitive data including full names and Social Security numbers. The plaintiff asserts that approximately 138,000 individuals were affected by this breach.

Gomez's complaint outlines several grievances against Arden Claims Service. It alleges that the defendant collected and maintained PII with an implicit promise of confidentiality and security but failed to implement reasonable cybersecurity measures to protect this data from foreseeable cyber-attacks. The breach was discovered on October 17, 2023, when unusual activity was detected in an email account. However, it wasn't until August 14, 2024, that affected individuals were notified about the breach through a letter from Arden Claims Service.

The plaintiff claims that as a result of the breach, she and other class members have suffered various injuries including invasion of privacy, theft of their PII, lost or diminished value of their PII, increased spam communications, and heightened risk of identity theft and fraud. The lawsuit accuses Arden Claims Service of violating multiple laws including the Federal Trade Commission Act by failing to employ reasonable measures to protect consumer data.

In terms of relief sought from the court, Gomez is requesting actual damages for all affected individuals due to unauthorized access and misuse of their PII. Additionally, she seeks injunctive relief requiring Arden Claims Service to implement more stringent data security measures to prevent future breaches. This includes costs associated with credit monitoring services for those impacted by the breach.

Representing Gomez are attorneys specializing in complex class action litigation. The Case ID is Civil Action No.: 1:24-cv-06727.

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