Sensitive personal information belonging to millions of individuals was exposed after a financial services company experienced a significant data breach, raising concerns about digital privacy and identity theft risks for affected customers. The complaint was filed by James Baldwin on June 2, 2026, in the United States District Court for the Eastern District of New York against Empower Group Partners Inc., a corporation headquartered in Long Island City, New York.
According to the court filing, Baldwin brings this case as a class action on behalf of all persons whose personally identifiable information (PII) was compromised during a data breach that occurred on or around April 16, 2026. The document states that "the ransom group 'Dragon Force' exfiltrated 316 GB of sensitive data belonging to Defendant," including names, Social Security numbers, addresses, phone numbers, email addresses, and dates of birth. The complaint further alleges that "Defendant failed to take precautions designed to keep individuals’ Private Information secure" and did not formally notify impacted individuals in a timely manner.
Empower Group Partners is described as a financial services company serving over 20 million people nationwide. Plaintiffs claim they provided their private information with the expectation it would be kept confidential and secure from unauthorized access. The lawsuit asserts that Empower Group Partners had statutory, regulatory, contractual, and common law duties to protect this information but breached those obligations by failing to implement adequate security measures.
The filing outlines several alleged failures by the defendant: not encrypting sensitive files; lacking employee training on cybersecurity threats; failing to follow best practices recommended by government agencies such as the Federal Bureau of Investigation and industry standards like the NIST Cybersecurity Framework; and not responding promptly after discovering the breach. The complaint notes that "Defendant’s failure to employ reasonable and appropriate measures to protect against unauthorized access... constitutes an unfair act or practice prohibited by Section 5 of the Federal Trade Commission Act." It also claims that despite having resources available for proper security protocols, Empower Group Partners did not use reasonable procedures appropriate for handling unencrypted sensitive customer data.
The legal arguments presented include claims for negligence, negligence per se (based on violation of federal statutes), unjust enrichment, breach of implied contract, and breach of confidence. Plaintiffs allege that as a result of these failures "Plaintiff’s and Class Members’ Private Information was exposed to criminals" leading to injuries such as financial losses from misuse of their information, diminished value of their PII due to exposure on illicit markets like the dark web, lost time spent mitigating identity theft risks, emotional distress, invasion of privacy, and ongoing risk because their data remains vulnerable.
The suit seeks several forms of relief from the court: compensatory damages for economic losses suffered by plaintiffs; disgorgement by Empower Group Partners of any benefits gained through retention or misuse of private information; injunctive relief requiring improvements in security practices; coverage for future costs associated with credit monitoring and identity theft protection (estimated at $200 per year per class member); and any other remedies deemed appropriate by the court.
The proposed class includes all individuals residing in the United States whose private information was impacted in Empower Group Partners’ April 2026 data breach. Excluded from the class are company officers and directors as well as judicial officials involved in this case. According to plaintiffs’ counsel, individual lawsuits would be impractical given the number affected—alleged to be hundreds or thousands—and class action treatment is necessary for efficient resolution.
James Baldwin is represented by his undersigned counsel (names not specified in this excerpt). The case is identified as Case No.: 1:26-cv-03311.
Source: 126cv03311_Baldwin_v_Empower_Group_Partners_Inc_Complaint_Eastern_District_New_York.pdf