Equifax Lawsuits Pile Up Following Massive Data Breach

More than 50 lawsuits have been filed against Equifax Inc. following the massive cybersecurity incident that reportedly exposed sensitive personal data of around 143 million Americans.

According to Equifax, which acknowledged the data breach last Thursday, personal identifying information such as names, birth dates, Social Security numbers, driver’s license numbers, address history and other sensitive financial data had been accessed by unauthorized parties between May and June 2017.

Equifax is one of the major credit reporting agencies in the United States. It obtains consumer data by purchasing public data and obtaining it from companies such as banks and credit card companies that report consumers’ activity to Equifax.

On Monday, plaintiff Robert L. Collins filed one of the latest Equifax data breach class action lawsuits. He takes issue not only with the fact the Equifax cybersecurity incident occurred, but also the amount of time it took Equifax to acknowledge the data breach.

“Equifax discovered the unauthorized access on July 29, 2017, but inexplicably decided to withhold that information from the public for more than a month afterward,” Collins alleges in the Equifax data breach class action lawsuit.

“Equifax chose not to tell consumers that their highly sensitive personal and financial information—most of which, again, had been collected and stored without the consumers’ knowledge or consent—had been stolen by unauthorized hackers,” the Equifax class action lawsuit continues.

Collins argues that Equifax should have informed U.S. consumers immediately after discovering the data breach so they would be aware of the risks and take immediate steps to protect their credit and reduce their risk of identity theft.

“Instead of telling the public about the Security Breach during that month after discovering it, at least three Equifax executives instead spent that time lining their pockets, selling Equifax shares worth nearly $2 million shortly after the massive Security Breach,” the Equifax data breach lawsuit states.

Collins also argues that Equifax could have taken steps to prevent the massive data breach, but failed to adequately protect sensitive consumer data. According to the Equifax class action lawsuit, the Equifax data breach is particularly concerning because consumers did not provide their data to Equifax and because they do not know exactly what information was stolen.

The Equifax data breach class action lawsuit was filed on behalf of Collins and a proposed Class of U.S. residents whose personal financial, credit and identifying information was accessed during the Equifax data breach that reportedly took place from May through July 2017. Collins also seeks to certify a Class of Texas residents.

The data breach class action lawsuit asserts claims against Equifax for negligence, violations of the Fair Credit Reporting Act and declaratory judgment.

Last week, plaintiffs James McGonnigal and Brian Spector filed one of the first Equifax data breach class action lawsuits in Georgia federal court.

Equifax has established a website (www.EquifaxSecurity2017.com) for consumers to obtain more information about the Equifax data breach, including information about enrolling in complimentary identity theft protection and credit file monitoring. Consumers should also monitor their credit reports and credit card statements for any fraudulent activity. Putting a freeze on credit reports will prevent anyone from opening new credit cards or accounts in your name.

Collins is represented by Thomas FA Hetherington and Kendall J. Burr of Edison McDowell & Hetherington LLP and Troy D. Chandler of Chandler McNulty LLP.

The Equifax Data Breach Class Action Lawsuit is Robert L. Collins v. Equifax Inc., Case No. 1:17-cv-00187, in the U.S. District Court for the Southern District of Texas, Brownsville Division.

UPDATE: On Sept. 12, 2017, Equifax announced on Twitter that it will be waiving security freeze fees for the next 30 days. To initiate a credit freeze visit freeze.equifax.com. If you get an error message, you can also request a security freeze by calling Equifax directly at 1-800-685-1111 or by providing the information in writing. More information on how to place a credit freeze can be found here.

UPDATE 2: On July 30, 2018, Equifax Inc. asked a Georgia federal judge to dismiss claims brought by 10 small businesses in a massive data breach class action lawsuit because businesses cannot bring claims based on the alleged injuries of the business owners.

UPDATE 3: July 2019, a website has been established to inform Class Members of their rights under a $700 million Equifax data breach class action settlement.

UPDATE 4: July 2019, the Equifax data breach class action settlement is now open. Click here to file a claim.

UPDATE 5: On Nov. 19, 2019, the class action watchdog Center for Class Action Fairness filed an objection to the Equifax data breach class action settlement, claiming that the attorney fee request should be reduced and that the settling parties suppressed the claims process.

UPDATE 6: On Dec. 20, 2019, a federal judge gave a $425 million Equifax class action settlement final approval despite objections from consumer advocacy groups.