ComplyRight Class Action Lawsuit Filed Over Data Breach

A tax preparation company was recently hit with a data breach class action lawsuit filed by a Florida customer alleging that ComplyRight failed to appropriately maintain security systems that would have prevented the breach.

The ComplyRight class action lawsuit was filed after the information of thousands of consumers was reportedly compromised.

Plaintiff Jeffery Roberts says ComplyRight informed its users that they had implemented numerous data protection layers despite the fact that the company had not appropriately protected private customer data like phone numbers, addresses, names, email addresses, and Social Security numbers.

The ComplyRight data breach class action lawsuit alleges that the computer servers for ComplyRight were hacked between April 20 through May 22.

The data breach class action lawsuit claims that customers had their privacy violated, their personal details compromised and thus faced an increased risk of exposure to identity theft and fraud. Letters were sent to consumers including Roberts whose data was accessed in the breach by July 13.

However, the plaintiff alleges that this two-month delay was unacceptable. Roberts claims in his ComplyRight data breach class action lawsuit that the remedies suggested by the company do not go far enough to respond to the problem.

ComplyRight issued a statement that they have not yet heard of any reports of identity fraud using the information accessed in the data breach.

According to the company, fewer than 10 percent of individuals who had their tax forms prepared on the online platform were affected by the breach.

However, the ComplyRight class action lawsuit alleges that the company could have done more to protect the private and personal information of its users.

Data breaches have been prominent in the news in recent years because small and large companies alike have had to deal with hacks.

In some of these situations, personally identifying information of customers has been released to hackers or even sold on the black market to criminals.

After these situations have been featured in the news, some consumers might choose to file a data breach lawsuit against a company they believe should have done more to guard against cyberattacks.

Many consumers and advocacy groups also believe that companies have a responsibility to inform affected consumers about a breach immediately after the issue is discovered.

When a company waits for a long period of time to notify affected consumers, those consumers might consider filing a lawsuit.

Consumers who don’t know that their data has been breached might not be able to take precautionary steps to prevent fraud or identity theft in the interim.

The ComplyRight data breach class action lawsuit is bringing forth claims of breach of fiduciary duty, negligence and violation of the Florida Deceptive and Unfair Trade Practices Act.

The plaintiff wants damages to be paid to himself and other customers who were exposed to risk because of the breach.

Roberts is represented by Marc A. Wites of Wites Law Firm and Laurence D’King, Mathew George, and Mario M. Choi of Kaplan Fox & Kilshimer LLP.

The ComplyRight Data Breach Class Action Lawsuit is Roberts, et al. v. COMPLY Right Inc., Case No. 0:18-cv-618365, in the U.S. District Court for the Southern District of Florida.