Adidas Class Action Claims Data Breach Caused By Security Flaws

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A consumer says Adidas exposed the private information of millions in a June data breach that allegedly occurred because of the shoe company’s security flaws.

The Adidas data breach class action lawsuit was sparked by a security incident affecting the company’s website that allegedly occurred in June of this year.

According to the lead plaintiff Christian Duke, Adidas could have taken precautionary measures to protect customer information, but failed to do so. Duke believes the consequences of the breach will be severe.

“The ramifications of Adidas’ failure to protect the personal information of its members are severe,” states the Adidas data breach class action lawsuit. “Identity thieves can use the information taken in the breach to perpetrate a variety of crimes that harm victims.”

According to the Adidas data breach class action lawsuit, consumers who made purchases through Addidas.com face “an immediate risk of identity theft.”

The Adidas data breach class action lawsuit alleges that the company failed to take measures to protect the private information of its customers as well as ensuring the data was adequately monitored for hackers.

“Adidas entrusted its members’ personal information while failing to encrypt such information, failing to implement ‘multi-factor authentication’ and failing to employ behavior monitoring technology to promptly detect unusual activity and transfer of data,” contends the Adidas data breach class action lawsuit.

Encryption, says the Adidas data breach class action lawsuit, could have rendered the data unreadable to hackers, while multi-factor authentication would have further protected the data.

Behavior monitoring employs analytics technology that “would have detected unusual transfers of large amounts of data from its computer system,” claims the Adidas class action lawsuit.

“Although Adidas has received periodic warnings from enforcement sources and cybersecurity experts – and observed multiple high-profile data breaches involving, for example, Target Corp., The Home Depot, Inc., and JPMorgan Chase, among others – Adidas entrusted its members’ personal information within a process that failed to maintain reasonable security procedures or implement basic safeguards to protect personal information,” alleges the Adidas data breach class action lawsuit.

The plaintiff claims that he and other consumers face serious risks related to fraud and identity theft due to the breach. According to the Adidas data breach class action lawsuit, identity thieves could apply for a mortgage or loan using information stolen in the breach or apply for government benefits, false insurance claims, obtain prescription drugs, or even give false information during an arrest.

The Adidas data breach class action lawsuit points out that there is a reported lag time between the exposure of personal information in a breach and when identity thieves try and exploit the stolen information. The plaintiff says that he and other consumers will be at risk for identity theft for years, if not longer, due to the data breach discovered in June.

The Adidas data breach class action lawsuit seeks to represent California residents who used the shoe company’s website prior to discovery of the breach and who had their information exposed in the breach.

In addition to damages, the Adidas data breach class action lawsuit is seeking a court order requiring Adidas to update and improve its security policies.

The plaintiff is represented by Jeffrey R. Krinsk and Trenton R. Kashima of Finkelstein & Krinsk LLP.

The Adidas Data Breach Class Action Lawsuit is Duke v. Adidas America Inc., Case No. 3:18­-cv­-02081, in the U.S. District Court for the Southern District of California.