Central One class action claims data breach was caused by negligence

Central One data breach class action overview:

• Who: Plaintiff Gary Petralias filed a class action lawsuit against Central One Federal Credit Union.
• Why: Petralias claims Central One failed to properly secure and safeguard the sensitive information of its customers.
• Where: The class action lawsuit was filed in Massachusetts federal court.

A new nationwide class action lawsuit alleges Central One Federal Credit Union failed to properly secure and safeguard the sensitive information of its customers in a recent data breach.

Plaintiff Gary Petralias filed the class action complaint against Central One Federal Credit Union on Nov. 21 in Massachusetts federal court, alleging violations of state and federal consumer privacy laws.

Central One is a federally chartered credit union that provides consumer banking, lending and financial services to its member account holders.

Petralias claims that Central One failed to properly secure and safeguard its customers’ sensitive information, including names, driver’s license numbers, Social Security numbers, government-issued ID numbers, financial information and health insurance information.

Petralias claims the data breach occurred because Central One stored customer information in an unencrypted, internet-accessible environment, making it vulnerable to cybercriminals.

As a result of Central One’s alleged negligence, Petralias argues that he and other affected customers now face a significantly increased risk of fraud, identity theft and intrusion of their health privacy.

Central One failed to notify of data breach in a timely manner, class action claims

Petralias claims Central One discovered suspicious activity in its computer network in August but waited until November to begin notifying individuals impacted by the data breach.

According to the class action lawsuit, this violated the Health Insurance Portability and Accountability Act, which requires entities to provide notice of a data breach to affected individuals “without unreasonable delay and in no case later than 60 days following discovery of the breach.” 

He alleges Central One’s failure left customers at an increased risk of identity theft and fraud and that the “plaintiff and class members must devote substantially more time, money and energy to protect themselves, to the extent possible, from these crimes.” 

The lawsuit demands that Central One adopt sufficient practices to safeguard the information in its custody and provide identity theft protective services to affected individuals for their lifetimes.

Petralias wants to represent anyone in the United States whose private information was compromised in the Central One data breach. 

He is suing for negligence, breach of implied contract, unjust enrichment and declaratory judgment and is seeking certification of the Central One class action lawsuit, damages, fees, costs and a jury trial.

Early this year, Via Credit Union was hit with a class action claiming it maintained the private information of its customers in “a reckless manner” and in “a condition vulnerable to cyberattacks.”

What do you think of the claims against Central One in the data breach class action? Let us know in the comments.

The plaintiff is represented by Jason Leviton and Brendan Jarboe of Block & Leviton LLP and Gerald D. Wells III of Lynch Carpenter LLP.

The Central One class action lawsuit is Petralias v. Central One Federal Credit Union, Case No. 1:25-cv-13518, in the U.S. District Court for the District of Massachusetts.

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