SoundCloud data breach lawsuit alleges 29.8M accounts compromised

SoundCloud class action overview:

• Who: Plaintiff Alexander Merkel filed a class action lawsuit against SoundCloud Inc.
• Why: Merkel alleges SoundCloud failed to properly secure and safeguard the PII of nearly 30 million users.
• Where: The SoundCloud class action lawsuit was filed in New York federal court.

A new class action lawsuit alleges SoundCloud was hit with a data breach that compromised the personally identifying information (PII) of nearly 30 million users.

Plaintiff Alexander Merkel filed the class action lawsuit against SoundCloud on Feb. 4 in New York federal court, alleging negligence and violations of state and federal consumer laws.

According to the class action lawsuit, the SoundCloud data breach occurred when cybercriminals infiltrated the company’s network servers, accessing sensitive PII from more than 29.8 million accounts. The hacker, known as “ShinyHunters,” stole user details, including names, email addresses, geographic locations, profile statistics and usernames, the lawsuit states.

Merkel claims that SoundCloud, a global music streaming and sharing platform, failed to provide any response or notice regarding the data breach, leaving affected users in the dark about the compromise.

The lawsuit claims SoundCloud maintained users’ PII in a negligent manner, leaving it vulnerable to cyberattacks. Despite being aware of the risks, SoundCloud allegedly failed to implement adequate and reasonable measures to safeguard the information, the lawsuit says.

SoundCloud allegedly failed to implement adequate security measures

Merkel, a California resident, says he suffered actual injury from having his PII exposed, including the need to monitor financial statements to prevent identity theft and fraud.

He says he and other class members are now at a significantly increased risk of fraud, identity theft and privacy intrusion, which may last for the rest of their lives.

The SoundCloud data breach lawsuit alleges the company’s failure to implement basic security procedures left users’ PII in the hands of cybercriminals. As a result, Merkel says he and other class members must devote substantial time, money and energy to protect themselves from potential crimes.

Merkel is looking to represent anyone whose PII was compromised in the SoundCloud data breach. He is suing for negligence, breach of implied contract, unjust enrichment and declaratory judgment and is seeking certification of the class action, damages, fees, costs and a jury trial.

Last year, SoundCloud faced a class action lawsuit alleging it unlawfully charged customers after raising prices for its premium subscription service.

What do you think of the allegations made in this SoundCloud data breach class action lawsuit? Let us know in the comments.

The plaintiff is represented by Gary F. Lynch of Lynch Carpenter LLP.

The SoundCloud class action lawsuit is Merkel v. SoundCloud Inc., Case No. 1:26-cv-00980, in the U.S. District Court for the Southern District of New York.

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