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Datto Open Mesh Fee Class Action Lawsuit Overview:
- Who: Cloud-managed network device users filed a class action lawsuit against Datto, Inc. and Open Mesh, Inc.
- Why: Plaintiffs claim they are required to pay a monthly fee to maintain the devices that were falsely promised to be free.
- Where: The class action lawsuit is pending in California federal court.
Datto Inc charges consumers who purchased an Open Mesh cloud-managed network device a previously unrequired monthly maintenance fee for it to function, a new class action lawsuit alleges.
Lead plaintiffs Joshua David Dinnerman and Paul Feinberg claim cloud-managed network device users were falsely promised free features such as “automatic firmware updates” and a “lifetime cloud license.”
Users only began having to pay the monthly fee after Datto acquired Open Mesh back in 2016, the class action lawsuit alleges.
Dinnerman and Feinberg are joined in the class action lawsuit by Arizona-based Pacific Information Technologies, Tokyo-based Pacific Business KK, and Hong Kong-based Technology Design Systems, Ltd.
The plaintiffs want to represent a Class of consumers who, since 2007, purchased Open Mesh cloud-managed network devices that require a connection to CloudTrax — a cloud-based network controller — to function.
Datto Will Cut Open Mesh Cloud Service Unless Users Pay Fee, Claims Class Action
Plaintiffs claim users are required to pay a monthly maintenance fee to maintain CloudTrax and subsequently retain the “lifetime cloud license.”
“This model leaves former users with the option to pay the monthly fee or completely/partially replace their hardware and switch to another provider,” states the class action lawsuit.
Plaintiffs further allege that the new monthly payment model contradicts the promise the devices had previously made that there would be no monthly fees.
Datto sent out a statement to device users informing them their lifetime cloud licenses and access to customer support would be cut off at the end of this year if they don’t agree to pay the monthly fees, according to the class action lawsuit.
“As a direct and proximate result of Datto’s business model changes, Plaintiffs and Class Members, like so many others, lost out on significant investments and prospective profits to their damage,” states the class action lawsuit.
Plaintiffs claim Datto and Open Mesh are guilty of, among other things, negligence and misrepresentation, and are in violation of the Magnuson-Moss Warranty Act, and California’s Consumers Legal Remedies Act, Unfair Business Practices Act and False Advertising Law.
Plaintiffs are demanding a jury trial and seeking injunctive relief along with special, compensatory, and punitive damages for themselves and all Class Members.
Bank of America was hit with a class action lawsuit back in 2019 by two college students who alleged the company charged them maintenance fees simply for being above the age of 24.
Are you required to pay a monthly fee to maintain an Open Mesh cloud-managed network device? Let us know in the comments!
The plaintiffs are represented by Gary R. Carlin and Steven T. Romeyn of the Law Offices of Gary R. Carlin, APC.
The Datto Open Mesh Fee Class Action Lawsuit is Dinnerman, et al. v. Datto, Inc., et al., Case No. 2:21-cv-08408, in the U.S. District Court for the Central District of California.
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3 thoughts onDatto Inc Hits Open Mesh Cloud Users With Surprise Monthly Maintenance Fee, Says Class Action
I have hundreds of open mesh devices and now none work and have taken down the whole platform costing me hundreds of thousands in hardware losses alone. How is this not criminal. I called datta and they say “we don’t have access to anything “ and give me an email to open mesh that doesn’t exist
I am loosing my mind (and revenue) after buying into their original business model for 30+ devices!
I cannot get adequate support from Datto for a problem on THEIR end–login onto the cloud portal!
‘403 FORBIDDEN’ when I login. Password resets work behind the scenes, but only yield the same result.
I was asked to create a new account and they mapped my networks to the new user.
Now I cannot use the app as a ‘second user’, I cannot change any network passwords or settings for devices, while I wait for sub par tech support going on 96 hours for a 24 hour turnaround “guarantee”.
I use Cloudtrax on four (4) sites after purchasing Open-Mesh devices with the guarantee of continued free access to the Cloudtrax controller application. The imposition of a fee (which I am not paying at this time) devalues the investment I made in the equipment.