Insurance Broker Arthur J. Gallagher’s Negligence Put Consumers at Risk of Identity Theft, Class Action Claims

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Arthur J. Gallagher Co. Data Breach Class Action Overview:

• Who: A class action lawsuit was filed against global insurance brokerage and risk management services firm Arthur J. Gallagher Co. on behalf of thousands of customers who may have been affected by a 2020 data breach
• Why: The class action lawsuit was filed in response to the data breach, claiming that Arthur J. Gallagher Co. failed to safeguard personally identifiable information, allowing it to be stolen in the data breach
• Where: The class action lawsuit was filed in Illinois, representing a nationwide class of Gallagher customers whose personally identifiable information was compromised in the breach

Insurance broker Arthur J. Gallagher Co. has put thousands of its customers at risk by failing to safeguard their personally identifiable information and allowing it to be stolen in a 2020 data breach, a new class action lawsuit alleges.

The Arthur J. Gallagher Co. class action lawsuit was filed in Illinois by lead Plaintiffs Jason Myers and John Parsons who allege that the company violated state and federal laws by failing to implement adequate security systems or meet minimum industry data security standards, and by not telling consumers or employees that their personal information had been exposed in a timely manner, Law360 reports.

Parsons, who worked for Gallagher from 1996 to 1999, says in the claim that while he was employed with the company, he was required to give the company his personal information.

Although the breach — which occurred between June and September 2020 — happened more than 20 years after Parsons left the company, he still had his data caught up in it.

According to the Arthur J. Gallagher Co. data breach claim, Gallagher waited several months to report the breach to local leaders after learning about it in September, and the company didn’t take measures to notify class members until June.

Myers received notice of the breach on July 2 informing him that his name and his medical claim information had been exposed, the claim alleges.

“As a result of this delayed response, plaintiffs and class members had no idea their PII had been compromised, and that they were, and continue to be, at significant risk of identity theft and various other forms of personal, social, and financial harm. The risk will remain for their respective lifetimes,” Myers and Parsons say in the claim.

Because of Gallagher’s negligence, hackers have now accessed personal data from thousands of consumers, employees, and others, including Social Security numbers, credit card information, and electronic signatures, the claim alleges.

The consumers allege that Gallagher’s failings constitute an unfair act or practice prohibited by the Federal Trade Commission Act.

“Defendants were at all times fully aware of their obligation to protect the PII of customers, prospective customers and employees,” Parsons and Myers allege. “Defendants were also aware of the significant repercussions that would result from their failure to do so.”

The pair are seeking to represent a nationwide class of Gallagher customers whose personally identifiable information was compromised in the breach. They are suing for negligence, breach of implied contract, unjust enrichment, and violations of various Louisiana and California consumer protection laws.

They also want a declaration that Gallagher must implement and maintain reasonable security measures, including engaging third-party auditors and running regular security checks, and must pay for credit monitoring services for nationwide class members for 10 years, Law360 reports.

Have you ever used Gallagher’s services? Tell us if this class action lawsuit affects you in the comments section!

The consumers are represented by Carl V. Malmstrom and Rachele R. Byrd of Wolf Haldenstein Adler Freeman & Herz LLP and Clayeo C. Arnold, M. Anderson Berry and Gregory Haroutunian of Arnold Law Firm.

The Gallagher Consumer Data Breach Class Action Lawsuit is Myers et al. v. Arthur J. Gallagher & Co. et al., Case No. 1:21-cv-04056, in the U.S. District Court for the Northern District of Illinois.

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