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Update:
- A New York federal judge dismissed a lawsuit over an Ally Bank data breach, saying plaintiff David De Medicis failed to show the data breach injured him.
- U.S. District Judge Nelson S. Roman called the arguments of injury speculative and said they relied on a chain-of-possibilities argument the Supreme Court rejected in prior cases.
- De Medicis’ amended complaint brings the same claims Judge Roman previously dismissed.
- Ally Bank provided evidence the data breach did not lead to a series of customer credential attacks.
Ally Data Breach Class Action Lawsuit Overview:
- Who: Plaintiff David De Medicis is suing Ally Bank over an alleged data breach.
- Why: The lawsuit stems from a notification letter sent to customers on June 11 disclosing to customers that a programming code error associated with Ally’s website “inadvertently” revealed Ally’s customers’ usernames and passwords to Ally’s business partners.
- Where: The lawsuit was filed in a New York federal court on behalf of anyone in the U.S. who was affected by the data breach.
(Aug. 16, 2021)
Ally Bank orchestrated its own data breach by programming its website portal to reveal customer usernames and passwords to third parties, a new nationwide class action lawsuit alleges.
Plaintiff David De Medicis filed the class action complaint against Ally Bank and Ally Financial Inc. Thursday in a New York federal court, alleging negligence and breach of implied contract.
The class action lawsuit says a June 11 data breach notification letter sent to customers disclosed that a programming code error associated with Ally’s website “inadvertently” revealed Ally’s customers’ usernames and passwords to third parties with whom Ally had business relationships.
The letter went on to inform customers of steps they could take to mitigate the now-increased threat of identity theft, the class action says.
The plaintiff is bringing the class action on behalf of any United States resident whose private information was compromised in the breach.
He says it’s notable that the data breach did not result from a sophisticated attack perpetrated by cyber criminals or state sponsored hackers, but instead “was entirely Ally’s doing.”
“It’s difficult to imagine anything could be more central to data security at an online bank like Ally than protecting the very customer usernames and passwords that provide access to the entirety of customers’ account information and assets,” De Medicis says.
“Not only did Ally negligently program its website to reveal its customers’ usernames and passwords, Ally also failed to adequately test or monitor the security of its website.”
He says, had Ally undertaken reasonable steps to test or monitor the security of its website, it would have immediately discovered and stopped revealing those usernames and passwords to third parties.
After the bank discovered the breach, Ally delayed notifying its customers for almost two months, De Medicis says.
He’s suing for negligence, breach of implied contract and violation of the Virginia Personal Information Breach Notification Act. He’s seeking certification of the class action, damages, fees, costs and a jury trial.
Last month, a class action lawsuit alleging that Ally Financial violates the Telephone Consumer Protection Act by calling family members of those in debt without their consent, was tossed out by a Michigan federal court judge.
That news came after Ally Financial Inc. agreed to a settlement worth $787.5 million benefiting consumers who received notices from Ally that failed to comply with state requirements.
What do you think of Ally’s actions around the data breach? Let us know in the comments!
The plaintiff is represented by Melissa R. Emert and Gary S. Graifman of Kantrowitz, Goldhamer & Graifman, P.C.
The Ally Data Breach Class Action Lawsuit is De Medicis et al., v. Ally Bank et al., Case No. 7:21-cv-06799, in the U.S. District Court Southern District of New York.
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51 thoughts onAlly Bank data breach class action dismissed
Me too
I didn’t know or didn’t remember that Ally released information and in 2022 I started getting fraud charges every month. I bought card protectors and when I got 13 fraud charges in September I finally got a VPN. I went to use my card Saturday and they closed my account. All I am being told is I will get my funds by mail in 7-10 business days. They tell me they sent me a letter on the 7th but I never got it as of 14 days later BUT I had 3 disputes and they were all settled in my favor and all 3 letters came to me within that 14 day timeframe. They have my correct address. So 3 out of 4 letters showed up and they say I should keep waiting for the other letter telling me they are closing my account. I said does it tell me why? Supervisor said no, they can close any account at anytime without cause. I said it would have been nice if you contacted me so I could have removed my money before you closed it instead of having no money out of the blue. Now you get to keep my money and make interest on it for 14 days. You do this to enough people and you make good money.
I was so angry. I didn’t yell or swear but I am so disappointed and broke lol until I get my check from them. They closed my account on the 17th they say. I said you were working Saturday? I said did you also mail my check on the 17th? They said they don’t have a mail date for the check. I said of course you don’t because you won’t mail it until your next business day which is Tuesday because we have a long weekend. I am angry but not giving them the satisfaction of my going off on them. I loved Ally Bank. I had no clue my fraud problem was likely their fault. I was so upset last year watching my bank everyday for fraudulent charges. When I went over a dozen in September I was crying. I have to watch my money, I am not some affluent person that doesn’t pay attention to their bank account each month. I watch mine carefully, I have to. I had no clue this nest of worms was brewing and it was going to hamper my life each day. It is stressful when literally have to look up your bank statement once or twice a day to see what’s gone through of mine and if something has that isn’t mine. September was either 13 or 15 fraudulent charges. That’s practically one every other day. Can you imagine dealing with that all the time and not knowing which days they would hit?
I am so disturbed by these comments and the responses of Ally Bank to them. Now I see what they’re doing to me is nothing unusual.
I didn’t know or didn’t remember that Ally released information and in 2022 I started getting fraud charges every month. I bought card protectors and when I got 13 fraud charges in September I finally got a VPN. I went to use my card Saturday and they closed my account. All I am being told is I will get my funds by mail in 7-10 business days. They tell me they sent me a letter on the 7th but I never got it as of 14 days later BUT I had 3 disputes and they were all settled in my favor and all 3 letters came to me within that 14 day timeframe. So they have my correct address. So 3 out of 4 letters showed up and they say I should keep waiting for the other letter telling me they are closing my account. I said does it tell me why? Supervisor said no, they can close any account at anytime without cause. I said it would have been nice if you contacted me so I could have removed my money before you closed it instead of having no money out of the blue. Now you get to keep my money and make interest on it for 14 days. You do this to enough people and you make good money.
I was so angry. I didn’t yell or swear but I am so disappointed and broke lol until I get my check from them. They closed my account on the 17th they say. I said you were working Saturday? I said did you also mail my check on the 17th? They said they don’t have a mail date for the check. I said of course you don’t because you won’t mail it until your next business day which is Tuesday because we have a long weekend. I am angry but not giving them the satisfaction of my going off on them. I loved Ally Bank. I had no clue my fraud problem was likely their fault. I was so upset last year watching my bank everyday for fraudulent charges. When I went over a dozen in September I was crying. I have to watch my money, I am not some affluent person that doesn’t pay attention to their bank account each month. I watch mine carefully, I have to. I had no clue this nest of worms was brewing and it was going to hamper my life each day. It is stressful when literally have to look up your bank statement once or twice a day to see what’s gone through of mine and if something has that isn’t mine. September was either 13 or 15 fraudulent charges. That’s practically one every other day. Can you imagine dealing with that all the time and not knowing which days they would hit?
I am so disturbed by these comments and the responses of Ally Bank to them. Now I see what they’re doing to me is nothing unusual.
I didn’t know or didn’t remember that Ally released information and in 2022 I started getting fraud charges every month. I bought card protectors and when I got 13 fraud charges in September I finally got. VPN. Now I went to use my card Saturday and they closed me account. All I am being told is I will get my funds by mail in 7-10 business days. They tell me they sent me a letter on the 7th but I never got it as of 14 days later BUT I had 3 disputes and they were all settled in my favor and all 3 letters came to me within that 14 day timeframe. So they have my correct address. So 3 out of 4 letters showed up and they say I should keep waiting for the other letter telling me they are closing my account. I said does it tell me why? Supervisor said no, they can close any account at anytime without cause. I said it would have been nice if you contacted me so I could have removed my money before you closed it instead of having no money out of the blue. I said but now you get to keep my money and make interest on it for 14 days. I said you do this to enough people and you make good money.
I was so angry. I didn’t yell or swear but I am so disappointed and broke lol until I get my check from them. They closed my account on the 17th they say. I said you were working Saturday? I said did you also mail my check on the 17th? They said they don’t have a mail date for the check. I said of course you don’t because you won’t mail it until your next business day which is Tuesday because we have a long weekend. I am angry but not giving them the satisfaction of my going off on them.
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Add me they was used as an credit inquiry for my automobile purchase