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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
I had Ally vehicle loan and was upset with them giving me a loan % but got paperwork and it was different.
I refinanced once I was able to.
They are dubious.
Add me in lawsuit
Add me
Has any one heard of the sable one credit card well I sent them 500.00 dollars and now they have blocked my account temporarily and we’ll not get back to me I have tried for weeks chat email 800 number nothing there is a huge Facebook page of the same people going through what I’m going through please help sable one debit and credit card
I received a documentation that I was named in the class action suit and I stayed in contact with the 800 number that was listed in the documentation. Further they said that a check would be mailed to me sometime after January 2021. However to this date now June 22, 2022, I have never received any such settlement payment which I was told I would be receiving a, nd the number that they list 844=271-4780 which is listed as the number to call, however when I call it someone sounding like they’re from India is trying to sell me a coupon package for $4.95 and then gives me another number to call which has nothing to do with the settlement claim..
I’m currently writing an analysis on this at Impaakt and I’ll love to know how many people were affected by this data breach.
Could you please inform me of that or point me in the right direction?
Thank you
I was affected & ALLY WRONGFULLY REPOSSESSED MY CAR AFTER THEY RECEIVED PAYMENT THE SAME DAY THEY REPOSSESSED IT. Ally received my check October 31st and they held on to it until January 23rd after they sold my car. They never told me where my car was going to be auctioned and when I found out where my car was I specifically requested an auction that I could get to by bus but instead they sent it to a car auction in Chandler Arizona. I was never notified of the date or time.ALLY did sell my car at an auction in Chandler Arizona and then they took the check that they received in October and they applied it in January to the difference between what they say I owed and what they sold my car for. Further the record-keeping was not accurate and they did not document when I paid $500 versus the amount that was due of $161 and they did not document any other large payments that I had made that are on my bank statement but that are not recorded by Ally finance. To make matters worse I was listed in the class action suit that was filed and I have never received any settlement payment.
I paid my van off 10/2021. They will not send me my title even through they have said they send a doc u sign 6 or more times? I called many times to wait in hold for hours to be disconnected and told to call back??? They cashed my check and won’t send it to my house address so I can get my tags and tittle?? Not sure what else to do? It’s so hard to get a hold of anyone.
Yesterday someone with my bank information called me posing as Ally Fraud Detection, and transferred $2500 through Zelle and my Ally account. I am confident my phone number and username were compromised during this breech. Please advise.
I have a closed account with Ally which still shows on my credit report. Can I be added to this class action?
I have a loan with them and never received a letter about a hack under them. And other issues I have. ADD ME TO THIS LAWSUIT
Please text me as I have researched ALLY Bank and learned they are basically part of a huge PONZI Scheme.. Count me in – or let me know if I am included in the Class Action – otherwise, I will find an Attorney. The whole story is scary, My account was included in this breach – the number of accounts involved is over 200 Billion. They have a side Hustle of sell / repossess/ resale /repo! and much more
I checked my credit it still show them can I be in this lawsuit
Sophia