PayPal data breach class action overview:
- Who: Two PayPal users are suing the e-commerce company.
- Why: The plaintiffs allege PayPal was negligent in the storage of their information, leading to a data breach.
- Where: The PayPal data breach class action was filed in a California federal court.
PayPal was negligent in its storage of customers’ sensitive personal information, resulting in a data breach that exposed the personal data of tens-of-thousands of users, a new class action lawsuit alleges.
Plaintiffs Ashley Pillard and Destiny Rucker filed the class action lawsuit against PayPal Inc. on March 2 in a California federal court, alleging violations of state and federal consumer laws.
According to the lawsuit, PayPal failed to properly secure and safeguard its customers’ sensitive records from hackers, leading to a major cyber attack.
In January, PayPal notified its users of a data breach that exposed the personal data of nearly 35,000 users.
According to the lawsuit, on Jan. 18, PayPal filed official notice of a hacking incident with the Office of the Maine Attorney General and sent out data breach letters to individuals whose information was compromised.
Based on the notice filed by the company PayPal first detected unusual activity on some of its computer systems on Dec. 20, 2022. In response, the company conducted an investigation. PayPal’s investigation revealed that an unauthorized party had access to certain company files between December 6, 2022 and December 8, 2022.
PayPal would have discovered breach earlier if it wasn’t negligent with data security, lawsuit alleges
The information compromised in the data breach included highly sensitive data that represents a “gold mine for data thieves,” the lawsuit states.
It included names, addresses, Social Security numbers, individual tax identification numbers, and/or dates of birth as well as additional personally identifiable information that PayPal collected and maintained.
PayPal and its employees failed to properly monitor the computer network and systems that housed the private information, the plaintiffs allege. Had PayPal properly monitored its networks, it would have discovered the breach sooner, they say.
“Plaintiffs and Class Members were, and continue to be, at significant risk of identity theft and various other forms of personal, social, and financial harm,” the plaintiffs state. “The risk will remain for their respective lifetimes.”
The plaintiffs seek to represent a nationwide class of people who had their private information stolen as a result of the data breach, plus a Nebraska subclass and Texas subclass.
The plaintiffs are suing for negligence, breach of contract and violation of state consumer laws, and seek damages, reimbursement of out-of-pocket costs, and injunctive relief including improvements to PayPal’s data security systems, future annual audits, and adequate credit monitoring services funded by PayPal.
What do you think of the allegations against PayPal in this case? Let us know in the comments!
The plaintiff is represented by Kyle McLean, Mason Barney and Steven D. Cohen of Siri & Glimstad LLP.
The PayPal class action lawsuit is Ashley Pillard et al., v. PayPal Inc., Case No. 5:23-cv-00936 in the U.S. District Court for the Northern District of California.
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1,352 thoughts onPayPal class action claims company failed to safeguard customer information prior to data breach
YES I AGREE TO MY CONTACT INFORMATION, AND AGREE TO RECEIVE MARKETING EMAILS FROM TOP CLASS ACTIONS.
Someone got my information and bought a $387 gun on my PayPal account using my full information and how did they get it I think PayPal needs to pay this is ridiculous you can’t even use a company to buy a money card for your safekeeping and this happens.
I’m not just in the PayPal data breach but I’m also in seven others and it has become such a nightmare and such a hassle to try and fix, remove and delete my information from anything I can. The dark web has been the hardest and so far nothing I can do about that but in return all I’ve ever gone offered is identity theft reinsurance package or some of these other ones that went to court I only end up getting $25 but this is going to affect my My credit pretty much the rest of my life even after I do submit and turn in info and paperwork that I need to with the three credit agencies. I don’t think it’s just on how many people get affected and everybody gets either a security package or $5 to $100 in cash! It’s ridiculous and I think they should get hit with a bigger lawsuit fine so the ones that actually are infected can get reimbursed cuz I have wasted hours and hours on these data breaches….. Pointless