PayPal data breach class action overview:Â
- Who: Two PayPal users are suing the e-commerce company.Â
- 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.Â
According to the lawsuit, PayPal failed to properly secure and safeguard its customers’ sensitive records from hackers, leading to a major cyber attack.Â
In January, PayPal notified its users of a data breach that exposed the personal data of nearly 35,000 users.Â
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.Â
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!Â
The plaintiff is represented by Kyle McLean, Mason Barney and Steven D. Cohen of Siri & Glimstad LLP.Â
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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1,346 thoughts onPayPal class action claims company failed to safeguard customer information prior to data breach
I would like to take part in this class action lawsuit. I have PayPal account for years.
Count me in.
My pay pal been hack many time sighn me up I got proof and they still play games about paying my money back
Account was compromised.
I have paypal consented have email about my account add me
I would like to take part in this class action lawsuit as I feel PayPal has been negligent
My account was compromised
I’m from Arkansas I lived in Texas in 2009 when pay pal compromised my account been trying to get them for years. N they still have tha ordassity to collect money on my account
They never contact ne sign me up as well
I am just learning about this. I check all my emails from PayPal and I never received anything from Paypal. But in 2022 I noticed someone had taken money from my account. I contacted PayPal right away. I knew I didn’t give any information out to the person who had taken the money. I don’t shop online either. The PayPal representative told me that my PayPal debit card had been used. I know the person who stole my money had to have hacked my information somehow. I was asked a bunch of questions and was told I could no longer use my PayPal debit card. I informed the PayPal representative that I never used my card with the person responsible for taking money. The representative was adamant that someone had used my card. He assured me that they were aware of the issue but if I saw more unauthorized withdrawals to contact them right away. The money was returned and I received a new card within 7 days of my call to them. I would love to be apart of this lawsuit. Please feel free to contact me at the email address I signed in with. Thank you!
Please add me
PayPal was shady with my account which they have now closed, they locked down my account with my funds for 6 months with no real explanation from August 2022 til February 14th 2023 funds were always missing again with no explanation…
I’ve had PayPal for years and I am glad to finally be holding them accountable.