TD Ameritrade class action claims company failed to prevent data breach

TD Ameritrade data breach class action lawsuit overview: 

• Who: Fortuno Jeanfort filed a class action lawsuit against TD Ameritrade Inc. 
• Why: Jeanfort claims negligence by TD Ameritrade led to a May data breach that may have exposed the personally identifiable information of its customers. 
• Where: The class action lawsuit was filed in Nebraska federal court. 

TD Ameritrade failed to protect and safeguard its customers’ personally identifiable information during a May data breach that occurred following a cyber attack against the MOVEit file transfer software, a class action alleges. 

Plaintiff Fortuno Jeanfort claims TD Ameritrade has a legal and equitable duty to protect and safeguard personally identifiable information it “obtains, collects, uses, and derives a benefit from” in carrying out its business. 

Jeanfort argues the TD Ameritrade data breach occurred after an unknown actor was able to access files belonging to the company that were saved on the MOVEit server, something he claims was the result of negligence on behalf of the financial services company. 

“Due to Defendant’s negligence, cybercriminals obtained everything they need to commit identity theft and wreak havoc on the financial and personal lives of thousands of individuals,” the TD Ameritrade class action states. 

Jeanfort wants to represent a nationwide class of individuals who received a data breach notice from TD Ameritrade on or around Aug. 3, 2023, informing them that their personally identifiable information may have been accessed or acquired. 

TD Ameritrade data breach exposed Social Security numbers, names, other private information, class action says

Personally identifiable information exposed in the TD Ameritrade data breach included names, Social Security numbers, financial account information, dates of birth, government identification numbers and other personal identifiers, according to the TD Ameritrade class action. 

“For the rest of their lives, Plaintiff and the Class Members will have to deal with the danger of identity thieves possessing and misusing their Personal Information,” the TD Ameritrade class action states. 

Jeanfort claims TD Ameritrade is guilty of unjust enrichment, breach of covenant of good faith and fair dealing, invasion of privacy, breach of confidence, breach of fiduciary duty, breach of implied contract, negligence and negligence per se. 

The plaintiff is demanding a jury trial and requesting declaratory and injunctive relief along with an award of compensatory and punitive damages for himself and all class members. 

In another case involving TD Ameritrade, the company agreed in July 2022 to pay more than $2.3 million to end claims it breached its contract with its account holders by providing substitute payments instead of dividends without giving compensation for any potential difference. 

Were you impacted by the TD Ameritrade data breach? Let us know in the comments.

The plaintiff is represented by Gary M. Klinger of Milberg Coleman Bryson Phillips Grossman PLLC and William B. Federman of Federman & Sherwood.

The TD Ameritrade class action lawsuit is Jeanfort v. TD Ameritrade Inc., Case No. 8:23-cv-00381, in the U.S. District Court for the District of Nebraska.

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