UKG Data Breach Class Action Filed Over Ransomware Attack

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UKG Data Breach Class Action Lawsuit Overview:

• Who: Plaintiff Adam Bente has filed a class action lawsuit against workplace management software company UKG Inc.
• Why: UKG failed to adequately safeguard employee data, leaving it vulnerable to a December 2021 ransomware attack, the lawsuit alleges.
• Where: The UKG data breach class action lawsuit was filed in California federal court.

Workforce management software company UKG Inc. is facing a data breach class action lawsuit that alleges its lack of adequate security measures led to a massive ransomware attack in December 2021 that not only exposed millions of employees’ personal data but also took down payroll systems.

As a result, workers were not paid, paid late or paid incorrectly, plaintiff Adam Bente alleges in the lawsuit.

“The timing of the data breach could not have come at a worse time, leaving many employees to worry over their privacy and paychecks during the peak of the holiday season, as well as the latest surge of the COVID-19 pandemic,” the UKG data breach class action lawsuit states.

UKG clients include huge entities like PepsiCo, GameStop, Tesla, the County of Santa Clara, the University of California system and many private and public hospital and health care organizations, according to the lawsuit.

UKG Data Breach Class Action Claims Company Compromised Sensitive Data

Sometime around Dec. 11, 2021, hackers launched a ransomware attack on Kronos Private Cloud, UKG’s timekeeping system, according to the UKG data breach class action lawsuit. The company announced the data breach on its website on Dec. 13.

The UKG data breach allegedly exposed the sensitive and confidential personal identifying information (PII) of millions of workers and brought down companies’ timekeeping and payroll systems.

On Dec. 28, UKG acknowledged that employee PII had been compromised. However, Bente says UKG has still not confirmed what information was stolen. Employees of affected companies allegedly reported that their banking information was hacked in the weeks following the UKG ransomware attack, the lawsuit says.

Bente says UKG “knew or should have known that it was a prime target for hackers” but failed to adequately safeguard employee data.

Plaintiff Says Payroll Late, Inaccurate Due to UKG Data Breach

Bente says he works for the Family Health Centers of San Diego (FHCSD), one of the organizations affected by the UKG data breach. When the payroll services went offline due to the ransomware attack, the paychecks for all employees were delayed, the class action lawsuit alleges.

As a result, employees had to find other sources of income to pay their bills, mortgages and other necessities during the holiday season, Bente says. When his organization finally distributed paychecks, many employees allegedly were paid inaccurately or not at all.

“In the months following the data breach, all FHCSD employees have had to invest significant time and expense into determining the amount of any unpaid wages, bonuses and/or paid time off,” the UKG ransomware attack class action lawsuit alleges.

Because PII was compromised, those affected by the data breach have also allegedly had to spend time and money to secure their personal and financial information, Bente says.

Were you affected by the UKG ransomware attack? Tell us about your experiences in the comments section below!

Bente is represented by Ronald A. Marron, Alexis M. Wood, Kas L. Gallucci and Elisa Pineda of the Law Offices of Ronald A. Marron.

The UKG Data Breach Class Action Lawsuit is Adam Bente v. UKG Inc., Case No. 3:22-cv-00289-GPC-WVG, in the U.S. District Court for the Southern District of California.

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