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Lax Colonial Pipeline cybersecurity procedures resulted in a ransomware attack that slowed the flow of gas all over the east coast, forcing consumers to pay more at the pump, claims a class action lawsuit filed in Georgia federal court Tuesday.
Lead plaintiff, Ramon Dickerson, seeks to represent a nationwide Class of consumers who allegedly paid a higher price for gasoline due to shortages caused by the ransomware attack that occurred in early May. The operators of the major petroleum artery, Colonial Pipeline Co., reportedly shut down major portions of it before paying hackers $4.4 million.
Dickerson, a resident of North Carolina, says that he was forced to pay exorbitant prices of gasoline during the attack. Allegedly, between 45 and 68 percent of gas stations in affected areas reported outages during the shutdown. Dickerson claims that he and other consumers were victims of Colonial Pipeline’s failure to secure itself from the hackers.
Stretching approximately 5,500 miles, the Colonial Pipeline supplies much of the gas, diesel, and jet fuel across the east coast of the United States. A striking ransomware attack likely perpetrated by a Russian hacking group devastated the line starting on May 7, says the class action lawsuit. Operators were only able to begin reopening the Colonial Pipeline on May 12, after paying off the thieves.
“As a result of the Defendant’s failure to properly secure the Colonial Pipeline’s critical infrastructure – leaving it subjected to potential ransomware attacks like the one that took place on May 7, 2021 – there have been catastrophic effects for consumers and other end-users of gasoline up and down the east coast,” contends the class action lawsuit.
Allegedly, the hackers took over Colonial Pipeline’s network, holding it hostage until the company paid a ransom. Dickerson alleges that the Russian hacking group responsible has taken over other networks before, and likely will so again.
Experts say that there are ways organizations can protect themselves from ransomware attacks, points out the class action lawsuit, including limiting access, running security updates, and scanning emails for threats.
Though it is not yet known how the hackers got access to Colonial Pipeline’s network, Dickerson says that consumers paid the price in the form of higher gas costs. Further, it is not clear whether Colonial Pipeline has adequately improved its cybersecurity to protect itself, and American consumers, from the next attack.
Dickerson seeks to represent a nationwide Class of consumers who paid higher gasoline prices due to the Colonial Pipeline ransomware attack. In addition to damages, the class action lawsuit is demanding a court order requiring the operator to improve its security procedures.
Did you have to pay higher gas prices because of the Colonial Pipeline ransomware attack? Do you think they needed better data security procedures? Tell us in the comment section below!
The lead plaintiff is represented by James Evangelista of Evangelista Worley LLC and Harper Segui, Daniel Bryson, Rachel Soffin, Gregory F. Coleman, Jennifer Kraus Czeisler, and Blake Yagman of Milberg Coleman Bryson Phillips Grossman PLLC.
The Colonial Pipeline Ransomware Class Action Lawsuit is Dickerson v. CDPQ Colonial Partners LP et al., Case No. 1:21-cv-02098, in the U.S. District Court for the Northern District of Georgia.
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10 thoughts onConsumers Paid the Price in Colonial Gas Pipeline Ransomware Attack, Says Class Action Lawsuit
Add me please
Add me please
I live in Abita Springs, Louisiana. Gas prices went up here also. Please add me. Thanks
This is a crass attempt at a lawsuit. We were inconvenienced and unless you own a business that was severely impacted and had to pay what; another $4 for the tank of gas then get over it. You did not have to buy any gas at that time. It is called public transportation or UBER/LYFT.
That’s easy to say if you’re not required to have your car for work. The gas prices in my area, on the West Coast, have damn near doubled so it’s not just the East Coast that was affected. They should protect their data so this can’t happen. It’s their job!
Baltimore prices went up almost 50 cents per gallon because of the shortage.
I live in NC and the gas prices were Ridiculous. My car use Octane 93 but had to get 89 @3.29 up some stores. Add me
Yes, I live in TN. I paid as much as 20 cents per gallon more and I use 93 octane which is expensive enough. Please add me.
Area near Charlotte, no gouging occured, surprisingly. We were at about $2.80 per gallon before the attack. Stayed around there. When gas returned, some stations went as high as $3.19, but have since dropped back to the $2.70 – $2.90 range. The bigger spike in prices happened when Joe Biden got elected. We were down to $1.49 / gallon as recently as the fall of 2020.
On a side note, in my area…so weird that along a major highway, there are HUGE swings in prices between stations that are less than a quarter mile away from each other. As much as $0.30 a gallon. I mean, that is significant. I don’t understand why I see people filling up at one station that is 30 cents a gallon more when you can go to the next, that is not busy, to save $3 on only 10 gallons. Then these same people complain about cost of living, go figure.
I live in VA. My area ran out of gas and prices skyrocketed. Add me!