Colonial Pipeline Ransomware ‘Panic Buying’ Caused Gas Station Fuel Shortages, Lost Profit, Says Class Action Lawsuit

An EZ Mart owner wants to hold the Colonial Pipeline Company responsible for costs and lost profits experienced by more than 11,000 gas stations who could not get fuel when the company shut down the pipeline during a ransomware attack.  

Lead plaintiff, EZ Mart 1, LLC filed a class action lawsuit on behalf of gas stations supplied by the Colonial Pipeline in Georgia federal court Monday. The owners of the EZ Mart say Colonial Pipeline’s substandard data security led to the ransomware attack. Further, the class action lawsuit claims that the company shut down the Colonial Pipeline to protect its own profit.  

The EZ Mart is located in North Carolina by Abeer and Ahmad Darwich. The gas station features two pumps and a convenience store. The Darwich’s purchase fuel from Oliver’s Oil Company, which is supplied by the Colonial Pipeline Company.  

Colonial Pipeline is a monopoly, says the class action lawsuit, and the shutdown resulted in severe financial hardships for those that operate gas stations in the area, including the EZ Mart, which saw a dip in convenience store sales when they ran out of fuel. They say that when the pipeline shut down in response to the ransomware attack, they had no other option to purchase fuel for their gas station. 

The lawsuit alleges that the company shut down the pipeline because hackers had accessed billing information and Colonial Pipeline operators were not sure that they would be able to accurately charge customers for fuel during the ransomware attack.  

“Defendant elected to shut down the pipeline in whole or part not because the threat actor had reached the operational systems, but because Defendant was not sure it could continue to accurately bill for the product moving through its Pipeline,” says the gas station’s complaint.  

The class action lawsuit accuses the Colonial Pipeline Company of failing to consider ransomware in its data security procedures prior to the attack. Allegedly, cybercriminals were able to obtain “unfettered” access to Colonial Pipeline’s computer system through a compromised virtual private network (VPN) using a “simple login and password” from an “old worker on an outdated and superseded system.” 

Indeed, hackers were on Colonial Pipeline’s computer system for a full week without being detected, says the lawsuit which also points out that the company had been warned by federal agencies that it was a target for would-be ransomware attackers.  

The class action lawsuit seeks to represent other gas stations that were affected by the Colonial Pipeline shutdown. In addition to damages, the plaintiff wants a court order forcing the company to ensure that its computer systems are secure from future ransomware attacks.  

Colonial Pipeline is facing another class action lawsuit filed by consumers who say they had to pay extra at the pump because of the company’s lax data security procedures. 

Were you able to fuel up at a gas station during the Colonial Pipeline ransomware attack? Tell us about your experience in the comment section below! 

The plaintiff is represented by Gregory John Bosseler of Morgan & Morgan, PLLC, John A. Yanchunis and Ryan D. Maxey of Morgan & Morgan Complex Business Division, and Joel R. Rhine, Martin Ramey, Janet Coleman, and Ruth Sheelan of Rhine Law Firm, PC.  

The Colonial Pipeline Gas Station Class Action Lawsuit is EZ Mart 1, LLC v. Colonial Pipeline Company, Case No. 1:21-mi-99999-UNA in the U.S. District Court for the Northern District of Georgia.  

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