Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 1 of 36 PageID 1
UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF TEXAS
PATRICIA DEAN individually and on behalf
of all similarly situated persons,
3:24-cv-00776
Case No. ____________
Plaintiff,
v.
CLASS ACTION
AT&T, INC.,
JURY TRIAL DEMANDED
Defendant.
CLASS ACTION COMPLAINT
Plaintiff Patricia Dean (“Plaintiff”), individually and on behalf of all others similarly
situated, brings this action against Defendant AT&T, INC. (“AT&T”), a Texas corporation, to
obtain damages, restitution, and injunctive relief for the Class, as defined below, from Defendant.
Plaintiff makes the following allegations upon information and belief, except as to her own actions,
the investigation of her counsel, and the facts that are a matter of public record:
NATURE OF THE ACTION
1. This class action arises out of a recent targeted cyberattack and data breach (“Data
Breach”) in which AT&T, the largest telecommunications services company in the United States,
lost control over more than 73 million customers’ personal data and other sensitive information.
Those customers, including Plaintiffs and Class Members, suffered ascertainable losses from this
Data Breach including the loss of the benefit of their bargain, out-of-pocket expenses and the value
of their time reasonably incurred to remedy or mitigate the effects of the attack.
2. Plaintiff’s and Class Members’ personal data and other sensitive information—
1
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 2 of 36 PageID 2
which was entrusted to Defendant for safe keeping—was compromised and unlawfully accessed
due to the Data Breach.
3. The Data Breach included personally identifiable information (“PII”) that
Defendant collected and maintained. Information compromised in the Data Breach includes, inter
alia, names, addresses, phone numbers, dates of birth, Social Security Numbers, and email
addresses (“Private Information”).
4. Plaintiff brings this class action lawsuit to address Defendant’s inadequate
safeguarding of Class Members’ Private Information that it collected, and for failing to provide
timely and adequate notice to Plaintiff and Class Members that their information had been subject
to the unauthorized access of unknown third parties and precisely what specific type of information
was accessed.
5. Defendant collected and shared Private Information in a reckless manner.
6. In particular, Private Information was collected by Defendant, inadequately
secured, and shared with a vendor who had insufficient cybersecurity protections in place to protect
that Private Information.
7. Upon information and belief, the mechanism of the cyberattack and potential for
improper disclosure of Plaintiff’s and Class Members’ Private Information was a known risk to
Defendant, and thus Defendant was on notice that failing to take steps necessary to secure the
Private Information from those risks left that property in a dangerous condition.
8. Plaintiff’s and Class Members’ identities are now at increased risk of identity theft
because of Defendant’s negligent conduct since the Private Information that Defendant collected
and promised to protect is now in the hands of data thieves.
9. Armed with the Private Information accessed in the Data Breach, data thieves can
2
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 3 of 36 PageID 3
commit a variety of crimes including, e.g., opening new financial accounts in Class Members’
names, taking out loans in Class Members’ names, using Class Members’ information to obtain
government benefits, filing fraudulent tax returns using Class Members’ information, obtaining
driver’s licenses in Class Members’ names but with another person’s photograph, and giving false
information to police during an arrest.
10. As a result of the Data Breach, Plaintiff and Class Members have been exposed to
a heightened and imminent risk of fraud and identity theft. Plaintiff and Class Members must now
and in the future closely monitor their financial accounts to guard against identity theft.
11. Plaintiff and Class Members may also incur out of pocket costs for, e.g., purchasing
credit monitoring services, credit freezes, credit reports, or other protective measures to deter and
detect identity theft.
12. Plaintiff seeks to remedy these harms on behalf of herself and all similarly situated
individuals whose Private Information was accessed during the Data Breach.
13. Plaintiff seeks remedies including, but not limited to, compensatory damages,
reimbursement of out-of-pocket costs, and injunctive relief including improvements to
Defendant’s data security protocols, future annual audits, and adequate credit monitoring services
funded by Defendant.
PARTIES
14. Plaintiff Patricia Dean is, and at all times mentioned herein was, an individual
citizen of the State of Illinois. Plaintiff Dean is an AT&T customer and received
telecommunication services from AT&T.
15. Defendant AT&T is a telecommunications company that provides, among other
things, wireless network services, cellular data plans, cell phone plans, and Internet connection
3
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 4 of 36 PageID 4
plans.
16. Defendant is headquartered at 208 South Akard Street
Dallas, Texas 75202, and may be served via their registered agent CT Corporation System, 1999
Bryan Street., Ste. 900, Dallas, Texas 75201.
JURISDICTION AND VENUE
17. The Court has subject matter jurisdiction over this action under the Class Action
Fairness Act, 28 U.S.C. § 1332(d)(2). The amount in controversy exceeds $5 million, exclusive of
interest and costs. Upon information and belief, the number of class members is over 100, many
of whom have different citizenship from Defendant. Thus, minimal diversity exists under 28
U.S.C. § 1332(d)(2)(A).
18. This Court has personal jurisdiction over Defendant AT&T because Defendant is
headquartered in Texas and has thus availed itself of the rights and benefits of the State of Texas
by engaging in activities including (i) directly and/or through its parent companies, affiliates and/or
agents providing services throughout the United States in this judicial district and abroad; (ii)
conducting substantial business in this forum; (iii) having a registered agent to accept service of
process in the State of Texas; and/or (iv) engaging in other persistent courses of conduct and/or
deriving substantial revenue from services provided in Texas and in this judicial District.
19. Venue is proper in this Court pursuant to 28 U.S.C. § 1391(b)(2) because a
substantial part of the events or omissions giving rise to Plaintiff’s claims occurred in the Northern
District of Texas.
DEFENDANT AT&T’S BUSINESS
20. Defendant AT&T is a company that provides telecommunications services across
the United States.
4
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 5 of 36 PageID 5
21. In the ordinary course of providing telecommunications services, customers must
provide to AT&T access to certain Private Information. AT&T specifies the following types of
personal data collected in its Privacy Notice:
The information we collect
To better run our business, we collect information about you, your equipment and
how you use our products and services. This can include:
Account information. You give us information about yourself, such as
contact and billing information. We also keep service-related history and
details, including Customer Proprietary Network Information.
Equipment information. We collect information about equipment on our
network like the type of device you use, device ID, and phone number.
Network performance. We monitor and test the health and performance of
our network. This includes your use of Products and Services to show how
our network and your device are working.
Location information. Location data is automatically generated when
devices, products and services interact with cell towers and Wi-Fi routers.
Location can also be generated by Bluetooth services, network devices and
other tech, including GPS satellites.
Web browsing and app information. We automatically collect a variety
of information which may include time spent on websites or apps, website
and IP addresses and advertising IDs. It also can include links and ads seen,
videos watched, search terms entered and items placed in online AT&T
shopping carts. We may use pixels, cookies and similar tools to collect this
information. We don’t decrypt information from secure websites or apps –
such as passwords or banking information.
Biometric information. Fingerprints, voice prints and face scans are
examples of biological characteristics that may be used to identify
individuals. Learn more in our Biometric Information Privacy Notice.
Third-party information. We get information from outside sources like
credit reports, marketing mailing lists and commercially available
demographic and geographic data. Social media posts also may be
collected, if you reach out to us directly or mention AT&T.
All these types of information are considered Personal Information when they can
reasonably be linked to you as an identifiable person or household. For instance,
5
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 6 of 36 PageID 6
information is personal when it can be linked to your name, account number or
device.1
22. Within AT&T’s Privacy Notice, AT&T states the following about keeping Private
Information private and secure:
Thank you for reading our Privacy Notice. Your privacy is important to you and to
us.
…
This notice applies to AT&T products and services including internet, wireless,
voice and AT&T apps.
…
Your privacy choices and controls
You can manage how we use and share your information for certain activities
including advertising and marketing. Here are key examples:
Do not sell or share my personal information. We may share information with
other companies in limited ways, such as exchanging subscriber lists for joint
marketing.
…
Data retention and security
We work hard to safeguard your information using technology controls and
organizational controls. We protect our computer storage and network equipment.
We require employees to authenticate themselves to access sensitive data. We limit
access to personal information to the people who need access for their jobs. And
we require callers and online users to authenticate themselves before we provide
account information.
No security measures are perfect. We can’t guarantee that your information will
never be disclosed in a manner inconsistent with this notice. If a breach occurs,
we’ll notify you as required by law.2
23. Thus, because of the highly sensitive and personal nature of the information it
acquires, AT&T promises in its Privacy Notice to, among other things, maintain the privacy and
security of Private Information.
24. As a condition of receiving telecommunications services, Defendant requires that
1
AT&T Privacy Notice, AT&T, Inc., https://about.att.com/privacy/privacy-notice.html (last accessed Mar. 28,
2024).
2
Id.
6
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 7 of 36 PageID 7
its customers entrust it with highly sensitive personal information.
25. By obtaining, collecting, using, and deriving a benefit from Plaintiff’s and Class
Members’ Private Information, Defendant assumed legal and equitable duties and knew or should
have known that it was responsible for protecting Plaintiff’s and Class Members’ Private
Information from disclosure.
26. Plaintiff and the Class Members have taken reasonable steps to maintain the
confidentiality of their Private Information.
27. Plaintiff and the Class Members relied on Defendant to keep their Private
Information confidential and securely maintained, to use this information for business purposes
only, and to make only authorized disclosures of this information.
THE DATA BREACH
A. 2021 Stealing of Database (“2021 Data Incident”)
28. On or about August 19, 2021, a criminal hacking group called “ShinyHunters”
began selling on a hacking forum a database which, according to ShinyHunters, contains Personal
Customer Data of over 70 million AT&T customers. 3
29. While attempting to sell the database, ShinyHunters only revealed sample data from
the compromised database, which included customers’ names, addresses, phone numbers, Social
Security numbers, and dates of birth.4
30. AT&T maintained, without providing any evidence, that the data samples leaked
from the compromised database did not come from AT&T’s systems and that AT&T had not been
3
AT&T denies data breach after hacker auctions 70 million user database, BleepingComputer (Aug. 20, 2021),
https://www.bleepingcomputer.com/news/security/atandt-denies-data-breach-after-hacker-auctions-70-million-user-
database/
4
Id.
7
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 8 of 36 PageID 8
breached.5
31. AT&T also did not confirm whether the leaked data came from a breach of a third-
party partner’s information technology systems which may have held Private Information. 6
32. ShinyHunters challenged AT&T’s denials of the Data Breach coming from AT&T
or one of its third-party partners, stating “I don’t care if they don’t admit. I’m just selling.” 7
33. ShinyHunters also stated that the criminal group was willing to “negotiate” with
AT&T.8
34. Shortly after the 2021 Data Incident, a security researcher reported that two of the
four individuals in the data samples leaked by ShinyHunters were confirmed to have accounts on
att.com.9
35. AT&T did not notify any of its customers, including Plaintiff and Class Members,
of the 2021 Data Incident.
B. 2024 Leak of Private Information (“2024 Data Incident”)
36. On or about March 17, 2024, another cybercrime actor known as “MajorNelson”
posted on an Internet forum the entire dataset of the stolen database from the 2021 Data Incident,
the database of which ShinyHunters attempted to sell. 10
37. The data leaked by MajorNelson included the following data types from
approximately 73 million individuals, inter alia: names, addresses, phone numbers, dates of birth,
5
Id.
6
Id.
7
Id.
8
Id.
9
Id.
10
AT&T says leaked data of 70 million people is not from its systems, BleepingComputer (Mar. 17, 2024),
https://www.bleepingcomputer.com/news/security/att-says-leaked-data-of-70-million-people-is-not-from-its-
systems/amp/.
8
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 9 of 36 PageID 9
and Social Security numbers. 11
38. On March 19, 2024, Troy Hunt—a security researcher and the creator of the data
breach notification website “Have I Been Pwned”—posted on his blog about the AT&T Data
Breach.12
39. In the blog post, Mr. Hunt concluded that the leaked data from the Data Breach was
authentic after he spoke with several “Have I Been Pwned” subscribers who were AT&T
customers and who confirmed the accuracy of the leaked data. 13
40. Moreover, Mr. Hunt noted that the Internet forum on which the leaked data was
posted is not on the ‘dark web,’ but rather on the traditional Web “easily accessed by a normal
web browser.”14
41. The 2021 Data Incident combined with the 2024 Data Incident (together, the “Data
Breach”) caused significant harm to Plaintiff and Class Members.
C. AT&T Failed to Safeguard Plaintiff’s and Class Members’ Private Information
42. Defendant had obligations created by contract, industry standards, common law,
and representations made to Plaintiff and Class Members to keep their Private Information
confidential and to protect it from unauthorized access and disclosure.
43. Plaintiff and Class Members provided their Private Information to AT&T with the
reasonable expectation and mutual understanding that Private Information would comply with
11
Id.
12
Troy Hunt, Inside the Massive Alleged AT&T Data Breach, TroyHunt.com (Mar. 19, 2024),
https://www.troyhunt.com/inside-the-massive-alleged-att-data-breach/.
13
Id.
14
Id. (“As I'm fond of saying, there's only one thing worse than your data appearing on the dark web: it's appearing
on the clear web. And that's precisely where it is; the forum [the leaked data] was posted to isn't within the shady
underbelly of a Tor hidden service, it's out there in plain sight on a public forum easily accessed by a normal web
browser.”)
9
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 10 of 36 PageID 10
their obligations to keep such information confidential and secure from unauthorized access.
44. Defendant’s data security obligations were particularly important given the
substantial increase in cyberattacks and/or data breaches preceding the date of the breach.
45. In light of recent high profile data breaches at other companies, Defendant knew
or should have known that electronic records would be targeted by cybercriminals.
46. Indeed, cyberattacks have become so notorious that the Federal Bureau of
Investigation and U.S. Secret Service have issued a warning to potential targets, so they are aware
of, and prepared for, a potential attack. As one report explained, “[e]ntities like smaller
municipalities and hospitals are attractive to ransomware criminals . . . because they often have
lesser IT defenses and a high incentive to regain access to their data quickly.” 15
47. Therefore, the increase in such attacks, and attendant risk of future attacks, was
widely known to the public and to anyone in Defendant’s industry, including Defendant.
48. AT&T failed to implement adequate data security measures to safeguard Plaintiff’s
and Class Members’ Private Information as evidenced by the database stolen by ShinyHunters in
2021 and by the full leak of about 73 million individuals’ Private Information by MajorNelson in
2024, nearly three years after the 2021 Data Incident.
49. Despite the first Data Incident having occurred in August 2021 (and again on March
2024), AT&T has made no effort to notify the public about the severity of the Data Breach nor has
AT&T given to potential victims of the Data Breach instructions on how to keep their Private
Information safe.
50. Even though the Private Information at issue has been compromised and leaked for
15
FBI, Secret Service Warn of Targeted, Law360 (Nov. 18, 2019), https://www.law360.com/articles/1220974/fbi-
secret-service-warn-of-targeted-ransomware (last visited Jan. 5, 2023).
10
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 11 of 36 PageID 11
about two and a half years, AT&T has done nothing to get that leaked Private Information taken
down from places where the Private Information should not be, such as in the aforementioned
Internet fora, which are on the Clear Web.
51. Further, AT&T has not done anything to determine the source of the Data Breach.
This is evidenced by AT&T’s reluctance to confirm whether the Data Breach may be attributed to
a third-party partner to whom AT&T entrusted the processing and safekeeping of a substantial
amount of Plaintiff’s and Class Members’ Private Information.
52. Considering that the Data Breach likely occurred as a result of malicious actors—
such as ShinyHunter and MajorNelson—exploiting a data security weakness in one of AT&T’s
third-party processors of Private Information, AT&T failed to adequately verify the adequacy of
security measures, if any, that such third-party processors had in place meant to protect the Private
Information.
D. Defendant Failed to Comply with FTC Guidelines
53. The Federal Trade Commission (“FTC”) has promulgated numerous guides for
businesses which highlight the importance of implementing reasonable data security practices.
According to the FTC, the need for data security should be factored into all business decision-
making.
54. In 2016, the FTC updated its publication, Protecting Personal Information: A Guide
for Business, which established cyber-security guidelines for businesses. The guidelines note that
businesses should protect the personal customer information that they keep; properly dispose of
personal information that is no longer needed; encrypt information stored on computer networks;
understand their network’s vulnerabilities; and implement policies to correct any security
11
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 12 of 36 PageID 12
problems.16 The guidelines also recommend that businesses use an intrusion detection system to
expose a breach as soon as it occurs; monitor all incoming traffic for activity indicating someone
is attempting to hack the system; watch for large amounts of data being transmitted from the
system; and have a response plan ready in the event of a breach. 17
55. The FTC further recommends that companies not maintain PII longer than is
needed for authorization of a transaction; limit access to sensitive data; require complex passwords
to be used on networks; use industry-tested methods for security; monitor for suspicious activity
on the network; and verify that third-party service providers have implemented reasonable security
measures.
56. The FTC has brought enforcement actions against businesses for failing to protect
customer data adequately and reasonably, treating the failure to employ reasonable and appropriate
measures to protect against unauthorized access to confidential consumer data as an unfair act or
practice prohibited by Section 5 of the Federal Trade Commission Act (“FTCA”), 15 U.S.C. § 45.
Orders resulting from these actions further clarify the measures businesses must take to meet their
data security obligations.
57. Defendant failed to properly implement basic data security practices. Defendant’s
failure to employ reasonable and appropriate measures to protect against unauthorized access to
Private Information is an unfair act or practice prohibited by Section 5 of the FTC Act, 15 U.S.C.
§ 45.
58. Defendant was at all times fully aware of its obligation to protect the Private
16
Protecting Personal Information: A Guide for Business, Federal Trade Commission (2016). Available at
https://www.ftc.gov/system/files/documents/plain-language/pdf-0136_proteting-personal-information.pdf (last
visited Jan. 5, 2023).
17
Id.
12
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 13 of 36 PageID 13
Information of its customers. Defendant was also aware of the significant repercussions that would
result from its failure to do so.
E. Defendant Failed to Comply with Industry Standards
59. As shown above, experts studying cyber security routinely identify companies as
being particularly vulnerable to cyberattacks because of the value of the PII which they collect and
maintain.
60. Several best practices have been identified that a minimum should be implemented
by companies like Defendant, including but not limited to ensuring Private Information is only
shared with third parties when reasonably necessary and that those vendors have appropriate
cybersecurity systems and protocols in place.
61. A number of industry and national best practices have been published and should
be used as a go-to resource when developing an institution’s cybersecurity standards. The Center
for Internet Security (“CIS”) released its Critical Security Controls (“CSC”), and all businesses
are strongly advised to follow these actions. The CIS Benchmarks are the overwhelming option
of choice for auditors worldwide when advising organizations on the adoption of a secure build
standard for any governance and security initiative, including PCI DSS, NIST 800-53, SOX,
FISMA, ISO/IEC 27002, Graham Leach Bliley and ITIL. 18
62. Other best cybersecurity practices that are standard in the telecommunications
industry include installing appropriate malware detection software; monitoring and limiting the
network ports; protecting web browsers and email management systems; setting up network
systems such as firewalls, switches and routers; monitoring and protection of physical security
18
See CIS Benchmarks FAQ, Center for Internet Security, https://www.cisecurity.org/cis-benchmarks/cis-
benchmarks-faq/ (last visited Jan. 5, 2021).
13
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 14 of 36 PageID 14
systems; protection against any possible communication system; and training staff regarding
critical points.
F. Cyberattacks and Data Breaches Put Individuals at an Increased Risk of Fraud and
Identity Theft
63. Cyberattacks and data breaches on businesses are problematic because of the
increased risk of fraud and identity theft.
64. The United States Government Accountability Office released a report in 2007
regarding data breaches (“GAO Report”) in which it noted that victims of identity theft will face
“substantial costs and time to repair the damage to their good name and credit record.” 19
65. That is because any victim of a data breach is exposed to serious ramifications
regardless of the nature of the data. Indeed, the reason criminals steal personally identifiable
information is to monetize it. They do this by selling the spoils of their cyberattacks on the black
market to identity thieves who desire to extort and harass victims and take over victims’ identities
in order to engage in illegal financial transactions under the victims’ names. Because a person’s
identity is akin to a puzzle, the more accurate pieces of data an identity thief obtains about a person,
the easier it is for the thief to take on the victim’s identity, or otherwise harass or track the victim.
66. The FTC recommends that identity theft victims take several steps to protect their
personal and financial information after a data breach, including contacting one of the credit
bureaus to place a fraud alert (consider an extended fraud alert that lasts for 7 years if someone
steals their identity), reviewing their credit reports, contacting companies to remove fraudulent
charges from their accounts, placing a credit freeze on their credit, and correcting their credit
19
See U.S. Gov. Accounting Office, GAO-07-737, Personal Information: Data Breaches Are Frequent, but Evidence
of Resulting Identity Theft Is Limited; However, the Full Extent Is Unknown (2007). Available at
https://www.gao.gov/new.items/d07737.pdf (last visited Jan. 5, 2024).
14
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 15 of 36 PageID 15
reports.20
67. Identity thieves use stolen personal information such as Social Security numbers
for a variety of crimes, including credit card fraud, phone or utilities fraud, and bank/finance fraud.
68. Identity thieves can use Social Security numbers to obtain a driver’s license or
official identification card in the victim’s name but with the thief’s picture; use the victim’s name
and Social Security number to obtain government benefits; or file a fraudulent tax return using the
victim’s information. Also, identity thieves may obtain a job using the victim’s Social Security
number, rent a house in the victim’s name, and may even give the victim’s personal information
to police during an arrest resulting in an arrest warrant being issued in the victim’s name.
69. Moreover, theft of Private Information is also gravely serious. PII is a valuable
property right.21
70. Its value is axiomatic, considering the value of “big data” in corporate America and
the fact that the consequences of cyber thefts include heavy prison sentences. Even this obvious
risk to reward analysis illustrates beyond doubt that Private Information has considerable market
value.
71. It must also be noted there may be a substantial time lag – measured in years --
between when harm occurs and when it is discovered, and also between when Private Information
is stolen and when it is used.
72. According to the U.S. Government Accountability Office, which conducted a study
20
See IdentityTheft.gov, Federal Trade Commission, https://www.identitytheft.gov/Steps (last visited January 5,
2024).
21
See, e.g., John T. Soma, et al, Corporate Privacy Trend: The “Value” of Personally Identifiable Information
(“PII”) Equals the “Value" of Financial Assets, 15 Rich. J.L. & Tech. 11, at *3-4 (2009) (“PII, which companies
obtain at little cost, has quantifiable value that is rapidly reaching a level comparable to the value of traditional
financial assets.”) (citations omitted).
15
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 16 of 36 PageID 16
regarding data breaches:
[L]aw enforcement officials told us that in some cases, stolen data
may be held for up to a year or more before being used to commit
identity theft. Further, once stolen data have been sold or posted on
the Web, fraudulent use of that information may continue for years.
As a result, studies that attempt to measure the harm resulting from
data breaches cannot necessarily rule out all future harm.
See GAO Report, at p. 29.
73. Private Information is such a valuable commodity to identity thieves that once the
information has been compromised, criminals often trade the information on the “cyber black-
market” for years.
74. There is a strong probability that entire batches of stolen information have been
dumped on the black market and are yet to be dumped on the black market, meaning Plaintiff and
Class Members are at an increased risk of fraud and identity theft for many years into the future.
75. Thus, Plaintiff and Class Members must vigilantly monitor their financial accounts
and other types of accounts for many years to come.
76. Sensitive Private Information can sell for as much as $363 per record according to
the Infosec Institute.22 PII is particularly valuable because criminals can use it to target victims
with frauds and scams. Once PII is stolen, fraudulent use of that information and damage to victims
may continue for years.
77. For example, the Social Security Administration has warned that identity thieves
can use an individual’s Social Security number to apply for additional credit lines. 23 Such fraud
may go undetected until debt collection calls commence months, or even years, later. Stolen Social
22
See Ashiq Ja, Hackers Selling Healthcare Data in the Black Market, InfoSec (July 27, 2015),
https://resources.infosecinstitute.com/topic/hackers-selling-healthcare-data-in-the-black-market/.
23
Identity Theft and Your Social Security Number, Social Security Administration (2018) at 1. Available at
https://www.ssa.gov/pubs/EN-05-10064.pdf (last visited Jan. 5, 2024).
16
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 17 of 36 PageID 17
Security Numbers also make it possible for thieves to file fraudulent tax returns, file for
unemployment benefits, or apply for a job using a false identity. 24 Each of these fraudulent
activities is difficult to detect. An individual may not know that his or her Social Security Number
was used to file for unemployment benefits until law enforcement notifies the individual’s
employer of the suspected fraud. Fraudulent tax returns are typically discovered only when an
individual’s authentic tax return is rejected.
78. Moreover, it is not an easy task to change or cancel a stolen Social Security number.
An individual cannot obtain a new Social Security number without significant paperwork and
evidence of actual misuse. Even then, a new Social Security number may not be effective, as “[t]he
credit bureaus and banks are able to link the new number very quickly to the old number, so all of
that old bad information is quickly inherited into the new Social Security number.” 25
79. This data, as one would expect, demands a much higher price on the black market.
Martin Walter, senior director at cybersecurity firm RedSeal, explained, “[c]ompared to credit card
information, personally identifiable information and Social Security Numbers are worth more than
10x on the black market.”26
80. Because of the value of its collected and stored data, the telecommunications
industry has experienced disproportionally higher numbers of data theft events than other
industries.
81. For this reason, Defendant knew or should have known about these dangers and
24
Id at 4.
25
Brian Naylor, Victims of Social Security Number Theft Find It’s Hard to Bounce Back, NPR (Feb. 9, 2015),
http://www.npr.org/2015/02/09/384875839/data-stolen-by-anthem-s-hackers-has-millions-worrying-about-identity-
theft.
26
Tim Greene, Anthem Hack: Personal Data Stolen Sells for 10x Price of Stolen Credit Card Numbers, Computer
World (Feb. 6, 2015), http://www.itworld.com/article/2880960/anthem-hack-personal-data-stolen-sells-for-10x-
price-of-stolen-credit-card-numbers.html.
17
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 18 of 36 PageID 18
strengthened its data protocols accordingly. Defendant was put on notice of the substantial and
foreseeable risk of harm from a data breach, yet it failed to properly prepare for that risk.
G. Plaintiff’s and Class Members’ Damages
82. To date, Defendant has done absolutely nothing to provide Plaintiff and the Class
Members with relief for the damages they have suffered as a result of Data Breach.
83. Plaintiff and Class Members have been damaged by the compromise of their Private
Information in the Data Breach.
84. On or about March 30, 2024, Plaintiff Patricia Dean, a 20-year customer of AT&T,
received an email from AT&T that her Private Information was involved in the Data Breach
85. Plaintiff Dean continued to research the data breach and learned that it involved 73
million AT&T customers’ Private Information.
86. Plaintiff has since confirmed that her Private Information was indeed impacted in
the Data Breach and that her Private Information is readily accessible via a search of the publicly
available database containing AT&T customers’ Private Information.
87. Plaintiff’s Private Information was compromised as a direct and proximate result
of the Data Breach.
88. As a direct and proximate result of Defendant’s conduct, Plaintiff and Class
Members have been placed at an imminent, immediate, and continuing increased risk of harm from
fraud and identity theft.
89. As a result of the Data Breach, the Private Information of over 73 million AT&T
customers, including Plaintiff Dean and Class Members, are available on the Internet for users,
including criminals, to find, search through, and download.
90. As a direct and proximate result of Defendant’s conduct, Plaintiff and Class
18
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 19 of 36 PageID 19
Members have been forced to expend time dealing with the effects of the Data Breach.
91. Plaintiff and Class Members face substantial risk of out-of-pocket fraud losses such
as loans opened in their names, medical services billed in their names, tax return fraud, utility bills
opened in their names, credit card fraud, and similar identity theft.
92. Plaintiff and Class Members face substantial risk of being targeted for future
phishing, data intrusion, and other illegal schemes based on their Private Information as potential
fraudsters could use that information to target such schemes more effectively to Plaintiff and Class
Members.
93. Plaintiff and Class Members may also incur out-of-pocket costs for protective
measures such as credit monitoring fees, credit report fees, credit freeze fees, and similar costs
directly or indirectly related to the Data Breach.
94. Plaintiff and Class Members also suffered a loss of value of their Private
Information when it was acquired by cyber thieves in the Data Breach. Numerous courts have
recognized the propriety of loss of value damages in related cases.
95. Plaintiff and Class Members were also damaged via benefit-of-the-bargain
damages. Plaintiff and Class Members overpaid for a service that was intended to be accompanied
by adequate data security but was not. Part of the price Plaintiff and Class Members paid to AT&T
was intended to be used by AT&T to fund adequate security of Plaintiff’s and Class Members’
Private Information. Thus, Plaintiff and the Class Members did not get what they paid for.
96. Plaintiff and Class Members have spent and will continue to spend significant
amounts of time to monitor their financial accounts and records for misuse. Indeed, AT&T has
not yet provided any instructions to Plaintiff and Class Members about all the time that they will
need to spend monitor their own accounts, or about how to establish a security freeze on their
19
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 20 of 36 PageID 20
credit reports.
97. Plaintiff and Class Members have suffered or will suffer actual injury as a direct
result of the Data Breach. Many victims suffered ascertainable losses in the form of out-of-pocket
expenses and the value of their time reasonably incurred to remedy or mitigate the effects of the
Data Breach relating to:
a. Finding fraudulent charges;
b. Canceling and reissuing credit and debit cards;
c. Purchasing credit monitoring and identity theft prevention;
d. Addressing their inability to withdraw funds linked to compromised accounts;
e. Taking trips to banks and waiting in line to obtain funds held in limited accounts;
f. Placing “freezes” and “alerts” with credit reporting agencies;
g. Spending time on the phone with or at a financial institution to dispute fraudulent
charges;
h. Contacting financial institutions and closing or modifying financial accounts;
i. Resetting automatic billing and payment instructions from compromised credit and
debit cards to new ones;
j. Paying late fees and declined payment fees imposed as a result of failed automatic
payments that were tied to compromised cards that had to be cancelled, and;
k. Closely reviewing and monitoring Social Security Number, medical insurance
accounts, bank accounts, and credit reports for unauthorized activity for years to
come.
98. Moreover, Plaintiff and Class Members have an interest in ensuring that their
Private Information, which is believed to remain in the possession of Defendant, is protected from
20
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 21 of 36 PageID 21
further breaches by the implementation of security measures and safeguards, including but not
limited to, making sure that the storage of data or documents containing personal and financial
information is not accessible online, that access to such data is password-protected, and that such
data is properly encrypted.
99. Further, as a result of Defendant’s conduct, Plaintiff and Class Members are forced
to live with the anxiety that their Private Information —which contains the most intimate details
about a person’s life—may be disclosed to the entire world, thereby subjecting them to
embarrassment and depriving them of any right to privacy whatsoever.
100. As a direct and proximate result of Defendant’s actions and inactions, Plaintiff and
Class Members have suffered a loss of privacy and are at an imminent and increased risk of future
harm.
CLASS ALLEGATIONS
101. Plaintiff brings this Action as a class action under Federal Rule of Civil Procedure
23 and seeks certification of the following nationwide Class:
Nationwide Class: All persons in the United States whose personal information was
accessed, compromised, copied, stolen, and/or revealed as a result of Defendant
AT&T, Inc.’s Data Breach.
102. Excluded from the Class are Defendant, its officers and directors, and Members of
their immediate families or their legal representatives, heirs, successors or assigns and any entity
in which Defendant has or had a controlling interest.
103. Class certification of Plaintiff’s claims is appropriate because Plaintiff can prove
the elements of the claims on a class-wide basis utilizing the same evidence as would be used to
prove those elements in separate actions alleging the same claims.
104. Numerosity—Federal Rule of Civil Procedure 23(a)(1). The Members of the
21
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 22 of 36 PageID 22
Class are so numerous that joinder of all Class Members would be impracticable. Upon
information and belief, the Class number is over 70 million. Also, the Class is comprised of an
easily ascertainable set of AT&T customers who were impacted by the Data Breach. The exact
number of Class Members can be confirmed through discovery, which includes Defendant’s
records. The resolution of Plaintiff’s and Class Members’ claims through a class action will
behoove the Parties and this Court.
105. Commonality and Predominance—Federal Rule of Civil Procedure 23(a)(2)
and 23(b)(3). Common questions of fact and law exist as to all Members of the Class and
predominate over questions affecting only individual Class Members. These common questions of
law or fact, include, among other things:
a. Whether Defendant’s cybersecurity systems and/or protocols before and
during the Data Breach complied with relevant data security laws and industry
standards;
b. Whether Defendant properly implemented their purported security measures
to safeguard Plaintiff’s and Class Members’ private information from
unauthorized access, propagation, and misuse;
c. Whether Defendant took reasonable measures to determine the extent of the
Data Breach after it first discovered the same;
d. Whether Defendant disclosed Plaintiff’s and Class Members’ Private
Information in contravention of the understanding that the information was
being revealed in confidence and should be maintained;
e. Whether Defendant willfully, recklessly, or negligently failed to maintain and
execute reasonable procedures and security controls to preclude unauthorized
22
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 23 of 36 PageID 23
access to Plaintiff’s and the Class Members’ Private Information;
f. Whether Defendant was unjustly enriched by its actions; and
g. Whether Plaintiff and Class Members are entitled to damages, injunctive
relief, or other equitable relief, and the extent of such damages and relief.
106. Defendant engaged in a common course of conduct granting rise to the legal rights
sought to be enforced by Plaintiff, on behalf of hersel and other Members of the Class. Similar or
identical common law violations, business practices, and injuries are involved.
107. Typicality—Federal Rule of Civil Procedure 23(a)(3). Plaintiff’s claims are
typical of the claims of the other Members of the Class because, inter alia, all Class Members were
similarly injured and sustained similar monetary and economic injuries as a result of Defendant’s
misconduct described herein and were accordingly subject to the alleged Data Breach. Also, there
are no defenses available to Defendant that are unique to Plaintiff.
108. Adequacy of Representation—Federal Rule of Civil Procedure 23(a)(4).
Plaintiff is an adequate representative of the Class because his interests do not conflict with the
interests of the Class he seeks to represent, he retained counsel competent and experienced in
complex class action litigation, and he will prosecute this action earnestly. The Class’s interests
will be fairly and adequately protected by Plaintiff and his counsel.
109. Injunctive Relief—Federal Rule of Civil Procedure 23(b)(2). Defendant acted
and/or refused to act on grounds that apply generally to the Class, making injunctive and/or
declaratory relief appropriate regarding the Class under Federal Rule of Civil Procedure 23(b)(2).
110. Superiority—Federal Rule of Civil Procedure 23(b)(3). A class action is
superior to any other available means for the fair and efficient adjudication of this controversy,
and no unusual difficulties are likely to be encountered in the management of this matter as a class
23
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 24 of 36 PageID 24
action. The damages, harm, or other financial detriment suffered individually by Plaintiff and the
other Class Members are relatively small compared to the burden and expense that would be
required to litigate their claims on an individual basis against Defendant, making it impracticable
for Class Members to individually seek redress for Defendant’s wrongful conduct. Even if Class
Members could afford individual litigation, the court system could not. Individualized litigation
would create a potential for inconsistent or contradictory judgments, and increase the delay and
expense to all parties and the court system. By contrast, the class action device presents far fewer
management difficulties and provides the benefits of single adjudication, economies of scale, and
comprehensive supervision by a single court.
111. Class certification is also appropriate under Rules 23(b)(1) and/or (b)(2) because:
a. The prosecution of separate actions by the individual Class Members would
create a risk of inconsistent or varying adjudications establishing conflicting
standards of conduct for Defendant;
b. The prosecution of separate actions by individual Class Members would create
a risk of adjudication that would be dispositive of the interests of other Class
Members not parties to the adjudications, or would substantially impair or
impede their ability to protect their interests; and
c. Defendant has acted and refused to act on grounds generally applicable to the
Class, thereby making appropriate final injunctive relief regarding the
Members of the Class as a whole.
112. Class certification is also appropriate because this Court can designate specific
claims or issues or class-wise treatment and may designate multiple subclasses under Federal Rule
of Civil Procedure 23(c)(4).
24
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 25 of 36 PageID 25
113. No unusual difficulties are likely to be encountered in the management of this
action as a class action.
CLAIMS FOR RELIEF
COUNT I
NEGLIGENCE
(On Behalf of Plaintiff and the Class)
114. Plaintiff repeats and re-alleges each and every factual allegation contained in
paragraphs 1-114 as if fully set forth herein. Plaintiff brings this claim individually and on behalf
of the Class Members.
115. In order to receive telecommunications services, Defendant required Plaintiff and
Class Members to submit non-public Private Information, such as PII.
116. Plaintiff and Class Members entrusted their Private Information to Defendant with
the understanding that Defendant would safeguard their information.
117. By collecting and storing this data in its computer property, and sharing it and using
it for commercial gain, Defendant had a duty of care to use reasonable means to secure and
safeguard its computer property—and Class Members’ Private Information held within it—to
prevent disclosure of the information, and to safeguard the information from theft. Defendant’s
duty included a responsibility to fully vet vendors with whom it shared Private Information and
ensure that those vendors had adequate data security protocols and procedures in place.
118. Defendant owed a nondelegable duty of care to Plaintiff and Class Members to
provide data security consistent with industry standards and other requirements discussed herein,
and to ensure that its systems and networks, and the personnel responsible for them, adequately
protected the Private Information.
119. Defendant’s duty of care to use reasonable security measures arose as a result of
25
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 26 of 36 PageID 26
the special relationship that existed between Defendant and its customers, which is recognized by
laws and regulations, as well as common law. Defendant was in a position to ensure that its systems
were sufficient to protect against the foreseeable risk of harm to Class Members from a data breach.
120. Defendant had a duty to employ reasonable security measures under Section 5 of
the Federal Trade Commission Act, 15 U.S.C. § 45, which prohibits “unfair . . . practices in or
affecting commerce,” including, as interpreted and enforced by the FTC, the unfair practice of
failing to use reasonable measures to protect confidential data.
121. Defendant’s duty to use reasonable care in protecting confidential data arose not
only as a result of the law described above, but also because Defendant is bound by industry
standards to protect confidential Private Information.
122. Defendant breached its duties, and thus was negligent, by failing to use reasonable
measures in its own systems to protect Class Members’ Private Information and by failing to
properly verify that its third party processors implemented data security measures adequate to
safeguard Plaintiff’s and Class Member’s Private Information.
123. It was foreseeable that Defendant’s failure to use reasonable measures to protect
Class Members’ Private Information would result in injury to Class Members. Further, the breach
of security was reasonably foreseeable given the known high frequency of cyberattacks and data
breaches in the telecommunications industry.
124. It was therefore foreseeable that the failure to adequately safeguard Class Members’
Private Information would result in one or more types of injuries to Class Members.
125. Plaintiff and Class Members are entitled to compensatory and consequential
damages suffered as a result of the Data Breach.
126. Plaintiff and Class Members are also entitled to injunctive relief requiring
26
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 27 of 36 PageID 27
Defendant to (i) strengthen its data security protocols and procedures; (ii) submit to future annual
audits of those systems and monitoring procedures; and (iii) continue to provide adequate credit
and identity monitoring to all Class Members.
COUNT II
Negligence Per Se
(On Behalf of Plaintiff and the Class)
127. Plaintiff repeats and re-alleges each and every factual allegation contained in
paragraphs 1-114 as if fully set forth herein. Plaintiff brings this claim individually and on behalf
of the Class Members.
128. Plaintiff and Class Members are within the class of persons that the FTCA was
intended to protect.
129. The harm that occurred as a result of the Data Breach is the type of harm the FTCA
was intended to guard against. The FTC has pursued enforcement actions against businesses,
which, as a result of their failure to employ reasonable data security measures and avoid unfair and
deceptive practices, caused the same harm as that suffered by Plaintiff and the Class.
130. Defendant breached its duties by failing to employ industry standard data and
cybersecurity measures to gain compliance with those laws.
131. It was reasonably foreseeable, particularly given the growing number of data
breaches of personal information in the telecommunications sector, that the failure to reasonably
protect and secure Plaintiff’s and Class Members’ Private Information in compliance with
applicable laws would result in an unauthorized third-party gaining access to Plaintiff’s and Class
Members’ Private Information.
132. Plaintiff’s and Class Members’ Private Information constitutes personal property
27
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 28 of 36 PageID 28
that was stolen due to Defendant’s negligence, resulting in harm, injury and damages to Plaintiff
and Class Members.
133. Defendant’s conduct in violation of applicable laws directly and proximately
caused the unauthorized access and disclosure of Plaintiff’s and Class Members’ unencrypted
Private Information and Plaintiff and Class Members have suffered and will continue to suffer
damages as a result of Defendant’s conduct. Plaintiff and Class Members seek damages and other
relief as a result of Defendant’s negligence.
COUNT III
BREACH OF IMPLIED CONTRACT
(On Behalf of Plaintiff and the Class)
134. Plaintiff repeats and re-alleges each and every factual allegation contained in
paragraphs 1-114 as if fully set forth herein. Plaintiff brings this claim individually and on behalf
of the Class Members.
135. Through their course of conduct, Defendant, Plaintiff, and Class Members entered
into implied contracts for the provision of telecommunications services, as well as implied
contracts for Defendant to implement data security adequate to safeguard and protect the privacy
of Plaintiff’s and Class Members’ Private Information.
136. Specifically, Plaintiff entered into a valid and enforceable implied contract with
Defendant when he signed up with AT&T for telecommunications services.
137. The valid and enforceable implied contracts to provide telecommunications
services that Plaintiff and Class Members entered into with Defendant include the promise to
protect non-public Private Information given to Defendant or that Defendant creates on its own
from disclosure.
138. When Plaintiff and Class Members provided their Private Information to Defendant
28
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 29 of 36 PageID 29
in exchange for telecommunications services, they entered into implied contracts with Defendant
pursuant to which Defendant agreed to reasonably protect such information.
139. Defendant solicited and invited Class Members to provide their Private Information
as part of Defendant’s regular business practices. Plaintiff and Class Members accepted
Defendant’s offers and provided their Private Information to Defendant.
140. In entering into such implied contracts, Plaintiff and Class Members reasonably
believed and expected that Defendant’s data security practices complied with relevant laws and
regulations and were consistent with industry standards.
141. Class Members who paid money to Defendant reasonably believed and expected
that Defendant would use part of those funds to ensure adequate data security. Defendant failed
to do so.
142. Under the implied contracts, Defendant promised and were obligated to: (a) provide
telecommunications services to Plaintiff and Class Members; and (b) protect Plaintiff’s and the
Class Members’ Private Information. In exchange, Plaintiff and Members of the Class agreed to
pay money for these services, and to turn over their Private Information.
143. Both the provision of telecommunication services and the protection of Plaintiff’s
and Class Members’ Private Information were material aspects of these implied contracts.
144. The implied contracts for the provision of telecommunications services – contracts
that include the contractual obligations to maintain the privacy of Plaintiff’s and Class Members’
Private Information—are also acknowledged, memorialized, and embodied in multiple documents,
including (among other documents) Defendant’s Privacy Notice.
145. Defendant’s express representations, including, but not limited to the express
representations found in its Privacy Notice, memorializes and embodies the implied contractual
29
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 30 of 36 PageID 30
obligation requiring Defendant to implement data security adequate to safeguard and protect the
privacy of Plaintiff’s and Class Members’ Private Information.
146. Customers of telecommunications services value their privacy, the privacy of their
dependents, and the ability to keep their PII associated with obtaining telecommunications services
private. To customers such as Plaintiff and Class Members, telecommunications services that do
not adhere to industry standard data security protocols to protect Private Information is
fundamentally less useful and less valuable than the similar services that adhere to industry-
standard data security. Plaintiff and Class Members would not have entrusted their Private
Information to Defendant and entered into these implied contracts with Defendant without an
understanding that their Private Information would be safeguarded and protected or entrusted their
Private Information to Defendant in the absence of its implied promise to adopt reasonable data
security measures.
147. A meeting of the minds occurred, as Plaintiff and Members of the Class agreed to
and did provide their Private Information to Defendant, and paid for the provided
telecommunications services in exchange for, amongst other things, both the provision of
telecommunications services and the protection of their Private Information.
148. Plaintiff and Class Members performed their obligations under the contract when
they paid for their telecommunications services and provided their Private Information.
149. Defendant materially breached its contractual obligation to protect the non-public
Private Information Defendant gathered when the sensitive information was accessed by
unauthorized personnel as part of the cyberattacks and Data Breach.
150. Defendant materially breached the terms of the implied contracts, including, but
not limited to, the terms stated in the relevant Privacy Notice. Defendant did not maintain the
30
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 31 of 36 PageID 31
privacy of Plaintiff’s and Class Members’ Private Information as evidenced by its repeated
unauthorized disclosures of Private Information to at least two cybercriminal actors—
ShinyHunters and MajorNelson. Specifically, Defendant did not comply with industry standards,
standards of conduct embodied in statutes like Section 5 of the FTCA, or otherwise protect
Plaintiff’s and the Class Members’ Private Information, as set forth above.
151. The Data Breach was a reasonably foreseeable consequence of Defendant’s actions
in breach of these contracts.
152. As a result of Defendant’s failure to fulfill the data security protections promised
in these contracts, Plaintiff and Members of the Class did not receive the full benefit of the bargain,
and instead received telecommunications services that were of a diminished value to that described
in the contracts. Plaintiff and Class Members therefore were damaged in an amount at least equal
to the difference in the value of the telecommunications services with data security protection they
paid for and the telecommunications services they received.
153. Had Defendant disclosed that it did not adhere to industry-standard security
measures, neither the Plaintiff, the Class Members, nor any reasonable person would have
purchased telecommunications services from Defendant.
154. As a direct and proximate result of the Data Breach, Plaintiff and Class Members
have been harmed and have suffered, and will continue to suffer, actual damages and injuries,
including without limitation the release and disclosure of their Private Information, the loss of
control of their Private Information, the imminent risk of suffering additional damages in the
future, disruption of their telecommunications services, out-of-pocket expenses, and the loss of the
benefit of the bargain they had struck with Defendant.
155. Plaintiff and Class Members are entitled to compensatory and consequential
31
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 32 of 36 PageID 32
damages suffered as a result of the Data Breach.
156. Plaintiff and Class Members are also entitled to injunctive relief requiring
Defendant to, e.g., (i) strengthen its data security systems and monitoring procedures; (ii) submit
to future annual audits of those systems and monitoring procedures; (iii) verify the adequacy of
security measures implemented by Defendant’s third-party processors of AT&T’s Private
Information; and (iv) provide adequate credit and identity monitoring to all Class Members.
COUNT IV
UNJUST ENRICHMENT
(On Behalf of Plaintiff and the Class)
157. Plaintiff repeats and re-alleges each and every factual allegation contained in
paragraphs 1-114 as if fully set forth herein. Plaintiff brings this claim individually and on behalf
of the Class Members.
158. Plaintiff and Class Members conferred a monetary benefit on Defendant.
Specifically, they purchased goods and services from Defendant and in so doing provided
Defendant with their Private Information. In exchange, Plaintiff and Class Members should have
received from Defendant the goods and services that were the subject of the transaction and have
their Private Information protected with adequate data security.
159. Defendant knew that Plaintiff and Class Members conferred a benefit which
Defendant accepted. Defendant profited from these transactions and used the Private Information
of Plaintiff and Class Members for business purposes.
160. The amount Plaintiff and Class Members paid for goods and services were used, in
part, to pay for use of Defendant’s network and the administrative costs of data management and
security.
161. Under the principles of equity and good conscience, Defendant should not be
32
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 33 of 36 PageID 33
permitted to retain the money belonging to Plaintiff and Class Members, because Defendant failed
to implement appropriate data management and security measures that are mandated by industry
standards.
162. Defendant failed to secure Plaintiff’s and Class Members’ Private Information and,
therefore, did not provide full compensation for the benefit Plaintiff and Class Members provided.
163. Defendant acquired the Private Information through inequitable means in that it
failed to disclose the inadequate security practices previously alleged.
164. If Plaintiff and Class Members knew that Defendant had not reasonably secured
their Private Information, they would not have agreed to Defendant’s services.
165. Plaintiff and Class Members have no adequate remedy at law.
166. As a direct and proximate result of Defendant’s conduct, Plaintiff and Class
Members have suffered and will suffer injury, including but not limited to: (a) actual identity theft;
(b) the loss of the opportunity of how their Private Information is used; (c) the compromise,
publication, and/or theft of their Private Information; (d) out-of-pocket expenses associated with
the prevention, detection, and recovery from identity theft, and/or unauthorized use of their Private
Information; (e) lost opportunity costs associated with efforts expended and the loss of productivity
addressing and attempting to mitigate the actual and future consequences of the Data Breach,
including but not limited to efforts spent researching how to prevent, detect, contest, and recover
from identity theft; (f) the continued risk to their Private Information, which remains in
Defendant’s possession and is subject to further unauthorized disclosures so long as Defendant
fails to undertake appropriate and adequate measures to protect Private Information in their
continued possession; and (g) future costs in terms of time, effort, and money that will be expended
to prevent, detect, contest, and repair the impact of the Private Information compromised as a result
33
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 34 of 36 PageID 34
of the Data Breach for the remainder of the lives of Plaintiff and Class Members.
167. As a direct and proximate result of Defendant’s conduct, Plaintiff and Class
Members have suffered and will continue to suffer other forms of injury and/or harm.
168. Defendant should be compelled to disgorge into a common fund or constructive
trust, for the benefit of Plaintiff and Class Members, proceeds that they unjustly received from
them. In the alternative, Defendant should be compelled to refund the amounts that Plaintiff and
Class Members overpaid for Defendant’s services.
PRAYER FOR RELIEF
WHEREFORE, Plaintiff, on behalf of herself and the Class described above, seeks the
following relief:
a. An order certifying this action as a Class action under Fed. R. Civ. P. 23,
defining the Class as requested herein, appointing the undersigned as Class
counsel, and finding that Plaintiff is a proper representative of the Nationwide
Class requested herein;
b. Judgment in favor of Plaintiff and Class Members awarding them appropriate
monetary relief, including actual damages, statutory damages, equitable relief,
restitution, disgorgement, and statutory costs;
c. An order providing injunctive and other equitable relief as necessary to protect
the interests of the Class as requested herein;
d. An order instructing Defendant to purchase or provide funds for lifetime credit
monitoring and identity theft insurance to Plaintiff and Class Members;
e. An order requiring Defendant to pay the costs involved in notifying Class
Members about the judgment and administering the claims process;
34
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 35 of 36 PageID 35
f. A judgment in favor of Plaintiff and Class Members awarding them
prejudgment and post-judgment interest, reasonable attorneys’ fees, costs, and
expenses as allowable by law; and
g. An award of such other and further relief as this Court may deem just and
proper.
35
Case 3:24-cv-00776-X Document 1 Filed 04/01/24 Page 36 of 36 PageID 36
DEMAND FOR JURY TRIAL
Plaintiff hereby demands a trial by jury of all claims so triable.
DATED: April 1, 2024 Respectfully submitted,
/s/ Bruce W. Steckler
Bruce W. Steckler
Texas Bar I.D. 00785039
STECKLER WAYNE & LOVE PLLC
12720 Hillcrest Road, Suite 1045
Dallas, TX 75230
Telephone: (972) 387-4040
Facsimile: (972) 387-4041
[email protected] Jean S. Martin*
Francesca K. Burne*
MORGAN & MORGAN COMPLEX
LITIGATION GROUP
201 N. Franklin Street, 7th Floor
Tampa, FL 33602
Telephone: (813) 223-5505
Facsimile: (813) 222-2434
[email protected]
[email protected]
*pro hac vice to be filed
Attorneys for Plaintiff and the Proposed Class
36