Class Action Claims Everest Failed to Protect Private Customer Info from Data Breach [DISMISSED]

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A proposed class action lawsuit accuses Everest Global Services, Inc. of failing to protect customers’ personal data from a cyberattack in August 2022.

According to the 40-page lawsuit, email accounts in the New Jersey insurance provider’s network were hacked by cybercriminals between August 8 and August 16, compromising the private information of the defendant’s clients. The case relays that the personally identifiable information (PII) accessed in the data breach included full names and Social Security numbers.

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The suit alleges that Everest “negligent[ly]” and “reckless[ly]” failed to safeguard its customers’ data, leaving the sensitive information in its network “accessible, unencrypted, unprotected, and vulnerable” to data thieves.

In addition, the complaint takes issue with Everest’s alleged failure to notify victims in a timely manner that their private data had been accessed by an unauthorized third party. The defendant discovered “suspicious activity” on its network on August 15, the lawsuit relays, but it was not until four months later, on December 16, that clients affected by the breach received notice, the case claims.

Per the filing, by storing and benefitting from its customers’ information, Everest was legally obligated to safeguard the sensitive data and “should have known that it was responsible for protecting Plaintiff’s and Class Members’ PII from unauthorized disclosure.”

The complaint says the defendant itself recognized the importance of data security two years earlier in a blog post about cyberattacks, and, according to the lawsuit, this shows that Everest understood the need to protect the private information stored in its network.

As a result of Everest’s “negligent conduct,” those who were affected by the data breach now face a significant risk of identity theft, fraud, phishing scams, and other illegal activity, the case contends.

“[Personally identifiable information] is particularly valuable because criminals can use it to target victims with frauds and scams,” reads the complaint. “Once PII is stolen, fraudulent use of that information and damage to victims may continue for years.”

The plaintiff, a resident of Ohio, discovered in December that her information had been compromised by the data breach and has since received numerous phishing calls and emails, the suit says.

The lawsuit looks to represent anyone identified by Everest as among those who were affected by the August 2022 data breach, including those who were sent notice of the breach.

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