Lawsuit: Allconnect Data Breach Puts Employees at Heightened Risk of Identity Theft

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A proposed class action has been filed against Allconnect, Inc. claiming the multichannel marketplace operator’s negligence resulted in a data breach that exposed employees’ personal information to hackers and put them at a heightened risk of identity theft.

In April of this year, the defendant supposedly sent an email to current and former employees who worked for the company in 2017 informing them that their W-2 tax information – including names, addresses, Social Security numbers, and wage information – had been stolen in a data breach stemming from a February 2018 email “phishing” attack. A few days later, the employees received another email, the lawsuit alleges, in which the defendant admitted it hadn’t discovered the breach until “over a month after it occurred.”

The case claims the defendant failed its obligation to protect employees’ information, “intentionally, willfully, recklessly, or negligently” allowing the data to be revealed to third parties. As a result, the complaint attests, proposed class members must now “for the rest of their lives” spend time and money “attempting to mitigate the dangers and continuing risk of identity theft and tax fraud.”

“For all Class Members, fear and anxiety of identity theft or fraud is the new norm,” the suit reads.

Originally filed in state court, this case has recently been transferred to the District Court for the Eastern District of Kentucky.