Lawsuit Removed to Fed. Court Claims Adidas Hack Caused by Inadequate Data Security Systems

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A proposed class action filed in July 2018 against Adidas America, Inc. over a data breach has been removed to federal court in California.

According to the complaint, Adidas announced on June 26, 2018 that hackers had breached its computer systems and accessed the contact information, user names, and encrypted passwords of California consumers. The lawsuit argues the breach is the result of Adidas’ failure to adequately protect Adidas.com users’ information, even for those who have not used the website for some time.

In addition to the defendant’s alleged failure to have basic adequate security measures in place, the lawsuit claims Adidas fell short in implementing behavior analytics on its website that may have detected “unusual transfers of large amounts of data” from its systems.

“Because of this, the hackers were perhaps able to navigate inside and transfer data from Adidas’ computer database for a length of time until the unusual activity was finally detected,” the case states. “At least one expert has opined that the failure to notice the ‘ex-filtration’ of large amounts of data from its system over this period of time is a ‘pretty shocking’ situation.”