Uber Facing Data Breach Class Action Lawsuit in Wisconsin

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A Wisconsin man has put his name on a proposed class action against Uber and Raiser, LLC over the companies’ reported failure to disclose to federal regulators and the public an October 2016 data breach that exposed the personal information of roughly 600,000 drivers and up to 57 million riders. According to the complaint, Uber, rather than alerting the public in a timely manner, chose to pay the hackers responsible for the incident a $100,000 “bug bounty” to keep it under wraps and delete the stolen data.

The plaintiff takes Uber to task for its apparent failure to realize that it’s a ripe target for bad actors looking to capitalize on accessing such an expansive collection of consumers’ personal information.

“As an aggregator of vast amounts of consumer data, it was inevitable that unauthorized individuals would attempt to access [Uber’s] databases of personal information. Such information is valuable, and numerous instances of criminal attempts to access this kind of information have been publicized. In fact, [Uber] has been targeted successfully in the past by such attempts. [The defendant] knew, or should have known, the risk in obtaining, using, handling, and storing the personal information of [the plaintiff] and the other class members, and the importance of exercising reasonable care in handling it.”

The lawsuit details five counts against the defendants – negligence, intentional misrepresentation, breach of contract, breach of implied covenant of good faith and fair dealing, and unjust enrichment.