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Plaintiffs Sue Retail Technology Provider Over Data Breach

COOK COUNTY RECORD

Thursday, December 26, 2024

Plaintiffs Sue Retail Technology Provider Over Data Breach

Federal Court
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A recent court filing reveals a class action lawsuit against a major retail technology provider for allegedly failing to protect sensitive personal information, resulting in a significant data breach. On September 12, 2024, plaintiffs Victoria Coombs and Brian Jurgensmeyer filed the complaint in the United States District Court for the Northern District of Illinois against CDK Global LLC.

The lawsuit claims that CDK Global, which provides software solutions to auto dealerships and manufacturers, failed to safeguard personally identifiable information (PII) entrusted to it by its clients' employees. According to the complaint, on June 18, 2024, CDK Global experienced a cyberattack that compromised the PII of numerous individuals. The following day, CDK acknowledged the incident publicly but has since provided no further details or notifications to affected individuals. Plaintiffs argue that CDK did not adhere to commonly accepted security standards and failed to detect and prevent unauthorized access to its databases.

Plaintiffs Coombs and Jurgensmeyer allege they have suffered severe emotional distress and financial losses due to the breach. They report an increase in spam communications and have had to monitor their bank accounts closely. Additionally, both plaintiffs claim they were unable to perform their job duties for weeks following the breach, significantly impacting their earnings as commissioned employees at motor vehicle dealerships using CDK's services.

The plaintiffs accuse CDK Global of negligence and invasion of privacy. They argue that CDK was aware of its responsibility to protect PII but chose not to implement adequate security measures. The complaint also highlights industry standards set by the Federal Trade Commission (FTC) for data security that CDK allegedly ignored. The plaintiffs seek compensatory damages, punitive damages, costs of suit, pre-and post-judgment interest, reasonable attorneys’ fees, expert fees, and other relief deemed proper by the court.

Representing the plaintiffs are attorneys Gary M. Klinger from Milberg Coleman Bryson Phillips Grossman PLLC; Jeffrey S. Goldenberg from Goldenberg Schneider LPA; Charles E. Schaffer from Levin Sedran & Berman; and Brett R. Cohen from Leeds Brown Law PC. The case is identified as Case No.: 1:24-cv-08365.

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