Accellion $8.1 million class action settlement for breach platform that allowed companies to securely share large or sensitive files. Accellion has protected over 25 million end-users at more than 3,000 global corporations and government agencies, including NYC Health + Hospitals; KPMG; Kaiser Permanente; Latham & Watkins; National Park Service; Umpqua Bank; Tyler Technologies; and the National Institute for Standards and Technology (NIST).
The nationwide class action proposed to end litigation over the security breach of file transfer product. The legacy product, according to settlement papers filed in California federal court, of the Palo Alto-based tech company faced claims that it failed to properly secure sensitive personal information of millions of individuals after hackers exploited a vulnerability in Accellion’s platform, according to a motion for preliminary approval of the settlement, filed by the plaintiffs’ lawyers on Wednesday.
In the proposed class, millions of individuals whose data was stored by companies that used Accellion’s file transfer product, in a recently amended complaint said information including names, birthdates, Social Security numbers, medical and drivers’ license information was exposed.
The current settlement would resolve claims only against Accellion, but there are pending agreements in cases against several Accellion clients over the incident, according to the Wednesday filing.
Supermarket chain Kroger Co has agreed to a $5 million settlement, which has received preliminary court approval. There are also pending settlements with Flagstar Bancorp Inc and Health Net LLC, a subsidiary of managed care company Centene Corp, the plaintiffs’ lawyers said. The Kroger Co. (NYSE: KR) Family of Companies today confirmed it was impacted by the data security incident affecting Accellion, Inc.
A representative for Accellion (which rebranded in October 2021 to Kiteworks), said the company doesn’t comment on litigation. Lawyers for the company from Latham & Watkins didn’t immediately respond to requests for comment on Thursday, nor did a lawyer from Ahdoot & Wolfson for the plaintiffs.
The case is Stobbe v. Accellion Inc, U.S. District Court for the Northern District of California, No. 5:21-CV-01353.
For the plaintiffs: Tina Wolfson of Ahdoot & Wolfson
For Accellion: Melanie Blunschi and Michael Rubin of Latham & Watkins
Take the recent data breaches as an example. Scammers can use the breach data to SIM Swap your number and become you. Once the scammer and hackers have control of your number it is a matter of minutes to hours before they reak havoc on your entire life These scammers and hackers, now that they control your number, can gain access and steal all your bank accounts, crypto, social media, and other accounts. We take for granted how much our mobile controls in our lives.
It is time you protect yourself today and get SAFE secured.