DUBLIN, Calif.–Numerous lawsuits have been filed against Patelco Credit Union following a ransomware attack that knocked many of its systems offline for weeks.
Federal court records show at least six cases filed in the U.S. District Court in Northern California, and at least 12 filed in Alameda County Superior Court in July, according to The Independent. The report notes that some of the lawsuits are class action cases, representing more than one plaintiff.
In two of the class action cases reviewed by The Independent, Patelco members are alleging the credit union has invaded their privacy.
As CUToday.info has been reporting, Patelco was hit by the ransomware attack in late June shutting down its online and mobile banking and even making it impossible for branch staff to provide balances and other services to members.
Patelco was able to restore some services to its 500,000 members approximately two weeks later, but even now its website lists 14 services that are either only partially available or not available.
What One Plaintiff Alleges
In one case, in a suit filed by one member who is represented by the Chicago-based law firm Strauss Borrelli, the plaintiff claims Patelco “lost control over that data when cybercriminals infiltrated its insufficiently protected computer systems in a data breach.”
“It is unknown for precisely how long the cybercriminals had access to (Patelco’s) network before the breach was discovered,” the lawsuit alleges, according to the Independent. “In other words, (Patelco) had no effective means to prevent, detect, stop, or mitigate breaches of its systems — thereby allowing cybercriminals unrestricted access to its current and former customers’ PII.”
The Independent noted lawsuits began showing up in federal and state court online case listings on July 1.
In one case, Martinez, Calif. resident Sean McGinity’s federal lawsuit accuses Patelco of failing to properly secure and safeguard customers’ sensitive information, including his name, address, contact information, Social Security number and account numbers.”
“(Patelco’s) conduct amounts at least to negligence and violates federal and state statutes,” the lawsuit alleges, the Independent reported.
‘No Stranger’ to Attacks
McGinity’s lawsuit further cites a previous data breach at Patelco, saying the credit union is “no stranger to cyber-attacks on its system.” In October 2023 Patelco experienced a cyber-attack that exposed its customers’ records, the lawsuit states.
According to the Independent, the lawsuit charges that the cyber-thieves can now sell stolen information on the black market to other criminals to commit a variety of identity theft-related crimes, including obtaining driver’s licenses, government benefits, medical services and housing.
As CUToday.info has also been reporting, Patelco is offering members waivers on fees and has said it will reimburse them for any fees imposed by a biller for a late payment resulting from the outage.
‘Focused on Members’
In a statement to the Independent, Rina Johnson, Patelco’s vice president of marketing, said, “We do not have a comment in response to your inquiry about the lawsuits,” Johnson said. “We’re completely focused on making sure our members are taken care of first and foremost.”