NORTH AUGUSTA, Ga.— SRP Federal Credit Union here has defeated a proposed class-action lawsuit alleging it negligently failed to protect the personal information of members.
The U.S. District Court for the District of South Carolina has dismissed without prejudice a consolidated lawsuit filed by seven members of the $2-billion SRP Federal Credit Union, ruling the plaintiffs failed to establish standing. The court found the members had not sufficiently alleged that any injuries resulting from the 2024 data breach were directly traceable to the credit union’s actions, JD Supra reported.
The court acknowledged that three of the seven plaintiffs claimed actual harm from fraudulent charges to their CU or credit card accounts. However, it found the complaint failed to plausibly link those losses to the credit union’s actions, as the plaintiffs did not sufficiently connect the compromised data from the breach to the alleged fraud, JD Supra explained.
As a result, the court granted the credit union’s motion to dismiss, ruling that none of the plaintiffs had standing to seek monetary or injunctive relief under the current pleadings. The dismissal was without prejudice, giving the plaintiffs 30 days to amend their complaint and remedy the deficiencies regarding traceability, JD Supra added.
As CUToday.info reported, on Dec. 12, 2024, the CU filed a notice of data breach with the Attorney General of Maine after discovering that an unauthorized party was able to access the company’s computer network, JD Supra reported. In the notice, SRPFCU explained the incident resulted in an unauthorized party being able to access consumers’ sensitive information. The breach reportedly affected more than 240,000 members.