Walmart Class Action Lawsuit Says Customers Subjected to Data Breach

guest · Jul 16, 2020

Walmart Class Action Lawsuit Says Customers Subjected to Data Breach
July 15, 2020
https://topclassactions.com/lawsuit...suit-says-customers-subjected-to-data-breach/

A Walmart customer has filed a class action lawsuit, saying he and many others were injured by an undisclosed data breach.

The Walmart data breach class action lawsuit was filed by San Fransisco resident Lavarious Gardiner, who says his personal identification information ended up on the dark web after Walmart failed to sufficiently protect customer information. He argues that this negligence has exposed him and other customers to a range of possible negative effects.

He goes on to say that vulnerabilities in Walmart’s website allowed hackers access to not only the Walmart site, but customers’ computers. The hackers allegedly proceeded to post stolen accounts for sale on the dark web.
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The Walmart security breach class action lawsuit states that because of Walmart’s failure to implement security, more than 2 million accounts are for sale on the dark web.
The type of scan he used was reportedly Open Web Application Security Project Zed Attack Proxy, which he says is used widely in cybersecurity communities to identify possible vulnerabilities.

One key weakness revealed by the Nessus scan was Walmart’s site had an outdated security protocol still implemented. Allegedly, this outdated protocol was the source of a known weakness and had been replaced 12 years ago.
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The Walmart Data Breach Class Action Lawsuit is Lavarious Gardiner v. Walmart Inc., et al., Case No. 4:20-cv-04618-DMR, in the U.S. District Court for the Northern District of California.
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guest · Jul 17, 2020

Walmart Faces Data-Breach Suit Under California Privacy Law
July 14, 2020
https://news.bloomberglaw.com/priva...ata-breach-suit-under-californias-privacy-law

Walmart Inc. is accused in a proposed class action of violating California’s privacy law by failing to protect customer data from an alleged hack.
California’s privacy law, which took effect Jan. 1, increases the risk of payouts following security breaches because it added a private right to sue and statutory damages of up to $750 per customer, per incident.

Plaintiffs in data breach cases must show harm to beat early challenges to their claims. Gardiner wrote that the breach forced him to incur out-of-pocket expenses and spend time and effort to limit identity theft risks, according to the complaint.
Potential Class Size: “At least in the thousands,” according to the complaint
Response: “Protecting our customers’ data is a top priority and something we take very seriously,” a Walmart representative said in an emailed statement. “We dispute the plaintiff’s allegations that the failure of our systems played any role in the public disclosure of his personally identifiable information.”
Walmart intends “to defend the company against the claims and will respond as appropriate with the court,” according to the statement.
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guest · Dec 30, 2020

Data Breach Litigation Without a Data Breach? Not So Fast Walmart Says…
The Lavarious Gardiner v. Walmart Inc. et al. case is anything but typical.
December 30, 2020
https://www.natlawreview.com/articl...-without-data-breach-not-so-fast-walmart-says

As a re-cap, back in July 2020, plaintiff filed a class action complaint against Walmart alleging that Walmart suffered a data breach which they never disclosed. As evidence of the breach, plaintiff presented claims that the personal information associated with his Walmart account had been discovered on the dark web and presented the results of security scans performed on Walmart’s website, which allegedly show certain vulnerabilities.

In other words, plaintiff filed suit on the suspicion that Walmart’s systems had been breached, which Walmart denies.
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On December 12, Walmart filed a Motion to Dismiss all plaintiff’s claims, (which include, among others, a claim under the California Consumer Privacy Act (“CCPA”) and a claim under California Unfair Competition Law (‘UCL’)) arguing that plaintiff failed to state viable claims.

In addition to the specific arguments discussed below for the CCPA and UCL claims, the motion presents several additional arguments, including the allegation that plaintiff “cannot make the requisite showing of cognizable harm.”
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The motion also urges the court to dismiss the UCL claim on the grounds (among others) that a UCL claim cannot be based on alleged violations of the CCPA.
In sum, the resolution by the court of the motion to dismiss could shed light on two interesting questions related to CCPA litigation: (1) whether CCPA could be read to apply to data breaches that occurred before its effective day but were subsequently discovered; and (2) whether CCPA may allow for a private right of action outside of the narrow provision on data breaches.
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Stay tuned.
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