Ally Financial slapped with pair of lawsuits over data breaches at online bank

Two lawsuits were filed within the past week in federal court against Ally Financial, which has an employment hub in Charlotte, for negligence leading to data breaches.

The plaintiffs in the cases are also seeking certification for a class-action suit.

Both lawsuits filed in U.S. District Court Western District of North Carolina claim Ally Financial failed to thwart cyber attacks to secure sensitive personal customer information and provide timely notification to customers.

In both cases, the plaintiffs seek monetary damages and demand for a jury trial.

Ally Financial did not respond to requests for comment by Thursday.

The digital-only bank has about 2,700 employees at its corporate center in uptown Charlotte.

Claims in the first lawsuit

The first case was filed Saturday by Sebestian Owens of South Carolina relating to a data breach on April 23.

Ally admitted in a notice on May 23 that customers’ personal information such as Social Security numbers, dates of birth and auto account numbers had been exposed to an unauthorized party who gained access to a vendor’s systems, according to the lawsuit.

Attorneys with The Van Winkle Law Firm in Asheville and Kopelowitz Ostrow in Fort Lauderdale, Florida, represent the plaintiff.

Claims in the other suit

The second case was filed Monday by Robert Hamilton of Texas related to a cyberattack data breach with exposure to Social Security number, birth date, address, driver’s license number, email address and phone number, according to the lawsuit.

Ally sent a notice letter to customers on Aug. 30 about the breach, on an unspecified date, according to the lawsuit. The bank also said in the letter it was no longer working with the affected vendor and offered to provide victims with identity theft monitoring services.

Both lawsuits say Ally failed to take appropriate steps and security measures to protect private information from being compromised. And as a result, the plaintiffs and potential class members must closely monitor their financial accounts, including credit reports, indefinitely because of identity theft risks.

Attorneys with Milberg Coleman Bryson Phillips Grossman in Raleigh and Markovits, Stock & Demarco in Cincinnati, Ohio, represent the plaintiff.

This story was originally published September 12, 2024 at 9:49 AM with the headline "Ally Financial slapped with pair of lawsuits over data breaches at online bank."