Class Action Lawsuit - Ipswitch, Inc. & Progress Software Data Breach

In a recent turn of events, a class action lawsuit has been filed against Ipswitch, Inc. and Progress Software Corporation (collectively referred to as 'Defendants') by Plaintiff Christopher Pipes. The suit alleges a massive data breach that occurred on May 27, 2023, which compromised the Defendants' MOVEit Transfer and MOVEit Cloud software. As a result, sensitive personal information, including names, email addresses, phone numbers, and Social Security numbers, was allegedly exposed.

What Laws Did the Defendants Allegedly Violate?

At the heart of the lawsuit is the allegation of negligence on the part of the Defendants. The plaintiff alleges that the Defendants failed to exercise reasonable care in safeguarding and protecting the personal information of their customers. This, it is claimed, is a direct violation of the duty of care that businesses are expected to uphold when handling sensitive customer data.

Moreover, the Defendants are accused of being aware of the data security shortcomings in their MOVEit software, yet failing to take adequate steps to address these issues. This alleged oversight has led to the exposure of sensitive data, putting countless individuals at risk of identity theft and fraud.

What Led to the Filing of the Lawsuit?

The story begins with the alleged data breach on May 27, 2023. The breach reportedly affected various companies, federal government agencies, and local state agencies, with numerous entities confirming their exposure to the breach. The plaintiff, a Louisiana citizen, claims that his personal information was disclosed as a result of the breach at the Louisiana Office of Motor Vehicles (OMV).

The lawsuit alleges that the Defendants' failure to ensure the security of their software has put the plaintiff and other class members at risk. This risk, coupled with the alleged negligence of the Defendants, has led to the filing of the class action lawsuit.

Who Are the Class Members?

The class members in this case are those who have been affected by the data breach. They include individuals whose personal information was exposed due to the alleged security shortcomings of the MOVEit software. The plaintiff, Christopher Pipes, represents himself and all others similarly situated, indicating a broad class of affected individuals.

These class members, like the plaintiff, are believed to have suffered various damages as a result of the breach. These damages range from an increased risk of identity theft to out-of-pocket expenses and loss of privacy.

What Damages Are Being Sought?

The plaintiff and class members are seeking a range of damages. These include actual and statutory damages, declaratory and injunctive relief, pre-judgment and post-judgment interest, and attorneys' fees. While the exact dollar amount is not stated in the complaint, it is assumed to be at least five million dollars given the scale of the breach and the number of individuals affected.

The lawsuit also seeks class certification. This would allow the plaintiff and other class members to collectively pursue their claims against the Defendants, potentially increasing the chances of a successful outcome.

What Could Be the Next Steps?

With the lawsuit now filed, the next steps will involve the court's review of the case. If the court certifies the class action, the case will proceed to trial unless the parties reach a settlement. During the trial, the plaintiff will have to prove the allegations made against the Defendants.

Given the complexity of data breach cases and the high stakes involved, it is likely that the proceedings will be closely watched by legal experts, data security professionals, and affected individuals. The outcome of this case could have significant implications for data security practices in the software industry.