Multi-Million Dollar Lawsuit Against CLEAResult Over Data Breach

In the world of energy efficiency consulting, CLEAResult Consulting Inc. is a known name, providing services to utility companies across the nation. But today, the company finds itself in hot waters, not for its energy solutions, but for an alleged failure to secure sensitive information of its customers.

Jason Dauch, a customer of CLEAResult, has filed a lawsuit against the company, alleging that it failed to adequately protect and encrypt the personally identifiable information (PII) of its customers. The compromised PII includes names, addresses, phone numbers, and Social Security numbers, among other details. The lawsuit states, "Defendant discovered that one of its IT vendor's networks had been breached, resulting in the unauthorized transfer of certain files containing PII."

The lawsuit lays out a timeline of events that led to the filing. On May 31, 2023, CLEAResult discovered a breach in one of its IT vendor's networks. This breach resulted in unauthorized transfer of files containing PII, potentially exposing thousands of customers to identity theft and fraud.

The lawsuit alleges negligence on the part of CLEAResult, stating, "Defendant failed to adequately protect and encrypt the PII, leading to its compromise and potential sale on the dark web." The plaintiff and approximately 12,000 Class Members are seeking compensation for invasion of privacy, loss of benefit of the bargain, lost time spent mitigating harms, lost opportunity costs, diminution of value of PII, increased spam calls/emails, and continued risk to their PII.

The case hinges on the violation of federal and state statutes regarding data security and protection of PII. These laws mandate companies to implement reasonable measures to protect sensitive customer information and promptly notify affected individuals in case of a breach. The lawsuit alleges that CLEAResult failed on both counts.

The story of Jason Dauch and thousands of others like him is a stark reminder of the importance of data security in today's digital age. The lawsuit underscores the potential harm that can befall consumers when companies fail to adequately safeguard their sensitive information. As the case progresses, it will be interesting to see how the court interprets the obligations of companies under federal and state data security laws and the extent of damages that can be awarded to affected consumers.