Ally Financial Inc., a digital financial services company, faces two class action lawsuits in the U.S. District Court for the Western District of North Carolina related to an April 2024 data breach. The suits allege that Ally failed to secure customers’ personal information, including Social Security and auto account numbers. One lead plaintiff claims that a fraudulent auto loan was taken out in his name and that his personal information was available on the dark web after the breach. The other lead plaintiff in the second suit alleges that the “long delay” in customer notification exposed him to a higher risk of identity theft.

The breach occurred through a third-party vendor’s systems according to Ally’s regulatory notifications. Both complaints allege that Ally failed to prevent the attack and failed to protect consumers by not issuing timely notifications. The allegations rely on a claim of negligence, which the plaintiffs say led to direct harm of identity theft and lowered credit scores.

Photo of Kathryn Rattigan Kathryn Rattigan

Kathryn Rattigan is a member of the Business Litigation Group and the Data Privacy+ Cybersecurity Team. She concentrates her practice on privacy and security compliance under both state and federal regulations and advising clients on website and mobile app privacy and security…

Kathryn Rattigan is a member of the Business Litigation Group and the Data Privacy+ Cybersecurity Team. She concentrates her practice on privacy and security compliance under both state and federal regulations and advising clients on website and mobile app privacy and security compliance. Kathryn helps clients review, revise and implement necessary policies and procedures under the Health Insurance Portability and Accountability Act (HIPAA). She also provides clients with the information needed to effectively and efficiently handle potential and confirmed data breaches while providing insight into federal regulations and requirements for notification and an assessment under state breach notification laws. Prior to joining the firm, Kathryn was an associate at Nixon Peabody. She earned her J.D., cum laude, from Roger Williams University School of Law and her B.A., magna cum laude, from Stonehill College. She is admitted to practice law in Massachusetts and Rhode Island. Read her full rc.com bio here.