DataBreaches.Net

Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report
Menu

Data Security Auditor May be Drawn Into Data Breach Class Action for Failing to Identify Vulnerabilities

Posted on November 25, 2014 by Dissent

DrinkerBiddle reports a development in Storm v. Paytime, Inc., No. 14-cv-01138-JEJ (M.D. Pa.):

In August, Paytime, Inc., a payroll services company, moved to dismiss a putative class action filed in the wake of a data breach in which the personal and financial information of more than 230,000 people was compromised.  Paytime argued that the plaintiffs lack standing, have failed to plead actual harm, and were not a party to or intended beneficiary of any contract with Paytime.

On September 30, while the motion to dismiss was pending, Paytime ran up against the court’s deadline for joining additional parties and filed a motion for leave to file a third party complaint against its data security auditor.  Six months prior to the data breach, SotirIS, a provider of integrated business solutions and cloud hosting, performed a “comprehensive breach assessment” for Paytime.  According to Paytime, “SotirIS failed to identify vulnerabilities in Paytime’s computer systems and, therefore, contributed to the occurrence of the data security event.”  Therefore, Paytime argues, if Paytime were found liable “for such a vulnerability, then SotirIS is liable to [Paytime] for contribution and indemnification.”

Read more of DrinkerBiddle’s Cybersecurity Litigation Newsletter.


Related:

  • Scattered Spider Hijacks VMware ESXi to Deploy Ransomware on Critical U.S. Infrastructure
  • Hacker group "Silent Crow" claims responsibility for cyberattack on Russia's Aeroflot
  • Two Data Breaches in Three Years: McKenzie Health
  • Scattered Spider is running a VMware ESXi hacking spree
  • BreachForums -- the one that went offline in April -- reappears with a new founder/owner
  • Fans React After NASCAR Confirms Ransomware Breach
Category: Business SectorCommentaries and AnalysesFinancial SectorOf Note

Post navigation

← Canada Revenue Agency privacy breach leaks prominent Canadians’ tax details
IE: Credit Union investigator fined €5k over data breach →

Now more than ever

"Stand with Ukraine:" above raised hands. The illustration is in blue and yellow, the colors of Ukraine's flag.

Search

Browse by Categories

Recent Posts

  • Connex Credit Union notifies 172,000 members of hacking incident
  • Federal judiciary says it is boosting security after cyberattack; researcher finds new leaks (CORRECTED)
  • Bank of America Refused To Reimburse Georgia Customer After Hackers Hit Account. Then a News Station Showed Up.
  • NCERT Issues Advisory on “Blue Locker” Ransomware Targeting Pakistan’s Key Institutions
  • Scattered Spider has a new Telegram channel to list its attacks
  • SC: Spartanburg County hit by cyberattack, some online services disrupted
  • Pakistan Petroleum thwarts ransomware attempt, says no critical data compromised
  • ShinyHunters sent Google an extortion demand; Shiny comments on current activities
  • Air France and KLM alert customers to data breach on external platform
  • Samourai CEO Keonne Rodriguez and Samourai CTO William Lonergan Hill Pled Guilty to Operating a Money Transmitting Business, Samourai Wallet, That Transmitted Over $200 Million in Criminal Proceeds

No, You Can’t Buy a Post or an Interview

This site does not accept sponsored posts or link-back arrangements. Inquiries about either are ignored.

And despite what some trolls may try to claim: DataBreaches has never accepted even one dime to interview or report on anyone. Nor will DataBreaches ever pay anyone for data or to interview them.

Want to Get Our RSS Feed?

Grab it here:

https://databreaches.net/feed/

RSS Recent Posts on PogoWasRight.org

  • Germany’s top court holds that police can only use spyware to investigate serious crimes
  • Flightradar24 receives reprimand for violating aircraft data privacy rights
  • Nebraska Attorney General Sues GM and OnStar Over Alleged Privacy Violations
  • Federal Court Allows Privacy Related Claims to Proceed in a Proposed Class Action Lawsuit Against Motorola
  • Italian Garante Adopts Statement on Health Data and AI
  • Trump administration is launching a new private health tracking system with Big Tech’s help
  • Attorney General James Takes Action to Protect Sensitive Personal Information of Tens of Millions of People

Have a News Tip?

Email: Tips[at]DataBreaches.net

Signal: +1 516-776-7756

Contact Me

Email: info[at]databreaches.net

Mastodon: Infosec.Exchange/@PogoWasRight

Signal: +1 516-776-7756

DMCA Concern: dmca[at]databreaches.net
© 2009 – 2025 DataBreaches.net and DataBreaches LLC. All rights reserved.