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.
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