Recently, Proliant Settlement Systems, LLC confirmed that the company experienced a data breach after an unauthorized party gained access to the company’s computer network and the sensitive consumer data contained on the network. According to the Proliant, the breach resulted in driver’s license numbers, Social Security numbers, passport numbers, and financial information being compromised. On June 27, 2002, Proliant filed an official notice of the breach and sent out data breach letters to all affected parties. As many as 12,697 individuals are believed to have been impacted as a result of the Proliant data breach.

If you received a data breach notification, it is essential you understand what is at risk and what you can do about it. To learn more about how to protect yourself from becoming a victim of fraud or identity theft and what your legal options are in the wake of the Proliant Settlement Systems data breach, please see our recent piece on the topic here.

What We Know About the Proliant Settlement Systems Data Breach

Based on an official filing with a state attorney general’s office, Proliant first learned of the incident around July 16, 2021. Evidently, at that time, Proliant was made aware that there was unauthorized access to its cloud computing vendor, which may have exposed consumer data in Proliant’s possession.

Upon discovering that sensitive consumer data was accessible to an unauthorized party, Proliant Settlement Systems then reviewed the affected files to determine exactly what information was compromised. While the breached information varies depending on the individual, it may include your name, driver’s license number, Social Security number, passport number, and financial information.

On June 27, 2022, Proliant Settlement Systems sent out data breach letters to all individuals whose information was compromised as a result of the recent data security incident. Based on the most recent filings, the Proliant Settlement Systems breach affected 12,697 individuals.

More Information About Proliant Settlement Systems, LLC

Proliant Settlement Systems, LLC is a finance and technology company specializing in developing software that allows individuals to open their own title companies. Proliant created a turn-key franchise system which the company claims simplifies the process of starting and managing a title company. The company assists new and existing title companies by providing IT infrastructure, centralized processing, pre-launch training, back-office title production, quality control reviews, post-closing assistance, and ongoing support. Proliant Settlement Systems employs more than 50 people and generates approximately $5 million in annual revenue. Proliant Settlement Systems, Inc. is based in Auburn Hills, Michigan.

Liability Following a Data Breach

The Proliant data breach is relatively recent news, and additional information is expected to come out in the near future. However, at this point, it appears as though the Proliant breach involved unauthorized access to the company’s IT network, which granted the unauthorized party access to the sensitive data of individuals who may not have even known Proliant had their information. This is due to the fact that Proliant acts as a vendor to its franchise holder title companies.

In a situation such as this one, determining who is liable for a data breach can be complex, and consumers whose information was leaked may not know who to look to for recourse.

As a general rule, any company that maintains, stores, transmits or receives consumer data has a legal obligation to the consumer. It is generally irrelevant whether the organization in possession of a consumer’s information received the data directly from the consumer or through a third-party vendor—the question is whether the party who leaked the information was negligent.

Turning to the Proliant data breach, based on the currently available information, it would appear that Proliant is the most likely liable party—although it is too soon to tell if the breach was the result of the company’s negligence. In the data breach context, a victim can prove a company was negligent by establishing the following elements:

• The organization owed the victim a duty of care;

• The organization breached the duty it owed to the victim;

• The organization’s negligence caused or contributed to the victim’s harms (i.e., identity theft); and

• The victim suffered economic or non-economic injury as a result.

While this sounds straightforward, proving these elements can be challenging, especially when there are multiple companies involved. An experienced data breach lawyer can assist victims of the Proliant data breach in assessing their options and determining whether they may have a legal claim against the company.