Progressive Insurance Hit with Lawsuit Over Alleged Data Breach

In the bustling world of insurance, trust is paramount. Customers entrust their personal information to companies, believing that it will be safeguarded. However, a recent lawsuit filed by Giovanni J Madaffari, on behalf of himself and all others similarly situated, alleges that Progressive Casualty Insurance Company, one of the nation's leading insurance providers, failed in this fundamental duty.

According to the complaint, Progressive Casualty Insurance Company allegedly failed to secure and safeguard the personally identifiable and financial information (PII) of Madaffari and others. The lawsuit claims that the insurance carrier, which had a duty to protect this sensitive information, failed to implement adequate security measures.

The story unfolds in May 2021, when an unauthorized intruder allegedly gained access to Progressive's database. The intruder exfiltrated the PII of Madaffari and other customers. This information included names, dates of birth, addresses, and Social Security numbers - the kind of data that can be sold on the dark web and used for identity theft.

"The defendant was aware of the breach but did not notify the plaintiff and the class members until over two months later," the lawsuit alleges. This delay in notification is a critical point in the complaint. It suggests that customers were left in the dark about the potential risk to their identities.

The lawsuit brings forth claims of negligence and breach of fiduciary duty against Progressive. It alleges that the company violated Section 5 of the Federal Trade Commission (FTC) Act, which prohibits unfair or deceptive acts or practices in or affecting commerce. The complaint suggests that by failing to protect customers' PII and delaying notification of the breach, Progressive may have engaged in unfair practices.

The plaintiff and others similarly situated are seeking actual, consequential, and nominal damages. They are also seeking injunctive relief, which could force Progressive to change its practices. The damages sought reflect the potential harm that could be caused by identity theft, including financial loss and damage to credit scores.

The class of plaintiffs is defined as all persons whose PII was accessed and/or exfiltrated during the data breach incident. This could potentially include a large number of Progressive's customers, given the company's size and reach.

This lawsuit highlights the growing concern over data security and the responsibility companies have to protect their customers' information. It serves as a stark reminder that companies must be vigilant in safeguarding data and transparent in their communication when breaches occur.