MSP Recovery Law Firm accuses CDK of negligence and breach of contract for improper response to two massive data breaches within 48 hours
MSP Recovery Law Firm filed a complaint in Federal Court in the Southern District of Florida against CDK Global Inc. on behalf of several Plaintiff Classes representing current and former automobile dealerships, automobile sales representatives, service department employees, and auto purchasers, after an immense data breach that leaked customer names, employee names, Social Security numbers, personal financial data, emails and mailing addresses, phone numbers, personal identification numbers (PINs), and dates of birth, among other sensitive personally identifiable information (PII).
MSP Recovery Law Firm will rely upon sophisticated data analytics systems developed by MSP Recovery, Inc. d/b/a LifeWallet (NASDAQ: LIFW) ("LifeWallet," or the "Company"), in collaboration with Palantir Technologies Inc., utilizing its Foundry System to capture and manage data pertaining to this case. These systems have been an integral part of evidence presented in litigation by MSP Recovery Law Firm including a recent class action that was certified against USAA Casualty Insurance Company and USAA General Indemnity Company (collectively “USAA”), on June 10, 2024, for failing to adequately coordinate benefits.
CDK Global is at the epicenter of the automotive retail industry as a provider of IT and digital solutions. The company is trusted by more than 15,000 auto dealerships across North America to assist them in pursuit of efficiency and customer satisfaction. Upon learning of the breach on June 18, 2024, CDK took their systems offline for a period of less than 24 hours to investigate and remediate the situation. Less than 24 hours later, the system was brought back online and was exposed to another breach. Two major incidents in such a short amount of time raise substantial concerns about the adequacy of CDK’s cyber security measures and incident response strategies.
“CDK failed to protect the data of its current and former customers not once, but twice,” said John H. Ruiz, Founder of MSP Recovery Law Firm and lead counsel for the firm in the case. Mr. Ruiz is also Founder and CEO of LifeWallet. “If CDK has the authority through its partnerships to require customers to hand over information for the company’s commercial benefit, it bears the responsibility for safeguarding it, at a minimum.”
The Dealership Management System provided by CDK Global serves as a backbone for more than 15,000 dealerships’ day-to-day activities. When the system is compromised due to CDK’s misjudgments and negligence, it is primarily vendors and customers that suffer. On June 18, the affected dealerships were forced to revert to manual, analog operations, significantly affecting their ability to effectively conduct business operations. Current and former customers are still facing potential repercussions in the form of identity theft and threats of extortion.
The outcome of this case could have significant implications on the way technology companies respond to cyber security events under state and federal laws, potentially leading to greater preparedness and accountability in the industry.
For more information, visit: http://claimyourcases.com/cdklawsuit.
About MSP Recovery Law Firm
MSP Recovery Law Firm’s experienced attorneys have litigated hundreds of cases relating to insurance proceeds, federal, and state statutes. As far back as 1995, the firm’s attorneys have taken on and prevailed against some of the largest companies in the United States, including being selected as lead class counsel in numerous lawsuits against the nation’s automobile insurance companies. MSP Recovery Law Firm’s attorneys have the knowledge and experience to address even the most complicated and data-driven class actions. For more information, visit: msprecoverylawfirm.com.
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