ACTS Retirement Services Hit with Class Action Following April-May 2022 Data Breach

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ACTS Retirement Services, Inc. faces a proposed class action lawsuit over a data breach believed to have compromised the personal information of potentially thousands of current and former employees.

The 27-page lawsuit relays that ACTS, the not-for-profit parent company of affiliates who provide residential, assisted living and skilled care services to senior citizens, announced in late June 2022 that unauthorized actors had gained access to employee information stored on its network around April 29 of this year.

Filed by an employee who worked for the defendant more than 25 years ago, the suit says that ACTS discovered the breach on May 2 and, after an investigation, concluded that current and former employees’ names, Social Security numbers and, in some cases, financial account details had been compromised.

According to the suit, the company’s inadequate security systems were to blame for the incident, which the case says has exposed victims to a heightened risk of identity theft and fraud.

The plaintiff, who worked for an ACTS affiliate in Boca Raton, Florida in 1996, claims ACTS stores employees’ sensitive information for years, “even decades,” after they stop working for the company. Per the suit, the plaintiff received a data breach notice from ACTS on July 6, 2022.

Although ACTS uncovered the data breach in early May, it waited nearly two months to begin notifying those whose information was affected, the lawsuit states. The case alleges the company’s data breach notice “obfuscated the nature of the breach and the threat it posed,” and failed to disclose how many people were affected, how the breach happened, and why it took ACTS so long to notify victims.

“Defendant’s failure to timely detect and report the Data Breach made its current and former employees vulnerable to identity theft without any warnings to monitor their financial accounts or credit reports to prevent unauthorized use of their [personally identifiable information],” the complaint states.

The lawsuit goes on to criticize ACTS’s offer of one year of free credit monitoring services, arguing that it “does not adequately address the lifelong harm that victims will face.”

The plaintiff looks to represent anyone in the U.S. whose personal information was compromised in the data breach disclosed by ACTS in June 2022.

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