Class Action Filed Over December 2022 CGM Data Breach

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A proposed class action claims CGM, LLC’s failure to properly secure consumers’ personally identifiable information resulted in a data breach announced by the company on June 7 of this year.

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The 26-page case says that CGM, a software development firm that provides services to help wireless and broadband companies participate in the federal Affordable Connectivity Program, detected on December 28, 2022 that an unauthorized third party had infiltrated its network.

According to a notice provided to the Maine Attorney General in early June, an investigation revealed that between December 15 and 28, the unknown actor gained access to the private information of 279,063 individuals, including, but not limited to, their full names, driver’s license numbers and state identification card numbers.

“[The plaintiff] and Class members are now at a significantly increased and certainly impending risk of fraud, identity theft, and similar forms of criminal mischief, risk which may last for the rest of their lives,” the complaint says. “Consequently, [the plaintiff] and Class members must devote substantially more time, money, and energy to protect themselves, to the extent possible, from these crimes.”

The plaintiff, a Louisiana resident who received a notice letter informing him that his data was involved in the breach, says the incident has forced him to spend his valuable time monitoring his accounts in order to detect and prevent any misuse of his information.

The suit alleges that despite the prevalence of data breaches in recent years, CGM chose to overlook its legal duty to employ reasonable cybersecurity procedures consistent with industry standards.

“By collecting and storing valuable [personally identifiable information] that is routinely targeted by cyber-criminals for unauthorized access,” CGM had an obligation to protect consumers against such “foreseeable threats,” the complaint charges.

The lawsuit looks to cover anyone in the United States whose personally identifiable information was compromised in the data breach announced by CGM on or about June 7, 2023.

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