Datto, Open Mesh Falsely Advertised Cloud-Managed Network Devices, Class Action Alleges

New to ClassAction.org? Read our Newswire Disclaimer

A proposed class action alleges Datto, Inc. and Open Mesh, Inc. have falsely advertised their cloud-managed network devices in that customers have not received a lifetime cloud license, automatic firmware updates and other benefits as promised. 

The 22-page case traces the alleged misconduct back to Datto’s 2016 acquisition of Open Mesh, when Datto took over CloudTrax, a cloud-managed platform to which the network devices connect. It was upon this acquisition, the case says, that a new pricing model was introduced requiring all users to pay a monthly fee in order to maintain access to CloudTrax, which provides secure internet connectivity, device control, and management and monitoring to consumers and businesses, and to continue receiving the benefits of the lifetime cloud license. 

The lawsuit alleges this pricing model “contradicts” the basis upon which former users purchased Datto’s and Open Mesh’s devices in that they never agreed to pay a monthly maintenance fee in exchange for a cloud license. Under Datto, the lawsuit argues, consumers have been left with the option to either pay the monthly fee or replace their hardware and switch to another provider. 

“As a direct and proximate result of Datto’s business model change, Plaintiffs and Class Members, like so many others, lost out on significant investments and prospective profits to their damage,” the suit alleges. 

According to the suit, Datto and Open Mesh customers use the companies’ cloud-managed network devices not only for internet activity and WiFi, but also as a “scalable foundation” for a variety of other cloud-managed devices and systems, such as cameras, sensors and point-of-purchase systems. Before it was acquired by Datto, Open Mesh advertised its products as coming with a lifetime cloud license, without which the devices cannot and do not operate properly, the lawsuit says. 

“Without the cloud license the devices are rendered useless,” the complaint says. “Plaintiffs and Class members lost economic gain and suffered financial loss due to Defendants’ false advertising and deception.” 

The case looks to represent all consumers who, from 2007 through the present, bought Open Mesh devices that require a connection to CloudTrax to function.

Get class action lawsuit news sent to your inbox – sign up for ClassAction.org’s free weekly newsletter here.