AnnieMac Class Action Lawsuit: Data Breach Exposed Customer Information

Case Overview: A class action lawsuit claims AnnieMac Home Mortgage failed to protect customer data, leading to a data breach that exposed sensitive personal information.

Consumers Affected: AnnieMac customers whose personal information was compromised in the data breach.

Court: U.S. District Court for the District of New Jersey, Camden Division

AnnieMac Home Mortgage is facing a class action lawsuit after a November data breach exposed sensitive personal information belonging to around 171,000 current and former customers. 

The lawsuit alleges that the nationwide mortgage provider failed to implement adequate cybersecurity measures, resulting in the hack and theft of personal data including Social Security numbers, names, and banking information.

AnnieMac Customer Alleges Negligence in Data Breach Lawsuit

Roselle, New Jersey, resident Franklin Montenegro filed the proposed class action against the company, alleging that he trusted AnnieMac to safeguard his personal information when he used its mortgage services, a decision he says he now regrets. 

According to the lawsuit, AnnieMac required Montenegro to provide sensitive personal information as a condition of its services, but the company failed to protect it adequately. Montenegro received a notification letter from AnnieMac in November informing him of the breach and warning of the risk of identity theft. The lawsuit claims the notice was insufficient, providing no meaningful assistance or remedies for customers affected by the breach.

Montenegro says he has spent extensive time and effort mitigating potential harm, including changing passwords, monitoring his credit, and placing alerts on financial accounts. The lawsuit also highlights the emotional toll, saying Montenegro has ongoing anxiety over potential misuse of his data and fears of future fraud.

Data Breach Exposed Sensitive Information of AnnieMac Customers

The breach, which AnnieMac disclosed to the Office of the Maine Attorney General, occurred between August 21 and August 23, 2024. During this time, files containing sensitive customer data were accessed and possibly copied. The breach was discovered on August 23, but the company’s response has been inadequate, the lawsuit argues.

The lawsuit accuses AnnieMac of neglecting widely recognized cybersecurity best practices, despite handling large amounts of sensitive information. The plaintiffs argue that such failures are inexcusable given the growing frequency and severity of data breaches targeting financial institutions. 

AnnieMac’s breach exposed affected customers to a range of potential harms, including identity theft, fraudulent financial activity, and phishing schemes. Montenegro contends that the company shifted the burden of protection to victims by merely advising them to monitor their accounts, rather than taking proactive steps to secure their data or prevent future incidents. 

Montenegro argues the company’s insufficient data security left them vulnerable to identity theft, fraud, and emotional distress.

Other Companies Face Similar Lawsuits Over Data Breaches

AnnieMac’s case reflects a wave of legal actions against companies over data breaches. Major corporations like Wells Fargo, Ally Financial, and Avis Rent A Car have faced similar lawsuits, with plaintiffs alleging failures to protect sensitive customer information. 

The healthcare sector has also seen an increase in such cases, with institutions like Kaiser Permanente and Tri-City Healthcare District accused of lapses in data security that left patients vulnerable.

As cyberattacks grow more sophisticated, courts are seeing consumers seek accountability for businesses’ failure to prevent breaches. In the AnnieMac lawsuit, plaintiffs are not only seeking damages but also demanding improved security measures to ensure such breaches don’t happen again.

In the AnnieMac data breach class action lawsuit, Montenegro wants to represent the company's customers nationwide in his claims of negligence, breach of implied contract, unjust enrichment, and breach of fiduciary duty. He is seeking restitution, credit monitoring, damages, interest, fees, and costs. 

Case Details

• Lawsuit: Montenegro v. American Neighborhood Mortgage Acceptance Company D/B/A AnnieMac Home Mortgage, 
• Case Number: 1:24-cv-10679-RMB-MJS
• Court: U.S. District Court for the District of New Jersey, Camden Division 

Plaintiffs' Attorneys

• Stefanie Colella-Walsh (Stark & Stark, P.C.)

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