Toshiba Hit With Lawsuit Over Massive, Monthslong Data Breach

Case Overview: A class action lawsuit has been filed against Toshiba, alleging negligence in data security practices led to a data breach that exposed customer information.

Consumers Affected: Toshiba employees and customers whose personal information was compromised in the data breach.

Court: U.S. District Court for the Central District of California, Eastern Division

Toshiba corporate building

Former Employee Accuses Toshiba of Negligence, Delayed Notification

Toshiba has been hit with a lawsuit over a monthslong data breach that allegedly exposed the sensitive personal information of its employees and customers to cybercriminals.

A former employee alleges that the company’s negligence and failure to secure its systems allowed cybercriminals to access names, Social Security numbers, and other sensitive information, and now he and others impacted by the breach face a lifetime risk of identity theft and fraud. “Plaintiff and Class Members will need to pay for their own identity theft protection and credit monitoring for the rest of their lives due to Toshiba’s gross negligence,” the lawsuit alleges.

Toshiba Data Breach Exposes Sensitive Information, Putting Millions At Risk

Kyle McDaniel, a resident of Cordova, Tennessee, filed the proposed class action lawsuit after he was notified by Toshiba on July 23 that his personal information had been compromised. Hackers had accessed his name and Social Security number, among other details, during the breach, according to the lawsuit. Since then, McDaniel says he has been actively trying to mitigate the damage.

Already, he’s faced misuse of his information, he says. On June 9, he received a letter from Chase Bank notifying him that someone attempted to fraudulently open an account using his information. To protect himself, McDaniel had to place a fraud alert on his credit and freeze his accounts. So far, he’s spent over 80 hours dealing with the aftermath, including monitoring his credit and trying to protect himself from future fraud, according to the lawsuit.

Lawsuit Claims Toshiba Failed To Protect Consumer Data, Leading To Identity Theft

The lawsuit argues that Toshiba was aware—or should have been—of the risks involved in storing personal information without adequate security. The company collected data for employment and customer relationships, placing legal and ethical duties upon them to protect it. Despite this, the lawsuit claims Toshiba failed to implement basic safeguards, including proper encryption and security protocols, leading to the breach.

McDaniel argues that Toshiba’s negligence exposed his and others' sensitive information to hackers who now possess everything needed to commit identity theft, fraud, and other crimes. The danger of identity theft is ongoing and will continue to impact their financial and personal lives, he alleges.

Delayed Notification of Data Breach Amplifies Consumer Concerns

Toshiba discovered suspicious activity within its email system, but by then, cybercriminals had been in the system for over three months, from December 2023, to March 2024, the lawsuit states. The company claims it initiated an investigation and learned that sensitive information had been compromised. However, Toshiba did not notify affected individuals until months later, with some victims only learning of the breach in late July 2024, McDaniels alleges.

The data breach exposed Social Security numbers and other personal information, highly sensitive information, and McDaniels accuses Toshiba of responding inadequately, offering victims 24 months of identity theft protection services. 

With their personal information in the hands of cybercriminals, victims of the breach, including McDaniel, face a heightened risk of identity theft, fraud, and other financial crimes. Cybercriminals can use this data to open accounts, make purchases, and commit various fraudulent acts in the victims’ names. The lawsuit argues that this risk will persist for the rest of the victims' lives.

In addition to identity theft, victims could face damaged credit, loss of privacy, and other financial and emotional consequences, the lawsuit states.

Data Breaches Continue To Rise, Sparking Legal Action Against Companies

The Toshiba lawsuit is just one of many filed in response to rising cybercrime. Companies like Affirm, HealthEquity, and Coastal Orthopedics have faced similar lawsuits following breaches that exposed sensitive personal information.

HealthEquity has been accused of negligence after a data breach that allegedly led to identity theft and fraud. Coastal Orthopedics, too, is defending a lawsuit after hackers accessed the personal and medical information of over 200,000 patients.

In the Toshiba data breach class action lawsuit, McDaniel wants to represent consumers affected by the breach in his claims of negligence, breach of implied contract, and unjust enrichment. He’s seeking damages, injunctive relief, fees, and costs.

Case Details

  • Lawsuit: McDaniel v. Toshiba America Business Solutions, Inc.
  • Case Number:  8:24-Cv-01772
  • Court: U.S. District Court for the Central District of California, Eastern Division

Plaintiffs' Attorneys

  • Byron T. Ball (The Ball Law Firm APC)
  • William B. Federman and Kennedy M. Brian (Federman & Sherwood)

Have you been affected by the Toshiba data breach or other data breaches? Share your experiences and concerns in the comments below.

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