Varsity Brands Data Breach Class Action: Customer Data Exposed

Case Overview: A class action lawsuit has been filed against Varsity Brands, alleging that the company failed to protect customer data, leading to a data breach.

Consumers Affected: Individuals whose personal information was compromised in the Varsity Brands data breach.

Court: U.S. District Court for the Northern District of Texas

Varsity Brands, a leading provider of cheerleading, dance, and performing arts apparel and events, is facing a class action lawsuit alleging that the company failed to adequately protect the personal information of its customers. 

Filed by Dean Huntley in the U.S. District Court for the Northern District of Texas, the case stems from a data breach that occurred on May 24, 2024, potentially exposing the sensitive information of over 65,000 individuals.

Huntley, a resident of Marion County, Indiana, claims that Varsity Brands failed to implement reasonable cybersecurity measures to safeguard customer data, despite being aware of the risks of cyberattacks. He alleges that this negligence led to the data breach, which exposed customers' names, dates of birth, Social Security numbers, financial account information, and driver's license numbers, among other sensitive details.

Varsity Brands Accused of Negligence in Data Breach, Exposing Customer Information

According to the complaint, on May 24, 2024, Varsity Brands detected suspicious activity on its computer network, indicating a potential data breach. A subsequent forensic investigation revealed that cybercriminals had infiltrated the company's computer systems and gained access to files containing sensitive customer information.

The lawsuit alleges that Varsity Brands failed to adequately protect this information by neglecting to implement industry-standard security measures such as encryption, access controls, and employee training on cybersecurity threats.

The exposed personal information could be used for various harmful purposes, including identity theft, financial fraud, and medical identity theft. Identity theft can cause substantial financial losses and emotional distress to victims.

Lawsuit Claims Varsity Brands Failed to Implement Adequate Security Measures

The lawsuit accuses Varsity Brands of negligence in its handling of customer data. It claims that the company failed to invest sufficient resources in cybersecurity measures to protect sensitive information, detect external infiltration, and train its employees to identify and defend against hacking threats.

“Nevertheless, Defendant failed to spend sufficient resources on encrypting sensitive personal data, preventing external access, detecting outside infiltration, and training its employees to identify hacking threats and defend against them,” the lawsuit argues. 

Furthermore, the lawsuit criticizes Varsity Brands for its delayed disclosure of the data breach. Despite discovering the breach on May 24, 2024, the company did not notify affected individuals until October 14, 2024. 

This delay, Huntley argues, further exacerbated the harm to customers by depriving them of the opportunity to take timely action to protect themselves from potential identity theft and fraud.

“Due to Defendant’s negligence and failures, cyber criminals obtained and now possess everything they need to commit personal identity theft and wreak havoc on the financial and personal lives of thousands of individuals, for decades to come. 

Varsity Brands Faces Legal Challenges Over Data Breach and Antitrust Concerns

This isn't the first time Varsity Brands has faced legal challenges. In July 2024, a federal judge granted preliminary approval to an $82.5 million settlement in a class action lawsuit that accused the company of creating a monopoly in the cheerleading industry and using that dominance to inflate prices. The lawsuit, initially filed in 2020, alleged that Varsity Brands, its founder, and two private equity investors conspired with the U.S. All Star Federation to artificially raise prices for cheerleading activities and products. 

In the Varsity Brands data breach lawsuit, Huntley seeks to hold Varsity Brands accountable for its alleged failure to protect customer data. He is asking the court to certify the case as a class action, representing all individuals whose personal information was compromised in the data breach.

He seeks monetary relief, including actual damages and restitution, and an order requiring Varsity Brands to engage third-party security auditors and penetration testers to assess and improve its cybersecurity posture. He also seeks an order requiring the company to promptly correct any vulnerabilities identified by these security professionals.

Case Details

• Lawsuit: Dean Huntley v. Varsity Brands, Inc.
• Case Number: 3:24-cv-02633-B
• Court: U.S. District Court for the Northern District of Texas

Plaintiffs' Attorneys

• A. Brooke Murphy (Murphy Law Firm)

Have you been affected by the Varsity Brands data breach? Share your experiences and concerns in the comments below.