Kentucky Injury Lawyers

Amazon Faces Class Action Lawsuit over Zappos Data Breach

Published on Jan 25, 2012 at 7:44 pm in Class Actions.

According to Paidcontent.org, online shoe retailer Zappos is facing a national class action suit brought by angry consumers. The Amazon-owned shoe company sent a mass e-mail to their customers on January 16 stating that 24 million customer accounts had been breached following an incident in which hackers obtained names, phone numbers, encrypted passwords, e-mails, and the last four digits of buyers’ credit card numbers.

The class action lawsuit claims Amazon failed to properly encrypt and secure customer information, and therefore violated a part of the Fair Credit Reporting Act. The lawsuit seeks unspecified damages for the 24 million customers.

The lead plaintiff in the case lives in Texas, but the woman filed the lawsuit in a federal court in Louisville, Kentucky on the grounds that Amazon has servers located in the state. Paidcontent.org reports that the lawsuit appears based in part on a “novel legal theory” that, because the hackers now have customers’ e-mail addresses, they will now be more susceptible to various online scams, such as phishing. In addition, the class action lawsuit alleges that the plaintiffs suffered emotional distress. As hacking-related incidents have become more common, similar lawsuits have as well, but many have had difficulty being successful as customers have been unable to show that they have been harmed by the data breaches.

Class action lawsuits, in which a large group of people collectively bring a claim to court, can be very time consuming and can leave members of the suit with coupons or other awards that have little to no value. In addition, confusing notices regarding the lawsuit may prevent people from fully understanding and exercising their legal rights. An experienced Kentucky class actions attorney can help any KY resident who may be involved in a class action lawsuit sort out the complicated legal issues in order to obtain fair and just compensation.