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Leaders Life Insurance Failure to Protect PII Class Action

The complaint for this class action accuses, “Leaders Life [Insurance Company], which services over 700 agents and brokers, and 1,400 employer groups, is now among those companies which have failed to meet their obligation to protect the sensitive PII entrusted to them by their current and former customers. PII is personally identifiable information, which was exposed during a November 2020 data breach to Leaders Life systems.

The class for this action is all persons living in the US who are current or former customers of Leaders Life or any of its affiliates, parents, or subsidiaries, and who received a Notice Letter saying that their PII may have been exposed as a result of the data breach that took place November 25-27, 2020.

When customers get insurance products, they are obliged to turn over to the insurance company certain pieces of PII, such as names, Social Security numbers, and other information. This information can be very valuable to identity thieves in perpetrating different varieties of fraud.

According to the complaint, a core value of Leaders Life expressed on its website is “Take Care of the Customer and the Customer Will Take Care of You.” The complaint alleges, “Unfortunately…, Leaders Life failed to live up to this core value as it relates to customer data security and privacy. Leaders Life, simply stated, failed to adequately secure Plaintiff’s and Class Members’ PII.”

The complaint alleges, “As reported by Leaders Life, between November 25 and November 27, 2020, an unknown third party gained unauthorized access and exfiltrated certain folders on Leaders Life’s systems containing customers’ highly sensitive and unencrypted PII…”

For some reason, the complaint claims, Leaders Life did not inform the victims for nearly seven months after the data breach. It finally sent out a Notice Letter dated June 16, 2021, saying in part, “On November 27, 2020, Leaders life learned that it was the target of a cybercriminal attack and that portions of our computer network were infected with malware.”

Later on, it added, “Our investigation determined that the informatin related to you that may have been potentially affected includes your name, date of birth, Tax ID number, and/or Social Security number.”

The complaint quotes a cybersecurity expert as saying, “Compared to credit card information, personally identifiable information and Social Security numbers are wroth more than 10 time on the black market.”

The complaint claims that Leaders Life did not comply with Federal Trade Commission (FTC) requirements. In particular, it points to an FTC publication entitled, “Protecting Personal Information: A Guide for Business,” which the complaint claims “established guidelines for fundamental data security principles and practices for business.”

According to the complaint Leaders Life was “negligent” in securing PII “by not implementing adequate data security and allowing an unknown third party to access Leaders Life’s computer network in order to access unencrypted customer PII…”

Article Type: Lawsuit
Topic: Privacy

Most Recent Case Event

Leaders Life Insurance Failure to Protect PII Complaint

June 25, 2021

The complaint for this class action accuses, “Leaders Life [Insurance Company], which services over 700 agents and brokers, and 1,400 employer groups, is now among those companies which have failed to meet their obligation to protect the sensitive PII entrusted to them by their current and former customers. PII is personally identifiable information, which was exposed during a November 2020 data breach to Leaders Life systems.

Leaders Life Insurance Failure to Protect PII Complaint

Case Event History

Leaders Life Insurance Failure to Protect PII Complaint

June 25, 2021

The complaint for this class action accuses, “Leaders Life [Insurance Company], which services over 700 agents and brokers, and 1,400 employer groups, is now among those companies which have failed to meet their obligation to protect the sensitive PII entrusted to them by their current and former customers. PII is personally identifiable information, which was exposed during a November 2020 data breach to Leaders Life systems.

Leaders Life Insurance Failure to Protect PII Complaint
Tags: Exposing Private Information, Exposure to cyber crime, Your Privacy