Court showdown looming for 2 Maine companies over data breach

May 6, 2024
1 min read

TLDR:

  • Two Maine firms, BerryDunn and Reliable Networks, are at odds over a major data breach last fall.
  • Personal information of over a million people, including Social Security numbers and medical data, was stolen.

Two Maine companies, BerryDunn and Reliable Networks, are embroiled in a dispute over a cybersecurity breach that occurred last fall. BerryDunn alleges that Reliable Networks, one of its vendors, was hacked and responsible for the breach, while Reliable Networks claims that it was hired to manage BerryDunn’s health care data, not secure it. The stolen data included personal information such as names, addresses, Social Security numbers, and medical information of over a million individuals.

Despite the ongoing blame game between the two companies, it is agreed that sensitive information was compromised. Eight customers of BerryDunn have come forward to accuse the company of negligence, unjust enrichment, and breach of fiduciary duty due to the data theft. The case is expected to go to the U.S. District Court of Maine. BerryDunn is offering credit monitoring and identity protection services to impacted individuals at no cost.

The stolen data, which includes Social Security numbers and medical information, is highly valuable on the black market. Medical identity theft, in particular, can cost victims up to $20,000 per incident. The plaintiffs, spread across different states, are seeking damages and a jury trial in hopes of forming a class-action lawsuit. They expressed frustration over the seven-month delay between the discovery of the breach and receiving notification letters.

Overall, the breach has raised concerns about identity theft and fraud, with BerryDunn urging impacted individuals to monitor their financial accounts and report any suspicious activities to law enforcement. The companies involved continue to trade blame, while customers affected by the breach seek legal recourse and demand accountability for the mishandling of their personal information.

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