December 12, 2022
Scott Cole, class action veteran and founder of Cole & Van Note in California, recently announced the filing of a class action lawsuit against Rackspace Technology, Inc. for carelessness and linked infringements arising from the email hosting provider’s recent high-profile data breach.
Rackspace Technology previously announced on Tuesday that the “security incident” that caused a five-day major outage of its Hosted Exchange service was caused by a ransomware attack.
According to a Rackspace statement, the company has hired a leading cyber defense firm to investigate the attack, and it is too early to say whether any customer data was compromised.
The lawsuit sought damages for negligence, breach of contract, breach of the implied covenant of good faith and fair dealing, and deceptive trade practices. In addition to monetary restitution, Rackspace has promised to implement and maintain adequate security protocols in the future.
“That Rackspace offered opaque updates for days, then admitted to a ransomware event without further customer assistance is outrageous,” Scott Cole, the principal attorney on the case, said.
The sources for this piece include an article in DataCenterDynamics.
