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Amazon, Zappos Face Data Breach Class Action

Louisville, KY: A proposed class action lawsuit has been filed against Amazon.com and its Zappos.com subsidiary alleging a recent data breach could put some 24 million Zappos.com customers' personal credit information at risk. The lawsuit was filed in federal court on behalf of Theresa D. Stevens, of Beaumont, TX, and all affected Zappos customers.

"This is a consumer class-action lawsuit brought by plaintiff, individually and on behalf of over 24 million similarly-situated persons whose Zappos.com personal customer account information including names, account numbers, passwords, email addresses, billing and shipping addresses, phone numbers and the last four digits of credit cards used to make purchases was stolen by hackers who gained access to Zappos.com’s internal network through the company’s unprotected servers located in western Kentucky," the suit says.

The lawsuit contends that Amazon and Zappos violated the federal Fair Credit Reporting Act by failing to protect customers’ personal account information and that the companies' customers suffered an "invasion of privacy by the public disclosure of private facts."

The lawsuit also contends that customers must be concerned about being targeted by identify theft schemes or even "phishing," in which a criminal may pose as being with Zappos, set up a fake Zappos website and try to contact customers to gain their bank account numbers, login information or Social Security numbers. The suit states "Plaintiff and class members were and continue to be damaged in the form of expenses for credit monitoring and identity theft insurance, out-of-pocket expenses, anxiety, emotional distress, loss of privacy and other economic and non-economic harm.”

The suit seeks unspecified damages in excess of $5 million, including actual and statutory damages, mental anguish damages and exemplary damages "as punishment and to deter such wrongful conduct in the future."

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Last updated on Jan-18-12