Mondelez, US law firm must face class action over data breach
By David Thomas
June 4 (Reuters) -Snack food giant Mondelez MDLZ.O and U.S. law firm Bryan Cave Leighton must face at least part of a proposed class action over a data breach at the firm that compromised personal information belonging to thousands of Mondelez employees, a Chicago federal judge has ruled.
U.S. District Judge Jorge Alonso on Monday dismissed some of the allegations in the case for now, but he refused to throw out the employees' negligence claims against Mondelez and 1,200-lawyer BCLP.
Spokespersons for BCLP and Chicago-headquartered Mondelez, whose snack brands include Oreo and Cadbury, declined to comment. The defendants have denied wrongdoing.
Lawyers for the plaintiffs, who sued on behalf of a proposed class of 51,100 current and former Mondelez employees, did not immediately respond to a request for comment.
As an outside law firm for Mondelez, BCLP possessed personal information on its employees including names, dates of birth, Social Security numbers and addresses, according to the plaintiffs. After hackers gained access to the files in a 2023 breach at the firm, the employees sued both Mondelez and BCLP for failing to safeguard their data.
The judge on Monday kept the plaintiffs' negligence claims alive against both defendants, and he rejected Mondelez's argument that it should not be held responsible for the breach of another company's systems.
"Plaintiffs argue that Mondelez's arguments about breach and proximate cause turn on questions of fact that make a ruling inappropriate at the pleading stage, and the court tends to agree," Alonso wrote in his 21-page ruling.
The judge dismissed other claims, including unjust enrichment and breach of contract claims, against Mondelez and BCLP, though he said the plaintiffs can file an amended complaint by July 3.
One of the lawyers representing the plaintiffs in the lawsuit against BCLP, William Federman, brought a lawsuit against U.S. law firm Orrick, Herrington & Sutcliffe over a separate March 2023 data breach involving that firm.
Orrick denied any liability or wrongdoing, but the firm has agreed to pay $8 million to settle those class actions. A federal judge in San Francisco granted preliminary approval to the settlement on Friday.
The cases are Michael Shields v. Mondelez Global LLC, U.S. District Court for the Northern District of Illinois, 1:23-cv-03999, and Eric Flores v. Bryan Cave Leighton Paisner LLP, et al., U.S. District Court for the Northern District of Illinois, 1:23-cv-04249.
Reporting by David Thomas
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
