Cole & Van Note Announces Filing of Rackspace Ransomware/Data Breach Class Action

OAKLAND, Calif.--(BUSINESS WIRE)--Scott Cole, class action veteran and founder of California-based Cole & Van Note, announces the filing of a class action lawsuit against Rackspace Technology, Inc. for negligence and related violations arising out of the email hosting provider’s recent high-profile data breach.

Starting on December 2, 2022, Rackspace observed and began investigating connectivity issues within its Hosted Exchange environment. Over the next few days, its reports developed from an acknowledged lack of information to identifying the event as a “security incident” to a report issued today that the cause was ransomware. Meanwhile, countless Rackspace customers were unable to access email service, were advised to migrate to a Microsoft 365 platform and to take various steps to protect and access their data. “That Rackspace offered opaque updates for days, then admitted to a ransomware event without further customer assistance is outrageous,” says Scott Cole, the principal attorney on the case. “Despite hundreds of data breaches every year in this country, I am receiving reports of vulnerabilities in Rackspace’s hosting environment that go back over a year. That, and a seeming lack of backup protocols is why a lawsuit like this is critical.”

In addition to monetary damages, the suit demands Rackspace Technology implement and maintain sufficient security protocols going forward so as to prevent future attacks. Of the numerous cyber-attacks, a growing percentage of them target sensitive business records such as those accessed here, given that such information is highly valuable to cyber criminals.

The lawsuit is entitled Stephenson, et al. v. Rackspace Technology, Inc. (U.S.D.C., Western District of Texas Case No. 5:22-cv-01296). For more information about this case, please contact Cole & Van Note at [e-mail] or [phone].

ABOUT COLE & VAN NOTE

Since its inception in 1992, Cole & Van Note has litigated countless matters against businesses of all types, and in nearly every industry imaginable. It engages in nationwide litigation as a well-known and widely respected member of the country’s legal community. For decades, the firm has recovered hundreds of millions of dollars for countless consumers and workers, has been involved in record-setting resolutions and corrected numerous unlawful practices.