Patelco Hit With 2 Class-Action Lawsuits For Ransomware Outage

DUBLIN, CA — Patelco members have filed two separate class-action lawsuits against the credit union, alleging that it did not take the necessary precautions to protect itself from hackers, according to reports.

A complaint filed by Oakland-based firm Cole & Van Note accuses Patelco of exposing members’ private information because it “intentionally, willfully, recklessly and/or negligently” failed to implement the necessary safeguards. The suit also accuses Patelco of not alerting customers in a timely manner, and not being transparent enough in its communications.

“Representative Plaintiff and the Class Members remain, even today, in the dark regarding what particular data was stolen, the particular malware used and what steps are being taken, if any, to secure their Private Information going forward,” said the suit, which in addition to damages mandates an upgraded security system.

Another suit from San Diego firm Wolf Haldenstein Adler Freeman & Herz also accused the credit union of negligence and lack of transparency, and noted the costs and inconveniences caused by the outage.

Starting June 29, the credit union’s roughly 450,000 members were not able to make any electronic transactions, receive direct deposits, or pay bills online. Customers instead have needed to travel to credit union sites or approved ATMs, where they have needed to wait in long lines. Furthermore, the members have daily withdrawal limits, including $2500 for debit transactions with a signature, and $500 for pin debit transactions or ATM withdrawals, according to KTVU. For customers with big bills to pay, this is not nearly enough.

On Sunday, Patelco CEO Erin Mendez said that the system had “stabilized” and there was “light at the end of the tunnel.” As of Tuesday, some new transactions are now possible, including direct deposit, check and cash deposits, checks written on Patelco accounts, and PayPal and Venmo transactions connected to accounts, according to a CBS report.

Patelco has not responded to the lawsuits as of Wednesday, but has said that there is an end in sight. On Tuesday, Patelco CEO Erin Mendez said the company was making “positive momentum daily” and expects to be “completely caught up by the end of the week.”

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